Is it time to put your practice on a diet?

January 11, 2013 by
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Yesterday, I did a strategy session with an attorney who was thinking about getting out of practicing law. After several decades of practicing, he said, “I don’t have the enthusiasm for my practice I once felt. I’ve had difficulties staying focused on my practice and delivering my work product in a timely fashion.”

In other words, the thrill was gone.

He does tax and estate planning, trust and estate administration, and tax compliance. Much of his malaise was centered on a feeling of being bogged down in administrative minutia. As a sole practitioner, there was simply too much to do and too much to keep up with and he was overwhelmed.

I asked him if there was any part of what he does that he liked. He said he enjoyed working with individuals and helping them with estate planning. I said, “If you could have a successful practice doing nothing but that and none of the other things you’re currently doing, how would that be?” “That would be great,” he said.

Problem solved.

He didn’t need to get out of practicing. He needed to put his practice on a diet.

By getting rid of practice areas (and clients) that weighed him down, he could have a leaner, more robust practice doing what he enjoyed doing. I told him there was more than enough business available for the kind of estate planning he liked and that he didn’t have to do anything else.

Many attorneys suffer from “practice bloat,” a term I just made up but which seems to accurately describe what happens over a period of years. You start out lean and mean, excited, and enjoying the process of building your practice. At some point, you take on additional practice areas because the work falls into your lap or because you want to have another profit center or something to fall back on. In time, your practice no longer resembles the one you started. You have too much to do, too much to keep up with, and you start falling behind. At this point, many attorneys start thinking the law is not their calling and they start looking for something else.

Some attorneys start out doing too much. I did. I took anything that showed up. I thought I had to because I needed the money. Soon, I was overwhelmed and frustrated, convinced I’d made a mistake in becoming a lawyer.

In both cases, the answer is to put the practice on a diet.

Get rid of practice areas you don’t enjoy. Get rid of clients who drive you crazy. Get rid of work you’re not good at but continue to do because “it’s part of the job”.

The vacuum you create by getting rid of things that do not serve you will soon be filled with work that you love and are good at. You’ll breathe life into a moribund practice, attract new clients, and increase your income. Most importantly, you’ll look forward to going to work every day.

There are more than enough clients available who want and need what you love to do. If your practice is bloated and the thrill is gone, it may be time to put your practice on a diet.

Does your practice need fixing? A new focus? Do you have marketing questions? I can help.

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Filed Under: Career satisfaction, Dealing with stress, Law office management, Marketing Plan, Specializing Tagged With: , ,

The problem with multiple streams of income

November 27, 2012 by
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Smart people often counsel us to diversify our investments. “Don’t put all your eggs in one basket,” they say. From an investment standpoint they’re probably right. If all your money is in gold or oil futures or a single stock and the market turns south, your losses could be catastrophic. But diversification has a dangerous side.

If you are building a law practice, buying a restaurant or another business that requires your time and mental energy is usually not a good idea. Buy (or start) another business only after your practice is at a point where you can devote some time to the business. Donald Trump made several fortunes in real estate before he branched out into other businesses. Donald Sterling made a bundle as a personal injury attorney before he turned to real estate and only years later to buying sports franchises.

Most people who try to build two businesses simultaneously usually fail to achieve great success in either. Perhaps that’s why Mark Twain said, “Put all of your eggs in one basket and then watch that basket.”

Yes, I started my attorney marketing business while I was still practicing. It was the kind of business that only required a few hours a week at first, to see if I could make a go of it. Once I did, I began shutting down my practice as I ramped up the new business. After a couple of years, the marketing business was running smoothly. I had competent staff who were taking care of the day-to-day operations and the demands on my time were minimal. At that point, I started another business. Again, just a few hours a week at first.

Today, I own two successful businesses. I would never have been successful in my practice or businesses had I tried to build them at the same time.

Okay, you get this. You wouldn’t lose focus and try to build two businesses simultaneously. But a lot of attorneys do exactly that and they don’t even know it.

When you try to build a family law practice, for example, and you also handle personal injury, you’re building two businesses simultaneously. Each practice area is different. Each has it’s own rhythm and culture. Referral sources are different. The judges are different. Marketing is different.

