Why I didn’t earn millions of dollar per year in my law career

February 12, 2015 by
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By most people’s standards, I had a successful law career. I helped a lot of people and earned a lot of money. Looking back, however, I realize that I didn’t help as many people as I could, or earn as much as I could.

One reason is that I didn’t want to work that hard. I wanted free time to spend with my family and do other things. I didn’t want to work all day every day and burn out (or die) at an early age.

But there may have been a way to earn a lot more without sacrificing quality of life. In fact, doing this one thing may have made my life more interesting and gratifying.

An article in Forbes has the answer. “According to multiple, peer-reviewed studies, simply being in an open network instead of a closed one is the best predictor of career success,” the article says.

An open network is where “you are the link between people from different clusters”. A closed network, on the other hand, is where “you are connected to people who already know each other.”

In other words, the best predictor of career success is continually meeting new people, outside of your usual haunts. Most people, myself included, associate primarily with people they already know.

I’d much rather spend time with people I know, in familiar surroundings, doing things I am comfortable doing. The big boys, it seems, regularly get out of their comfort zone and “go hunting” in unfamiliar territory.

One of the studies showed that “half of the predicted difference in career success (i.e., promotion, compensation, industry recognition) is due to this one variable.”

Oh my.

Practically speaking, an open network means getting away from your regular bar association and chamber of commerce meetings, at least periodically, and attending other functions, even if they seem to be wholly unrelated to your current career path.

In his early life, Steve Jobs pursued many diverse interests that had nothing to do with business. Those experiences, and the people he met in exploring them, not only helped mold his creative eye, they introduced him to opportunities he was later able to capitalize on in his career.

In view of this, if I was building my law career today, I would spend more time pursuing things that fascinated me and meeting people who share my interests. I would be a kid again, exploring the world and all it had to offer, something Jobs did throughout his life.

Want more referrals but don’t want to ask for them? Here’s the solution

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Filed Under: Career satisfaction, Increase your income, Leverage, Networking Tagged With: ,

Being a sole practitioner doesn’t mean doing everything yourself

February 10, 2015 by
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In response to yesterday’s post about taking the day off, a subscriber asked, “So how does a sole practitioner disconnect on vacation and turn off the phone? I haven’t had a real vacation in 15 years”.

Of course the short answer is you just do it. You have someone else answer the phone, something you should always do, and you have some else talk to clients and prospective clients and take care of the office.

In other words, you have people.

Being a sole practitioner means not having partners. It does not mean doing everything yourself. You have employees or virtual employees or assistants and outside lawyers who handle appearances and other things only lawyers can do.

Yes, this does add a layer of complexity to your practice. You have to supervise your people, or supervise people who supervise your people, and you have to be comfortable with delegating work. But this complexity gives you something even better in return. It gives you freedom. You can take vacations. You can sleep late. You can go to the movies in the middle of the day.

Having people also allows you to earn more money. If you do things right, you earn enough additional income to pay your people and have more net income after you do.

But there are a couple of additional things you need to do to make this work.

First, you need to specialize. You can’t expect to be good at “everything”. Nor can you make a compelling case to prospective clients as to why they should hire you instead of someone who specializes in what they need.

The email I received asking the question at the top of this post ends with a list of the attorney’s practice areas, to wit:

REAL ESTATE

** Residential Closings
** Commercial Closings
** Short Sales
** Loan Modifications
** Reverse Mortgages
** Deed in Lieu of Foreclosure
** 1031 Exchange
** Escrow services
** Property Tax Appeals
** Foreclosure Defense
** Motions to vacate foreclosure sales
** Mortgage Reinstatements
** Landlord Tenant

COMMERCIAL LAW

** Civil Suits
** Business Incorporations
** Debt Settlement

FAMILY LAW

** Divorce
** Child Support
** Modification of Settlement Agreements
** Mediation

CRIMINAL LAW

** Federal/State Defense
** Felony
** Misdemeanor
** Traffic Tickets
** License Suspension

It’s too much. No wonder she hasn’t taken a vacation.

Pick one practice area. Clients prefer to hire lawyers who specializes. They’re also willing to pay them higher fees because lawyers who specialize are perceived as being better, and they usually are. When you do lots of one thing, you tend to get better at it.

You also find it easier to keep up with changes in the law, new forms, and best practices. You spend less time (and money) on “compliance,” which gives you more time (and money) to invest in doing things that lead to more profits and growth.

Yes, you have to give up work that isn’t in your specialty. But you can refer that to other lawyers who send you business that’s outside of their specialty.

