Objection, calls for speculation

September 22, 2021 by
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I saw a video the other day that ticked all the boxes. It was clear and concise, delivered the information viewers needed to know, and didn’t waste our time with anything else. One viewer said what many of us were thinking: “Nice, simple and straight to the point.”

Which is what we should all aspire to achieve in our websites, our letters and emails, our articles, briefs, presentations, and all our communication.

William Howard Taft said, “Don’t write so that you can be understood, write so that you cannot possibly be misunderstood.”

Clarity is equally important in our bills and invoices.

A bill shouldn’t be merely a list of how you spent your time. It should be a narrative that describes your effort.

Spell out what you did in plain English, and what it means for the client. Use active verbs and specific nouns to describe the process you used to deliver the results you obtained, even if (especially if) those results aren’t yet fully realized.

In school, teachers told us to “show your work” instead of merely reporting the answer. They wanted to see what we thought and did and why.

The same standard should apply to your bill.

Show clients your work; help them see and understand what you did and why. If there isn’t room on the actual invoice, add a cover letter and spell it out.

Don’t make clients guess what you did or what you meant. Explain it to them as if they were a child. Or your teacher.

How to write a bill your clients want to pay

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Filed Under: Communication, Content creation, Fees and Billing, Writing

How much do you charge?

March 8, 2021 by
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When you hear from a prospective client who’s first question is, “How much do you charge?” that’s not a good sign.

A prospect who is more focused on price than value, on your fees rather than your solutions to his problem, means you may be dealing with someone who’s going to question everything you do for them and every bill you send them.

So don’t answer that question.

Instead, ask them questions, to learn more about their problem (and pain), to find out what they’re doing now or have done before, and to find out what they want from you, so you can tailor your answer to their situation.

And so you can control the conversation.

You want them to sell you on accepting them as a client, instead of you selling them on hiring you. You do that by asking questions.

When you know enough to quote a fee, you can give them a number or present their options, e.g., Service A or Service B, Package A or Package B. Do this in person or on the phone, if possible, so you can read them, respond to any objections, and close the deal.

Or you can turn the conversation over to a surrogate. “My office manager handles all the fees and billing. . .”

Because someone else can edify you and your capabilities in ways you can’t.

Before any of the above, make sure you have a page on your website that provides general information about your fees and billing practices. No, don’t post your fees. That invites price shopping and discourages prospects from contacting you.

Keep it general. Tell them you bill by the hour or offer flat fees or contingency fees and encourage them to contact you to learn more.

Whatever you do, don’t say “low fees” or “competitive” fees or otherwise suggest you charge less than other lawyers.

Because you don’t (or shouldn’t). And because that’s what attracts people who’s first question is, “How much do you charge?”

How to quote fees and get clients to pay them

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Filed Under: Attorneys fees, Fees and Billing

The best piece of advice I ever received as an attorney

October 5, 2020 by
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I didn’t learn it in law school. I don’t remember my father (attorney) talking about it. I didn’t read it in a book.

The best advice I ever received came from my grandfather.

He wasn’t an attorney, he was a business owner, farmer, and commodities trader. He made and lost fortunes in his lifetime and taught me a thing or two about business and life.

When I passed the Bar and opened my first office, he visited me, pointed at the top drawer in my desk, and told me that when I get a new client, the first thing I should do is open that drawer and tell the client to drop the cash in it.

Indelicate, yes, put but sound advice.

And I wish I had always followed it.

Clients who didn’t pay me, or pay me in full, were usually the ones I didn’t ask to pay in advance.

Lesson learned.

I hear from lawyers with clients who haven’t paid or slow-pay or try to weasel out of paying in full. Maybe you’ve had one or two.

Getting paid in advance, or at least getting a big retainer, will eliminate most of that, I tell them.

Yeah, but it will also eliminate them from hiring me, I can hear them thinking. And that’s true. But is that a bad thing?

Even if you need the money and believe it’s worth the risk, in the long run, having a (reasonably) strict policy about getting paid up front will serve you well, but not just in terms of cash flow.

It will also help you build your practice with a better crop of clients.

Clients who can and do pay you, on time or early, refer other clients who can do that, too. These types of clients also tend to have more legal matters and are prepared to pay higher fees if you give them what they want.

Should you ever make exceptions? Sure. But make them exceptions, not the rule.

Get the Check: Stress-Free Legal Billing and Collection

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Filed Under: Attorneys fees, Fees and Billing, Law office management

Your fees are too high

September 28, 2020 by
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What do you say to a client or prospective client who says your fees are too high?

Do you negotiate? Offer to reduce your fees?

Yeah, don’t do that.

Do you tell them that’s what you charge and they can take it or leave it?

Don’t do that, either.

