The problem with most consumer law practices

January 25, 2012 by
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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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Filed Under: Advertising, Attorneys fees, Fees and Billing, Increase your income, Marketing legal services, Specializing Tagged With: , , , , , , , , , , , , , , , , , , ,

Apps for lawyers: do you really need one?

January 23, 2012 by
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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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Filed Under: Advertising, Marketing legal services, Online Marketing, Referrals, Social media marketing, Writing Tagged With: , , , , , , , , , , , , , , , , ,

Attorney marketing video challenge

December 28, 2011 by
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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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Filed Under: Advertising, Blogging, Just for fun, Legal industry, Marketing legal services, Social media marketing, Web traffic Tagged With: , , , , , , , , , , , , , , , , , , ,

How to get more clients from cases you don’t handle

December 8, 2011 by
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shield laws for bloggersI’m sure you read the story about the blogger in a defamation case who got hit with a $2.5 million judgment because, the judge said, she is not a journalist and was not protected by the state’s shield laws.

Interesting story. Important subject.

You read the story but did you make any money with it?

Attorneys can easily leverage a story like this to get more media attention, more traffic to their web site, more prospects, more referral sources, and more clients. And I’m not talking about the attorneys who handled the case itself, I’m talking about you.

Interested? Here’s all you have to do.

First, write a two or three page report summarizing defamation laws in your jurisdiction. You don’t have to practice in this area to do this, Uncle Google will help you, or you can ask an attorney friend who does (and tell him about this idea so he can do it, too).

In your report, mention the case about the blogger. Offer your opinion. Include a few citations, maybe a few resources.

Now, go back to Uncle Google and ask him to give you a list of bloggers in your target market(s) who are in your state or province.

Next, contact these bloggers (a personal email will do) and tell them you wrote a report for bloggers about how they can protect themselves against lawsuits like the one in the news. Offer to send it to them, free of charge. Tell them they are welcome to send it other bloggers they know and care about. (If you know the blogger, you could just send them the report in your first email).

In one day, you can get your report into the hands of dozens of people who every day write and influence the people you are targeting for your services. You have provided value to the blogger on a personal level, and asked nothing in return.

Where can this lead? Interviews, hosted webinars for their readers, guest posts, referrals, introductions, you name it.

It doesn’t matter if you don’t practice tort law. If you do, that’s an added benefit, but the point of this effort isn’t to show these bloggers you can help them in this particular area of the law, it’s to meet them.

Now, what else could you do with your report? Here are a few ideas:

  • Send it to local media with a cover letter letting them know you are available for interviews.
  • Call or email your clients and contacts: Who do you know in (your area) who writes a blog? Tell them you have a report that can help them.
  • Offer it through social media; post a video on youtube, opining on the story and linking to your report; offer it via forums, chat groups, listserves, and other areas where bloggers and people who know bloggers congregate.
  • Contact local blogger groups, business groups (anyone who has a blog), and offer a lunch talk.
  • Write about it on your blog or in your newsletter.
  • Take out ads and offer the report, as a “public service”.
  • Send it to lawyers in your practice area in states or provinces where you don’t practice. Tell them what you’re doing with the report in your area, invite them to do the same in theirs. (If you have to ask how this could help you, forget about this idea.)
  • Do a presentation at your bar group’s next function on how you used a news story to market your services.

You get the idea.

Oh, and you don’t need a news story to do this, you can write about anything that affects people in your target market or they people who influence them.

It’s about providing value in a leveraged way. It’s simple and it works. And if your report goes viral, it could help you take a quantum leap in the growth of your practice.

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Filed Under: Advertising, Blogging, Increase your income, Leverage, List building, Marketing legal services, Networking, News, Online Marketing, Publicity, Referrals, Relationship marketing, Social media marketing Tagged With: , , , , , , , , , , , , , , , , , , ,

“I’m a doctor, Jim, not a salesman!”

December 2, 2011 by
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I'm a doctor, Jim, not a salesman!Let’s be honest, most attorneys don’t like marketing. Or so they say.

“I didn’t go to law school to be a salesman,” they’ll say, or, “I’m good at what I do, I shouldn’t have to promote myself.”

I understand how they feel.

