How many lawyers really work from home?

June 4, 2012 by
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According to the latest US Census, 2% of lawyers now telecommute. That’s up 166% in the last ten years and it’s one of the fastest growing categories. But it’s still a small number.

I’m guessing that most of these lawyers don’t see clients. They write, research, and perform other functions that don’t regularly require meeting people in person.

I’m also guessing that if The Census had used a different word than “telecommute,” the results would have been different. I think a lot of attorneys do at least some of their work from home. They don’t call it telecommuting, however, a word that is not usually associated with professionals.

I also think a growing number attorneys, sole practitioners primarily, work almost exclusively from home. They see clients at an office suite where they have so many hours a month available for that purpose, or other arrangements, i.e., using a conference room or spare office in another attorneys suite.

I work from home. When I “see” a client (lawyer), it’s done over the phone. My overhead is a fraction of what it was when I had an office and I love not having to commute. If I was practicing today, however, I would still have an office.

For one thing, I got a lot of walk-in clients in my practice. Existing clients would bring their papers to the office when it was convenient for them and if they needed help with those papers, someone needed to be there to provide that help.

In addition, my clients needed to see me in person, even if it was only greeting them before turning them over to a member of my staff. They needed to see me wearing the uniform (suit and tie) and to see that I was successful (i.e., nice furniture, etc.) Most of all, they needed to see that I was physically present, committed to the community and niche market that I served.

Over the years, I’ve talked to attorneys who have an office in their home and see clients there. I think this is a mistake. Clients have expectations about what an attorney does and they expect attorneys to have an office. When you deviate from what they expect, they get nervous. They may not say anything but they are surely wondering why you can’t afford a real office.

Without an office, it’s more difficult to attract clients. There are exceptions–entertainment law, for example, where working from (an expensive) home may actually provide even better posture. But for most attorneys, not having an office, in my opinion, costs more in terms of lost business and referrals than the amount saved by working from home.

I would probably have a smaller office today, however. You don’t need as much space today because a lot of work attorneys need done can be outsourced to virtual assistants or employees who work from home. I talked to a secretary for a California attorney recently. If she hadn’t told me, I would never had known she lives in Florida and works from home.

How about you? Do you do some or all of your work from home? Do you have a smaller office than you had in prior years? Let me know in the comments.

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Filed Under: Law office management, Legal industry, Marketing legal services Tagged With: , , , , , , , , , , , , , , , , , , ,

Could you charge more for your legal services? Here’s how to find out

May 24, 2012 by
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Could you charge higher fees for your legal services than you charge right now?

What if you could get paid one-third more than you now get without losing any business. Wouldn’t that be cool? Or, maybe you might lose some business but increase your net income because of the higher fees you are paid from everyone else. Also cool.

Most attorneys set their fees by looking at what other attorneys in their market charge. They don’t want to charge a lot more or a lot less so they play it safe. But some attorneys do ask for more and they get it.

True, these higher paid attorneys may have more experience or a higher-profile reputation. They might offer more value to their clients. Perhaps they are better “sales people” or have more chutzpah. Maybe they took a chance when quoting fees and got lucky.

The point is that some attorneys get paid more than other attorneys for doing essentially the same work. What if you could, too?

There is a way to find out if you could charge more. No, not by asking your clients or prospects if they would be willing to pay more. They have a certain, um, bias, don’t you think? No, if you want to find out if people are willing to pay more you have to charge more, and see if they pay it.

But hold on. Don’t raise your fees across the board just yet. That’s too risky. You don’t know if this will be successful. What if you ask for too much and lose too many clients? Not good. Conversely, what if you don’t ask for enough? Your clients may pay ten percent more without flinching, but how do you know they wouldn’t have paid twenty percent more?

The answer is to test higher fees with small groups of clients and/or prospects and measure the results.

Pay-per-click advertising is a great way to do “split testing”. Basically, you quote one fee to the first inquiry and a higher fee to the second. You alternate quotes until you have a meaningful sample of responses and clients. With enough responses, you’ll be able to see which fee is producing (a) the most clients, and (b) the highest income.

