How to increase your legal fees

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When my accountant completed my tax returns last year, he sent them to me for my signature, along with his bill. Everything looked good, except for one thing. His fee was a lot higher than it was the previous year, and that was higher than the year before that. 

And it was a big increase. Almost shockingly so. 

What did I do? 

I paid it. 

I thought about making a stink, even finding another CPA, or at least telling him I wasn’t happy about the increase and asking him why. But I’ve been with him for decades; he does good work and I trust him and I’m pretty sure he saves me more than his fee. And, let’s face it, inflation has been bi-otch for the last several years. 

So I said nothing. 

But the increase still rattled my bones.

So, if you’re thinking about increasing your fees anytime soon, I have some advice. 

First, don’t agonize about it; do what you have to do. Clients understand that the price of everything goes up and that things tend to cost more this year than last. But don’t just send your clients a higher bill—give them a heads up. 

Tell them in advance that your fees are going up and tell them why.

Mention inflation or other factors. If it’s been a while since the last time you increased your fees, mention that, too. And don’t wait so long next time because the longer you wait, the bigger the increase, and the more shock and awe your clients might feel.

Also, do what you can to take care of your most loyal clients. The ones who have been with you for a long time. Consider delaying the increase for them and tell them that. “As one of our most valued clients, we’re keeping your rate the same for the next 3 months,” for example. 

I would have appreciated getting a note from my accountant along those lines. 

In short, show your clients you don’t take them for granted. Put yourself in their shoes and do what you would like them to do if your roles were reversed.

They might be shocked at the size of your next bill, but if you’ve done things right, they’ll pay it. 

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When a prospective client isn’t ready to sign up. . .

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You’re speaking to a prospective client about their case or matter, but they’re not ready to hire you. They tell you they need to think about it. Or say something else that means they’re not ready to say “yes”. 

In effect, it’s a “no”. 

What should you do? 

Many lawyers will correctly say that “no” means “not now”. The client may not be ready to sign up today, because they don’t have the money or don’t want to spend it, their pain or problem isn’t bad enough yet, they have people in their ear telling them they don’t need a lawyer and/or urging them to get more information or competitive quotes, and the list goes on. 

But that’s today, and tomorrow it could be a different answer. Assume that “no” means “not now” and let them go, those lawyers will tell you. If, and when they decide they need you, they’ll let you know. 

That’s the nature of business. You win some, you lose some, and some are delayed by rain. 

Letting them go is your first option. Is it your best choice? 

Other lawyers (and advisors) will tell you that “no” means they need more information or more convincing. You didn’t tell them enough or make things plain enough or urgent enough, and your job, as a professional persuader is to persuade. So get to it. 

Tell them more about the law, the risks of not taking action or waiting too long, why you are the best lawyer for what they need, and everything else you want them to know, so they can make the “right” decision. 

After all, if it’s in their best interests to hire you, you owe them a duty to pull out all the stops and get them to see the light (and other metaphors you could mix). 

So, don’t give up that easily. If you told them once, tell them again. More information, more examples, more stories about clients who made the wrong decision, or the right one. Maybe talk to the person who referred them, or a mutual business contact, and see if they can help. 

Many attorneys agree with this and will at least try to get the client to reconsider. And the client often does. They decided to hire the attorney, wrote a check, and all was right with the world.

So, those are your first two options. Let them go or do more convincing. But there’s a third option, and it’s the one I recommend. 

Your third option is to do for them what you would want them to do if your roles were reversed. If you were the prospective client and not ready to sign up, what would you want the attorney to say or do? 

Here’s what I would want:

I’d want the attorney to tell me they understand I’m not ready and won’t push me, thank me for speaking to them, and ask me what I want them to do. 

Do I want them to send me more information? Follow-up with me next week or next month? Validate my parking ticket?

I’d want the attorney to make sure I knew my options and let me tell them what I want to do.

That’s what you would want, isn’t it? That’s what your (prospective) clients want, too. 

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You’re not just paid for your legal services

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Clients hire attorneys to solve legal problems and deliver desired outcomes. They want our advice and our work product. They pay for our services and the results we get for them.