Some practice areas compliment each other. Many don’t. Put all your eggs in one basket and let the world know that you have the finest eggs available.

If you want help in choosing the right basket, get The Attorney Marketing Formula.

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

If Charles Darwin managed your law firm

September 25, 2012 by
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Some cynics contend that lawyers aren’t human. They say we are a different species who kill and eat our young and should not be allowed to mate and reproduce.

If Charles Darwin were around, he might point out that the traits that make us good at our jobs, i.e., skepticism, competitiveness, toughness, argumentativeness, etc., allow us to survive and thrive as a species. If that wasn’t true, we would have died out a long time ago.

So there.

There are parallels between Darwin’s theories and the management of a law practice. Darwin concluded that the species that fights for survival, or is adept at avoiding it, is the species that has the best chance of survival. In the food chain, there are those who eat and those who are eaten.

Lawyers aren’t allowed to flee. We have to stay and fight for our clients. By helping them survive, our practice survives. Our clients have more work for us. Other clients are attracted to the strongest lawyers.

Does that mean lawyers must be cutthroat? In the big firm world, I think it does. There are too few clients and too much jungle to cut through. For solos and small firms, there are more options, particularly for those lawyers who embrace Darwin’s other hypotheses.

Darwin said that the species with the best chance of survival are the species that have learned to specialize. There is less competition when you’re the only one with a long snout that can find ants buried deep in the ground. If Darwin were managing your firm, he would tell you to differentiate yourself from other lawyers and look for gaps in the market that you can exploit and dominate.

Sound advice, but advice few lawyers follow. Most lawyers follow the herd and thus, earn average incomes. Skepticism and risk adverseness may make a lawyer good, but it doesn’t make a lawyer wealthy.

Darwin’s theory of adaptation is another area where lawyers are weak. The theory says that to survive in a world of changing demands and conditions requires a species to adapt to those changes and evolve. Lawyers are famously not comfortable with change, however, and often find themselves playing catch up.

Change doesn’t mean recklessness. It means staying informed, being open minded, and willing to try. Lawyers who don’t have a robust Internet presence, for example, are clearly falling behind.

Darwin told us it is, “the survival of the fittest.” If he was managing your firm, he might say that while you may be ready for the competition, if you don’t specialize and you don’t adapt, you may still find yourself on the endangered species list.

If you want to learn how to differentiate yourself from the competition and not get eaten alive, get The Attorney Marketing Formula today.

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Filed Under: Law office management, Legal industry, Marketing legal services, Specializing Tagged With: , , , , ,

How to get prospective clients to see you as the ONLY attorney to choose

June 11, 2012 by
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Imagine you are looking for a new accountant. You’ve collected information about several candidates, but you haven’t spoken to any. You’ve narrowed your list to three accountants you plan to contact.

You call the office of the first accountant and tell the receptionist you want to talk to Mr. Roberts about possibly hiring him. You are told that you will need an appointment and you set one up for the following week.

You have a similar conversation with the second accountant’s office, but in this case, you are transferred immediately to Mr. Green. He tells you about his background and practice. He’s friendly and open and you schedule an appointment to meet with him as well.

You call the third accountant, Mr. Jones, and are transferred to his personal assistant, Sally. She asks you some questions and also sets up an appointment with Mr. Jones.

So far so good. Three decent candidates. You’ll meet all three in person within the next ten days and you hope you can choose the right one. You start making a list of questions you will ask when you meet.

You check your email. There’s a message from Sally, Mr. Jones’ personal assistant, thanking you for your call and confirming your appointment. Attached are some documents for you to review before you meet:

  • A letter confirming your appointment, directions, and parking instructions.
  • A F.A.Q. brochure about Mr. Jones, his firm and staff, fees, payment options and other basics a prospective client would want to know
  • Three articles by Mr. Jones, one about saving time and money with bookkeeping, one on how to minimize taxes, and one published in a bar journal about tax issues lawyers need to know that will help with do a better job for their business clients.
  • Another article, an interview of Mr. Jones that was published by a prominent CPA Journal
  • Three back issues of Mr. Jones’ newsletter
  • A booklet of testimonials from Mr. Jones’ clients, including several attorneys, and endorsements from other CPAs, financial planners, and a professor of taxation
  • Mr. Jones’ CV listing his education, experience, awards and honors
  • A two-page questionnaire to be filled out in preparation for your appointment, about your practice and your tax and accounting needs

Every page includes links to Mr. Jones’ web site. There you find additional information, articles, blog posts, white papers, and back issues of his newsletter. There is also a link to subscribe to his ezine via email and links to connect with him on social media. You follow several links and see he is connected to many attorneys, including many whose names you recognize.