Pay-per-click advertising has become extremely expensive and you might not want to use it as an ongoing marketing tool. But for short term testing purposes, wouldn’t it be worth it to find out conclusively that you could safely charge a lot more than you do now?

If your practice isn’t amenable to advertising, there are other ways to test fees with smaller groups of prospects. If you do seminars, for example, you could quote every other attendee a different fee. Or quote different fees at every other seminar.

The results of price testing are often surprising. You would think that charging higher fees would decrease the number of sales (clients) but that is not always the case. Sometimes you sell just as many at the higher price. And sometimes, believe it or not, you sell more at the higher price.

But you’ll never know unless you test.

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Filed Under: Advertising, Attorneys fees, Increase your income, Law office management, Marketing legal services Tagged With: , , , , , , , , ,

Great advice on starting a new law practice (or growing your old one)

April 10, 2012 by
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Marketing legal services is simple. A lot of common sense, really. You don’t need a bunch of high tech solutions or a complicated process. What you need are people.

An article in today’s Forbes Magazine tells the story of a Los Angeles lawyer who started her own practice in the summer of 2010 and in less than two years built a successful estate planning practice.

In, How I Got My First Client and You Can Too, attorney Sonia Tatiyants outlines what she did to get her first client and beyond.

She didn’t advertise or build a powerful web site. She didn’t have the money to do that, even if she wanted to. What she did is decidedly low cost and low tech. She began by contacting everyone she knew to announce the opening of her new practice.

It doesn’t get simpler than that.

By the way, if you’re not new, find a reason to contact everyone in your database and remind them that you are still here. Someone on your list needs your services, or they know someone who does.

Tatiyants followed that up by starting a lunch group where she could network with other estate planning attorneys. She also networked with “like minded, driven, entrepreneurial individuals. . .,” who collaborated with her and became a source of referrals.

Taking things a step further, Tatiyants also realizes that her clients can not only send her referrals, they can become a source of business for the professionals in her network. In positioning herself as a “trusted advisor,” her clients and contacts look to her for referrals when they have a problem or need. She refers them to the other lawyers, CPAs, financial planners, and insurance agents in her network.

She also understands the importance of keeping her clients happy. One way she does that by making sure they know what to expect with their case. By managing their expectations, her clients don’t get frustrated with delays or when they get something in the mail.

Finally, she understands that for her practice to continue to grow she needs to put systems in place that will allow others to do administrative tasks so she can focus on the lawyering (and marketing).

Great marketing advice for new lawyers and old. Even lawyers who are very old.

But there’s something she left out of the article that I know every lawyer would like to know. How did she get featured in Forbes magazine?!

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Filed Under: Law office management, Marketing legal services, Marketing Plan Tagged With: , , , , , , , , , , , , , , , , , , ,

Are you paid enough for the risks you take in your law practice?

April 6, 2012 by
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“The choice isn’t between success and failure; its between choosing risk and striving for greatness, or risking nothing and being certain of mediocrity.” — Keith Ferrazzi

Every day you make decisions in your law practice. You’re usually right but sometimes you make a mistake. It’s okay because when you make a mistake, you can usually fix it. If you can’t fix it and your client suffers a detriment, you have insurance.

Your clients pay you to make decisions. It’s what you do. It’s what you get paid for. Every time you make a decision, however, you take a risk. But are you being compensated for those risks?

In business, the bigger the risk, the bigger the potential reward. When you are the principal, your fortunes rise or fall on the outcome. As advisors, however, we are paid by the hour or the case or the work product. Other than contingency fees, our compensation is almost never commensurate with the risks.

You prepare a “simple” will. You get paid a few hundred dollars. But what if the client needed something different? What if you leave something out? Hundreds of thousands of dollars could be are at stake, but you are paid a few hundred dollars.

It seems to me we should be paid according to the risks we take in our work. Our insurance carriers are. Our business clients are. But we are not and we probably never will be. We can’t charge thousands of dollars for a simple will.

But while we probably won’t get paid more for taking risks in our legal work, we can get paid more for taking risks in our marketing. Ironically, these are risks most attorneys avoid.