But that’s not all we’re paid for. 

We’re also paid for the experience we give our clients and, in great measure, that experience is just as important and valuable as the legal work we do and the outcomes we deliver.

It’s true. Airy-fairy as it may sound, clients value how we make them feel when we do what we do. 

Your mom might have told you, it’s the little things that make the difference. 

Little things like showing clients how hard you work to help them and how you give them hope.

A lot of it is in the tone of your voice, the look in your eyes, and the urgency with which you do what you do. The little things really aren’t little at all.

The way you respect them by seeing them at the time scheduled for their appointment (and apologizing if you were even a few minutes late); the way you refuse to look at your phone during your time with them, or the extra time you spend with them (off the clock) when they have more questions or are worried and need you to hold their hand.

And more.

The things you say or do that have nothing to do with your services, like sharing an idea you have that could help their business or telling them about your health challenge to encourage them about theirs. 

Little things, like introducing them to people who can hire them, telling them about a support group you heard about that might have some answers they need or want. 

It all counts. More than we might realize.

When you show clients you care about them as human beings more than you care about their business, you make them feel good about choosing you as their lawyer and good about themselves for overcoming their doubts and fears and taking a chance on you.  

How you make clients feel doesn’t replace the work you do and the results you deliver, but it’s close. 

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How to ethically ask for reviews and referrals

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I have homework for you. You need to research the latest ethical rules and guidelines in your state or jurisdiction regarding asking for reviews, testimonials, endorsements, and referrals. 

Here are three reasons:

  1. Compliance. You don’t want to violate any rules, and since rules change and are often ambiguous, you want as much currency and clarity as possible. 
  2. Educate clients and contacts. You want them to know what they can and can’t do to help you and avoid inadvertently getting you in trouble, or getting themselves in trouble if they are also an attorney or other licensed professional. 

Staying current with the rules and guidelines can not only protect you and your contacts, but sharing those rules and guidelines can make it more likely your clients and contacts will be comfortable providing you with referrals, testimonials, and reviews. 

Which leads to the third and perhaps most important reason for doing this: 

  1. Building connections. Sharing your knowledge about the rules and best practices you discover and practice, not only shows your commitment to the highest professional standards, it gives you a great “excuse” for bringing up this subject—in conversation, in presentations, articles, social media, and in other content—without looking like you’re “always” asking for help.

In short, taking the time to stay up to date with the law and ethical rules and widely sharing this information not only protects you and your contacts, it’s a simple way to build your reputation and bring you more business. 

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Is this the ‘third rail’ of client communication?

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Many attorneys don’t like to talk about their fees and billing practices, and it’s easy to understand why. But it’s obviously important, and avoiding the subject can lead to misunderstandings, unhappy clients, billing disputes, and worse.

So, discuss it you must. 

Here’s a good rule of thumb: don’t wait for the client to ask; tell them everything up front. 

Explain in detail about hourly fees, retainers, and costs, and, and why you do it the way you do. Talk about the pros and cons of hourly rates versus flat fees. Explain how contingency fees work, how they benefit the client, and (if applicable) why you don’t charge the same percentage as other attorneys do. 

If your fees are higher than what other attorneys in your field charge, explain why. Tell them why you ask for a retainer for fees and also for costs, and why you require clients to replenish these when they fall below a certain threshold. 

In other words, tell them everything they need to know. 

Not just because you are ethically required to do so or to avoid clients later claiming you didn’t explain something or misled them. Tell them everything because it’s the right thing to do and because clients will appreciate your candor and clarity.

In fact, you should also provide a (less detailed) version of this information in your marketing materials, presentations, and social media posts. Educate your market about the subject. It might become the very thing that differentiates you from other attorneys and firms. 

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Client retention made simple

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Have you ever interviewed a new client, asked them the name of their previous attorney, and they can’t remember it? 

Yeah. Me too. 

Their previous attorney might have done a decent job for them, and treated them okay, but it wasn’t enough to get the client to return. 

Don’t let that happen to you. Don’t assume that clients who aren’t unhappy will return, let alone give you referrals. 

With client retention, assume nothing.

You need a plan. 

