Another lesson from Apple: how to get clients to pay higher legal fees

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Yesterday, I wrote about Apple’s pricing strategy with the new iPad Mini. Instead of competing with other tablets for the low end of the tablet market, they’re letting other companies duke it out while they target the more profitable high end. The same is true for their entire product line.

Apple fans are willing to pay more for Apple products (and stand in line to get them) because they believe it’s worth it. They believe they get more value for their dollar.

Style is certainly one aspect. So is functionality. But more than anything, I think what appeals to Apple users is ease of use.

Apple’s slogan, “It just works,” is arguably responsible for converting legions of PC users, frustrated with complicated, buggy, and virus prone machines to the Apple brand. True or not, the impression Apple’s marketing team has created is that with Apple products you won’t have continual crashes or blue screens, and you won’t have to take a class to learn how to use it. You just turn it on and it works.

And that’s exactly what Apple’s customers want.

Well guess what? That’s what your clients want, too. At least the clients you should be targeting. They want to know that when they hire you, you’ll get the job done.

They don’t want complications. They don’t want to know the boring details. They want the peace of mind of knowing that when they hire you, they’ll be in good hands. If you can give this to them, they’ll pay you more than what other attorneys charge.

Now I know many attorneys will cynically argue that their clients are very price conscious and won’t pay a penny more if another attorney will do it for less. And that’s true–THEIR clients are price conscious and won’t pay a penny more. But that’s not true of all clients.

Didn’t the PC world say the same thing about Apple when their prices first became known? “Why would anyone pay double for something just because it’s nicer looking?”

The answer was, and still is, because “it just works.”

You can follow in Apple’s footsteps. Target the higher end of the market for your services. Show them that when they hire you, everything is taken care of for them. They won’t have to worry about getting a bill filled with surprises, or an attorney who doesn’t explain things or return their phone calls. Show them that “you just work” and they’ll pay you more. Because it’s worth it to them.

Learn how to earn more than you ever thought possible. Get The Attorney Marketing Formula.

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What Apple’s new iPad Mini can teach lawyers about pricing legal services

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So everyone is buzzing about Apple’s new iPad Mini. Comments abound about the features, or lack thereof, but the number one topic of discussion is price.

Many predicted (hoped?) Apple would price the Mini in line with what Amazon, Barnes & Noble, and Google are pricing their tablets, in the neighborhood of $199-$249. They said that in so doing, Apple would crush the competition and own the small tablet market. Instead, the lowest priced Mini is offered at $329.

Many observers are questioning Apple’s strategy. How can they compete with tablets priced so much lower?

The answer is they’re not even trying.

Avi Greengart, research director for consumer devices at Current Analysis, told The Verge, “I think what Apple has done here is create a new category of premium small tablet.” The writer Greengart spoke to summed up Apple’s strategy thusly: “[I]t appears Apple is simply opting out of the low end of the market altogether, much like it’s done with personal computers.”

Greengart continues: “I don’t think this puts Amazon, Barnes & Noble, or Google out of business, but it means that those three — and anyone else entering that market segment — are all competing against each other for the budget consumer.” [emphasis added]

Apple is letting everyone else compete for the low end of the market while it offers a premium product to the smaller but more profitable segment of the market that is willing to pay a premium price.

This is exactly what lawyers should do.

Most lawyers offer the same services at the same prices to the same prospects. Everyone looks the same and says the same things. Nobody stands out. Everyone is average. And so the average lawyer gets average results from their marketing and earns only average income.

The better strategy is to offer higher quality services to those who are willing to pay for them.

Marketing is easier because you have something better to offer. Marketing is less expensive because you’re not trying to deliver your message to everyone. Other lawyers can’t compete with you because they don’t offer what you offer. And your income is higher because your clients are paying more.

You may not have Apple’s resources or “sex appeal” but you can follow the same strategy they do. Let other lawyers fight over the masses while you offer a better “product” to a smaller, more profitable segment of the market.

Most lawyers will never do this. They won’t offer premium services and, frankly, don’t even know what that means. That makes it so much easier for you.

How does Apple compete with Google? It doesn’t. How do you compete with other attorneys? You don’t.

The Attorney Marketing Formula shows you how to offer premium services and get premium fees.

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Jay Foonberg asks: Is the practice of law a business or profession?