If you want to reap bigger rewards in marketing your services, you need to take bigger risks.

Time, money, ego–invest more, risk more. Yes, you might waste that time or money, or take a big hit to your ego. But you might also get rich.

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Filed Under: Attorneys fees, Fees and Billing, Law office management, Legal industry, Marketing legal services Tagged With: , , , ,

How to find out what your clients want (so you can give it to them)

April 4, 2012 by
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Attorneys ask a lot of questions. We ask to find out what our clients want and need so we can prepare the right documents. We ask questions through discovery, to avoid surprises, develop a strategy, and gain an advantage. Questions are how we tell a story in the courtroom or negotiate a settlement in the hallway. Questions are even how attorneys answer questions they don’t want to answer.

We’re good at asking questions.

We know when to ask open-ended questions and when to ask leading questions. We know how to question a hostile witness, an expert witness, and our own client. We know when a question is proper and when it is objectionable.

All day, every day, we ask questions in our work. Why don’t we do the same thing in our marketing?

Your clients and prospective clients can tell you what you need to do to grow your practice. They can tell you what you need to say to get them to say yes. They can tell you what you need to do (or not do) to make them happy. They can give you information you can use to improve every aspect of your practice.

All you have to do is ask.

You can ask about the specific handling of their case, what they liked best in your latest newsletter, or how they were treated when they called to make an appointment.

You can ask what topics they would like you to write about in your newsletter, whether they are interested in other services you’re thinking about offering, and whether they think your fees are too high, too low, or just right.

You can ask them what you did well for them, and where they felt you could have done better. You can ask which headline they like best, which blogs or magazines they regularly read, or whether they want paper copies mailed to them or if email is just fine.

You can ask in person or over the phone, through email or online surveys and polls. You can ask directly or, for more honest feedback, let them answer anonymously.

You can ask anything, and they will tell you, and what they tell you could be worth a fortune to you.

What if you have always assumed your clients wanted updates only when there is something important to report but in reality, most of them want to hear from you every month? What if you’ve been writing about how to avoid infringing on others’ patents but they want to know is how to minimize employee lawsuits? What if you have always assumed your receptionist is doing a good job but half of your clients think he is rude?

And guess what? People like being asked. They like giving their opinions and they will appreciate you for asking. It tells them that you care about what they think, and that you want to make them happy.

Make a list of questions to ask your clients and prospects and business contacts. Get in the habit of regularly asking people what they want, what they like, and what you can do to improve. And then do something even more important: listen.

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Filed Under: Client relations, Communication, Law office management, Marketing legal services, Salesmanship Tagged With: , , , , , , , , , , , , , , , , , , ,

Get bigger results with a DMO (daily method of operation) with these 4 components

April 3, 2012 by
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Most attorneys handle their day by (a) looking at the calendar and (b) responding to phone calls, emails, and regular mail. They handle the work in front of them and never seem to find time for much of anything else.

They know they “should” spend some time on marketing, for example, but that time never seems to materialize.

The solution is to create a “daily method of operation”–a written list of daily activities that help you move forward towards your long term and short term goals.

Your “daily method of operation” is a broad plan for the day. Rather than spelling out the specific tasks you need to do each day, a DMO focuses on the big picture. It reminds you to pay attention to what’s important, rather than what’s in front of you. It allows you to run your practice instead of your practicing running you.

Every attorney’s DMO should have these four components:

  1. Professional and personal development. Every day you should be reading or listening to training, learning new ideas, and finding ways to improve what you already know and do. Without continual development, you will stop growing and eventually begin to decay. This category includes continuing legal education, but also things like practicing your next presentation in front of a mirror, reading books on sales and business, and spending time with a mastermind group or a workout partner.
  2. Money making activities. This is work that brings in revenue. Make sure you’re doing things that allow you to bill or settle cases, not wasting time in pointless meetings.
  3. Marketing. Marketing is everything you do to attract clients and you must do it every day. It includes staying in touch with former clients and making sure your current clients are happy. In fact, from a marketing standpoint, there is nothing more important than “client relations”. Whatever you do for marketing–blogging, speaking, networking, social media, advertising–schedule time and do it every day.
  4. Administrative. If you run your own practice, there will always be things you need to do or to supervise to make sure things are running smoothly. If you aren’t in charge, there are things you need to do to stay organized and out of trouble. Schedule time each day to make sure you’re on top of things, but not so much time that the other components get short-changed.