Your plan has to be simple or (we both know), you won’t do it. Or won’t keep doing it, improving it, updating it. You’ll get complacent, and complacency is the enemy of a successful professional practice. 

So here’s what I propose. 

If you don’t already have one, in addition to the case file or a file dedicated to the legal matter for which you are hired, set up a separate file dedicated to the client who hired you. 

What goes in that file? That’s up to you, of course, but I suggest you start with these 4 elements: 

  1. Profile. Everything you know about the client, their business, family, friends, contacts, interests, billing preferences, birthdays, milestones, what they want from you, why they left their former attorney, who they know, their ideal client or customer—everything. 
  2. Notes and ideas. What can you do to exceed their expectations? Future plans, people you might introduce them to, people they can introduce you to, ways you can promote their business or causes.
  3. Diary. Keep a running record of personal communications (not about their legal matters)–what you said, what you sent them, what you did, what went well, what you could improve.
  4. Calendar. In the future, how and when will you stay in touch with them? What will you send them, or tell them, and when? Will you call or email or send postal mail? This is the heart of your plan.

And that’s it.

The plan is simple, but you have to work at it. Review what you’ve done and what’s next. And again, assume nothing.

Pretend the client isn’t a client but is a prospect and you have to earn their business. 

Because they are and you do. 

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I feel your pain

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I’m able to write about marketing and building a law practice, provide you with information and resources you want and need, answer your questions, inspire and entertain you, because I have been in your shoes. 

I feel your pain (and desires) because I’ve had those pains and desires. 

The question is, do your clients believe you can say the same thing about them? Do they believe you feel their pain? 

For many attorneys, the answer is “no” because, frankly, they don’t feel their pain. They understand what their clients are going through, but understanding isn’t the same as feeling. And how you feel about your clients is key to how they feel about you. 

You can build a practice with good marketing based on features and benefits, offers and outcomes, but business is about people, and how people feel about you is essential to long-term success.

And how they feel about you starts with how they believe you feel about them. 

How they feel might not be the reason they hire you initially, but is a big part of the reason they hire you again, and recommend you. Logic and value and outcomes are clearly important, but ultimately, how people feel usually determines what they do. 

But this doesn’t mean you have to build relationships with all of your clients, or any of them.

Many attorneys don’t. Their work is transactional. The client hires them; they do the work; they get paid. It’s fair and rational and pays the bills, but take note: building a practice is easier and more fruitful when there is a connection between you and the client that goes beyond the work. 

That is the point of client relations, after all. 

If you don’t have relationships with your clients (and business contacts), and you want to, start by paying attention. Watch and listen to what they say and do, talk to them about their life and business, and be willing to talk to them about yours.

You may come from different backgrounds, but if you can imagine what it feels like to be in their shoes, you will have a big head start on building a relationship.

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It’s worth more than you imagine

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“How am I doing?” It’s a question we don’t ask enough, but we should. Ask your clients and prospects and business contacts what they like about your services, your staff, your website, you ads and your image. What do they like about what you’re doing and what do they think you could improve?

Their feedback could be invaluable. 

Ah, but don’t limit yourself to what you’re currently doing. Also, ask for feedback about what you might do. 

What other services would your clients and prospects be interested in? Would they like to get your newsletter more often, or less? Would they like to learn about a certain subject or get content in a different format? 

This can also be valuable information for you. And yet, it could be worthless.

People don’t always know what they want. Or what they think.

People lie because they don’t want to hurt your feelings. Or can’t tell you what they like or don’t like because they haven’t worked with a lot of attorneys and don’t know what to expect.  

They might be unhappy about something but have trouble putting it into words. They might be mistaken about something you did or didn’t do. 

Ask anyway. You might learn something important. Or get an idea you haven’t thought about before.  

Feedback might be flawed, it’s true, so look for patterns. One client might have unreasonable expectations or demands or have had an anomalous experience and you can safely dismiss their opinion, but if several clients complain about something or prefer something, that’s probably something you need to look at. 

This is hardly the first time I’ve talked about the value of conducting surveys, asking for ratings or reviews, or encouraging clients to tell you how they think you’re doing. You’ve heard this before, from me and others, but do you do it? 

