I’d rather have four quarters than 100 pennies

February 26, 2016 by
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I love keeping things simple. But simplicity for simplicity’s sake is a foolish economy if it results in fewer or poorer results. “Leverage” means getting MORE results with less effort, or at least more results with the same effort.

A marketing guy I follow echoed my philosophy when he said, “I’d rather have four quarters than 100 pennies”. He was talking about the value of having fewer but better clients.

Fewer clients with bigger cases, or fewer clients who have more work for you and are willing and able to pay higher fees.

Fewer but better clients means you have fewer hands to hold, problems to solve, and fires to put out. It means you can spend more time and more money bringing in new clients and keeping them happy. It means you can earn more income with less effort.

That’s why I talk about letting the mass market of lawyers handle the mass market of clients, while you focus on the upper crust. Let everyone else fight over the scraps while you feast on the steak.

Unless you are especially well funded or daring, you probably won’t be able to do this immediately. But you can immediately state this as your objective and start working in that direction.

When you make it your intent to transition your practice to better clients, you start looking at the universe of clients differently. You make changes to your ads and marketing documents and websites, you start networking with a different crowd, and you do other things that affirm the new direction of your practice.

Eventually, you will embrace this new paradigm and make bigger changes. You eliminate marginal practice areas, for example, and focus on one or two. You might cut down on marketing channels or techniques and focus on the ones that are better suited to the practice you are trying to create.

You may be nervous about some of these changes. I know I was when I started turning down business. There’s a big void in your file drawer when you no longer handle anything that shows up, but if your experience is anything like mine was, you will quickly fill that void with new and better clients.

Then, one day, you’ll get your first “quarter”–a big case or client–and you’ll realize that if you can get one, you can get more. And that’s when everything will change.

This helps you create a profile of your ideal client

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Filed Under: Increase your income, Law office management, Leverage, Marketing legal services

Solve problems by asking “why?”

January 28, 2016 by
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Toddlers are experts at asking “why?” Why do I have to go to bed? Why can’t I have ice cream? Why are you and daddy wrestling with your clothes off?

They ask why so they can better understand the world around them. When they get an answer they don’t like or don’t understand, they ask why again.

Adults also ask why. But unlike our little tykes, we often accept the first answer and fail to dig deeper.

If you realize that you’re not going to have enough money to pay all of your bills this month, for example, and you ask yourself why, you might look at your accounts receivable and solve your problem by sending out “late” notices to clients who owe you money.

That might be a good idea, and it might solve the immediate problem, but it doesn’t help you to get to the root problem.

So next month, you might again have a shortage of cash.

Asking “why” you have a problem helps you find the solution, but asking once may not be enough, as this post explains.

In Japanese, Kaizen roughly translates to “continuous improvement”. One of the discipline’s techniques for problem solving is to ask “why” 5 times. This helps you find the root problem.

Here’s how you might apply this to your money problem:

  1. Why don’t you have enough money to cover this month’s bills? Because I don’t have enough clients.
  2. Why don’t you have enough clients? Because I don’t do enough marketing.
  3. Why don’t you do enough marketing? Because I’m not good at it.
  4. Why aren’t you good at marketing? Because I haven’t found enough strategies that I am comfortable using.
  5. Why haven’t you found enough strategies? Because I haven’t spent enough time learning about the available options or how to use them.

The root of your money problem, and the solution thereto, is thus revealed.

If you stop asking “why” after your first answer (not enough clients), you may not discover a solution other than sending out late notices. If you stop after your answer to the third “why,” (you’re not good at marketing) you might conclude that things are hopeless for you in this department and give up.

Ask why 5 times and see where it takes you.

Why? Because I said so. Now go play with your toys. Mommy and Daddy are busy.

Avoid having to send out late notices with this

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Filed Under: Fees and Billing, Increase your income, Personal development, Productivity Tagged With:

Time is money. Unless it’s not.

January 8, 2016 by
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If you bill by the hour, time literally is money. You get paid based on how many hours you work. If you offer flat fees, contingency fees, or anything other than hourly billing, however, time isn’t money. It’s just time.

When you bill by the hour, there are only four ways you can increase your income. You can raise your hourly fee. You can work more hours. You can lower your overhead. Or you can hire people to do some of the work and pay them less per hour than you bill your client.

Unless you use one or more of these methods, you can’t increase your income. Bringing in more clients won’t do it because there are only so many hours you can bill in a day.

If you want to earn more, instead of selling your time, you should be selling your advice or your problem-solving solutions. Not only will you earn more per client, the more clients you bring in, the more you will earn.

If you charge $400 per hour and bill out $2000 per day, you’re earning $10,000 per week, which is nothing to sneeze at. But you’ll never earn $30,000 per week.

I know it’s “hard” to come up with an alternative to hourly billing that protects you when you estimate too low or when contingencies occur, but it’s not impossible.