In addition, marketing is easier and more effective for lawyers who specialize. Which leads me to the last point. If you want to be able to take vacations, earn more and work less, you have to get good at marketing. Not great, necessarily. Good enough is good enough, as long as you do something on a regular basis.

Specialize, delegate as much as possible, and get good at marketing. Those were the three things that allowed me to go from being overworked and overwhelmed to quadrupling my income and reducing my work week to three days. You can do the same thing.

Learn more: The Attorney Marketing Formula

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Filed Under: Continuing Legal Education, Law office management, Legal industry, Leverage, Marketing legal services, Productivity, Specializing, Time Management

If my dentist managed your law practice

January 23, 2015 by
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My dentist send me an email that said:

NORDSTROM GIFTCARD GIVEAWAY

INVITE A FRIEND AND WIN A NORDSTROM GIFTCARD!

Introduce friends, family and co-workers to our office, and when they come in for their appointment between now and February 19th, you will be entered into a drawing to win a 0 NORDSTROM Giftcard!

The rest of the message said when the drawing would take place and that the “New patient must complete routine exam, cleaning and x-rays to qualify for drawing entry. One entry per person seen in the office.”

Not bad. Get more referrals, total cost: $100.

Two things come to mind:

(1) You could use something like this in your law practice, and

(2) If you do, you can get more bang for your buck than my dentist

First, let’s put aside the notion that you can’t do something like this in a litigation practice. You can. Not necessarily to get clients immediately, although you might, but to build your email list, which will eventually lead to new clients.

Now, how could you get bigger results than my dentist?

For starters, how about something obvious like having the drawing for the referring parties instead of (or in addition to) the new clients?

Hello. . . ?

Yes, it’s nice that you’re going to enter my friend in a drawing if I refer him, but how about something for me? Give me a reason to think about this for more than the three seconds it takes me to delete your email. . . let me imagine that I might win this thing. . . let me get excited and start thinking about who I could refer. . .

Okay, what else?

How about not requiring the referral to actually hire you?

It should be enough if they only have a free consultation, or even if they just schedule one. Or only opt into your list.

The name of the game is getting people to know about you and how you can help them. It’s about building your list.

Get more people on your list and you’ll get more clients.

The prize doesn’t need to be won by someone who referred a client (or became a client). So what if the “winner” is someone who refers ten people, none of whom become an immediate client? As long as your list is growing, your practice will be growing.

What else?

Well, you might offer a bigger prize.

Assuming your margins are higher than a dentists (arguable, I know), you can afford to offer the winner more than $100. You may not have to, it’s true, because winning anything is exciting. But a $250 prize sounds much more exciting, especially at Nordstrom where $100 would only buy you one shoe. For another $150, you might get a lot more participation.

You could also offer more prizes, e.g., three or five winners. Or you could offer a big first prize and lesser value second, third, and fourth place prizes.

NB: if you’re thinking of awarding prizes based on the number of referrals, i.e., the winner being the one who refers the most clients, do your homework re possible legal and ethical issues.

One more thing.

How about promoting your drawing to people who aren’t your clients? Contact other professionals you know (and ones you don’t know) and offer the same deal. Why not offer this to anyone in town (through your blog, social media, ads or mailings, or word of mouth)?

Would it be okay if you got referrals from strangers, people who have themselves never hired you, people who only send referrals so they can get a shot at winning a prize?

Yeah, that’s what I thought.

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Filed Under: Advertising, Email, Leverage, List building, Marketing legal services, Referrals

What to do when you have nothing new to offer

January 12, 2015 by
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What’s new?

Unfortunately, for most attorneys, the answer is “nothing”. They offer the same services today that they offered last year, and the year before that.

The clients change, the cases have different elements, but for most attorneys, same old same old. Even if they offer a menu of services, the menu rarely, if ever, changes.

Worse, many of their clients need them only once in their lifetime.

If attorneys owned any other type of business, they would regularly offer new products or services. Their business would always be growing.

But if a client doesn’t need another divorce, or doesn’t get in another accident, it’s game over.

It would be great to be able to offer the client another service, wouldn’t it? But if you specialize (as you should), you probably don’t have anything else.

Some attorneys offer updated documents, reviews, and modifications, and that’s good. But what about everyone else?

Well, there are a couple of things every attorney can do.

First, you can partner with other attorneys and promote their services to your clients. In return, your partner promotes your services to their clients. You can also do joint ventures with other types of professionals, and businesses, too.