If not, I’ll give you another reason. Arguably, the most important reason of all.

No matter what you learn when you ask for feedback, there is value just in the asking. 

It shows clients you care about serving them and making them happy. You care about what they think and want.

Most lawyers care about their reputation, of course, but don’t (regularly) ask what people think or want. 

And that’s the point. 

Asking for feedback is an easy way for you to differentiate yourself from other lawyers. And that is worth more than you can imagine.

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Tell visitors to your website what to do 

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People come to your website looking for something they want or need, and you should help them find it. Tell them where to see an article about this problem or that solution, where to find a description of your services, and where to find information about you and your firm.

Tell them, but don’t leave it at that. Always tell them what to do next. 

That means telling them what else to read or watch (and why).

It means telling them to contact you, giving them options for doing that, and telling them why they should.

And it means telling them to sign up for your newsletter or other list, pointing to the page and telling them what they will learn or get when they do. 

Most visitors won’t do anything you tell them to do. They’ll consume what they came for and leave. Or just leave. 

That’s okay. Let them go. 

Statistically speaking, most visitors won’t contact you or sign up for your newsletter.

Focus on the ones who do. 

When someone signs up for your newsletter (or contacts you), they’re holding up their hand and saying, “I’m interested in learning more”. Tell them more and tell them what to do next. 

The simplest place to do that is on the “thank you” page, where they arrive immediately after clicking the “subscribe” button. 

Your “thank you” page is more than a mechanism for being polite. It is an opportunity for you to guide them on their journey to becoming your next client or paving the way for someone else to do that. 

What should you put on your “thank you” page? You have many options (in no particular order): 

  • Ask them to fill out a form, telling you more about their situation and what they need or want 
  • Tell them about your other content, e.g., your 5 most popular blog posts or articles or videos
  • Encourage them to share your content on social media and provide links or share buttons to make that easy to do
  • Invite them to your next webinar or local event
  • Invite them to subscribe to your podcast or video channel
  • Tell them more about your services, your background, and your personal life, I.e., family, hobbies or outside interests 
  • Point them at your testimonial or “success stories” page
  • Give them a preview of what to expect in your newsletter or upcoming event
  • Remind them to watch their email inbox, what they will receive, and when
  • Offer a free consultation or invite them to contact you with questions

Lots of options. But don’t make your page exhaustive. You don’t want to overwhelm them with information or push them to do too much. They are on your email list now, and you’ll have plenty of opportunities to tell them more and ask them to do more. 

For now, thank them warmly for subscribing, invite them to learn more and make it easy to do that and share your information with others.

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“Thank you” is the next step, not the last

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The case is closed. The client’s happy. You got paid. 

Now what?

Yes, you say thank you. And send a handwritten thank-you note. And call the client the next day or the next week to see if they have any additional questions or issues.

But there’s a lot more. 

“Thank you” isn’t the end; it’s the beginning of what’s next. And you should have a process in place for making the best of it. 

This is the best time to get (or lay the groundwork for getting):

  • Additional work from the happy client; what else do they need or want?
  • Referrals from the client; who do they know who might also need your help or might want some information?
  • Additional referrals from the client or professional who initially referred the case or client to you
  • Testimonials from the happy client (and permission to share them).
  • Feedback: asking the client to fill out a survey and tell you what they liked best about what you did, how they were treated by you and your staff, and anything they think you could improve   
  • Social sharing: encouraging the happy client to post their great results, talk about how happy they are with your work, and making it easier for them to do that by proving templates, checklists, and showing them what other clients have said about your work on their social pages
  • A stronger relationship with the client, e.g., a celebratory lunch, photos, tickets to the ball game

This is also a good time to write notes about the case or matter, the issues or problems presented, what you did and how it worked out. These notes can be invaluable for sharing with your partners and staff and any advisors you might consult about what and how you’re doing. 

You can also use these notes in your content creation or marketing, e.g., as a success story in a blog post or article, to add to your ads and newsletter, or to reference on the “what we do” or “how we can help you” page on your website.

The end of the case is a special time, and most lawyers don’t take advantage of it. 

You can and should.

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