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How to increase your legal fees

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When my accountant completed my tax returns last year, he sent them to me for my signature, along with his bill. Everything looked good, except for one thing. His fee was a lot higher than it was the previous year, and that was higher than the year before that. 

And it was a big increase. Almost shockingly so. 

What did I do? 

I paid it. 

I thought about making a stink, even finding another CPA, or at least telling him I wasn’t happy about the increase and asking him why. But I’ve been with him for decades; he does good work and I trust him and I’m pretty sure he saves me more than his fee. And, let’s face it, inflation has been bi-otch for the last several years. 

So I said nothing. 

But the increase still rattled my bones.

So, if you’re thinking about increasing your fees anytime soon, I have some advice. 

First, don’t agonize about it; do what you have to do. Clients understand that the price of everything goes up and that things tend to cost more this year than last. But don’t just send your clients a higher bill—give them a heads up. 

Tell them in advance that your fees are going up and tell them why.

Mention inflation or other factors. If it’s been a while since the last time you increased your fees, mention that, too. And don’t wait so long next time because the longer you wait, the bigger the increase, and the more shock and awe your clients might feel.

Also, do what you can to take care of your most loyal clients. The ones who have been with you for a long time. Consider delaying the increase for them and tell them that. “As one of our most valued clients, we’re keeping your rate the same for the next 3 months,” for example. 

I would have appreciated getting a note from my accountant along those lines. 

In short, show your clients you don’t take them for granted. Put yourself in their shoes and do what you would like them to do if your roles were reversed.

They might be shocked at the size of your next bill, but if you’ve done things right, they’ll pay it. 

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What are you doing today? 

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When your day begins, do you dive right in and get to work—going through files, making calls, talking to your staff, dictating letters—whatever’s on your desk, in your email, or demanding your attention? 

Or do you work from a plan?

I suggest the latter. 

I suggest your plan your day before it begins because a plan gives you clarity about what you need to do and, just as importantly, what not to do. 

A plan gives you confidence that you are doing your most important tasks and have enough time to do them well. 

A plan allows you to go from task to task without stopping to figure out what’s next, or getting distracted by whatever shows up. 

Without a plan, you might become overwhelmed with too much to do and not enough time to do it. Without a plan, you might waste time working on things that don’t need to be done today, or at all, and make mistakes rushing to do things you suddenly remember. 

A daily plan allows you to be more productive. 

And it takes only 5 minutes. 

Review your calendar. Prepare for appointments and meetings and calls. Go through your task list and decide what you will do today and what can wait until tomorrow—or next week. 

When should you create your plan? Some like to do it at at night so they can start the next day without delay. Others like to prepare their plan in the morning (with a cup of coffee). 

I usually make my plan the night before and review and update it the morning of.

More important than when you do it is that you do it.  

And make it a habit. 

One more thing. You also need a weekly plan. Take ten minutes on the weekend or Monday morning to review the past week and plan the week ahead. 

And yes, make this a habit, too. 

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Leap and the net will appear

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When I started practicing law, I took an office in a suite with other lawyers. It gave me access to a law library, receptionists who answered the phones and greeted my clients, copy machines, coffee service, and other features that allowed me to move in and get to work. 

When a client came to see me, I didn’t look like a “beginner.” I looked established and successful. 

The biggest advantage of this arrangement was that it gave me access to other lawyers with whom I could associate, learn from, and get some work.

I did appearances. I did research and drafted documents. And I got referrals.

If you’re starting your legal career, I recommend you consider a similar office arrangement. 

When you are more established, however, when you need room for your growing staff and can afford to build out your own suite of offices (as I did), do it if you’re ready but wait a bit if you’re not. 

Having your own office is nice. You get your name on the door and the building directory. Your clients like having an attorney who (looks) more successful than the average Joe. 

But is the additional overhead and responsibility worth it? 

Maybe. 

My practice grew significantly after I got my own office and hired more staff. But did it grow because it was my own office, or were there other reasons? 