And to some extent, their “good work” will serve as a magnet for referrals or repeat business. But to categorically dismiss marketing of any kind is foolhardy.

Advertising isn’t so bad, is it? Even Abe Lincoln advertised:

Do you have a web site? Guess what? You’re advertising. Same goes for a directory listing.

Do you ever answer the question, “What do you do for a living?” Well, whatever you say in response is selling.

In fact, every letter we send, every conversation we have, every article, blog post, or speech, is an opportunity not just to deliver words and ideas but to sell the reader or listener on us and our ability to deliver benefits.

When a client signs your retainer and gives you a check, a sale has taken place.

The sales aspects of our communications are more subtle than an informercial pitch, but it’s sales, nevertheless.

And I’m not even going to mention that negotiating, demand letters, motions, and closing arguments are sales of the highest order.

Lawyers sell. (But that doesn’t make us sales people.)

Lawyers “do” marketing. Marketing is defined as everything we do to get and keep clients.

Sales, marketing, public relations, publicity. . . what’s the difference?

I’ve found no better explanation than this one:

If the circus is coming to town and you paint a sign saying, “Circus is coming to Fairgrounds Sunday,” that’s Advertising.

If you put the sign on the back of an elephant and walk him through town, that’s a Promotion.

If the elephant walks through the Mayor’s flower bed, that’s Publicity.

If you can get the Mayor to laugh about it, that’s Public Relations.

If the town’s citizens go the circus, you show them the many entertainment booths, explain how much fun they’ll have spending money at the booths, answer their questions and ultimately, they spend a lot at the circus, that’s sales.

– M Booth & Associates

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Filed Under: Advertising, Marketing legal services, Salesmanship Tagged With: , , , , , , , , , , , , , ,

Cutting costs can increase net income but it can also put you out of business

October 27, 2011 by
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cost-cutting-for-attorneys-law-firmsWhen attorneys are getting fewer clients and their income is waning, it’s only logical to look at cutting expenses. After all, every dollar you don’t spend on overhead is a dollar more in net income.

There are a lot of ways to reduce overhead. Go through your ledger (or bank and credit card statements) and I’m sure you’ll find many small items that can be reduced or eliminated. or a month expenses may not jump out at you, but when you add them up, you may find yourself spending thousands of dollars you don’t have to.

Also look at big items. Can you move to a smaller office? Can you work from home and use another attorney’s office to see clients? Can you get by with a less expensive car?

There’s one category of expense that you should not cut. In fact, when times are tough, it’s the one expense you should look at increasing. When times are tough you should spend more on marketing.

Attorney Philip Franckel explains why on his blog:

Reducing your advertising and marketing budget will cause your law firm. . . to fall further behind and allow your competitors to gain a substantial advantage. When revenues increases, you will have to start all over again. Additionally, all previous work and investment in branding will have been for nothing. In a bad economy, this is preciously the time to take advantage of lower marketing costs.

I agree completely. Think about it, the business is out there, at least enough business for YOU. If they aren’t finding you now, what makes you think they will find you later? You’ve got to help them find you. So when business is down, you must increase your marketing, not cut it.

Franckel also commented on another attorney who boasted that his firm had cut expenses by eliminating advertising contracts in favor of “variable” marketing expenses, ostensibly allowing the firm to spend more when they can and less when they cannot. Franckel points out that this strategy will wind up costing the firm more, not less:

Fixing marketing costs can be a huge benefit. When entering into a large five figure advertising spend on TV, I committed to a 12 month budget to fix the cost of media. This allowed me to pay the same known cost for media every month. Otherwise, I would have faced huge increases, or have been forced to temporarily discontinue advertising, because of temporary changes in media demand such as elections.

I agree with this, too. In the past, when I was spending hundreds of thousands of dollars a year on advertising, I saved as much as 70% and sometimes even more by locking in a yearly contract, versus what I would have paid “month to month”. (NB: I only agreed to the contracts, however, after testing the ads and the publications.)

Now, what about attorneys who don’t spend money on advertising or marketing? It may be time to consider it. You don’t have to start advertising if you’ve never done that before and don’t want to do it now. But how about improving your web site or joining a new networking group? How about doing a mailing to your former clients?

