How to protect your referral fee when you refer cases to other attorneys

February 3, 2016 by
Share

I heard from a PI lawyer who had referred a case to another lawyer and was supposed to get one-third of the fee. When the case settled, the referring lawyer heard about it not from the lawyer who settled the case but from a friend of the plaintiff.

Not good.

Even worse, the plaintiff had another accident 4 months later. The same firm handled that case, which settled for $200,000, and they never told the referring attorney about it.

When he finally spoke with someone at the firm about the second case, the referring attorney was told that they don’t pay referral fees on “second generation cases/referrals”.

He asked if I think he’s entitled to a referral fee on the second case.

My take? In equity, maybe. In law, probably not. In the world of commerce, where screwing your referral sources is a great way to kill referrals (and your reputation), I think they should take care of you.

But they’re PI attorneys so I won’t hold my breath.

The bigger question is what to do to protect your referral fee in the future.

Two things. First, you need to have a written agreement that specifies what you get, not only on the original referral but on subsequent cases with the same client. Get this signed before you make the referral.

To be enforceable, it probably has to have reasonable limits (like a non-compete agreement), something like subsequent claims within two years of the original injury. (I’d also ask for a fee on any referrals from that client during the same period.) Ask around, find out the standard in your community. And be prepared to negotiate.

Second, your agreement should specify that you have a lien interest in these cases, and you should so notify the insurance carrier and/or opposing counsel on the first case. That way, when the case settles, your name will be on the check and they have to come to you to get your endorsement.

Your agreement can also specify a lien interest (and attorneys fees if not paid) on subsequent cases, but if you don’t know about those, it’s not as easy to protect your referral fee because you have nobody to notify of that interest until after the fact. Still, better than nothing.

And without an agreement, nothing is what you’ve got.

Hey, I’ve been there. I’ve referred cases to other lawyers and was screwed out of a fee when they settled. You live and learn.

My last piece of advice? Stay in touch with the client. Because you want him to tell you when he has another case, or he has a referral.

Be his “personal attorney” for life. His advisor. The conduit of all of his legal matters.

Think “clients, not cases”. And think about the referral as, “bringing in another lawyer,” not “referring out” to another lawyer.

I’d love to hear how other lawyers handle this subject. Please post in the comments.

Get more referrals from lawyers and other professionals: click here

Share
Filed Under: Attorneys fees, Law office management, Marketing legal services, Referral sources, Referrals Tagged With:

Why you need a referral system

February 2, 2016 by
Share

When you have a new client in the office, what do you say to him about referrals? Anything?

Do you give him anything to pass out to people he knows, to make referrals easier for him?

Perhaps you give every new client three extra business cards. That’s good. But when you do that, what exactly do you say? (It makes a difference.)

Most lawyers don’t have a well thought out referral system in place. They haven’t planned what they will give clients, what they will say, or when.

For most lawyers, referrals happen, when they happen. Or they don’t.

Spend some time today thinking about, and writing down, your system. What do you say (orally or by email or letter) to new clients? Current clients? And former clients?

What do you give them or send them?

Right now, if your system consists of giving new clients three business cards and saying, “Here are some of my cards, in case someone you know needs my help,” fine. Write that down. That’s your system. And any system is better than no system.

But you can do more.

Start thinking about what else you might do the next time they are in the office. Or what you might mail to them or include in your “New Client Welcome Kit”.

Write down all of the times during the case or engagement that you could do something or say something that might bring in more referrals.

Start with new clients, on their first appointment. Then consider what you can do at the end of the case or engagement.

After that, write down ideas for communicating with “old” clients.

Having a system for new clients, end of the case, and old clients, will probably put you way ahead of where you are right now, because you will have a better system than you do now.

Systems save time and make things easier. They produce better results, too, if for no other reason than they prompt you to do something on a consistent basis.

No doubt you get referrals now, but do you get as many as you want? As many as you think you could get?

If not, it’s time to create or update your referral system.

Share
Filed Under: Law office management, Marketing legal services, Referrals

What word or phrase defines you?

January 29, 2016 by
Share

The US Navy says its core values are “Honor. Courage. Commitment”. It is what they stand for, their ethical compass. It is also a promise, to themselves and to the country they protect.

What’s yours?

What is the one word or short phrase that defines you in the context of your career or practice?

What’s your thing?

Mine is “referrals”. When an attorney wants to know my core marketing philosophy, it is that every law practice should be built on a foundation of referrals.

When you hear my name, I want you to think “referrals”. That’s how I built my practice and if I could only teach you one marketing method, referrals would be it.

How about you? When I hear your name, what do you want me to think? What is the word or phrase that defines you and your core beliefs?

