The problem with most consumer law practices

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Most consumer oriented law practices have a big problem. Lawyers who practice family law, bankruptcy, criminal defense, estate planning, personal injury, real estate, and other areas, have a preponderance of “one time” clients. Once the initial case or engagement is completed, the attorney gets no additional revenue, or at best, very little.

The problem is worsening. It costs more to bring in a new client today, and overhead and manpower expenses to service those clients are also higher. But clients aren’t willing to pay more, and they don’t have to. With more lawyers competing for the same clients, clients have more options.

I just spoke to an attorney who is spending $13,000 a month on yellow pages. The good news is that her ads bring in a lot of new clients. The bad news is that she loses money on every one.

The solution to this problem is for attorneys to develop their “back end”–services and other profitable initiatives they can offer their clients after the initial engagement.

In any business, most of the profits are made on the back end. There is a cost to acquire a new customer, and while it is hoped that this can be done at a profit, it’s not required. So long as the business can make enough profit after the initial sale, if the back end is big enough, most businesses are willing to lose money on the front end.

How can an attorney develop a back end?

Some attorneys are branching out into new practice areas. So the bankruptcy lawyer who sees a downturn in new clients starts offering family law or estate planning services. The problem with this is that it makes it much harder to get referrals from family law and estate planning attorneys with whom you are now competing. It’s also more difficult to market a general practice than a specialized one.

Instead of taking on new practice areas, here are two things an attorney can do to develop a back end:

  1. Expand and systematize referrals. Focus on getting more referrals, better referrals, and more frequent referrals from your clients. In this way, each client you bring in on the front end represents more profits on the back end. If you spend $1000 to bring in a new client who pays you $1000 on the front end, but you earn an average of $3000 from their back-end referrals, you can afford to bring in as many “break even” clients as possible. You can even lose money on the front end.
  2. Market the services of other lawyers to your clients. Instead of you taking on a new practice area, associate with other attorneys who are specialists in those areas and offer their services to your clients in return for a share of the fees (if ethically permissible) or in exchange for marketing your services to their clients. (You aren’t limited to working with other attorneys; you can also market the services of other professionals and businesses.)

A key number every attorney must know is the “lifetime value” of a new client. This includes the value of their repeat business, their referrals, and other revenue derived as a result of having them on your list. Take some time to determine this number and then work on increasing it.

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Apps for lawyers: do you really need one?

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If you have a smart phone, the chances are you’ve seen more than a few law firm apps coming through the app store. A lot of law firms are getting them and you may be tempted to do the same. With all the smart phones out there, it’s got to bring you some business, right? Hey, even one new client will pay for the app.

Before you get out your checkbook, there are some things you should consider.

Most apps fall into two categories. The first is of the “digital brochure” variety. This may do a great job of showing your firm’s capabilities but you’re not going to bring in much business with an app that nobody downloads and if a brochure is all you’ve got, not many will.

The second category of app falls into the utilitarian category: it does something useful. Personal injury lawyers seem to have a preponderance of this kind of app, of the “what to do in case of accident” variety. There are places to fill in information about the other parties, witnesses, insurance information, and also some pointers on what to do.

This sounds good but think about it: when you’re in an accident, nervous, waiting for the police or ambulance or tow truck, will you really want to launch an app and start typing with your thumbs?

Some of these apps have audio recorders, but still, in the heat of the moment, most people aren’t going to use it.

“Ah, but the point isn’t that they use it, it’s that they have it so that when they get home, they’ll remember they have it, look through it, and call us.”

This is true, but you don’t need an app for that. An old fashioned booklet in the glove box will accomplish the same thing. A booklet is a lot cheaper (free if the client prints it themselves from your pdf) and a booklet is something people might actually use.

Another form of utilitarian app is one that contains information. It might be a summary of bankruptcy laws, divorce options, or tips for protecting your small business. If a prospective client is browsing through the app store and sees an app that promises to inform him about something that’s currently on his mind, this could get his attention. The big question is, “will he see it?”

When an app is released, it appears in the list of new apps for a few days, and then it’s no longer “new”. Unless an app is extremely popular, very unlikely for a law firm app., the odds are that nobody will ever see it again in the app store.

What good is an app that nobody knows about?

It will be up to you to promote your app via your web site, newsletter, and social media. If it’s good, people will download it and promote it. But you can accomplish the same thing without an app. All you need to do is put your information into a report or ebook.

Can an app bring in some business? Yes, it can. But before you rush into having one made, lest you be “left behind” by your competition, remember that getting the app made is just the beginning. If you’re not willing to invest in promoting the app, don’t bother getting one. If you are prepared to promote your app, you might simply write a report and save yourself several thousand dollars.

Does your law firm have an app? Has it brought in any business? Please share your experiences in the comments.

