Referrals earn referrals

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It’s simple. You get referrals by giving referrals. Send clients or customers to your business clients and contacts and they’ll do the same for you. 

I’m sure you do this when the opportunity presents itself and you “think about it”. I’m suggesting you think about it regularly and go out of your way to find referrals to give.

It starts by getting to know your clients and contacts beyond their legal profile or situation. Learn about their business and industry, find out what they do, for whom do they do it, and why they do it better or differently than their competition. 

And then, promote them. Tell people about their business, practice, or organization. 

And do it proactively. 

Don’t wait until you hear that someone needs their products or services, pass out their flyer, brochure, or business card or do the equivalent online. 

Talk about their business to everyone. Ask if they know someone who might need what they offer. Consider featuring them in your newsletter or blog.

If you’ve hired them yourself and liked what they did for you, write or record a testimonial for them.

Be an ambassador for their business. 

They’ll get more clients or customer, sell more products or services, and the people you refer to them will get products or services they need and want. 

You? You get the gratitude of both of them and, eventually, a lot more referrals.

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How about a heaping helping of added value?

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You do a good job for your clients. They’re happy with the results you get for them and like you. But simply doing a good job for your clients doesn’t guarantee they will hire you again or refer other clients. 

If you want that to happen, give them more than they’re paying you for. 

Give them added value—additional benefits they don’t expect and haven’t paid for. 

Here are 3 options: 

(1) INFORMATION. Reports, newsletters, blogs, seminars, articles, videos, and other educational material that add value to their life or business. For consumer clients, you could provide information about debt, credit, investing, taxes, and insurance. For business clients, you could share information about subjects related to their industry or market. 

(2) SUPPORT. Promote their industry or community events, their causes (and donate to them), and recommend their products or services. 

(3) CONNECTION. Introduce clients to other clients who might benefit from knowing them. Refer clients to other professionals who can advise or otherwise help them.

You can do these things on your own, outsource it, or join forces with other professionals and subject experts. 

Other lawyers tend not to do these things. When you do them, this added value can strengthen your relationships and help you stand out in your target market. 

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Do you have a client loyalty program?

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Besides doing good work and treating clients well, do you do anything to incentivize your clients to continue hiring you?  

You should. 

Yeah, I know, it’s a touchy subject. You really can’t offer discounts or rewards. 

Or can you? 

Could you hold back on increasing your fees for clients who have been with you for a number of years? Could you provide good clients with extra services that you previously charged for or give them a better rate this year than you charged the year before? Could you offer somewhat lower fees to clients who pay a regular retainer? 

Maybe you could reward a loyal client by reducing the percentage of increase this year, or delaying the date it begins. 

What about referrals? You can’t directly compensate anyone for sending you business, but maybe you can send them some business. Or mention their business or practice in your newsletter, or link to their website from yours. 

Maybe you could interview referral sources and friends of the firm on your podcast, invite them to join you on stage at your next speaking event, or mail their brochure to your client list with a note recommending them.

Think about it. Look for ways to show your loyal clients and supporters how much you appreciate them. You don’t have to do anything extraordinary, but with so many other firms vying for their business, consider doing something other than good legal work. 

As my grandfather used to say, “It couldn’t hurt”. 

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Why you’re not getting more referrals (and what to do about it)

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Referrals are the Sina Qua Non of a professional practice. No doubt, you get referrals, perhaps a lot of referrals, but I promise, you can get more. 

Maybe enough more to pull back on (or eliminate) your other marketing strategies, because referrals are extremely profitable and relatively easy to get. 

If that sounds good, I suggest you begin by figuring out why you’re not getting more referrals. 

The simplest way to do this is to survey your clients, especially at the end of the case or engagement. Ask them about your legal work and the “customer service” provided by you and your staff.  

What did they like, what do they think could be improved, and why?

You need to know.

They may have misunderstood something or expected something different. They may have had a bad experience with someone on your staff. They may think you did a good job but had an issue with some minor aspect of your service that is bothering them. 

After they fill out the survey, talk to them to learn more. You may not be comfortable hearing negative feedback, but it is important to hear it because it will allow you to improve your services and client relations and thus get more referrals. 