It might have something to do with your practice area, target market, or your reputation. It might relate to your biggest passion, a personality trait, your mission or long term goal.

Picture your word or phrase as a banner above the front door to your office or at the top of your website. What does it say? Write down the first thing you thought of.

Whatever it is, you don’t need to make it public. You may at some point, but this isn’t an exercise in creating an advertising slogan or marketing message. It is a way for you to go inside yourself and find your core.

Later, you might use it to create a slogan or commercial message. For now, emblazon it only on the insides of your eye lids–for your eyes only.

Look at it often and ask yourself how it makes you feel? Does it make you proud? Content? Excited? Does it feel like the right choice for you?

If it feels good, live with it for awhile. Eventually, but only if you want to, you can use it to fashion something for your clients and prospects.

My website banner says, “Earn More. Work Less.” That’s my promise. The benefits I offer.

It’s the “what”. Referrals are the “how”.

When you’re ready, this will help you create your marketing message

Share
Filed Under: Image, Marketing legal services, Marketing Plan, Referrals

Have you pissed someone off today?

January 27, 2016 by
Share

Yesterday’s email was about the seemingly uncontroversial topic of dressing like a lawyer. I heard from several lawyers who shared their thoughts.

Some cheered my message and deplored the way some lawyers dress today. An entertainment lawyer friend had mixed feelings about the subject. One lawyer told me he wears a pony tail and does just fine.

Another said, “Perhaps you should set aside your fatuous fashion jihad for a moment and review the fundamentals of grammar, to wit: The plural of “client” is “clients,” not “client’s.”

Fatuous fashion jihad? Hmmm. . . Something tells me he’s upset about something. Call it a hunch.

And does he really think I don’t know how to pluralize “client”? Me thinks not. That’s his anger talking.

Apparently, he strongly disagrees with my opinion that lawyers should “wear the uniform” and “look like a lawyer”. He didn’t say why. He didn’t share his preferred sartorial style, nor offer any reasons why everyone else should accept it.

But I like that he spoke up. I like that he disagrees with my old fashioned take on the subject. In fact, I wish I heard from more people who were pissed off at me.

Look, if you’re not not upsetting some people, if everyone agrees with everything you write, you’re going to put people to sleep. Lawyers tend to be especially boring and bland in their writing.

We need to stir things up.

Conflict keeps people watching TV shows and it keeps people reading your writing. So court some controversy. Push the envelope. Say things that make people go “huh?”

You’ll stand out, be read and remembered, and build a following of people who like your style. They’ll share your content, buy your products and services, and recommend you to their friends.

Of course you will also get people who think you’re an ass-hat, say you’ve gone too far or you’re too vulgar for their taste, and they will un-subscribe.

Good. You don’t want them. They’re not your fans and will probably never hire you or recommend you. They need to go. Give up their seat so you can fill it with others who like what you say, or at least like that you’re not afraid to say it.

For more on email and marketing online, go here

Share
Filed Under: Blogging, Communication, Email, Image, Marketing legal services, Newsletters, Online Marketing, Writing

I’ve got a list, her name is Sal. 15 miles on the Erie Canal

January 25, 2016 by
Share

A personal injury attorney friend sent me an email. He said, “I have a list of about 500 auto repair facilities. I want to approach them via letter, include a copy of my book [for auto accident clients], and ask for referrals.”

He wanted my opinion, particularly about what he could say that might motivate them to send him business. He said he can’t promise to send them referrals.

“I don’t think you’ll get too far sending a letter,” I said, “unless you enclose a blank check.”

These are body shop owners. You might as well be negotiating with the mob.

Many (most?) body shops have lawyers they “work with” (meaning they pay them for referrals). If not the owner themselves, the manager or someone who deals with customers is getting kickbacks from lawyers for their referrals.

They don’t care how good you are as an attorney. They care about “how much?”

At least that’s what you have to assume.

Not all of them. But enough to make the proposed project more than a bit challenging for someone who isn’t willing to offer illegal kickbacks.

Okay, let’s assume that 40% don’t take kickbacks. I know that’s probably crazy but hey, I’m feeling magnanimous today. Out of a list of 500, that means you might have a shot with 200.

But, some already have lawyers (in your area) they send business to. No cash changes hands, but they do get some referrals from those lawyers, not necessarily on a quid pro quo basis, but because they do good work or provide those lawyers’ clients with additional service and value.

So now, still guessing here, let’s say that leaves 20 body shops who might be open to sending you referrals. How do you find out which ones? You have to talk to them and feel them out. And you probably have to do this yourself since they need to feel you out, too. And the best way to do this is to do it in person.

So. . . how about if we look at another idea?