First, you need to stop thinking like a lawyer and start thinking like an entrepreneur. Instead of trying to eliminate risk, you will intelligently manage risk and use the law of averages to your advantage

If you take on twenty hourly-billed clients who each pay you $5000 to $20,000, or an average of $10,000, you take in $200,000 in gross fees. If you charge flat fees, however, and twenty clients each pay you $15,000, you gross $300,000. Now, if one or two of those twenty clients or cases wind up costing you more than you expected, even double what you expected, you’re still way ahead of the game.

I know I’ve said this many times before but I thought it was time for a reminder. Because time isn’t money. Unless it is.

How to earn more per client: here 

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Filed Under: Fees and Billing, Increase your income, success

What you focus on grows

December 2, 2015 by
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What are you focused on right now? If you said, “doing client work,” or something similar, I understand. You have bills to pay so you draft documents, negotiate settlements, or attend hearings because, well, that’s what you do.

If you want more work like that, great. Keep thinking about that, because what you focus on grows.

But what if you want more? What if you want better clients or bigger cases? What if you want to dramatically grow your practice and income?

If you do, you have to stop focusing on your work and maintaining the status quo and start focusing on the future you’d like to create.

Because what you focus on grows.

Think about the kinds of clients and cases you want. Think about the bigger fees you’d like to charge. Think about getting referrals every day, and about what your practice will look like when it is running smoothly and efficiently and helping you create the lifestyle of your dreams.

When you change your focus from your current reality to the way you’d like things to be, your subconscious mind goes to work and helps you create that future. It causes you to notice things you have previously ignored. It helps you meet the right people and say just the right things, organize your thoughts and priorities, and re-distribute your energy.

Your thoughts create your reality.

So think about the reality you’d like to create. Pretend you have a magic wand and can make it come true with a simple flourish. What would your new reality look like? Write that down.

Then, think about it often. Read your description several times a day. Imagine your better future in all it’s glory. If those thoughts feel good when you think them, you’re on the right track. You will be guided towards the activities you need to start or modify or eliminate, and you will start moving towards your better future.

If you have doubts, if a “yes but” inserts itself into your thoughts, acknowledge it and then let it float away. Those are old tapes playing old messages and you should just let them go.

Think about what you want, not why you can’t have it, and you will attract what you want. Because what you focus on grows.

You need a marketing plan. You can get one here

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Filed Under: Increase your income, Inspiration, Personal development, success Tagged With:

You need to talk to your clients

November 18, 2015 by
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You frequently hear me tell you to “think clients, not cases,” meaning you must consider the lifetime value of your clients and not just the fee from a single case or engagement. That $1500 fee for a first-time client could lead to $15,000 or $50,000 in fees over the lifetime of the client.

Even if a client never hires you again, cultivating a relationship with them can bring referrals, traffic to your website, sign-ups for your list, attendees at your seminars, and followers on social media, all of which will lead to new business.

Get it? Got it. Good.

So. . . stay in touch with your clients and former clients (an oxymoron).

How? Letters are great, but can get expensive. Email is great but may be overlooked. Send letters and emails but don’t ignore your number one tool for building and sustaining relationships: the phone.

You need to talk to your clients, bro. They need to hear your voice.

Yes, people still answer their phone. If they are away, leave a message. They’ll hear your voice and get an injection of your essence. Virtual you is almost as good as the real you.

Here’s my challenge to you: invest six minutes a day calling people. In six minutes, you could talk to one or two clients, or leave five or six messages.

Why 6 minutes? One hourly billing unit. If you bill $300/hr., you’re investing $50/day or $1100 per month (22 work days) to grow your practice. If that brings you one new client per month, will it be worth it? What if it brings two?

What do you say when you call? Did yo mama teach you nothing? Say hello. Ask them how they’re doing. Tell them you were going through your contact list, saw their name, and thought you’d give them a quick call.

Another? Okay, tell them you just posted a new article or blog post or video on your website and thought they might like to see it. Tell them where to find it and tell them to have a nice day.

Easy stuff. Even for a lawyer.

You want it even easier? You’re lazy? Okay, have someone who works for you make the call. Tell the client, “Mr. Jones [that’s you] asked me to give you a quick call to say hello and see how you’re doing.” It’s not your voice the client hears, but you by proxy will do.

Anyway, I can hear what you’re thinking. Yep. You’re thinking this won’t work. It’s ridiculous. Nobody will hire you again or send you referrals just because you called and said hello.

Fair enough. Try it for a week or two. It may not work for you. On the other hand, what if it does?