The next day, you get an email from Mr. Jones himself. He says he’s looking forward to meeting you the following week, encourages you to fill out the questionnaire, and says he has already visited your web site to get some preliminary information about your practice.

Mr. Jones invites you to send him additional information about your practice that you would like him to see, and any questions you would like him to address.

The next day, in the postal mail, a hand written note arrives, signed by Mr. Jones. It says, simply, “I’m looking forward to meeting you next Wednesday.”

Over the next few days, you get two more emails from Mr. Jones.

The first is an article written by one of his other clients, a lawyer who practices in the same field as you. The email says something nice about this lawyer and Mr. Jones says he thought you might like to read the article, that a lot of his clients have found it helpful.

The second email contains a checklist Mr. Jones gives to all of his clients and a report that shows how to use it to save time and better prepare for tax time. The email invites you to contact Mr. Jones if you have any questions. The email is signed “Bob”.

Next week rolls around and two days before your appointment, you get an email reminding you of the appointment and asking you to either send your questionnaire in advance or to bring it with you.

The next day, the day before the appointment, Mr. Jones’ assistant calls you with a courtesy reminder. She asks if you have any questions, reminds you that they have free parking, and says she and Mr. Jones are looking forward to seeing you.

You haven’t even met Mr. Jones but you already know: he’s the one. You will probably meet with the others, just to be sure, but unless Mr. Jones has two heads and a forked tongue (and maybe even if does), he will be your new accountant.

What can be learned about this experience?

  • Mr. Jones used a “shock and awe” campaign to overwhelm you with reasons for choosing him over any other accountant. Even if you never read the documents he sent you, you are impressed by his diligence and thoughtfulness and convinced he has the requisite experience.
  • The personal touches he adds to the process made you feel good about him. He treats you like a client before you became one. He shows you respect, like you are a valued individual, not a name on a file folder.
  • He provides social proof (articles, testimonials, endorsements) of his experience with and commitment to attorneys as a niche market for his practice. He makes you believe he understands what you do. He shows you that he has helped others like you, suggesting that he can do the same for you.
  • He uses content (articles, blog posts, etc.) to do the heavy lifting. It proves he is good at what he did, without him having to say so himself.
  • It doesn’t take a lot of time to do what he does because almost everything is written in advance and he and his staff obviously use a checklist to manage most of the process.
  • He doesn’t do anything you couldn’t do. You may not have all of the documents he has, but you can start with what you do have and add more later.

I’m sure you can imagine what Mr. Jones will do when you arrive at his office, during the appointment, and after the appointment. Marketing is actually very simple: Treat people like you would like to be treated.

Take some time to outline the process for communicating with a prospective client for your practice. What can you do to show them what they need to see and hear so that they fall in love with you?

Done right, they will “know, like, and trust” you before they even meet you. You won’t just be the best choice, you’ll be the only choice.

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Filed Under: Client relations, Closing the sale, Communication, Law office management, Marketing legal services, Marketing Plan, Social media, Specializing Tagged With: , , , , , , , , , , , , , , , , , , ,

Build a more profitable law practice by relaxing and doing less

May 9, 2012 by
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Yesterday, I spoke with an attorney who is on the verge of burnout. I could hear it in his voice. After thirty years of practice, he’s struggling to attract clients, he’s stressed out and he doesn’t know what to do.

He tells me he’s competent and people like him when they meet him. “Put me in front of someone and they’ll sign up,” he said. He doesn’t do a lot of networking and admits he doesn’t get in front of enough people.

He has a web site and a blog for each of his five practice areas. He’s spent considerable time and money creating content for his blogs and optimizing them for search engines. Unfortunately, the clients who have contacted him through his site have had little money or were looking for free advice.

Within a couple of minutes, I could see his problem and told him what I thought. I could do that because his “ailment” is so common. Like many attorneys, he’s spread too thin and trying to do too much.