Note also that your time (spent marketing) is another expense. Don’t cut down on this, either.

When business is slow, yes, cut your overhead but don’t cut marketing. Investing more time and more dollars in growing your practice will always be the best way to increase your net income.

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

How to keep your name in front of prospects all year long

October 10, 2011 by
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My recent post on holiday greeting cards elicited a comment from Bruce Brightwell, an attorney who sends his list a magnetized refrigerator calendar. “People love the calendars, and I am in front of them for the whole year,” he said.

This is smart marketing. A practical gift that keeps your name and contact information in front of clients and prospects that is inexpensive and effective.

Calendars are a great year end gift. What can you do the rest of the year?

Do a search for “advertising specialties” or “ad specs”. That’s what they are called in the trade. You will find a mind numbing array of possible items you can offer:

  • Pens
  • Key chains
  • Calendars (wall, refrigerator, desk, wallet)
  • T-shirts
  • Baseball caps
  • Book bags
  • Book ends
  • Paper weights
  • Coffee mugs
  • Thermoses
  • Book bags
  • Mouse pads
  • Business card cases
  • Book marks

I like pens. You can get them in bulk for under .25 cents, and nice ones for under a dollar. People use pens and carry them, and if they lose one, someone else will pick it up.

I also like note pads. They are very inexpensive (any printer can make them for you) and you can get them in different sizes. Real estate agents send them pre-printed with lines for a grocery list. This is good for consumers. For businesses, I like a 4 by 5 1/2 size that can sit on a desk or next to a phone. While taking notes, your prospect looks at your name and smiling face at the top of the pad, draws a mustache and eye glasses and darkens your teeth. It’s a note pad and a game!

A disadvantage of note pads is that once they have been used, they’re gone. But this gives you an opportunity to get in front of clients and prospects several times a year to replenish their stock.

In choosing an item, keep in mind the amount of room available for printing. A pen has very limited space; a calendar has much more. More space lets you include an “advertising” message: your practice areas and/or an offer, e.g., “‘Free Report: How to save 20 to 50% on legal fees this year’ at www.mywebsite.com”.

You can, of course, have more than one gift item. You could mail everyone a calendar at year end, give coffee mugs to visitors to your office, and give a more expensive item (e.g., Polo shirt) to new clients.

Have you used ad specs to market your practice? Did it bring you new business?

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Filed Under: Advertising, Client relations, Marketing legal services Tagged With: , , , , , , , , , , , , , , , , , , ,

Lawyer TV ad spoof: would you hire this firm?

August 4, 2011 by
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Lawyer TV ads are often criticized for being tacky. “The Tackiest Lawyer Ad. . .Ever,” is a fine example. A lawyer advertising firm, hoping to attract lawyers for their services, created a parody of bad lawyer TV ads, but does it work? Would you hire the firm that created this spot?

[mc src=”http://www.youtube.com/watch?v=xSKe42bxMZ0″ type=”youtube”]Bad ad about bad lawyer ads[/mc]

Do you think this is funny?

I didn’t laugh. Isn’t that the first objective of advertising that purports to use humor? In the first few seconds, I thought this was a cheesy lawyer’s attempt to advertise and I was embarrassed–for him and for our profession. Once I got the joke, I thought, “ah, a spoof, okay, we can all laugh at ourselves once in awhile.” But I still didn’t laugh; did you?

True, parody doesn’t always demand LOL and if this was just someone fooling around and poking fun, well, okay, it worked for some and not for others, but this is an ad by a company that wants us to give them their business.

Would you hire this firm?

The ad says, “lawyers’ ads are tacky and don’t work; we can produce an ad that’s not tacky and does work.” But they use a tacky ad to make that point. Is that good psychology? Is that good advertising?

I don’t think it is. At least not in this case.

If they showed us a successful ad they produced for one of their clients, would that be better? Yeah, I think it would. Show us what you do, not what you don’t do. Ads that demonize or make fun of “the other guy” can sell. But they have to get all the elements right and in this case, I don’t think they did.

What do you think? Click on the balloon above to add your comments.

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Filed Under: Advertising, Image, Just for fun Tagged With: , , , , , , , , , , , , , , , , , , ,
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