I can’t say for sure, but I know one thing. The additional overhead forced me to do things I might not have done, or done as aggressively, if I hadn’t had to cover the additional overhead. 

I got bigger, faster, because I had to. 

If you are thinking about getting your own office or moving to a bigger office, if you’re considering hiring more staff, investing in more advertising, or spending more time marketing, I get you. 

My advice? Yes, run the numbers. Talk to other lawyers who did what you’re thinking of doing. And, most of all, pay attention to what your gut tells you.

I was nervous about expanding. What if this and what if that? Ultimately, I did what I wanted to do and trusted that everything would work out. 

And it did. 

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Start before you’re ready

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It’s not new advice, but is it any good? If you don’t know how to swim, should you jump in the pool and flounder about, or should you take some lessons first or find someone to show you what to do (and stay by your side while you do it)? 

Jumping in the deep end without knowing how to swim or doing legal work you’ve never done without some help or preparation is ill-advised, but for many things you want or need to do, getting started is often the best way to do it.

If you’re procrastinating because you overwhelmed with everything you need to do, or you are a perfectionist and convinced that you shouldn’t start because you don’t know what you’re doing and you’re going to mess up, you don’t need to take a course or hire a consultant. You need to start. 

Before you’re ready. 

That’s how you get good at marketing.

Go to a networking meeting and talk to some people. Take out your first ad. Write an article or blog post. Record a video, even if you don’t have a script, a decent camera, or know anything about editing.

Do something. Anything. You might be terrible at it (or you might be a lot better than you expected), but in either case, you’ve started and are on your way.

You don’t need to have experience to get experience. You get experience by taking the first step.

So, when in doubt, start. Before you’re ready.

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What, are you chicken?

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If you want your practice to grow, one of the best things you can do is stand out from other lawyers and firms. 

Most lawyers and firms don’t. 

They offer the same services, make the same promises, charge similar fees, and use the same marketing strategies. They look and sound and smell like everyone else. 

Think about your competition. Very few stand out. They play it safe, because they think “safe” is smart.

I did that when I was starting out. I wanted to do what other lawyers did. I DIDN’T want to stand out. (That came later when I saw I was getting nowhere fast and needed to do something different). 

You don’t have to do anything radical. Just different in a material way. Add a new service, offer an additional benefit, change your fee and billing structure. Or use different marketing strategies than everyone else uses, or do them differently.  

It could be something as simple as changing up your writing style. That’s what I did. Other lawyers wrote formally, very lawyer-like (and boring), and I wanted to try something different.

I added some variety and spice to my writing, using a little humor and drama, shorter paragraphs and sentences, and went out of my way to make things interesting (not boring).

I got noticed. Opposing counsel commented, and seemed to be a little more willing to talk instead of firing missiles in my direction. My clients noticed and told me they enjoyed the new me.

You don’t have to do the same thing, but whatever you do, start small. Because if you don’t start small, you might overreach and be afraid to continue, or never start at all. 

Try a new billing format, for example. Give it a test run. See how you feel about differing from everyone else (and differing from what you’ve always done), and see how others react. If you’re nervous about how your clients might react, start with new clients who don’t know what you’ve done before. 

Let’s say you decide to communicate with your clients and prospects more often, via a newsletter, blog, podcast, or by sending them articles about their industry or market. If you already do these things, try sending them more often, adding your comments, or branching out to other subjects.  

If other lawyers in your space don’t do these things (or do it much), you will stand out. Clients will see you as different. They’ll see an advantage in working with you, not just because what you send them or do is amazingly better, but because it is different.

Be different. You’ll thank me later. 

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Think big. Really big.

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Are you growing as fast as you’d like? Or do you want to get bigger results? Much bigger. So big, every day is exciting?

It’s up to you. 

If you want to earn a lot more this year than last year, you can but you have to change how you think and what you do. 

Because nothing will change unless you change. 

The first thing you need to change is your goal. It has to be bigger. So big, it sounds impossible. So big, it scares you. 