To stay on track, you should also set goals for each component. There are two types of goals–activities and results:

  1. Activities: e.g., make one “how are you?” call each day to a former client, attend one networking function per week, etc.
  2. Results: e.g., one new client per week via online marketing, increase revenue 25% this quarter, etc.

Create a daily method of operation for your practice and schedule time for all four components. If you spend only 15 minutes a day on marketing but do it every day because it’s part of your DMO, you’ll be amazed at what you can accomplish.

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Filed Under: Law office management, Personal development, Productivity, Time Management Tagged With: , , , , , , , , , , ,

“Who the hell are you and why are you contacting me?”

March 15, 2012 by
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Begin rant. . .

I got this voice mail message the other day: “Hi David, this is Joe Blow. Please give me a call at [telephone number]. . .”.

He didn’t say who he was (other than his name, which I did not recognize) or why he was calling. He didn’t give me any reason to call him back.

Guess who I didn’t call back?

I shouldn’t have to tell anyone this but it happens often enough so I guess I do: when you leave a message, tell people who you are and why you are calling.

Are you a client? A colleague? A fan? Do you want to hire me? Is there an issue I need to look into? Do you have something to propose?

When you leave a voice message, give them a good reason to call you back.

And. . .

State your name clearly. Spell it (unless it’s very common). Say your number slowly so they can write it down. Repeat the number so they don’t have to listen to the message again. Give them your time zone and the best time(s) to reach you. Say please and thank you.

Common courtesy and common sense.

And. . .

The same goes for email.

Tell people who you are and why you’re writing. What do you want them to know or do? Give them a web site so they can find out more. Use correct grammar and spelling. Format your email so it doesn’t look like a DECLARATION OF WAR! And get to the friggin point!

When you contact someone for the first time, you’re making that proverbial first impression. The only thing they have to go on is that email or voice mail message. Make it professional. Show them you care. Because if you don’t care, why should they?

Rant over. . .

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Filed Under: Communication, Email, Image, Law office management, Personal development, Salesmanship Tagged With: , , , , , , , , , , ,

How would you answer these interview questions?

March 12, 2012 by
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I’ve hired a lot of people over the years. I always tried to go beyond the standard interview questions so I could gain some insight into the real person sitting across the desk from me.

But I didn’t have any “sure-fire” questions to get them to reveal themselves. I played it by ear.

Today, I think I would have a few additional questions ready to ask. This morning, I read a collection of unique interview questions and I was fascinated by them, for two reasons.

First, there’s no way a job candidate could prepare for questions like, “Here’s a roll of duct tape. What are ten things you can do with it?”, “Why is a manhole cover round?” or “How many cars are there in the US?”

Answers to questions like these will show how creative they are but also how they handle the pressure of trying not to sound like an idiot. Do they have fun with the question or do they fall apart? Are they willing to admit they don’t know or will they try to fake it? Will they respond to the question with a question (e.g., “Why do you ask?”)?

The second reason I was fascinated by these questions is they made me wonder how I would answer them. There were several questions I knew I’d bomb. What does this mean? What if I was interviewing myself for the job, would I be unqualified to work for me?! And is it fair for me to ask questions like these if I wouldn’t have good answers?

What say you? How would you answer these questions? And will you use any of them with the next job candidate you interview?

Okay, here are my ten ways you could use duct tape: (1) Get your client to keep quiet in court; (2) dip in sugar water to make an ant trap; (3) fix a book with a broken binding; (4) seal a perforated air hose; (5) tape index cards to the wall when you don’t have push pins; (6) keep statues from falling over on your desk; (7) emergency rain gear; (8) fake suicide bomber vest for Halloween (!!); (9) slap a “Kick Me” sign on your friend’s back; (10) emergency handcuffs.

Now I know I wouldn’t hire me. . .