Your clients have problems and needs that go beyond what you can do for them. They need help finding high quality professionals and vendors. They would love to get a good deal, or at least know they aren’t getting a bad one.

You can help them, and in so doing, help yourself.

Think “clients” not “cases” or “engagements”. Continually look for ways to help your clients with their other business or personal needs.

See The Attorney Marketing Formula for different ways you can work with joint venture partners.

Second, no matter what kind of practice you have, you should continually be creating new content.

Every article, blog post, report, seminar, video, or ebook you produce and put out into the market place can bring you new clients.

They can bring traffic to your website via search and social sharing. You can ask your clients and contacts, (and joint venture partners), to share our content with their clients and lists. You can offer them for sale on Kindle and other venues, where millions of prospective clients can find them.

Each piece of content you create educates prospects about what you do and how you can help them. It pre-sells them on the need for an attorney, and why that attorney should be you. And it prompts them to contact you to ask questions, make an appointment, or sign up for your list.

New services, albeit someone else’s, and new content. These are your new products and services. This is what you should continually create and offer.

Then, when someone asks, “What’s new?” you’ll be able to show them.

To learn more about joint ventures, get this

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Filed Under: Increase your income, Legal industry, Leverage, List building, Marketing legal services, Referrals, Web traffic

It’s better to own a law practice than to run one

September 30, 2014 by
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An article in our local newsletter featured a neighbor who recently changed careers. I don’t know what they did before but a couple of years ago, they bought a fast food franchise and they recently opened a pizza restaurant in the food court of our local mall.

The couple have two young children and my wife commented that running two restaurants sounds like a lot of work. I pointed out that running a restaurant isn’t the same thing as owning one.

As the owner, you have employees who run the day to day operations. You may check in once a day, once a week, or once in awhile, but as long as you have good people working for you, and good people supervising those people, there isn’t lot for the owner to do. And, if you get big enough, you could structure things so that you don’t have to do anything at all.

Many restaurant chains are owned by investment groups. The owner-investors are not involved in the daily operations.

Most small businesses, and that includes most small law practices, aren’t there, however. The owner, or the partners, are still very much involved in running the business, and running a business is a lot of work.

Would that it could be otherwise.

What if you didn’t have to go to the office today, or for the next six months? What if the practice ran without you?

That would be nice, wouldn’t it? Scary, but you could get used to it, right?

Granted, a law firm isn’t a restaurant. Lawyers have more rules to follow with respect to supervising employees and such, and great penalties if they don’t, so you might never be able to go home and be a passive investor.  But you can come close.

And you should.

Because then, you could use your time any way you want to, to do anything you want to. You could even go to work if you want to, but because you want to, not because you must.

I encourage you to work towards this ideal. Work towards the point where other people do most of what needs to be done. You can (eventually) hire all the lawyers and legal assistants and other employees you need, and people to supervise them.

Seriously, put this on your list of goals. Because it’s better to own a law practice than run one.

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Filed Under: Increase your income, Law office management, Leverage, success Tagged With:

How to use your new client intake sheet to get more referrals

September 18, 2014 by
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There’s a very simple way to get more referrals from your clients. It will also help you build your newsletter list and meet more referral sources.

All you have to do is add two things to your client intake sheet.

The first addition is a prompt for the client to list people they know who might like to receive your newsletter, special report, video series, or anything else you offer, such as a free consultation.

You or your staff point out this section to them and explain how this helps their friends solve a problem or understand their options. Tell them there is no cost or obligation or pressure of any kind.

Also tell them what you will do if they provide names, i.e., send these people a letter and mention the client’s name (or omit it if they prefer). If they don’t want to give you names, you will instead give them copies of your report or a certificate they can give to their friends to redeem for a free consultation, report, etc.

The client gives you names and you contact those people, or you give the client something to give to those people and let them take the next step. Either way works.

Even if the client does nothing on day one, you will have planted a seed that may eventually result in referrals and subscribers. You can prompt them again by sending them a letter with a blank form they can fill out, or a link to secure web page form. As the case progresses, they may be more comfortable opening up their address book.

The second addition to your intake sheet are prompts to supply the names of other professionals they know. Who are their insurance agents? Do they have a CPA or tax preparer? Do they know any other lawyers? Do they have a financial planner, stock broker, or real estate broker?

Explain to the client that you will introduce yourself to these other professionals. If there is a logical connection with the work you’re doing for the client, explain this. For example, if you’re an estate planner, it makes sense to coordinate with their financial planner or tax professional.