Besides improving your service, there are other reasons you might not get as many referrals as you could. Here are a few of the more common reasons:

  • Your clients are satisfied with your services and willing to send you business, but don’t have the business to send. The solution is to target other types of clients and markets.  
  • Your clients may not know who would be a good referral for you. Teach them about your practice areas and the kinds of clients you serve or want to serve. 
  • Your clients may know people who need your services, but think you’re successful and busy and don’t need or want more work. The solution is to educate them that your practice was built on referrals and you appreciate receiving them. 
  • Clients might not know the value of referrals. Make sure they understand that the referred client gets help without taking time or risk shopping around, the referring client gets the satisfaction of helping a friend, and you get a new client without advertising or networking in the cold market.
  • Your clients may be uncomfortable making referrals. Make it easier for them to do it by telling them what to tell the referral about you and how you can help them, and also what to tell you. 
  • Finally, you may not be getting as many referrals as you could simply because you haven’t shown enough appreciation for past referrals. Make sure you thank your clients who send you referrals orally and by sending them a handwritten thank you note. 

Referrals the lifeblood of your practice. This is how you get more of them.

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Lion or cow?

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I saw a post that said, “Creative people shouldn’t work Monday through Friday, 9 to 5, moving slowly, like a cow who grazes throughout the day. 

Instead, they should work like a lion: 

  • Sit
  • Wait for prey
  • Sprint
  • Eat
  • Rest 
  • Repeat

So, naturally, I thought about attorneys and marketing. 

Here’s how I see things: 

Unless we’re new, we should focus primarily on our warm market, e.g., our existing clients and contacts, and rely mostly on repeat business and referrals. When you’ve been around long enough and built a sizeable client base, you might never have to do anything else. 

But when we’re new, or hungry, or want to be the King of the Jungle, we go into the cold market and bring in some fresh meat. 

There’s a time to run and catch new clients and a time to do our work and let the clients catch us. 

How to get more referrals

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A culture of referrals

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Getting more referrals from clients and prospects can be as simple as educating them about the benefits of referrals—for everyone. 

The referred client gets the help they need from an attorney recommended to them by someone they know and trust. And they don’t have to spend time and effort finding them and risking a mistake. 

The client who refers them gets the appreciation of their friend. And you get more clients and, arguably, better clients because they are friends or business contacts of your existing clients.

A referral practice is less expensive to build than, say, an ad-based practice, which means you can afford to offer competitive fees without sacrificing your high level of service. You get more clients, at no cost, and your clients get more value from you. 

To get more referrals, you should also educate your clients and prospects about the best and easiest ways to make referrals (best and easiest for all 3 of you), and tell your clients and prospects that you like and appreciate referrals, because they don’t always know that.

Many clients are willing and able to refer clients to you, but think you don’t want or need them because you’re busy and successful. Others don’t refer simply because they never thought about the subject.  

Help them think about it by bringing up the subject. 

Attorney Jack Early tells his clients: “Just so you know, we are built on referrals and we would love and appreciate your referral. That would mean a lot to us”. 

He says the more he says that, the more referrals he gets. “We call it a culture of referrals,” he said in a recent interview. 

Simple. Straight forward. Successful.

How to get more referrals from your clients

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Size doesn’t matter

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I’m talking about your list of professional contacts. It’s the quality of your contacts that count, not the quantity. A list of 10,000 people who might recognize your name (or might not) isn’t nearly as valuable as a list of 100 who will take your phone call, reply to your email, or smile when they see you. 

You know, people who know you.

Because if they know people who need your services, or know people who know people who do, you’ve got it made. Even if it’s not a big list.

 Because it’s not who you know. . . it’s who THEY know. (And will introduce you to).

Do you know a professional or business executive who is influential in your target market? Do you know them well enough to ask for a favor? 

Great! Ask them to introduce you. 

If you know the name of someone they know you’d like to meet, ask them by name. “You mentioned you know Jack Bigtime. I’ve heard good things about him and would love to meet him. Would you be silling to introduce us?”

If you don’t know anyone they know by name, ask by category: “Do you know anyone who (describe the kind of contact you’d like to meet).” If they say they do, ask for a detail or two to get them thinking about them, maybe ask how they know them, and then ask if they would introduce you.

If they ask why, tell them the truth—you want to expand your network. Just an introduction. Not marriage. One professional meeting another, the way it’s done every day. 

You may have to talk to a few people to find someone who knows someone who would be a good fit for you and will introduce you (or let you mention their name), but all you need is one. 

Because one will lead to two. And that can lead to dozens. 