I told him he needed to slow down and get focused. Choose one practice area, the one he likes and is best at, and stick with it. His background is in business law. He doesn’t like doing divorces but that’s the kinds of clients his web site seems to be attracting so he added that to his repertoire. While you can’t ignore what the market wants, you are never a slave to it.

I also told him to specialize in the kinds of clients he represents. Some clients are better than others. They have more money and more legal work, the kind you enjoy doing, and you should concentrate on attracting them. Choose an industry or market niche where you have some knowledge and experience and own it. Everything is easier when you do.

His blogs have a lot of content but I suspect it is content created for search engines more than for real people. When you write for SEO purposes you often wind up with content that is mechanically correct but lifeless. When your content is organic, coming from your experiences with real clients, you attract similar clients who resonate with your message.

The process I recommended was one of subtraction: getting rid of most of what he was doing and starting over with a clean slate. Most of his good clients had come through referrals and that’s where they will continue to come from, once he stops trying so hard.

Marketing professional services should be a natural outgrowth of who you are. It starts with knowing what you want and giving yourself permission to have it, choosing your clients instead of letting them choose you.

Relax, do less, but do what you are, not what an SEO expert says you should be.

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Filed Under: Blogging, Career satisfaction, Communication, Dealing with stress, Marketing legal services, Online Marketing, Specializing, Web traffic Tagged With: , , , , , , , , , , , , , , , , , , ,

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: , , , , , , , , , , , , , , , , , , ,

Lawyer marketing 101: The basics of niche marketing

August 27, 2008 by
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Q: I’m starting a solo practice. How do I compete with larger firms who use TV ads?

A: TV ads target everyone, and therefore, no one. The consumer markets are vast and expensive to reach, especially via TV. If you aren’t prepared to go head to head with big budget advertisers, I’d suggest that you concentrate your efforts in niche markets.

Niche markets are small, well-defined, sub-segments of the larger mass market. “Health care professionals,” “Chinese immigrants,” and “people who work for ABC Company” are examples of niche markets.

You can get more bang for your advertising buck in niche markets, and leverage your time by speaking, writing, and networking with centers of influence and/or prospective clients in those markets.

If you handle consumer-type practice areas (bankruptcy, PI, criminal defense, etc.) you’ll find clients and referral sources in just about any niche market. You don’t need to be especially selective about which niche to choose, just make sure it’s large enough to encompass enough people but not so large that you cannot effectively communicate with it. Look for markets with existing publications read by people in those markets, and local organizations where you can speak or network.

If you handle business matters, your choice of niche market(s) needs to be made a bit more carefully. Some business niches are more likely to need your services than others and some markets may already be dominated by a handful of existing law firms. The advantage in business markets is a more established infrastructure of publications, organizations, and centers of influence, ready for you to plug into.

The bottom line is that by focusing on smaller markets, you can dominate them. You’ll get the lion’s share of the business in those markets and never have to worry about someone outspending you on TV ads.

Why compete when you don’t have to?

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

How to get big personal injury cases

June 23, 2008 by
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A personal injury attorney wrote and asked me if I have a strategy for bringing in bigger cases. I was a personal injury attorney for most of my legal career and when I look back at what I did, I have to say that I did not have that strategy. In fact, I intentionally focused on bringing in a volume of smaller cases.

My thinking was that quantity would bring quality. Bring in thousands of clients over a period of years and you are bound to have some big cases in the mix. And that was certainly true for me. But I also recall thinking, as every personal injury attorney does, that one day, I’ll get a case that will bring me millions of dollars in fees and I’ll be able to retire if I want to. But in twenty years, that never happened. Big cases, yes, but not a single practice-making monster.

But there’s something else I understood and that was that I was not one of the big boys. The biggest cases are almost always handled by the biggest names and most of the time, they are referred there by other attorneys. I wasn’t prepared to compete in that arena. I didn’t have the expertise and, more importantly, I didn’t have the passion for developing it.

The best strategy for getting the biggest cases is to become one of the best lawyers. Win bigger and bigger verdicts, develop your skills and your reputation amongst the bar, and when you have the respect of your colleagues, you will get their referrals.