What if, instead of asking for referrals you contact the shop owners and ask them if they accept advertising. Your letter (or a phone call) will weed out a lot of them and that’s exactly what you want. Some will be open to advertising, probably those who don’t accept kickbacks and aren’t already committed to other lawyers, and you can talk to them and negotiate a deal.

You put up a sign in their waiting room, buy space on their invoices or on their paper floor mats, a banner on their website, and so on. You pay them $X dollars per month and see what happens.

You can also provide them with a display rack for your books which they can put on their counter and sell your books to their customers at a discounted price. They keep 80-100% of the sales price as their advertising fee. You’ll probably have to offer them an additional fee on top of that for putting your rack in a prominent place, like food companies do with grocery stores.

Another option: you provide free copies of your book which they can give to their customers as a way to provide extra value to them and distinguish themselves from other lawyers who don’t. You might have to pay them a monthly fee in addition, but everything is negotiable, right?

How to get referrals without paying for referrals 

Share
Filed Under: Advertising, Marketing legal services, Referrals Tagged With:

Should you “sell” in every email?

January 18, 2016 by
Share

You have an email list. You regularly mail to clients and prospects. Should every email promote (sell) something?

Yes.

You have services that provide solutions to problems. You owe it your subscribers to do everything you can to persuade them to avail themselves of those services. If you don’t, their problems and their pain will continue. They won’t get what they want and need.

So yes, sell your services in every email. But that doesn’t mean every email should be a full-on sales letter.

You can sell your services by educating subscribers about problems and solutions and providing a link where they can get more information. You can sell yourself as the provider of those services by sharing ideas and information that show people how you think and how you do what you do.

Every email should sell, but come at the sale in different ways.

Talk about your clients. Tell stories about where they were before they found you and where they are today. Talk about people who chose other solutions, or waited too long before they came to you, and made their situation worse.

Talk about things you do outside of the office, about your passions and hobbies, and about the important people in your life, to show people what makes you tick and what it would be like to know and work with you.

With some emails, you should overtly talk about the four corners of your services and why people need them. In other emails, just mention your services and provide a link so people can find out more.

Because I email frequently, most of my emails are designed to show subscribers that I know what I’m doing and that I can help them. A little education, a little entertainment, and a link to something in a P.S.

When I release a new product or service, I send out emails that talk about nothing else.

But every email sells something.

You want to get more clients and increase your income, yes? Here’s how to get more referrals 

Share
Filed Under: Email, Marketing legal services, Salesmanship, Writing

Do more of what works

January 13, 2016 by
Share

Let’s talk about your practice. And get you more clients like your favorite client.

So who is your favorite client? Don’t give this a lot of thought. What’s the first name that comes to mind?

Got it? Okay, now why are they your favorite, or one of your favorites?

Is it their personality? Is it because they pay you lots of money? Is it because they don’t question you or complain?

Maybe all of the above. Maybe something else.

Whatever it is, write it down. In fact, you should probably write down all of this because once we’re done here, you’ll want to do this for your next favorite client. Maybe your top ten.

Now, think about where you met your favorite client or how they found you. What did you do that precipitated their becoming a client?

Were they a referral? Answer your ad? Did you meet them networking? Did they find you online?

Whatever it was that brought you together, you should probably continue doing it. If your ad in a certain journal brought them to your door, no doubt you’d like other clients like him to find you the same way.

If they found you online, what did they search for? What page did they land on? What did they do after that, and what finally convinced them to take the next step and contact you?

Next, it’s time to do a deep dive into your favorite client’s world. Find out what they do and who they know.

The Law of Association says that we tend to be like the people with whom we associate most. Your client’s friends and colleagues, therefore, are likely to have similar attributes, needs, and the ability to pay, and your favorite client can refer them to you.

Find out what your favorite client reads, who he listens to, and where he spends his time. Study him. Become on expert on him. This is valuable intel. Use it in your marketing so you can do more of what’s working, and get more clients like your favorite client.

How to create a profile of your ideal client

Share
Filed Under: Marketing legal services, Marketing Plan Tagged With: ,

Bad clients are the result of bad marketing

January 12, 2016 by
Share

Bad clients are the result of bad marketing.

What do I mean by bad clients? Hmm, let’s see. . . how about. . .

Malcontents who blame you for things that aren’t your fault and then post bad reviews and ratings about you.

Price shopping clients, penny pinching clients, slow paying clients, and no paying clients.

Clients who don’t follow your advice, don’t show up for appointments, and don’t remember anything you told them.

You get my drift?

Every lawyer gets the occasional lemon, but if you get more than your share, bad marketing is usually the culprit.

So what do I mean by bad marketing?

I mean targeting the wrong market, or, more commonly, no market, so you wind up with whatever shows up at the door.