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Jay Foonberg is writing an update to his book, “How to Start and Build a Law Practice”. He posted the following on Facebook:

From the chapter “The Profession of Law is Not the Business of Law”

“In my opinion, those who call the profession of law a ‘business’ insult and demean the legal profession and you as a lawyer, in addition to simultaneously displaying their own lack of knowledge of the differences between a profession and a business”

Your thoughts?

One attorney said, “I strongly agree! We are here to find justice, or help a person in need.” Another said, “I agree with Jay Foonberg. I also think being a Human Being is not a business. Socrates, General Patton, Einstein, and Mother Theresa weren’t in business. But they advanced the human race.” Another commented, “If you want to sell stuff, go sell houses, or coffee, or cell phones.”

My comment:

“It’s both a profession and a business. If you are self-employed, you (the professional) work for the business (practice).”

That’s what I said, but what I wanted to say was, “are you nuts? Of course it is a business, and it’s naive not to recognize that reality.”

It’s a business because you sell services, pay your expenses, and earn a profit. If you don’t earn a profit, you’re out of business. You’ll still be a professional, but broke and looking for a job.

It’s a business because you have to bring in clients and if you don’t know how to market your services, you’re not going to make it, no matter how good you are as a lawyer or how selfless you might be.

It’s a business because you have to hire and manage employees, stay up to date with technology, and keep your expenses under control. If you don’t, there won’t be enough left over to pay yourself a draw and you’ll have to fire yourself because you can’t afford yourself.

You know what’s insulting and demeaning? Telling new attorneys that it’s not a business. Letting them think that all they have to do is hang out a shingle and be a good professional and the world will beat a path to their door. If they put other people’s interests before their own, their rewards will come.

That’s the wrong message.

When you’re on an airplane, the flight attendant tells you that if there is a drop in cabin pressure, you should put the oxygen mask on yourself first. Then, you can take care of others who might need help. You can’t help anyone if you lose consciousness, you have to take care of yourself, first.

That’s reality. On an airplane or in the business of law.

I went to law school to make money and to help people, but you can’t do one without the other. You can’t practice your profession unless your business is successful.

Many of the other comments agree that it is a business and a profession. And to his credit, Jay is seeking our feedback and “Liked” my comment.

The world was a simpler place when Jay wrote the first edition of his book. Today, we’re on a plane and losing pressure fast. We should all do our part to make the world a better place, but first, we have to pay the bills.

If you want to earn higher profits in your “business,” pick up a copy of The Attorney Marketing Formula.

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Protests, calls for discipline as lawyer exploits 911 in marketing ploy

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Today is a day when Americans pause to remember the terrorist attacks that took more than 3,000 lives on September 11, 2001. My wife and I took a moment to remember where we were when we first heard the news and saw those terrible images.

I’ve received emails and Facebook posts with photos and sentiments marking the occasion. Everyone has been respectful. No one has said anything inappropriate or controversial.

Nobody wants to be accused of being unpatriotic or unsympathetic to the families of the fallen. Nobody wants to be seen as exploiting a tragedy for commercial gain. If a lawyer were to have a headline written about him like the one atop this post it would destroy his career.

Or would it?

Don’t they say all publicity is good, “as long as they spell your name right”?

Look, just because 911 is a solemn occasion doesn’t mean it is off limits for marketing purposes. There are many things you could do to leverage the memory of that day that are respectful and appropriate. For example, you could:

  • Sponsor a golf tournament, 10K run, or bake sale, with all proceeds going to one of the many 911 memorial foundations
  • Offer free disaster preparedness supplies or information to anyone who comes by your office
  • Use your newsletter or blog to promote a blood drive or CPR training

These are tame and unlikely to get any complaints or disagreements, unlike the following:

  • Write, lobby, in support of closing our borders
  • Campaign for candidates with a Second Amendment agenda
  • Write an editorial for your local paper denouncing the ongoing practice of allowing foreign nationals to enroll in flight school without verifying their immigration status

Most people who hear about your efforts will applaud them. You may get some positive press. Your clients and professional contacts will help you spread the word and more people will learn your name and what you do.

There may be cynics and malcontents who accuse you of exploitation or political incorrectness. Don’t listen to them. Do what you believe is right and say what you believe needs to be said. You may prosper as a result of your efforts, but you are also making the world a better (and safer) place.

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How to answer the phone in your law office

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If you want to be more productive and deliver a higher level of service (aka “earn more income”), every element of your law office operations should be planned in advance. Put it in a checklist, template, form, or script, so that everyone knows what to do, they do it right, and they do it that way every single time.