Another way to get big cases is the one adopted by a lot of attorneys who aren’t one of the best and that is to appear to be. They swing a big stick with multiple full page yellow page ads and TV commercials, they sponsor charitable events attended by centers of influence in their community, they network with the right people, send press releases celebrating their victories, and otherwise promote themselves so that they appear to be one of the biggest and one of the best. And by and large, it works.

To do this, you need money and some marketing skills, but most of all, you need drive. The biggest promoters have big, healthy egos. They are driven as much by the desire for attention as the desire for money. I’m not taking anything away from them. They are usually good enough to serve their clients well and smart enough to bring in one of the best when they aren’t.

If you’re not one of the best and you aren’t willing or able to become one, and if you’re not willing to do what the big promoters do, there is an alternative: target niche markets. Become the biggest fish in a small market where word of mouth is strong and limited resources (and hubris) can go a long way. Become the attorney everyone in that market thinks of when they think of injuries. Network in that market, write for that market, serve that market and the centers of influence in it, and over time, you’ll get big cases. Do it well enough and long enough and you may even get one of the very biggest.

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Filed Under: Advertising, Image, Increase your income, Marketing legal services, Networking, Press release, Publicity, Referrals, Specializing Tagged With: , , , , , , , , , , , , , , , , , , ,

Successful lawyers are unbalanced

November 7, 2007 by
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A few years ago, I didn’t know the difference between leadership and management, and, frankly, I didn’t care. To my way of thinking, these were "corporate" concepts, irrelevant to my needs as a sole practitioner trying to build a law practice.

In my never-ending quest for personal development, I have since learned a great deal about these subjects and now appreciate their value in building a law practice.

If you would like a shortcut to understanding the essence of these subjects, I’d recommend a book by Marcus Buckingham, author of the best sellers, "First, Break All The Rules" and "Now, Discover Your Strengths. Buckingham’s latest is "The One Thing You Need to Know. . . About Great Managing, Great Leading, and Sustained Individual Success." His insights on leadership and management will truly help you become more effective in managing your practice. His conclusions about "sustained individual success" will not only help you attract more clients and increase your income, they will help you enjoy the process.

Success and happiness. Not a bad combination.

I agree with Buckingham’s conclusion that success does not require (and may actually be inhibited by) balance, a conclusion supported by another book I recommended and frequently refer to, "The 80/20 Principle" by Richard Koch. Yes, we want balance between our careers and personal lives, but when it comes to marketing a law practice or building a career, I have always counseled an unbalanced (focused) approach: specialization, niche marketing, and maximizing strengths while making weaknesses irrelevant.

So when people say I’m unbalanced, that’s a good thing.

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Filed Under: Book review, Law office management, Marketing legal services, Personal development, Specializing Tagged With:

New resources for marketing your law practice online

October 18, 2007 by
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If you’re interested in marketing your law practice online (and you should be) there are two resources I want to recommend. The first is a new book, "The New Rules of Marketing & PR" by David Meerman Scott. The sub-title is, "How to use news releases, blogs, podcasting, viral marketing & online media to reach buyers directly." That about says it all. I’ve just started reading it and can tell you, it’s excellent. Highly recommended.

The other resource is a free ebook from consultant Brandon Cornet at websmartlawyer.com. It covers web sites, blogging, search engines, lead generation, and has links to oodles of resources. Valuable stuff.

Cornet’s ebook is itself a fine example of viral online marketing, in that it is a free download from his web site (you don’t even need to supply an email address to get it), coupled with good content that demonstrates his knowledge and experience. Sure enough, here I am "distributing" it to you, and thus, this strategy could quickly generate hundreds of qualified leads for Cornet’s consulting services.

It illustrates another key marketing concept, niche marketing. Cornet could hold himself out as, simply, an Internet/website consultant, hoping to appeal to "everyone" but, like so many others, he would find his voice drowned out by his many competitors. Instead, by targeting lawyers, he narrows his focus, which should make it easier to both generate leads and close them, since clients (and that includes lawyers) prefer specialists.

Both books agree, the Internet has forever changed the rules of marketing. Those who ignore this, do so at their peril.

 

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Filed Under: Blogging, Book review, Marketing legal services, Online Marketing, Press release, Publicity, Specializing, Technology, Web traffic Tagged With:
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