Marketing online for attorneys is a real thing

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Filed Under: Client relations, Increase your income, Marketing legal services, Referrals

How to get more clients with “The Puppy Dog Close”

November 9, 2015 by
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The Puppy Dog Close is a well-known concept in marketing and sales. Here’s the skinny:

You go into a pet store, just to look. The salesman sees you playing with the puppies in the window. You’re almost there, but the salesman can tell you’re not sure. So he says, “Why don’t you take one of these little fellas home for the weekend. No charge. If it doesn’t work out, bring him back on Monday.”

You bring the puppy home, give him a name and fall in love. There’s no way you’re bringing him back.

The salesman didn’t have to close you, you closed yourself.

You may recognize this approach when you go looking at new cars. The test drive is a form of The Puppy Dog Close.

Okay, so you don’t sell puppies or cars. How can you use this approach in your practice?

The odds are, you already do.

Think about it. Aren’t you giving people a “free sample” of your wisdom when you do a seminar or other presentation? When you write articles or blog posts or give away reports or videos, aren’t you showing people how you think and giving them a sense of what it might be like to work with you?

You also do it when you network. As people get to know you, they begin to like and trust you, and that leads to hiring you or sending you referrals.

If you offer free consultations, prospective clients get a chance to try you out and fall in love with you, or at least the benefits you offer. You help them gain clarity about their problems and the available solutions. You help them see a way out and a way forward and they like you for it. It’s hard for them to walk away from that.

You might want to take this up a notch. In addition to offering free consultations, you might offer a free entry-level service. Prepare a free simple Will, for example, as a gateway to doing a trust or other estate planning services. Give prospective divorce clients the first hour free, so they can see how much value you deliver.

Once a prospective client tries you for an hour, they’re probably not going to take you back to the lawyer store.

Crazy talk? I don’t know. How about giving this idea a try before you say it’s not for you. You might fall in love with this puppy.

To learn more about promoting trial, get The Formula

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Filed Under: Closing the sale, Increase your income, Marketing legal services, Salesmanship

Are you getting stale?

October 23, 2015 by
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You’ve been a lawyer for more than a few years and you’re good at what you do. So good, you could do most of your job in your sleep.

You know the forms to use and the words to say. You know the best places to park at the courthouse. You know the judges and other lawyers, and they know you.

Your job has become routine. Easy. Life is good.

Don’t get too comfortable. Before you know it, some rookie lawyer will come along and eat your lunch.

They may not know what you know or be able to do what you can do, but they’re fresh and hungry. Everything is new and exciting. They’ve got energy and drive and something to prove.

And let’s not forget that they have been using computers since pre-school.

If you’re not careful, as their practice grows, you may see yours diminish.

But you can stay ahead of them by re-inventing yourself and your practice. Become a new lawyer again. Look at everything with fresh eyes.

Imagine that you have just opened your doors and you don’t have any clients. Get hustling and bring some in before the end of the month.

Take classes in your practice area and also in practice areas you know nothing about. Take classes in business, marketing, sales, writing, and speaking.

Take some cases you’ve never handled before. Find another lawyer to associate with you or mentor you.

Start over, from scratch, and build your practice again.

In the military, for a day or for a week, a unit will periodically stand down and review all of their operations. You should do the same thing. Examine all of your office management procedures and forms, look for holes that need to be patched, find expenses that can be reduced or eliminated, and processes that can be improved.

Do the same thing with your marketing. Find ways to make it better. Eliminate things that aren’t working, do more of  the things that are, and find new ways to bring in business you’ve never tried before.

Examine every piece of paper in your office and every electron in your computer. Resolve to get organized, eliminate clutter, and streamline your workflow.

And from this day forward, do something new every week. New ideas, new projects, new people, will keep you fresh and alert and sharp and open new doors for you.

Get excited about the future you are about to create and then go eat someone else’s lunch.

Get your marketing plan here

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Filed Under: Career satisfaction, Goal Setting, Increase your income, Inspiration, Law office management, Marketing legal services, Marketing Plan, Personal development, Productivity, success

The one thing you need to do to build a successful law practice

October 7, 2015 by
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Do you remember the Billy Crystal movie, “City Slickers”? There is a scene where Jack Palance’s character, Curly, is about to tell Mitch (Crystal) the secret to life? “There’s just ONE thing,” Curly says, holding up one finger. All eyes are fixed on Palance. What will he say? What is the “one thing”?

Curly never does answer. When I saw the scene, I thought he would say, “That’s what you have to figure out”. That’s your quest. Figure out the one thing and everything else will take care of itself.

I don’t know if that’s what he meant, but it makes me wonder, is there “one thing” for building a successful law practice? One thing that can take a lawyer from where they are to where they want to be?

Yes there is. For most lawyers in private practice, the one thing that would make all the difference is getting more clients.

Getting better clients is important, of course, and should be on every lawyer’s to-do list. But for both short term and long term success, getting more clients is the one thing that changes everything.

More clients means more money. More money allows you to improve your lifestyle. More money means you are able to help more people and leave the world a better place.

