Here are a few tips to help convince reluctant purchasers of legal services decide that they should retain you.
- Suggest starting with a less expensive project. This will help you and the client get acquainted. You can make sure the client is right for you, and they can do the same. One way to do this is to break a larger project down into smaller increments. Once the client has confidence in the working relationship, they will have less hesitation to embark on a larger, more expensive engagement.
- Offer references before they are requested. Provide letters from other clients, or facilitate in-person meetings with other clients to share news of your successful legal efforts. Of course, be mindful of any state bar regulations regarding the use of testimonials.
- Try to clearly define what you will do for the client. It can be hard to measure quality in the delivery of a service (like legal advice), and clearly establishing expectations for deliverables is one way to measure success.
- Make it easy for the client to cancel the project. This may sound contrary to your ideal arrangement, but if the client has an easy out they may be more inclined to move forward with a matter.
Tuesday, June 30, 2009
Thursday, June 25, 2009
Strategic Pricing: A Study in Contrasts
While GM bankruptcy advisors are drawing ire for "staggering" fees, advice on value pricing is available in the current Journal of Accountancy.
Two GM consultants (Evercore Partners and AlixPartners) are being singled out by the bankruptcy trustee for overlapping and "excessive" fees reportedly totalling $130 million for one year, according to a story this week in the New York Times DealBook titled Trustee Objects to Fees for G.M. Advisers.
Of course, high fees are lightning rods for controversy, particularly in the turbo-charged GM bankruptcy. What is particularly striking is the lack of perceived value contained in the billing statements. Some of the hourly fees are apparently unspecified, but nonetheless add up to a potential $16 million per month for one consultant. Millions of dollars are also requested in "success fees." (How will the GM bankruptcy be considered a success, one wonders?)
Contrast this situation with an article by Ronald J. Baker in the current Journal of Accountancy titled Pricing on Purpose: How to Implement Value Pricing in Your Firm. The author opens by saying "a business is defined by the value it creates for its customers." He goes on to say that pricing by the hour is the wrong way to measure value.
Value is defined in part by what the client is willing to pay. A crucial value pricing consideration is the cost to the client of the problem that needs to be fixed. For example, if I have a $100K problem I might think that a $25K solution is a great value even if it translates into a high hourly rate. The author outlines 8 steps for pricing on purpose.
It's worth your while to read the value pricing article. Attorneys and other consultants can take a lesson from the accounting profession in learning how to more effectively communicate the value and delivery of professional services. If alternative billing is to win out over the billable hour model, this is a good place to start.
Two GM consultants (Evercore Partners and AlixPartners) are being singled out by the bankruptcy trustee for overlapping and "excessive" fees reportedly totalling $130 million for one year, according to a story this week in the New York Times DealBook titled Trustee Objects to Fees for G.M. Advisers.
Of course, high fees are lightning rods for controversy, particularly in the turbo-charged GM bankruptcy. What is particularly striking is the lack of perceived value contained in the billing statements. Some of the hourly fees are apparently unspecified, but nonetheless add up to a potential $16 million per month for one consultant. Millions of dollars are also requested in "success fees." (How will the GM bankruptcy be considered a success, one wonders?)
Contrast this situation with an article by Ronald J. Baker in the current Journal of Accountancy titled Pricing on Purpose: How to Implement Value Pricing in Your Firm. The author opens by saying "a business is defined by the value it creates for its customers." He goes on to say that pricing by the hour is the wrong way to measure value.
Value is defined in part by what the client is willing to pay. A crucial value pricing consideration is the cost to the client of the problem that needs to be fixed. For example, if I have a $100K problem I might think that a $25K solution is a great value even if it translates into a high hourly rate. The author outlines 8 steps for pricing on purpose.
It's worth your while to read the value pricing article. Attorneys and other consultants can take a lesson from the accounting profession in learning how to more effectively communicate the value and delivery of professional services. If alternative billing is to win out over the billable hour model, this is a good place to start.
Wednesday, June 17, 2009
Announcing a New Law Firm (continued)
Yesterday we talked about ways to issue an announcement about a new law firm using direct mail. There are certainly many other steps that can be taken to get the word out, including:
- Issue a press release or prepare a company release for distribution to the local media. Target the "People on the Move" columns in the business publications. Also send this release to your city, county, state, and/or national bar association.
- Post your new site on legal directories like Martindale, FindLaw, Avvo, Justia, HG.org and others.
- Get a free listing on Google Maps
- Polish up your "elevator pitch" and tell everyone you meet
- Send an email announcement using Constant Contact or a similar inexpensive email service
- Take advantage of social media, like LinkedIn, Twitter, Facebook, and others
- Consider publishing articles about your new practice areas on sites like JDSupra, HG.org, or online article distributors
- Reach out to your referral network and let them know how to reach you
- Join a leads club like BNI, or create your own leads group
- Look for speaking opportunities to attract clients
Have fun, and remember: Never stop marketing!
Tuesday, June 16, 2009
How to Announce a New Law Firm
Today's "Ask a Legal Marketer" question comes from an attorney in California who plans to open a new criminal defense law office next month.
