The ABA Journal wants to know what lawyers think about the economy. I don’t.

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How’s business? The ABA Journal wants to know. They are surveying lawyers on the job market and the state of the economy. They’ve asked me to mention this on my blog, so here it is:

http://www.surveymonkey.com/s.aspx?sm=9Dhw2g7bX_2bxfq4mW8eB1Cg_3d_3d

Surveys are interesting, but guess what? The job market and the state of the economy have no bearing on your life. Unless you believe it will.

If you believe the economy will materially affect your practice or job, it will. If you believe it won’t, it won’t.

Does that sound naive? Some kind of new age hooey? Well, if you believe that, then for you, that’s exactly what it is. But I have different beliefs. I believe we create our reality. I believe we can choose to be successful in the face of adversity or we can choose to capitulate, wring our hands, and suffer along with everyone else.

It’s our choice.

You can choose personal responsibility. You can choose to be optimistic. You can choose to see opportunity when others see Armageddon. In the Depression of the 1930’s, unemployment was twenty-five percent and millions suffered. But many made fortunes. I guess they understood that periods of great change create opportunities for the status quo to change. Of course that’s also why many previously wealthy people jumped out of windows.

Business philosopher, Jim Rohn, said, “It is the set of the sails, not the direction of the wind that determines which way we will go.” How are you choosing to set your sails?

——-

Update: In case you’re interested, here’s a link to the survey results: http://www.abajournal.com/magazine/14307_lawyers_predict_the_future

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Do you know what “passive income” is?

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A friend of mine by the name of Brian used to be a real estate agent. He told me a story about a very successful business mentor of his who once asked him if he knew what “passive income” was. Brian said he did. “Well, do you have any?” he asked. When Brian said he did not, the mentor said, “Then I don’t think you know what it is, because if you did, you would crash through walls to get some.”

He went on to explain it this way:

“When you sell a house, you get paid a commission, right? And then you move onto the next deal. If you don’t sell a house, you don’t get paid. You’re only as good as your last deal. Now, what would you rather have, $5,000 when you sell a house or $50 every time someone opened or closed a door? That’s passive income.”

I once explained passive income to a lawyer this way: “Think about what you currently earn in your practice and imagine that you were paid that amount but you didn’t have to show up for work.”

What would it mean to you if you had enough passive income coming in so that you never had to work again? If you had money AND the time to enjoy it?

If there was a way to accomplish that, would you want to know about it?

(Keep reading. . .)

Very few people have passive income. Athletes, entertainers, artists, writers, are usually cited as examples. Some attorneys achieve passive income by taking a percentage of their client’s business venture or intellectual property. But most attorneys (and I was no exception when I was practicing) earn linear income.

Linear income means there is a direct correlation between your personal services and your compensation. It doesn’t matter whether you bill hourly, flat rate, or contingency, what you get still depends (mostly) on what you do.

When you have employees, you have leverage, and that provides a semblance of passive income. Someone else does the work, you bill the client at a higher rate, and you profit from the difference. But it’s not true passive income because you still have to supervise those employees and you are responsible for the work they do.

If your firm is big enough that you don’t have to do that, if you can stay home and the practice runs without you, then you have true passive income. But then you probably wouldn’t be reading this.

What if there was another way to generate passive income? What if, in the next few years, you could create a six-figure passive income and it didn’t interfere with your current practice or job?

And what if I told you that a lot of attorneys have already done it?

Including me.

It’s true. In just a few years, working part time, I created a six-figure passive income that continues to pay me today. The money comes in month after month, year after year, and I don’t have to work for it.

Now you know I’m telling you this for a reason. I won’t keep you in suspense any longer. I’ve just launched a new web site that will tell you exactly what I did to create this passive income, and, more importantly, how you can do it too.

Here’s the site: https://attorneymarketing.com/legal-plans

Take a look and let me know what you like best.

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Should you buy a “canned” newsletter?

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If you write a newsletter or a blog (and you should) you need content. But it takes time to write something worth reading and attorneys have precious little time to spare. There are services now that sell articles you can use, copyright free. You pay your money and you can print them under your name.

It’s a new twist on an old idea.