Yes or yes?

Okay, so more clients is the main ingredient. With a side dish of better clients. The next question, of course, is what’s the one thing about getting more clients?

You know the answer to that, amigo. It’s marketing. That’s how we get clients, after all.

But marketing is big and scary. There are too many variables. I don’t know what to do. Tell me, is there “one thing” about marketing?

Hold on, now, you want me to sort through everything there is to know about marketing professional services and tell you the “one thing”?

Okay, I will.

It’s referrals. Get referrals right and you may not have to do much of anything else.

Referrals have always been the number one way clients find attorneys and it still is today. The Internet is important, vital even for many types of practice, but it’s number two on the list.

Okay, now we’re getting somewhere. To build a successful law practice, referrals are king. But. . . but. . . what’s the “one thing” about getting referrals?

You ask a lot of questions, Chachi. No worries. That’s what I’m here for.

Anyway, whether it’s referrals from clients, other professionals, or anyone else, the one thing, the Holy Grail about getting referrals is. . . delivering value.

Not just doing good work and treating people with respect. That’s expected. That’s the standard of care. Every lawyer should do that, and most lawyers do. No, if you want to get more referrals and stand out from the crowd, you have to do what most lawyers don’t do.

You have to do more than do your job.

The lawyers who get the most referrals are the lawyers who do things for their clients and contacts that transcend their work and their professional relationships. They help them, unselfishly, without being asked and without expecting anything in return.

Yes, the golden rule.

There, I said it. Call me a sentimental fool, but there you go. Help others, give to others, treat others the way you would like to be treated.

What’s the “one thing” when it comes to the golden rule?

That’s what you have to figure out.

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Filed Under: Client relations, Increase your income, Marketing legal services, Referrals, success

A simple way to increase your income you’re probably not doing

September 16, 2015 by
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Your ad is bringing in clients. Your website is making your phone ring. Your seminar results in client appointments every time you run it.

Your marketing is working, and that’s good, but what if it could work better?

What if a different web page would bring you 20% more traffic? What if a different ad would bring in 50% more clients? What if a different offer at the end of your seminar resulted in 18% more appointments?

They might.

A different ad, a different headline, a different offer, and other variables, can result in dramatic differences in results. A few simple changes might bring in double or triple the number of clients, without any added expense.

It’s called testing and it is the essence of direct response marketing.

Author Tim Ferris invested $200 on pay-per-click ads testing different titles for his book. “The 4-Hour Workweek” got more clicks than any other title by a huge margin.

Keep running the ad that’s working and also run a different one. Don’t change anything on your webpage but send some traffic to a different page and see if you get better results.

You’ve probably heard about the value of testing. If you’re like most people, however, you’re probably not doing it, at least as much as you could. When things are working, it’s natural to want to leave them alone and focus on other things.

But test you must.

Talk to your marketing or web people about running some test ads, pages or offers. When you find something that works better than what you’re doing now, make that your “control”. Then, test additional changes against it, because no matter how well things are working, you never know if something else could work better.

Get more clients and increase your income with your web site, here

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Filed Under: Advertising, Increase your income, Marketing legal services, Online Marketing Tagged With:

How to create passive income in your law practice

September 15, 2015 by
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I love passive income. You hear me talk about it all the time. Passive income allowed me to retire from the practice of law. Passive income allows me to do what I want with my time because the income comes in whether I work or not.

I enjoy consulting but don’t do much anymore because there’s nothing passive about it. Instead of spending hours each week speaking with lawyers and getting paid once, I’d rather invest my time in creating more passive income.

I built a business years ago that provides me with passive income. It still pays me, month after month, year after year. I also get passive income from my books and courses.

Why earn $500 from consulting when I could spend that time creating a new book or course that pays me $500 per month, every month?

Do it once, get paid over and over again.

Set it and forget it.

Okay, so hurray for me. What about you?

Well, you could create passive income by building a side business like I did (contact me if you want me to show you how), and you could create books and courses or other products that sell over and over again. Or you could invest in income-producing assets.

But maybe none of that is right for you.

Can you use your law practice to build assets that provide you with passive income?

In a way, yes.

Instead of creating intellectual property, you can create relationships.

Find clients who have lots of legal work you can do, instead of one time clients. Find referral sources who can send you new business every month.

You have to spend time nurturing those relationships, and you still have to do the legal work (or supervise the people who do), but once you have a new referral source or client with ongoing work, the work will come to you without you having to do much more.

Not quite true passive income, but close. The next best thing.

Each relationship is an asset that provides cash flow. Each relationship gives you access to everyone in that person’s network.

Robert Kiyosaki said, “The richest people in the world look for and build networks; everyone else looks for work.”

This week, how will you build your network?

How to get more referrals from lawyers

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Filed Under: Increase your income, Leverage, Referral sources, Referrals Tagged With:
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