Yes, you could play the “quantity-leads-to-quality” game most professionals play, work like crazy and eventually meet someone who’s a good contact for you. But the “quality-leads-to-quality” game is much more fun, and productive. 

Here’s how to do it

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Can you rely solely on repeat business and referrals?

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Yes, you can; many lawyers do. 

They have a client base that trusts them and have enough legal work to keep them busy, and they have friends and business contacts they can and do refer. 

Nice, isn’t it? 

They don’t advertise, network, blog, do presentations, or do any other marketing. They can if they want to, and sometimes they do, but the growth of their practice doesn’t depend on anything other than doing good work for their clients and serving them well.

It takes awhile to get to that point, so if you’re a new lawyer or don’t yet have a big enough practice to generate a steady stream of business, you’ll need to do other things until you get there. I did that when I started practicing. It was hard and took a good five years, but it was worth it. 

Hold on. It’s easy to screw up. 

Clients and their businesses die, you mess up and they leave, the economy throws you under the bus, laws change, competition steals the show, overhead can eat you alive, and other factors can change everything. 

So, never take anything or anyone for granted. Assume the best, but be prepared for the worst:

  • Continually strengthen your relationships with clients, prospects, and business contacts. 
  • Ask for testimonials, reviews, introductions, and referrals, because they may not think to provide them if you don’t.
  • Create a website that tells people what you do and how you can help them and let it do most of the selling for you.
  • Build a list and stay in touch with everyone.

Finally, continually look for new ways to bring in business and increase your profits, because you never know what the future has in store.

How to talk to clients about referrals

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Business development leapfrog 

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It’s all about networking. Meeting people who know people you’d like to know. High-level decision makers, General Counsels, CEOs, advisors, business owners, and other influential people in your target market. 

Your job is to identity people you’d like to meet and work backwards to identify people they know who can introduce you. Eventually, you identify someone you already know or can easily meet because they belong to a group you belong to or know people who do. 

Start with “categories”—types of advisors or professionals or decision makers in your target industry or market. When you know you’d like to meet a financial advisor, General Counsel or manager of medical groups (of a certain size or specialty), for example, it makes everything easier. 

Create a profile. Then, identify “candidates”—actual advisors or decision makers you’d like to meet. Then, talk to your clients and existing business contacts and ask if they know these people, or know someone who does. If they do, ask them if they would introduce you, or if it would be okay for you to mention their name when you talk to them. 

And yes, it is as simple as that. 

You don’t have to score a home run every time. A single or double here and there may be enough to get you face to face with someone who wants to know more about what you do and how you can help their company or their clients. 

If you “only” meet one or two of these top-level decision makers per year, it can lead to a lot of business. 

It’s all about networking. But you don’t have to attend a single networking event. 

Because the people you already know, know people you’d like to know, and you can leverage your relationship to meet them. 

Here’s what to do, step-by-step

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Are you attracting the wrong clients?

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You don’t want to attract people who can’t afford to hire you. You also don’t want to attract clients who have gone through several attorneys before you and “can’t seem to find the right one”.

But you also don’t want to attract prospective clients who are completely happy with their current firm and not looking for anyone else. 

You want to attract your “ideal” clients, those with the right combination of needs and wants and temperament, who are looking for the help you provide and are willing and able to pay for it.

You may occasionally work with a client who isn’t ideal, i.e., tolerate them, but you shouldn’t target them. 

You should target your ideal and focus on them in your marketing. 

Start by taking inventory of your current and former clients. Make a list of positive attributes you want to attract, i.e., attributes exhibited by clients you’d like to clone if you could, and another list of negative ones you want to avoid.

Create a profile of your ideal clients’ industry or market, their problems and goals, their financial strength, and other factors that define what makes them ideal. 

You want more clients who are like your best clients; this is what they look like. 

What then? How do you find them? 

The best way is via referrals. People tend to associate with people much like themself. People in their market or industry or neighborhood. People in their age group or who have similar interests. People they know, like, and trust. 

And the businesses and professionals they work with or patronize. 

Whatever it is that makes your ideal clients ideal, referred ideal clients makes them better. 

Because they come to you pre-screened and pre-sold.

Yes, there are other ways to find ideal clients, and they may provide you with bigger numbers. Advertising in a trade publication, for example, might generate a lot of leads who fit the profile you seek. But there’s no easier or more profitable way to bring in ideal clients than through referrals. 

How to get more referrals

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