Canned newsletter for professionals have been around for years. My state bar sells pamphlets lawyers can send to their clients with their name stamped on the back. Of course you can hire a ghost writer, or assign someone in your office to write material for you. There are plenty of ways to get content that you don’t originate. The question is, should you?

In my opinion, you should not. Canned materials are never a good substitute for creating your own newsletter, articles and reports. They are better than nothing, but not much.

One reason is that far fewer people will read it. These articles and newsletters are very general and very bland. And a lot of people will know you didn’t write them. I toss my insurance agents newsletter in the trash, unopened, because I know it comes from a staff writer in New York and has little value to me. There is nothing personal or interesting in it. My dentist writes a personal newsletter, but it is terribly boring. I open and glance at it, in case there might be something that pertains to me in it (e.g., a change in his office personnel or procedure) but I don’t read it.

(Here’s a clue that it’s canned: there are no stories in them. Facts tell, but stories sell, and if what you write doesn’t have stories in them, either, you’re missing the boat.)

Now, there is some value in your clients getting something from you with your name on it, even if they don’t open the envelope or email. They are at least reminded that you still exist. But you’re missing the opportunity to build a relationship with them, and that’s costing you more than you can imagine.

The purpose of newsletters and reports and blogs is to (a) stay in touch, reminding people that you still exist, (b) demonstrate your expertise, your ability to deliver the benefits they seek, and (c) create a dialog with the reader that supports your relationship with them. With canned material, you can only stay in touch, and poorly, at best.

You want people to read your words, and "hear" your voice. You want them to believe you are writing just to them. You want them to read and appreciate your special news or offer. And you want them to see that you care enough about them to take a couple of hours once or twice a month to write something "just for them".

The time you invest in this process will not only be "worth it," it is the single most profitable thing you could do to build your practice.

Seriously. The people who know, like, and trust you will hire you again and again and they will efer people to you, too. There is no cost to acquire these clients, other than printing/mailing costs if you do that (and you should) and your time.

Now, don’t panic. Once you get the hand of it, it doesn’t take as long as you think.

Start by producing some "evergreen" materials, reports, for example, that once written, you can use over and over again for years to come. You have expertise in your field and you can write a report in two hours. Here’s your assignment for your first one: Take the five or ten questions you are asked the most by prospective or new clients, and answer them. There, you have a report.

A newsletter or blog require continual replenishment of material, but this is worth it, too. You don’t need as much as you think. A monthly newsletter could be two pages. A postcard, if that’s all you can do. Far more important than quantity is that they hear from a real person, sharing a story, a thought, a piece of your mind.

For a blog, three to five paragraphs, one to three times a week can be enough. What’s important is that it be your voice, your opinion, a glimpse into your world. Your clients and prospects (and referral sources) need to feel they are a part of your life and you a part of theirs. You want them to "know, like, and trust" you, and to do that, your material needs to be your own.

I’ve told attorneys in the past to order the canned newsletter or articles if they feel they must, but to make them their own. "Rewrite them, add your commentary, offer examples and advice that are specific to your practice. What do you agree with? Disagree with? What else does the reader need to know?"

Today you can pretty much do that without paying a service. Just go online, find something someone else has written, and use it as an outline or idea starter for your own material.

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Is your legal career deeply fulfilling?

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One of the hallmarks of a successful career, according to Steve Pavlina, is "making a meaningful positive contribution to others." Indeed, many lawyers say they went to law school in order to "make a difference" or "to help others." I know that was important to me when I started my career. Unfortunately, looking back on twenty years of practice, I can’t say I made the kind of difference I thought I would when I was starting out.

Pavlina is writing a series of articles on how to create a fulfilling career. He begins with the premise that no one should settle for anything less than complete satisfaction. We deserve to "have it all" and have it now, and we can, he says. "Almost" isn’t good enough, and neither is "working towards". Either our careers are fulfilling or they aren’t–there is no in between.

Someone once said that life follows three distinct phases: learning, earning, and returning. A deeply fulfilling career, the way Pavlina defines it, is one that combines all three elements right now. Contribution ("returning") is something we do every day, not just when we retire.

It took me a long time to admit that I wasn’t fulfilled in my career as a lawyer, and even longer before I was finally able to extricate myself. Oh, I know I played an important role in the legal lives of many people, and there were other aspects of my career that were satisfying (e.g., intellectually, financially), but, on balance, my career wasn’t anywhere near what I would call deeply fulfilling.