Instead, say something like, “When you say my fees are too high, what are you comparing this to?”

Let them tell you about other lawyers who charge less.

And then show them why you charge more because you are worth more–to them.

Show the client what they get with you they won’t get from other attorneys.

The best way to do that, of course, is to let your other clients do it for you. Show them your positive reviews and testimonials and share success stories about what you’ve done for other clients.

But maybe the client doesn’t have anyone they’re comparing you with, they think all lawyers fees are too high.

In that case, go over their current problem or situation and ask how much this is costing them now, in terms of time and money and mental anguish.

Let them see how they will be better off hiring you than continuing to live with their current situation.

Finally, if they can’t see things your way, say something like this:

“I don’t want to take your money if you don’t think this is going to work for you. I understand you want to solve this problem but I don’t want to work with you if you’re not committed to working with me to solve it”.

C’mon, you know you want to.

Referred clients make the best clients. Here’s how to get more

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Filed Under: Attorneys fees, Closing the sale, Fees and Billing, Salesmanship, Uncategorized Tagged With:

What to say to a client who asks for a free service

July 23, 2020 by
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It happens to every attorney. Clients ask for a lower fee or a free service. It’s not a big deal but how you handle it might be. Here are some of my thoughts.

First, the best way to handle this is to avoid it in the first place. Create a clear statement of your fee and billing policies and give a copy to every new client.

Second, when someone (inevitably) asks, be nice about it. Don’t embarrass them, tell them you understand why they’re asking, you’re sympathetic to their situation, you’d like to accommodate them, and you’ll see if you can work something out.

No matter what you say after that, they’ll see that you respect them and considered their request.

Third, focus on value, not cost. Make sure the client understands the value of what you do and, ideally, that it is worth more to them than what they pay.

Show them what might happen if they didn’t hire you, and why they get more value than they would get from other attorneys.

Fifth, don’t make it about you. Frame your response in terms of “the firm” or “our practice,” instead of you. Use phrases like, “the value of our services” (even if you’re a sole practitioner), and say “we” instead of “I”.

Even better, frame it in terms of the client. “The value you get,” or speak broadly–“Our clients tell us they appreciate. . .”.

Sixth, be firm but flexible. Providing discounts and free services tends to devalue what you do, so don’t do it as a matter of course. Instead, suggest a smaller engagement or offer to defer some of their bill.

If you want to give a client a break, make it clear that you’re making an exception and tell them why you’re doing it, e.g, they’ve been with you a long time or you realize they’re going through a tough time.

For more on fees and billing, get my book, “Get the Check“.

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Filed Under: Attorneys fees, Client loyalty, Client relations, Fees and Billing

If it’s free, it’s me

July 16, 2020 by
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If a prospective client balks at paying your fees, here’s a question you might ask them:

“If my services were free, would you hire me?”

If they say anything but an enthusiastic “yes,” you know there’s something else holding them back. That’s your cue to ask questions and find out what it is.

Because if you don’t know what they object to, you can’t address it.

Now, if they “yes,” they’d hire you if it was free, you know a few things:

  1. You know they know they need the help of an attorney,
  2. You know they see you as capable of helping them, and
  3. You know that your fee really is what’s stopping them.

If it’s the latter, you can then consider other solutions, e.g., a payment plan, a lower-priced service so they can get started, or offering to refer them to another attorney who doesn’t charge as much as you do (which might make them decide they want you after all).

Make sense?

Okay, as long as we’re talking about free, I just learned that Aweber, one of the two email service providers I have used and recommend, just announced the creation of a free plan.

If you’ve been thinking about starting an email newsletter and/or using an autoreponder to stay in touch with clients and prospects, you can do that without paying a single shekel.

The free plan allows a list size of 500, which is plenty for people starting out. If you have a bigger list, their paid plans are reasonably priced.

To learn more, check out this page.

Yes, that’s an affiliate link, because who knows, you might upgrade someday.

Here’s the link again

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Filed Under: Email, Fees and Billing

Billing and collection during a pandemic

April 3, 2020 by
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I heard from an attorney seeking advice about billing and collection during the current crisis. Essentially, he wanted to know what to say and do to accommodate his clients without jeopardizing his firm’s cash flow.

The answer is, it depends.

You know your clients and no doubt have some insight into what they might be going through and what they can handle. Likewise, you know (or can find out) what your landlord and vendors and lenders might be willing to do if you need some accommodation.

That’s why it depends. Your situation might be very different than the firm’s next door.

For most firms, one thing I wouldn’t do is announce a practice-wide abeyance (e.g., 30 or 60 days) on outstanding balances.

Why do that if you don’t have to?

On the other hand, announcing a practice-wide abeyance on late fees and interest might be a nice gesture.