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Attorneys: An alternative to free consultations that might work even better

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Yesterday, I posted about the problem with free consultations and what to do about it. Even though people like to get things free, if prospective clients don’t see the value in your offer they either won’t call for an appointment or if they do, they won’t keep it.

There’s another way to get prospects to see the value of your offer and that’s what I want to talk about today.

Instead of offering a free consultation, consider offering a “introductory great deal”.

The popularity of Groupon, Living Social, and other “bargain” apps prove what everyone already knows, people love getting a bargain. A $450 weekend spa package for just $77, a $40 dinner for two for $20, brings in a lot of new customers to the businesses that offer them.

Why can’t you offer something similar?

Bundle up your free consultation package as attractively as you can, put a “regular” price on it, and offer it at a special “introductory” (bargain) price.

If your “free consultation” is normally a “$250 value,” for example, and you offer it for a nominal $39, you might get a lot of takers.

You still have to show prospects the benefits of everything they get. You still have to “sell” your offer, just as you do when it’s free, and probably more so.

Give your package a name, something that implies enhanced value. For example, “Comprehensive asset protection planning session” or “Corporate risk evaluation” or “Pre-Divorce diagnostic and strategy plan.”

And make sure to include the dollar amount your package is worth. When a prospect sees that they can get $250 in value for just $39, their shopping instincts often kick in and they want to buy. Add a “deadline date” when your offer expires and fear of loss will get more prospects off the fence and into your office.

Charging a fee will usually depress response. But not always. The right offer, in the right market, could actually increase response. Charging a fee, however nominal, will almost certainly increase qualified response, which means you will have fewer “shoppers” and more “buyers”. And your no-show rate will plummet, especially if you collect the initial fee at the time the appointment is booked.

As with everything in marketing, you won’t know whether this will work for your practice and your market until you test it. Put it out there, see what happens, track your numbers.

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The problem with free consultations (and my offer to you)

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People prefer to hire lawyers they know, like, and trust. One of the best ways to get prospects to know, like, and trust you is to give them a sample of what you do.

To some extent, that’s what you do when you provide free information. Blog posts, reports, articles, seminars, and so on, give prospective clients an insight into what you have done for others, suggesting that you can do the same for them. They can see you know what you’re doing and get a sense for what it would be like to work with you. Through your words, they come to know, like, and trust you, bringing them one step closer to hiring you.

And yet, of all the people who read or listen to your information, only a small percentage actually take it upon themselves to call and book an appointment. There’s too big of a gap between “reader” and “client”. One way to bridge that gap is by offering a free consultation.

Free consultations allow you to initiate a personal relationship with a prospect and provide them with “customized” information. It’s one thing to provide generic information in your practice area, quite another to interpret that information in the context of a prospect’s particular problem. Prospects who read your information may like what you say and the stories you share but this will never take the place of actually speaking with you.

Done right, free consultations can bring in a lot of business. The problem with free consultations, especially in practice areas where they are common, is that they are usually not done right.

“Free” is one of the most powerful words in the dictionary, but just because something is free doesn’t mean anyone will want it. Many prospects today, seeing that most attorneys in your field offer free consultations, don’t see the value in yours. In fact, many prospects see no value in a consultation, believing it is just an excuse to get them into your office so you can do a sales pitch for your services. Unfortunately, for many attorneys, that’s exactly what it is.

One solution is to include a detailed description of everything the prospect gets as part of the free consultation. Tell them what they will learn, what you will explain, what you will do for them, and what you will give them (e.g., reports, checklists, case evaluation, issue summary, etc.).

Also tell them how they will benefit. Yes, you evaluate their situation and explain their options, but so what? What does that mean to them? It means they will be able to make better decisions about what to do, making it more likely that they will resolve their problem or achieve their objective. It means they will save time or money. It means they will be one step closer to eliminating their anxiety and worry and sleepless nights.

In other words, you can’t simply say the magic words “free consultation” and expect people to come running. You have to “sell” it.

Let me give you an example with my own services.

Starting today, until further notice, I’m offering free consultations for my consulting and coaching services. These will be on a first come, first served basis since I can only do so many of these and I expect to get a lot of response.

During our consultation we’ll talk about where you are and where you would like to be in your career. I’ll ask questions and I will give you my advice. I won’t mince words. I’ll tell you straight out what I think you should do. As a result, you’ll know exactly what to do to bring in more clients, increase your income, or otherwise improve your current situation.

In addition, you’ll be able to ask me questions. You can ask about marketing, cash flow, productivity, goals, or anything else that’s on your mind.

As you know, I’m not somebody who simply read a few marketing books and set up a web site. I practiced law for more than twenty years and learned (the hard way) what it takes to bring in good, paying clients. I know what works and what doesn’t, what works quickly and what doesn’t, because I’ve tried it all. I’ve been in your shoes. I know what it’s like to struggle to make rent. I know what it’s like to question whether you made the right choice of career or specialty or market. I also know what it’s like when the business is coming in faster than you can handle.