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Filed Under: Law office management, Personal development Tagged With: , , , , , , , , , , , , , , , , , , ,

Not all clients are the same. Don’t treat them all the same.

February 6, 2012 by
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Some clients are better than others. You know the ones I’m talking about. They have more work for you (or bigger cases), they pay on time, and they don’t call you every other day to ask the same questions you already answered three times before.

I’m sure you have your own list of what constitutes a better client.

Better clients are worth more to us and we should acknowledge this. We shouldn’t feel guilty about treating some clients better than others or trying to treat everyone the same because it’s fair or politically correct.

Look, if someone is paying me $150,000 a year, I’m going to give him more attention than someone who pays me $1,000 for a one time transaction. That’s just the way it is.

Of course today’s $1,000 client could refer tomorrow’s $10,000 client who could, in turn, refer next year’s $100,000 client. And so the notion of treating some clients better than others does not imply that it’s okay to treat some clients below a minimum standard of care. In fact, we should strive to exceed that minimum whenever possible. But let’s face it, not all clients deserve the same treatment.

Seth Godin agrees.

So does Richard Koch, the author of The 80/20 Principle:

“Marketing, and the whole firm, should devote extraordinary endeavour towards delighting, keeping for ever and expanding the sales to the 20 per cent of customers who provide 80 per cent.”

Make a list of your “twenty percent” clients, the ones who provide the bulk of your income. Start paying more attention to them, acknowledging them and strengthening your relationship with them. Give them more of your (non-billable) time, spend more on their Christmas gifts, and do whatever you can do to convert them from being merely “satisfied” clients to raving fans.

And while you’re at it, make a similar list for your referral sources.

By the way, the same idea applies to prospects. Some are better than others. You should have a plan in place to give more to those who are worth more.

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Filed Under: Client relations, Law office management, Leverage Tagged With: , , , , , , , , , ,

Save time and reduce mistakes with form letters

February 2, 2012 by
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I suspect that as much as one third of the mail and email messages you send each week are routine responses or messages. Inquires are answered, new clients information is transmitted, newsletters are mailed. You probably have some of these saved as form letters. You may also store snippets of text you use frequently, ready to copy and paste into your outgoing messages.

If you’re not doing this, now is the time to begin assembling a library of form letters, just as I’m sure you have for pleadings, discovery, and agreements.

If you do use form letters, it’s a good idea to review them to see how you can make them better.

Not only do form letters save the time otherwise spent drafting an original letter, they also save time spent instructing others who respond on your behalf. After all, it’s a lot quicker to tell your assistant to “send letter 3-B” rather than explain what you want them to say (or dictate the letter yourself).

Form letters also reduce mistakes. You won’t forget to tell someone something that is already in your letter.

Form letters also reduce the number of incoming calls seeking additional information or clarification. Clients and prospects will like seeing that you are prepared and thorough.

The first step to improving your form letter library is to make extra copies of every letter and email you send over the next week or two. If you use Evernote, you can send everything into a temporary notebook for this purpose or assign a “form_letters” tag. You might also want to go through your sent email folder for the last few months and selectively forward emails to your Evernote email account. You can do the same with digital copies of letters sent by regular mail.

Also, go through your incoming mail. You may be getting letters sent to you that are (a) answered by phone or in person (i.e., at the consultation or meeting), (b) not being sufficiently answered, or (c) not being answered at all. Send these to your email account, too.

(For more ways to use Evernote in your law practice, check out my Evernote for Lawyers eBook.)

Once you have assembled a sampling of letters and emails, the next step is go through them and ask yourself,

  • How often do I send all or part of this information?
  • Is there anything in here that I could save and use?
  • Is there anything here that could be improved? Expanded? Clarified?
  • Is there anything here that could be put into a form letter?

Take the time to create or expand your library of form letters and get in the habit of using them. And every time you dictate an original letter, ask yourself if some or all of it could be added to your library.

If five percent of your current messages today are form letters, and you could increase this to just ten percent, you should see a significant time savings.

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Filed Under: Email, Law office management, Productivity Tagged With: , , , , , , , , , , , , , , , ,
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