Because that’s the kind of goal that will excite you enough to get you to do the things you need to do to reach it. 

A goal to grow 20% this year might sound good, but you can do better. Change it to 200%. 

Impossible? How would you ever achieve that? You’re right. Forget it. You’ve got too much work to do to waste time daydreaming.

Or…. maybe…

If a goal makes your heart beat faster just thinking about it, it might be exactly what you need to do.

Because a goal like that forces you to make different decisions. Do things you haven’t been doing. In ways you might never have considered. 

You’ll make different plans. Instead of thinking about creating a new presentation, you might think about buying another lawyer’s practice, tripling your ad spend, or hiring a marketing firm. 

You might not do those things, but at least you’ll think about them, and that’s precisely the kind of thinking you need to get where you want to go.

Or, you can stick with your 20% goal, focus on getting your work done, putting our fires, and using the same marketing and business strategies you’ve been using.

It’s up to you.

It’s true, thinking bigger might lead to bigger mistakes. You might not come close to achieving your bigger goal. 

So? 

Set a goal to grow 200% and miss it by 50% and you will still double your income. Miss it by 75% and you’ll still be ahead of the original goal. 

Think big. Really big. So big that when you tell someone about what you’re doing this year, THEY get excited. 

The Attorney Marketing Formula will help you

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How to get great clients

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You may be very good at marketing, write great copy (or hire great copywriters), invest time and money getting more leads, and a host of other things that make your phone ring. 

But as good as that is, there’s something better. Easier. More profitable. And more likely to lead to a steady stream of happy clients who help you build your practice. 

Instead of relying solely on good marketing strategies, target better prospects. 

Better prospects include people who 

  • Know they need a lawyer and don’t even consider doing what needs to be done themself 
  • Have the ability to pay top dollar for top level legal services (yours) and are not only willing to do that, prefer it 
  • Sees you and what you offer as a good match for them. If you’re a sole practitioner with one practice area, for example, they understand how that benefits them and aren’t looking for something else.
  • Doesn’t need permission to hire you, or can usually get that permission
  • Are action-oriented. When they see the need, they don’t hesitate; they put you to work
  • Have a lot of legal work for you—repeat business, big cases (if that’s what you want), or lots of smaller cases, with work you’re good at and enjoy
  • Know other people with similar needs and ability to pay, i.e., they can (and will) send you a lot of referrals, introduce you to people you want to know, and otherwise promote and support you. 
  • Are easy to work with, don’t complain, don’t micromanage, don’t slow-pay, etc. 

Feel free to add other attributes you consider important components of your “ideal” client. Because you should be targeting your ideal client, not “anyone” who has legal work you can handle. 

No matter what kind of marketing you do, or how much you do, targeting your ideal client is the force multiplier. It makes everything easier and better.

You may not always get them. They might have some of the qualities you desire, but not all of them. But if you want your marketing to be easier and more profitable, you should focus more of your resources on this type of client and less (maybe much less) on other types.  

Why wouldn’t you? You can always “tolerate” other types of clients or cases, at least until you’re ready to go “all in” on your ideal. 

Where do you find these dream clients? Primarily, eventually, through referrals. There’s no better way. But there are other ways, and they can lead to a lot of referrals. 

Start with your existing clients. You may only have a few who are “ideal” (or close to it) but if you spend more time with them and do more to help their business grow or personal life prosper, they will lead you to more people like themself.

The Attorney Marketing Formula helps you identify your ideal clients, and get more of them

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Plan 9 From Mars

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For some reason, when I thought about the idea of planning (for next year), I thought of the title of what many consider the worst science fiction movie of all time. 

I only watched a few minutes, many years ago, but I think it was about Martians invading Earth. 

I’m pretty sure their plan failed, but I commend those Martians for thinking big, which is the point I want to make today.

If you’re going to plan (something), for next year, or any year, make it big. 

Don’t spend a lot of time planning how to redecorate your office when you can plan a new marketing strategy that might allow you to buy a new office building. Or three. 