I have seventeen years experience consulting with attorneys and helping them to get more clients and increase their income. But then if you’re a regular reader of this blog, you know most of this. That’s why you read it.

These consultations are free and there is no obligation to you whatsoever. Sure, I hope that after the consultation you will want to hire me or buy something from me, but that’s not important. What’s important is that I give you so much value during our consultation, so many ideas for taking your practice to a much higher level, that you can’t wait to get started. I know that if I deliver that to you, we’ll do business some day.

Because I expect to get a lot of response to this offer, I must limit these consultations to 15 minutes. Therefore, after we schedule your consultation, please email me as much information as possible about your current situation. Tell me your problems, obstacles, questions and objectives, so that when we talk, we can get right to the solutions.

Fair enough?

If you’re interested in setting up a consultation, please email info[at]attorneymarketing.com and put “consultation 15” in the subject. Give me three dates and times when you will be available for 15 minutes and the best telephone number to reach you. (I’m in California, so mind the time zone.) I’ll email back and we’ll confirm the date and time.

I look forward to helping you make 2012 your best year ever.

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How to create a more successful law practice

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I read another thoughtful post by Leo Babauta on the Zen Habits blog about the subject of practice. No, he wasn’t writing about a law practice, but I thought his message of “practicing” to effect improvement applied as much to a law practice as to anything else. Plus, I like the play on words.

We are what we repeatedly do. We are the sum of our habits. If we want to change who we are, we have to change what we do.

Change begins with awareness. If you didn’t say “thank you” to the new client who just hired you (you’d be surprised at how many attorneys don’t), reading this sentence made you aware that you didn’t and also aware of how important it is. (Your mother will tell you, it’s one of the most important things you can do.) If you usually say thank you, but for some reason didn’t do it last time, there is room for improvement. The standard of excellence isn’t saying thank you most of the time, but every time.

Now that you are aware, make a decision to change. Then, practice your new habit. With something as simple as saying thank you, you might only need to be reminded. Write it down on your intake sheet, use a post it note, put it on your calendar, whatever you need to do to remember to always say thank you.

Also be aware of what happens when you get it right. Watch your new client’s face as you look him in the eye, shake his hand, and sincerely tell him how much you appreciate having him as a client. Tell him you’ll take good care of him. Let the handshake linger a few seconds longer. Give him your full attention. Say thank you, and mean it. You’ll see some of the tension leave his face as he comes to realize that you really do care.

Your law practice is a collection of habits. What you (and your staff) regularly do and how well you do it defines you, distinguishes you from other lawyers, and plays a big role in determining your success. There are big habits and many small ones and they all matter.

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How to get clients if you hate networking

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I don’t like networking. It doesn’t come naturally to me. It’s not my “thing”.

I know how to do it. I’ve done it enough. I just don’t enjoy it. I’d rather talk to someone on the phone or in a one-on-one setting over a cup of coffee.

Does that make me a bad person? Does it doom me to marketing failure?

No, not at all.

Marketing is (or should be) a mechanism for you to express yourself in a natural way. Marketing isn’t (or shouldn’t be) a mold you must contort your body and soul to fit.

So if there is some aspect of marketing you don’t enjoy (and you’ve given it a fair shake), don’t do it. Life is too short to suffer the slings and arrows of outrageous marketing. Or whatever.

It doesn’t matter how well others are doing with a particular strategy, or how many goo-roos are touting the latest and greatest tool or technique. You have to do what’s right for you.

If you don’t like networking–don’t do it. Speaking give you the willies? Cross it off the list. Social media got you tied in knots because you don’t want to “talk” to strangers online? Choose something else.

If you force yourself to do things you don’t enjoy, you’re not going to be very good at them anyway, so what’s the point? Go try a lot of things, pick one you like, and go nuts with it.

Okay, I know there’s someone who’s dying to ask this: “What if I’ve tried every type of marketing and I don’t like anything?”

The answer to that is simple: get a job.

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How to promote your legal services without feeling sleazy

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sleazy lawyer attorneyAre you uncomfortable with self-promotion? I think most people are, even those of us with “healthy” egos.

According to this inc.com article, “How to Self-Promote–Without Being Sleezy,” we feel this way in large part because of what we believe our friends will think.

Of course “being sleazy,” as the author (or her editor) words it, and “feeling sleazy” aren’t necessarily the same thing. It’s not per se sleazy to promote yourself, yet we may still feel that it is.

Why? It comes down to our sense that when we promote ourselves, our friends will be jealous and stop being our friends. Or something like that.

I say, stop worrying about what your friends think. If they are truly your friends, they will support you even if they are a bit jealous. And if they’re not your friends, it’s okay to let them go.