A good place to start is how you want the phone to be answered. Here’s how:

  1. Greeting (“Good Morning,” etc.)
  2. Lawyer/Firm Name (“Mr. Jones’ office,” “Jones & Michaels”)
  3. Name (“This is Sally speaking,”)
  4. “How may I help you?” (or, “How may I direct your call?”)

This lets the caller know they have reached the right place and that you are organized, professional, friendly, and ready to help. Ending with a question (“How may I help you?”) gets the caller focused on stating his or her business.

You should also have a standing instruction that no caller should be put on hold for more than 29 seconds. 30 seconds is too long. The receptionist should come back on the line, tell the caller why they are still on hold, and ask if they would like to continue to hold or be put through to voicemail (or take a message).

This is far more important than you might imagine. Clients, prospects, opposing counsel, and everyone else, judge you on these things.

Do yourself a favor, call your office right now and listen to how the phone is answered. If it’s not exactly the way you want it, write down what you want and make sure everyone who answers the phones has a copy and practices it.

Including you.

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Engage your clients and prospects by explaining the news

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So we have some health care news. Now what?

Your clients and prospects are wondering what it all means. What do they have to know? What do they have to do? What will it cost them? What’s next?

This is a great opportunity to provide some answers. Leverage news events like these to add value to the lives of the people who follow you. They will appreciate you for sorting it out for them and the next time you write, tweet, post, or otherwise open your mouth, they will be more likely to pay attention.

If you don’t know what to make of everything yourself, there’s plenty of help available. Here’s an article that explains, “How Will the New Health Care Law Affect Me?” Here’s one about, “How Your Business Will Be Affected.” You can use articles like these as a starting point to write your own summary.

You don’t need to write a comprehensive legal analysis (unless your clients are in the health care field or are affected more than most). Give them the who, what, where, when, and why.

But be careful with the why. If you get political, you may alienate a lot of people who put food on your table.

Show people they can trust you. Give them the facts. Help them understand.

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Marketing legal services the Evernote way

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You know I’m a big fan of Evernote. I use it all day long for everything I do in my work and in my personal life. I detailed my use in my Evernote for Lawyers ebook.

I’m also a fan of how Evernote does their marketing. They use a “freemium” model–giving away their apps and service for free, believing that users will fall in love with the product and sign up for the paid service.

Their free service is not stripped down. It has everything most people would want. The paid version provides additional capacity and features.

Evernote understands that the more people who use their free service, and the longer they use it, the more who will subscribe and pay.

Evernote does not advertise. They rely on word of mouth–satisfied users sharing their experiences with the product.

Their model works. Evernote has some 40 million free users and 1.4 million paid subscribers. They have recently achieved a billion dollar valuation.

Attorneys who offer free consultations are following a similar marketing model. The more free consultations they give, the more paying clients they get. Some attorneys take things a step further, offering not just free consultations but free services to get prospective clients to “try before they buy”. If you offer a free will, for example, a certain percentage of clients will want to upgrade to a trust or other paid services.

Evernote does not pressure users to upgrade. They provide upgrade links in their desktop, web, and mobile apps, but users are reminded to upgrade only when they try to use a paid feature or go beyond their free monthly usage limit.

There’s something attractive about a company that doesn’t push you. They give you value, lets you know there’s more available, and leave it up to you to come to them. Contrast that to what many companies do: they push, they chase, they sell.

I don’t know about you but when I’m chased, I usually run the opposite way.

Evernote provides value through their service and also through their blog and newsletter. Their blog provides tips and uses for making Evernote more useful and it’s fun to read.

Marketing consultant Jim Connolly wrote today about Evernote’s newsletter, contrasting it with other newsletters that do little more than sell. He says Evernote’s newsletter gets it right for three reasons:

  1. Their newsletter actually contains news
  2. Their newsletter makes Evernote more valuable
  3. Their newsletter doesn’t push

Connolly and I agree that providing valuable content that enhances the user experience with the product is effective in making the case for upgrading without ever asking users to do so. Their approach attracts us, instead of pushing us away with sales pitches and an abundance of links.

Attorneys deal with issues that don’t always allow for such a laid back approach. If it’s in the client’s best interests to push them to take action, a little push is not a bad thing. Nevertheless, I think we can all learn from Evernote how to be more attractive and let people sell themselves on hiring us.

People like to buy. They don’t like to be sold.

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The Attorney Marketing Center: Official Blog of Successful Attorneys Everywhere

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My wife saw a coupon this morning for a dry cleaner (seems to be a theme with me lately) that had just changed its name from “Luck Cleaners” to “Joy Cleaners”. Or something something like that.