Big plans force us to be creative and do things we’ve never done before. They force us to focus.

Even if your big plans don’t materialize, thinking big helps you sort out what’s important and make that your priority, instead of getting bogged down with a multitude of small ideas which, even if successful, won’t amount to a hill of beans (I’ve got movies on the brain).

Big plans give you a chance to win big. 

The Pareto Principle says 80% of our results come from 20% of our efforts (plans, ideas, activities, projects…). Figure out a handful of big ideas that can deliver big results, and then narrow down your list to just one or two. 

One or two big ideas that could transform your business or life.

In the book, The One Thing, author Gary Keller puts it this way: 

“What is the one thing you can do such that by doing it, everything else will be easier or unnecessary”.

Your big plan might fail (and you’ll have to return to Mars) but if you’re going to work on anything next year, work on something big, so big it could take care of almost everything else.

No pressure. But I need your answer on my desk first thing tomorrow. My ship leaves at 9.

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What do you block when you time block?

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What do you put on your calendar? Sure, you schedule appointments, conference calls, and other activities that have a date and time component, but do you also block out time for things you might not do if you didn’t block out the time in advance? 

Like marketing, working on a business project, reading or personal development? 

The best way to “find” time to do those things is to schedule them in advance. 

Some people schedule most of their day. Every hour is dedicated to something they need to do or want to do. Some break down their day into 15-minute increments. Others schedule blocks of time for “focus” work, an hour or two or three for so-called deep work that requires a fair amount of energy and concentration.

Me? I schedule two hours in the morning for writing. I often do more but almost never less.  

How about you? 

Do you calendar blocks of time for returning calls or email? For research or studying? Reviewing case files or getting your client billing done? Writing your newsletter or blog. Posting on social? Exercise?  

Do you go to the office (or close your door) on Saturdays to catch up on “paper work” or organize and plan your tasks and projects for the week ahead? Is this time on your calendar?

Some people schedule “intake time” for reading articles and books, listening to podcasts and videos. Some schedule “output” time for writing, creating, or communicating. 

Some schedule one or two “A” tasks each day, or bundle several “B” and “C” tasks, and block out time to do them. Some schedule 15 minutes a day or 30 minutes twice a week for routine work and get a lot done that way.

What are you committed to doing on a regular basis? Do you block out time for it? Should you?   

We have lots of options with our days, including the option of doing things only when you think of them. But I recommend scheduling your most important work—the things that pay the bills, “move the needle,” or bring you closer to achieving your goals.

If you get your most important work done, the rest of the day is “bonus time” and you can do what you want with it.

Sound like a plan? Put it on your calendar.

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What does your desktop look like? 

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My dad was a successful lawyer. You might not have known that if you were in his office and saw the piles of papers and files on top of his desk, on the credenza behind him, and sometimes on the floor. 

I don’t know how, but he got his work done. The mess wasn’t a problem for him. In fact, I’m pretty sure he liked things the way they were. 

Some people thrive in chaos. Not me. I need to have one thing in front of me at a time or I find it difficult to concentrate. 

In my office, I usually had other files on my desk, but I kept them in a neat stack and worked from the top down. That doesn’t mean my office was tidy. I had my share of clutter and knickknacks. I still do. But there isn’t any Work-in-Progress in my line of sight. Or on the desktop of my laptop which is nearly empty most of the time.

I work off my “today” list which allows me to stay organized and prioritize my tasks. This gives me a sense of control and peace of mind. If I did it any other way, (e.g., my father’s way), it would ruin that sense of control, distract me, and become a source of stress.

Call me crazy, but that’s how I work best. 

If you thrive in chaos, bless you. If you’re like me and would like to have more order and peace of mind in your work, try putting everything out of the way except the one thing you’re working on. (And clean off that damn desktop!. Okay, I must be crazy. I’m getting bothered thinking about YOUR desktop). 

Anyway, give it a try. If you miss the mess, you can always go back to the way things were. Just don’t tell me about it. 

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