If not, tell the client that you do this for marketing purposes. By meeting other professionals your clients know and recommend, it helps your practice grow. It also helps you meet other good professionals you can recommend to your clients, so it helps these other professionals, too.

Provide a check box for the client to indicate it’s okay for you to mention their name, or not.

Contact these other professionals, tell them you have a mutual client, and you’d like to find out more about what they do and see how you might be able to work together.

Clients will send you referrals without being asked, but if you ask, they’ll send you more.

Learn the formula for marketing legal services. Go here now

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Filed Under: Law office management, Leverage, List building, Marketing legal services, Newsletters, Referral sources, Referrals, Relationship marketing Tagged With: ,

What to do when people ask you for free advice

September 8, 2014 by
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Do people ever ask you for free advice? Of course they do. So, what do you do about it?

Do you tell them to make an appointment? Give them the speech about “all a lawyer has to sell is his time and advice”? Or do you answer their question and hope you’re not wasting your time?

I have another suggestion. In fact, if you agree with my suggestion, you will no longer dread calls or emails asking legal questions or seeking free advice, you will encourage them.

The next time someone asks for your advice, don’t answer them over the phone or in an email. Write your answer and turn it into a blog post or newsletter article.

Quote the question but omit anything that might identify the questioner. Answer the question by explaining the law and procedure. Describe the options and the criteria for making the best choice. Provide advice in “if/then” terms.

Send a copy or a link to the inquirer and tell them you hope it helps. Tell them to contact you if they would like to talk to you about their specific case or matter or they wish to proceed further. Tell them you would be happy to quote a fee for this work or consultation.

Your post provides the questioner with guidance about what to do. It shows them that if they choose to take the matter further, you have the requisite experience and knowledge to help them. They’re happy because they got some information and advice from an expert. They understand that if they want more from you, they will have to pay for it.

You get a prospective client who is now one step closer to becoming an actual client. If they contact you again, they will almost certainly hire you and pay you.

You also get content for your website or blog that demonstrates your expertise, your thoroughness, and your willingness to help people. That content helps website visitors understand their legal issue and sells them on you and your ability to help them. If you get inquiries about similar issues, you can point people to your “library” of previous answers. That library of content will also attract visitors through search engines and social sharing.

Don’t merely answer questions, leverage those questions to create traffic, build your reputation, build your list, and pre-sell clients on hiring you.

For more on how to create online content, see this.

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Filed Under: Blogging, Client relations, Communication, Leverage, List building, Marketing legal services, Newsletters, Online Marketing, Web traffic

Social Media Myths Busted (and other lessons for lawyers)

August 14, 2014 by
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I’ve been accused of being down on social media. It’s true that I don’t use it much, but I do use it. I realize it’s a big deal and it’s not going to go away. I also know that many people who read me and connect with me use social media extensively to provide value to their readers and followers and it makes sense for me to make it easier to do so.

I also understand that social media (done right) isn’t about advertising or selling, it’s about networking. I may not let on that I get the difference, but I do. It is a great tool for finding and reaching out to people in your niche, many of whom you would never meet at in-person networking events.

Apparently, a lot of people don’t get or don’t like social media. So when I saw a new book that promises to reveal the truth about social media and how Luddites like me can use it to increase our bottom line, I grabbed a copy.

In Social Media Myths Busted: The Small Business Guide to Online Revenue, social media expert Laura Rubinstein reveals the truth about common social media myths such as “It takes too much time,” “It’s not relevant to me,” and “You have to be an extrovert to be successful”.

After this, I might read, Social Media is Bullshit.

Whatever your take on using social media in your practice, there’s something else to be learned from Rubinstein’s book. Two lessons, actually, that can be used in marketing even if you never use social media.

The first lesson is about how she wrote the book. Although she is an expert on social media, Rubinstein interviewed 30 business owners and social media experts and got their take on the subject. Those interviews are distilled into the book. She was able to cobble together a book imbued with the knowledge and credibility of the interviewees, no doubt making the book better and easier to write.

Interviews allow you to write a book or any kind of content more quickly and easily. If you interview subject matter experts, their knowledge and experience will add depth to your content. If they aren’t experts, clients for example, their stories can provide context and human interest.

There’s another lesson from crowd sourcing content the way Rubinstein did it, and it’s a big one.

The thirty people she interviewed are all named in the book. They not only get the author’s stamp of approval, they also get exposure to thousands of people who read her book. Do you think these thirty experts might proudly promote this book to their lists and through their social media channels?