I like to tell myself I had to go through what I went through in order to get where I am today (and to appreciate where I am today), and I’m sure there is some truth to that. But only some. Today, I know you don’t have to settle. Now I understand that you can have it all, and you don’t have to wait. If you’re not completely fulfilled in your career, I hope you don’t take as long as I did to find that out for yourself.

If you are interested in making some changes, if you would like to be able to learn, earn, and return today, not someday, please contact me. I’m working on a project with several attorneys who feel the same way and it might be a good fit for you, too.

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Bravery has many faces

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Is this fee splitting or smart marketing?

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Wouldn’t it be great to have hundreds of people referring clients to you on a commission basis?

"You can’t do that! That’s fee splitting. It’s illegal!"

Well. . . it depends.

It’s true that you can’t compensate non-attorneys for referring clients to you. But there’s nothing wrong with paying commissions to people who sell your book or tape set or other product–or service–as long as that product or service does not constitute "legal services".

The idea is simple. Let’s say you’re a divorce lawyer and you write a book (ebook, audio book) entitled, "Squash ’em: The complete guide to successful divorce". You offer your book for sale from your web site. The more books you sell, the higher your profits. But the purpose of the book isn’t just to make a retail profit. Think bigger.

People who buy a book on divorce, written by a divorce lawyer, are likely to be a prospective client for that lawyer’s services, don’t you think? Or someone who works with couples with marital problems, perhaps. When they read your book and see how you have helped other people in their situation, they’ll see how you can help them (or they people they can refer).

If these people do hire a lawyer, there’s a pretty good chance that you’ll be the one who is hired, especially if your book offers a free consultation or otherwise invites them to take "the next step".

Okay, so your book does a good job of selling your services to those who read it and the more books you sell, the more clients you are likely to have.

Now, to sell more books, you could advertise, and you might want to do that. You can offer your book on amazon.com and through a myriad of other outlets. But you can also set up an affiliate program and let other people advertise your book for you.

Why not let marriage counselors and people who run support groups, for example, sell your book to their clients? You pay for "advertising" (commissions) only when sales are made.

Technology makes it easy to automate the selling process and track affiliate commissions. All you do is find more affiliates and tell them about your book and the opportunity to market it. The affiliates sell the book, the book sells you, and hundreds of prospective clients find out about you and the services you offer, and pay you for the privilege!

Another strategy is to give away your ebook. Offer it as a download from your web site in return for the visitor’s contact information. You can also invite others to offer it from their web site, as a free resource to their readers, or, perhaps, as a premium for subscribing to their newsletter. The viral nature of ebooks could bring you an enormous amount of target traffic to your web site.

If your book is available online, you’re likely to get inquiries from prospective clients in jurisdictions where you do not practice. Now you’ll have the delightful problem of finding lawyers in the appropriate jurisdictions and developing reciprocal referral arrangements.

There are many other benefits to publishing a book and most lawyers are capable of writing one in about 90 days. If you don’t have the time, you could hire a ghost writer, work with a collaborator, or create something you do have time to do, i.e., a recording of one of your seminars.

One last thing (and I wish we lived in a world where I didn’t have to say this): check with your jurisdiction’s authority (bar association, law society, et. al.) regarding the ethics of this strategy. If they say you can’t do it, move. This is too good an idea to pass up.

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How to use your business card to get referrals

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When you hand out your business card, always hand out two. "I’m giving you two cards, one for you and one to give to someone who might need my services."

This causes them to think about who they know who might need your services. They might think of someone immediately and tell you. They might ask for additional cards, because they know several people to give them to.

It also plants the seed in their mind that they should be on the lookout for referrals.

Simple, but it works.

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“Could you take anything off your fee?”

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An estate planner who does a lot of seminars asked about discounting fees, a subject that comes up quite frequently. His question and my response:

Q: About 20% of prospective clients ask if I can "take anything off" my fee. I have positioned myself as being a specialist who charges a bit more. I usually do take a few hundred dollars off so I don’t lose the client but I wonder is that smart or am I devaluing my services?