Okay, that’s easier said than done. Let’s turn to the article for some suggestions on how to lesson the impact:

  1. Tell the story of the struggle behind the success.
  2. Be excited, but be humbled.
  3. Give credit where credit is due.
  4. Enlist the help of your friends to get the word out.

Okay, good ideas. But nobody wants to listen to your broken record about how great you are, not even your mother. So if you really want to do a good job of promoting your services, and not turn anybody off or feel sleazy about it, here’s what you should do:

Don’t talk about yourself.

Talk about your clients and prospects. Talk about their problems and the available solutions. Talk about the law and the procedure. And talk about your other clients and what they have been able to achieve.

Do this with intelligence and grace and you won’t have to promote yourself.

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How to make a quick screen capture video for your blawg

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How to create free screen capture video for your blawgYesterday, I issued an “attorney marketing video challenge“. Today, I want to show you a free and very easy to use web app that allows you to make screen capture videos. I’d seen ScreenR before and was reminded to take another look when I read a review of screenR this morning.

I created the following video a few minutes after I set up an account. I uploaded the video to my Youtube account and then embedded it in this post.

Very easy, very quick.

Even if you don’t want to take the video challenge, I encourage you to set up an account and do a few practice videos. Put your web site or blog on screen, say something intelligent, and you’re done.

You can download the video, post it at youtube or other video sharing sites, put it on your web site, or leave it hosted at ScreenR and post the link to your social media friends and followers.

Note, your video will be public (on the free account) so don’t go too crazy in your video.

Take a look and share your comments. If you are unable to see the video, refresh your browser or you can view it here.

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Attorney marketing video challenge

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attorney marketing videosAbout a year ago, I wrote and “produced” a simple video about a new lawyer attending his first ABA Convention. This was around the time the ABA was considering new rules to regulate attorneys behavior online and the video played off that theme and an ad hoc write-in campaign to tell the ABA to back off.

The ABA didn’t go nuclear on us, but I don’t think my video was the reason. What my video did do was get a lot of attorneys watching it and sharing the link with others. I got a lot of traffic from it.

No, it wasn’t a big hit on youtube, but in my niche market, it did okay.

My challenge to you is to create your own video and put it on youtube and on your blog.

You can use the free service I used, Xtranormal, which allows you to give voice to animated characters. Or, you can act out a skit with other live “actors”. You can narrate slides on your desktop, or simply talk into the camera.

Your best bets for going viral are to use humor or to take a controversial stand, but I would stay away from politics. How about a funny commercial by one of your “competitors”? Or something about one of the new laws that take effect in January?

Anything goes, but remember, your clients are watching (and so is the ABA!)

Keep it under five minutes. Watching my video today, I realized I could have achieved the same effect with a much shorter spot.

You may not see a ton of results from your video but you will learn some things that might allow you to create another video that does. And you’ll have a lot of fun.

Send me the link to your video. I’ll choose a winner and feature it in a future post.

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Dear Attorney: Why should I hire you?

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why should i choose you instead of any other attorneyAs you think about the end of this year and the start of a new one, there’s something you should spend some time contemplating: Why should a prospective client choose you instead of any other attorney?

After all, they could choose from a long list of other attorneys. In some cases, if their needs are simple enough (or they think they are) they can also choose a paralegal or other non-attorney. In any case, not you.

So why choose you?

It’s an important question, don’t you think? Spend some time thinking about this and crafting your answer so that if someone asks, you can confidently answer in a way that inspires them to take the next step in your direction.

A good place to start is by using your imagination. Pretend a prospect is sitting in your office, across the desk from you, pen and paper in hand. You’ve discussed their issue with them, answered their questions, and shown them their options. Then, they pop the question: Why should I hire you instead of any other lawyer?

What would you say?

Write down everything you can think of. No doubt you’ll mention your track record, results you’ve obtained for other clients, and your accolades and awards. You’ll talk about your firm’s resources and capabilities. You’ll say things like “dedication” and “hard word” and “caring”. And all of this is good. But it’s not enough.

For one thing, nobody really cares that you are the biggest, oldest, or most successful. It’s not meaningless, but it’s not that important because it’s all about you. Your prospects want to know what’s in it for them.

In addition, those other lawyers are saying something very similar.

So dig deeper. What makes you different? Why are you the better choice? What co your clients get they don’t get from any other lawyer?

These aren’t easy questions to answer. You may not have a good answer, or any answer, and that’s okay right now. At least you’re thinking about this and if you continue to think about it, eventually you will start doing things that will provide you with a great answer.

Your prospects may never ask you this question. They may never even think it. And, in truth, most will make their decision based on how you make them feel when they speak to you, not on any quantifiable measure of your superiority. But don’t get complacent.

In the end, the attorney who delivers the highest standards of service and benefits to his or her clients is the attorney who will attract more of them. Even if nobody asks.

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