You bet your ass they will.

Tens of thousands of people who are interested in social media will hear about this book and want to see what their favorite guru says about social media. Result: Rubinstein is selling a ton of books.

She’s killing it. Bringing in cash, traffic to her web site, and opening doors to new marketing opportunities.

You don’t have to write a book to accomplish this. Interview some experts and post it on your blog. Feature them and their wisdom and they will send traffic to your site.

Where do you find these experts? How about social media?

More ways to create content, build traffic and get more clients, with or without social media: Click here.

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Filed Under: Blogging, Leverage, List building, Marketing legal services, Newsletters, Online Marketing, Social media, Social media marketing, Web traffic, Writing Tagged With: ,

Lawyer networking and the 80/20 rule

July 16, 2014 by
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Lawyer networking–is it a good use of your time?

Some say that formal networking (the way most people do it) is a low yield activity. They say that the people you meet at chamber of commerce and other formal networking events are unlikely to have much business to give you. They are networking because they need business. The ones who have plenty of business, and thus plenty of referrals to give you, are not at the events, they’re at the office helping their clients.

I’m not sure I’m willing to accept this as a universal truth, but let’s say it was true. If you’re thinking about networking as a means to grow your practice, does this mean you should reconsider?

No. It means you need to approach networking with a different agenda.

One way to do this is to forgo meeting most of the attendees at these events and instead focus on meeting the organizers and speakers. These people know the people at the events, and many more who aren’t. They can steer you towards prospective clients and other professionals who might be a good match.

Meeting these centers of influence allows you to leverage your time. You will have to work just as hard to build a relationship with them as you would with anyone else, but if you are successful, that relationship could yield far more results than a relationship with someone who is just starting out.

On the other hand, networking with people on their way up can also be a good thing. They may not have much business to give you right now, but if you stick with them while they grow and become successful, they could become good clients or referral sources.

Spend 80% of your networking time courting high-value connectors and centers of influence. Note that these people are probably sought after by others who want to know them and may also have attorneys to whom they are already committed. These people may be a tougher nut to crack, but if you are successful, they could open many doors for you.

Spend 20% of your networking time building relationships with people who can’t do much for you now, but might someday. They may be small potatoes, but in a few years, they may be so busy, you’ll never have a chance to meet them.

The Attorney Marketing Formula helps you create a plan for marketing your practice

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Filed Under: Leverage, Networking, Productivity, Time Management Tagged With: ,

A high school class that has earned me a fortune

December 5, 2013 by
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I took a typing class in high school. I think we learned on Remingtons, ancient mechanical monsters that made typing a labor-intensive chore. The keys would get stuck, corrections were slow and frustrating, and typing line after line of “f-f-f-space, j-j-j-space” barked out by our instructor made the experience anything but enjoyable. But I learned to type.

Still, in my practice, I used a dictation machine and had a secretary do the typing. Even on a fast and forgiving IBM Selectric, typing was frustrating and it was better to let someone else do it.

Not anymore.

Today, with the computer I am able to type quickly and errors are no bother at all. I can get the words down “on paper” as soon as I think them. There’s no need to have someone else do the typing. In the time it would take to dictate, I can have it done myself.

I think that’s true of many attorneys today. But not all. Many attorneys never learned how to type, or if they did, they don’t do it well. If that’s you, I encourage you to do something about it. Take a typing class. There are many available online. Increase your speed and accuracy.

For the record, we’re talking about “touch typing” here–typing without looking at the keyboard. The two-finger jab, no matter how fast you are, doesn’t cut it.

The other day, I wrote about the value of practice for improving our skills. Typing is a skill with a huge return on time invested. The thought of spending 40 hours practicing typing may seem ridiculous when you bill $400 an hour, but it’s not ridiculous at all if it allows you to save 30 minutes a day for the rest of your career. You’ll be in the black in less than 90 days.

And, what if improving your typing skills allows you to lower your secretarial costs?

The idea is to “slow down so you can speed up.” Invest time to learn, practice, and improve. There is a cost, but there is a greater return.

I bought a new laptop last week and it arrived a few minutes ago. It’s my first experience with Windows 8 which I hear is not very intuitive. If I can’t figure it out, I’ll go online and learn what I need to know. I’ll take a class if I have to. Or. . . I might just trade that sucker in on a Mac.

Want more referrals? Quickly? Here’s what to do.

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Filed Under: Increase your income, Law office management, Leverage, Personal development Tagged With: ,
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