A: The answer is, simply, don’t do it. Most clients don’t shop fees and the ones who do you don’t need. Especially since you (correctly) position yourself as being worth more. You devalue your services and professionalism when you say yes to a request for a discount. Word will spread and before you know it, you’ll have people say, "I heard you gave Joe Jones a $300 discount, could I get that, too?" Before you know it, you’ll be giving everyone a discount, and then where are you?
 
At times, it’s okay to offer a discount, such as when you tie it to a "good cause" or as a closing tool at the end of a seminar, but NOT when they ask. Can you imagine asking your doctor for a discount?

The proper way to handle someone who asks for a lower fee is to let them know that if they can’t afford you, you would be happy to refer them to a lawyer who charges less. Watch, not one in 20 will go. But even if they all did (all 20% who ask), that’s okay, those are the ones you want to let go. Lawyers should continually prune the lowest 20% of their client base in favor of upgrading the quality of their clients and the fees they charge them.

Alternately, see if there are any services you could offer them "within their budget". If your complete package has A, B, and C components, you could offer them A and B for a lower fee; perhaps they can get C later.

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What to put in a thank you letter

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Q: What are the main points to get across in a thank you letter to a client? Is it appropriate to add that I’m working to build my practice and referrals are appreciated?

A: It’s not wrong to mention referrals in a thank you letter, but I think it’s better when a ‘thank you’ is just that and nothing more. Let the client know that you appreciate him or her and just wanted to say so. It will mean more to them that way, don’t you think?

I also recommend that the ‘letter’ be a ‘note’ — hand written on note cards. It’s more personal that way and people appreciate that you took the time to write them a personal note. There’s less room on a thank you card, too, so you can be done with just a few sentences, whereas your letterhead has a lot of space to fill.

The note should say:

1. Thank you; I appreciate you; I am glad to know you
2. Reference something personal about them or their case
3. Call me if you have questions about anything
4. Thanks again

Sign the note, "Sincerely," or "Warmly," followed by your signature.

That’s not the only way to write a thank you, but it works. In just three or four lines, you show the client that he is not just a name on a file to you, you really do appreciate him.

Hand written notes are an extremely potent form of communication for another reason: nobody sends them. So when you do, you will really stand out in the mind of the recipient. You didn’t send a form letter, you didn’t email, you took some of your precious time to pen a personal note and put a stamp on it.

One attorney started doing this and told me his secretary made him stop. Apparently, they were getting so many calls to say "thank you" for his "thank you," she didn’t have time to do her work. But it was a nice problem to have (and they didn’t stop) because they also got a lot of referrals.

Try it, and watch what happens.

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Before you set any goals. . .

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Goal setting is a critical component to success in anything, and that includes a successful life. Life is a journey and without a destination, all you’re doing is wandering.

Before you set goals–big, lifetime goals, and small, “here’s what I want to accomplish tomorrow” goals–before you get specific about what and how much and when and who, I want to encourage you to spend some time doing something else.

I want you to dream.

I’ll bet it’s been a long time since you did any dreaming. You’re so busy making a living you don’t have time to do anything else. But what if, in your zeal to climb the ladder of success you overlooked the fact that it was leaning against the wrong wall?

It’s not too late. You can dream again–and you should.

Mark Twain said, “Twenty years from now you will more disappointed by the things that you didn’t do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Dream. Discover.”

Too often, people plan their lives logically. They assess where they are and look forward and the path they see before them is the one they take.

“Well, I have these skills and that degree and these are my assets, and it makes perfect sense for me to. . . blah blah blah.” Before you know it, twenty years have gone by and while they may be successful, too often, they aren’t happy.

And happiness, my friend, is why you were put here on Earth.

Put logic aside for a moment and get in touch with your emotions. What makes your heart sing? What did you once want so much it makes you cry thinking about it? What would you be doing right now if you had all the money you could possibly spend, perfect health, and unlimited time?

When you have answered these questions–truthfully–come back and we’ll talk.

Harold Thurman Whitman said, “Don’t ask yourself what the world needs, ask yourself what makes you come alive, and then go do it. Because what the world needs is people who have come alive.”

I like the way an unknown writer put it: “Life’s journey is not to arrive at the grave safely in a well-preserved body, but rather to skid in sideways, totally worn out, shouting, ‘Holy sh**… what a ride!'”

David Ward
“Be a mentor with a servant’s heart!”

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