What caught my attention was the statement, “Official Cleaner of [a well known clothing company]”.

I wondered how they had achieved that. “How does one become the official anything for a well known company?”

Were they doing the cleaning for the company and simply asked if they could advertise that they were the official cleaner? Or did they approach the company and offer to do their cleaning for free or at a big discount, in return for being able to say they were the official cleaner?

It doesn’t matter. What does matter is that a law firm could do the same thing.

If you have a business client who is well known in your niche market, ask them if you could mention the fact that yours is the official law firm for their company. Then, mention your official-ness everywhere. You will be providing social proof of the worthiness of your firm.

You could approach any well known company and offer them free legal services in return for an official designation. But what do you do if the better known companies already have lawyers they are happy with and they aren’t willing to switch, even to get free services from you?

Find a charity and see if they would like some free legal services.

It doesn’t matter how well known the charity’s name is. When your marketing messages say that your firm is the official law firm for the “Save the Platypus Foundation,” or whatever, people will notice. Your name will be associated with doing good work for a good cause.

The press will notice, because you will send out a media release and announce it.

Similar charities will notice because, well, they are similar.

And every company your charity does business with will notice, especially if your offer requires the charity to mention your firm in all of their mailings and advertising collateral.

You should also be able to get yourself invited to the charity’s dinners and fund raisers, hang a banner at the charity’s booth at their industry’s conventions, and network with their board of directors, major donors and supporters.

And because you are the “official law firm. . .,” you’ll be able to reach out to other professionals, business owners, politicians, and other influentials, to invite them as your guest to one of the charity’s events.

I don’t know how this will all play out for you, but I can tell you that this could bring you a lot of business. Even if you never mention that you are the “official law firm,” the contacts you will make and the paying clients that result, will more than pay for the services you donate.

Choose a charity you believe in, of course, something you would support regardless of personal gain. Get excited about their cause. And tell everyone to join you in supporting them.

You will have great Joy and great Luck. I’m not sure if your clothes will be any cleaner, however.

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The economy sucks. What are you doing about it?

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Okay, I’m not going to go all save-the-world on you but yes, if you can do something to make things better, you should. Get involved in local politics, volunteer at a charity, help someone in need.

The best thing you can do is to grow your practice. A bigger income would mean you could do more to help others. And you know what they say about the best way to help the poor: don’t become one of them.

I saw this photo on Facebook yesterday and it touched me. In case you can’t see it, it’s the window of a dry cleaner’s with a sign that says, “If you are unemployed and need an outfit clean for an interview, we will clean it for FREE”.

Nice.

Do you think the owner will get some business from this, beyond what he does for free? Publicity? Positive word of mouth? Do you think anyone who takes him up on his offer will continue to patronize his store in the future? Do you think he will tell everyone he knows about the business owner who helped him when he really needed a break?

No question about it. Doing good is good for business.

Could you do something similar for your clients and prospects? For your community?

A discount, a free service, even some non-legal advice. Offer a free financial literacy seminar to help people get a handle on their debts. Get someone a job interview at one of your client’s companies. Offer struggling entrepreneurs two hours of free advice.

Lots of people need help right now. Unemployed, struggling military families, people losing their homes.

What can you do?

Don’t do it solely because it might bring you some business. Do it because it makes you feel good to help a fellow human being.

If we all do that, even a little, everyone will be better off. Including us.

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Why you don’t have to be better than your competition

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Are you are a better lawyer than your competition? Maybe, maybe not. Guess what? It doesn’t matter because most clients can’t tell the difference.

When was the last time you heard something like,

  • “Wow, great motion you wrote there!”
  • “Nobody takes a deposition like you,” or
  • “You are so much smarter than my last attorney. . .”

If you are a better lawyer, and you can prove it, great. But marketing legend, Dan Kennedy, says, “It’s better to be different than it is to be better.”

People notice different. People remember different. People are attracted to different.

You can build a strong marketing message around what makes you different from other lawyers. It could be as simple as telling your story. Your legal services may be identical to what other lawyers offer but you are unique.

Incorporate your background, your outside interests, or your personality into your marketing message. That message will show people how you are different.

There are other ways you can be different: who you represent, the added value you deliver, a performance guarantee, or alternative fee arrangements, to name a few.

Your challenge is not to prove that you are a better lawyer, but to distinguish yourself from other lawyers.

If you are better and you can prove it, great. But you don’t have to better, just different.

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