I mean relying too much on Internet and advertising, which attract price shoppers and harder to please clients, instead of focusing on repeat business and referrals.

I mean failing to educate prospective clients about the law and procedure, their risks and their options, or much of anything without the meter running. Low information clients are like low information voters. They don’t understand, they don’t appreciate, and they don’t always make good decisions.

Bad marketing means talking only about features (what you do–practice areas, services, office hours, etc.) instead of benefits (what the client gets–solutions, outcomes, peace of mind, security).

Bad marketing means failing to differentiate yourself from other lawyers in a meaningful and memorable way.

It means failing to surprise and delight your clients with amazing “customer service,” and failing to stay in touch before, during, and after engagements.

Bad marketing also means taking on clients you know you probably shouldn’t, and failing to “fire” clients who prove themselves to be more trouble than they are worth.

Oh yeah, bad marketing also means doing all the right things but simply not doing them enough.

So yeah, bad clients are the result of bad marketing, but this is good news because bad marketing can be fixed and bad clients can be replaced with good ones.

Good marketing starts here

Share
Filed Under: Communication, Law office management, Marketing legal services, Online Marketing, Writing

If Goldilocks handled your law firm marketing

January 11, 2016 by
Share

Is your porridge too hot? Do you give prospective clients too much information on your website or in your other marketing materials?

Probably not. If you’re like most lawyers, your porridge is too cold. Your give them too little. Prospective clients can see what you do and where you are located, but not much more.

If Goldilocks handled your law firm marketing, she would tell you that you have to get your porridge just right.

How much information is “just right”? More than you think. When someone goes online to find an attorney it’s because they have a problem and they want information about their problem and the available solutions before they will consider you for the job.

Don’t just list your practice areas and services. That’s not enough. That’s too cold.

Teach people about the law and procedure. Discuss the risks and the options. Tell them about other people who have had these problems and, with your help, overcame them. Tell them about people who waited too long or made the wrong decisions and made things worse.

But don’t expect them to wade through too much information and understand how it all fits together. That’s too hot.

You need to give people enough information so they can see how you can help them, and make it compelling enough to motivate them to take the next step.

You have to capture their attention with provocative and benefit-rich headlines. You have to keep them reading with a narrative thread that speaks to their emotions and shows them that you understand their pain. You have to tell them that you can help them, like you have helped others. And you have to tell them what to do next.

But don’t explain everything. You want to make them curious enough to contact you. Don’t get too specific about fees on your website, for example. Give them guidelines, perhaps, but make them call to find out more.

So that’s the challenge. That’s the art of marketing. And porridge making. Not too hot, not too cold. . . just right.

Learn how to make your online law firm marketing just right: click here

Share
Filed Under: Communication, Copywriting, Marketing legal services, Online Marketing, Writing

The most important (and neglected) element in legal marketing

January 7, 2016 by
Share

Alrighty then. You’ve got a blog and a newsletter. You crank out reports, ebooks, articles and presentations. You do email. Maybe even social media.

You’ve got this content marketing thing down.

Or do you?

If you’re like many lawyers, there’s something missing from your content. Something important. Something your clients and prospects want to see.

You. There’s not enough “you” in your marketing.

You’ve got the law down. Procedure, too. You obviously know your stuff. Anyone who accesses your content can see that you are qualified to help them. But then so are all of the other lawyers out there who do the same thing.

The thing that differentiates you from your competition, more than anything else, is you.

Because clients buy you before they buy your services.

Clients want to know what it would be like to work with you.

The law? Not that interesting to most people. Clients want to know that you understand it and can work your magic with it and get them some great results (or die trying), but in the end, they are far more interested in hearing about the man or woman behind the curtain.

That’s you.

They want to hear your voice. If not literally (via audio and video and live presentations), through your writing. They want to know your personality, your opinions, and your habits. They want to know about what’s important to you.

They want to know something about your personal life. What do you do when you’re not working?

They want to know about your other clients. How do they feel about you and what you did for them?

They want to know about your staff, your partners, and others with whom you associate, because our associations are a big part of who we are.

They want to know your opinion about things–cases and clients you’ve handled, trends in the law or in their industry or community. Maybe your predictions, too.

They want to know what it would be like to sit in your office, sharing their secrets with you, and looking to you for help.

So put more “you” into your marketing. Not too much, of course. You don’t want to sound like a politician who can’t stop saying “I”. Just enough about yourself so that people can see who you are, not just what you do.

Because people buy you before they buy your services.

Legal marketing is easier when you know The Formula 

Share
Filed Under: Client loyalty, Client relations, Communication, Marketing legal services, Relationship marketing, Writing
« Previous Page
Next Page »