One thing most firms should do is email all clients and tell them that if they have any issues regarding their bill/account during this time of crisis, to contact you to discuss it.

Acknowledge that they might have an issue. Be compassionate and flexible if they do. But don’t shoot yourself in the foot.

Some will contact you and you can work something out. Some won’t respond and you’ll need to deal with them on a case-by-case basis, if and when necessary.

Few anticipated the extent of this crisis or were prepared for it. It is truly a case of first impression.

All any of us can do is to treat our clients the way we would like to be treated if the roles were reversed.

Stress-free billing and collection for attorneys: Get the Check

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Filed Under: Fees and Billing

How much should you charge?

March 2, 2020 by
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How do you determine your fees?

No doubt you consider your overhead, how much you want to earn, and how much other lawyers charge.

But there’s something else you should consider:

How much is it costing the prospective client who doesn’t get the benefits and outcomes you offer?

How much are they spending in direct costs, lost opportunity costs, and emotional costs?

If a business owner isn’t collecting money owed to them, how much are they losing each month?

If a estate planning client doesn’t have the protections they need, how much are they putting at risk and how much could it cost their estate if they die or become incapacitated?

If a family law client is seeing a therapist to deal with unresolved emotional issues, how much are they spending each month?

When you know what the prospective client is spending or risking, you can show them how your services provide a better value.

People make “buying” decisions based on emotions and then justify those decisions based on logic.

If you can show them how hiring you actually saves them money, the logic becomes undeniable.

How to take a quantum leap in your practice

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Filed Under: Attorneys fees, Fees and Billing

The Wizard of OZ and your law practice

January 28, 2020 by
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In The Wizard of OZ, each of the main characters wanted something. The Scarecrow wanted brains, the Tin man wanted a heart, and the Cowardly Lion wanted courage.

To succeed as lawyers, we need all three.

Of the three, the most important trait for financial success is courage, according to a large study of wealth in America.

You can read it about the study and its conclusions in The Millionaire Next Door by Dr. Thomas Stanley.

Dr. Stanley tells us:

“Courage can be developed. But it cannot be nurtured in an environment that eliminates all risks, all difficulty, all dangers. It takes considerable courage to work in an environment in which one is compensated according to one’s performance. Most affluent people have courage. What evidence supports this statement? Most affluent people in America are either business owners or employees who are paid on an incentive basis.” [emphasis added]

So, are you paid on an incentive basis?

You can be.

Whether you bill by the hour, flat fees, or any other type of fee, look for ways to add incentives–extra fees, bonuses, stock, percentages of the deal–to be paid to you if and when you achieve certain results for the client.

You can also do this in contingency fee cases. A higher percentage or bonus that is triggered when you reach one or more specified thresholds.

You should do this because there are only so many hours in a day and if you want to earn more than the average attorney, this is a good way to do it.

Assuming the client agrees and the state Bar approves.

I know, the idea both excites you and scares you. You have a lot of “what ifs” going through your mind. It may not even be possible in your jurisdiction.

Do yourself a favor and find out.

“Most affluent people have courage,” Dr. Stanley says. How about you?

For more creative billing ideas, get my book

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Filed Under: Fees and Billing

Working hard or hardly working?

January 10, 2020 by
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Many lawyers complain (brag) about having too much work to do. Other lawyers don’t have enough work (clients, cases, billable hours) and want more.

How about you?

Are you earning as much as you want? Working as much as you want? Are you working too hard or are you ready for more?

Hold on. It’s not as simple as getting more clients or working fewer hours. There’s another option.

You could bring in “better” clients and “bigger” cases.

Instead of clients who pay $5,000 or $10,000, what if you brought in clients who pay $25,000 or $50,000?

Instead billing $300 per hour, what if you could get clients who pay $800 per hour?

Instead of handling tort cases with $20,000 contingency fees, what if you could attract the ones with six- and seven-figure potential?

They’re out there. Someone is getting these cases and clients. Why not you?

I’ll tell you why not. Perhaps, deep down, you don’t want them. You know you’d have to do too much to get them, and if you did get them, you’d have to do more work or take on more overhead or deal with more pressure than you want.

And that’s fair.

For most of my career, I handled small to medium cases and clients, for those very reasons. And made a good living doing it.

So, if that’s what appeals to you, I’m on your side.

Right now, we’re hearing a lot about a four-hour work-week. Some companies who’ve tried it are reporting more productive and happier employees and no loss of revenue. Some companies say they’re earning more.

In my practice, I cut my work-week down to three days and saw my income soar.

Anything’s possible.

You can earn more and work less. You can build the practice and lifestyle you want.

Some advice:

This year, instead of waiting to see what happens, decide what you want to happen and find ways to make it so.

This can help

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Filed Under: Fees and Billing, Law office management, success
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