Attorney referrals will play an important role in new business development, so he is thinking of acquiring a list of attorney names from the local county bar association for a mailing. So far, so good.
This campaign could become expensive quite quickly, however, based on postage alone to an anticipated list of thousands. Here are a few ways to manage the roll-out cost for this direct mail campaign:
Attorney referrals will play an important role in new business development, so he is thinking of acquiring a list of attorney names from the local county bar association for a mailing. So far, so good.
This campaign could become expensive quite quickly, however, based on postage alone to an anticipated list of thousands. Here are a few ways to manage the roll-out cost for this direct mail campaign:
- Stagger the mailing so that announcements are sent over time, like a certain amount every week or month. This will provide a better chance to gauge the response rate.
- Rather than mail to an entire Bar association list, use "selects" that enable you to limit the list to particular "sections" of interest or zip codes.
While you want to manage costs, there are certain expenditures that can help improve your return.
- Use first class postage. It may cost a little more, but you will get returns to determine the bad addresses that should be removed from your list.
- Your mail will be more favorably considered by the recipient.
- The Post Office takes extra special care of first class mailings, particularly in delivery timing.
We also had some discussion of the format for an announcement. Postcards are inexpensive, but a printed invitation card on a heavier card stock, mailed in a closed face envelope will generally make a better impression on a legal audience. Local printers can help, or national legal printers like Blumberg, Tuttle Printing, Crane's, or others.
There are many nuances to direct mail, but these are some immediate thoughts. Of course, you don't want to undertake any promotional campaigns for a new law firm until your website and email address are fully up and running.
Thursday, June 11, 2009
Sacramento Law Firm Volunteerism Gets Visibility
An annual "Doggy Dash" sponsored by the Society for the Prevention of Cruelty to Animals gave the Sacramento-based tax law firm of Roni Lynn Deutch, A Professional Tax Corporation, and its associated tax preparation franchise, RDTC Inc., a chance to do good and get known.
The marketing expertise demonstrated by Ms. Deutch and her team is an example of building your personal brand as a way to stand apart from the competition. Visit the firm's site at http://www.ronideutch.com/ and you will see that she is known as "The Tax Lady." She is the author of "The Tax Lady's Guide To Beating The IRS And Saving Big Bucks On Your Taxes." Carrying the theme further, her phone number is 1‑888‑TAX‑LADY.
Attorneys looking to do something different to promote their own law firm may get some ideas from The Tax Lady's campaign.
Read the press release here.
The marketing expertise demonstrated by Ms. Deutch and her team is an example of building your personal brand as a way to stand apart from the competition. Visit the firm's site at http://www.ronideutch.com/ and you will see that she is known as "The Tax Lady." She is the author of "The Tax Lady's Guide To Beating The IRS And Saving Big Bucks On Your Taxes." Carrying the theme further, her phone number is 1‑888‑TAX‑LADY.
Attorneys looking to do something different to promote their own law firm may get some ideas from The Tax Lady's campaign.
Read the press release here.
Tuesday, May 26, 2009
The Future of Law Firms
Is law firm marketing a waste of time? Attorneys who feel this way are perhaps not receiving the type of valuable business development services needed to help them acquire new strategic accounts, retain existing clients, and increase firm profitability.
Law firm marketing is just one of many topics covered in an interesting story about the future of law firms, published in the The Philadelphia Business Journal on May 22nd.
As U.S. corporations struggle with economic challenges, can the legal profession be far behind? A panel of attorneys and legal educators shared their views on the topic.
Other prognostications from these experts:
Law firm marketing is just one of many topics covered in an interesting story about the future of law firms, published in the The Philadelphia Business Journal on May 22nd.
As U.S. corporations struggle with economic challenges, can the legal profession be far behind? A panel of attorneys and legal educators shared their views on the topic.
Other prognostications from these experts:
- Law firm boutiques will grow in importance, both for the benefits of specialization and lower billable rates
- Law firms will need to expand internationally in order to keep pace with clients
- Governments are becoming more important consumers of legal services, putting downward price pressure on hourly rates
- Law firm cost structures will be forced to change, with less emphasis on inexperienced associates charging relatively high hourly rates
- "Law firms are fragile in terms of trust and confidence," requiring careful management of a law firm's perception in the marketplace.
Wednesday, May 20, 2009
Business Development Training for Lawyers
Better late than never, but attorneys who are just now discovering how to get a client are fighting an uphill battle. The Wall Street Journal reports today in two related articles that lawyers are gaining a new appreciation for business training and business development techniques.
The best time to look for new business is before you are in desperate need. This Rainmaking Lady believes that you should never stop marketing.
While some attorney are taking classes on business development, and others are hiring marketing coaches, the most successful attorneys continue to diligently work their long-cultivated referral network, get more business from existing or past clients, and stick close to their clearly defined goals.
Read the WSJ Law Blog article.
The best time to look for new business is before you are in desperate need. This Rainmaking Lady believes that you should never stop marketing.
While some attorney are taking classes on business development, and others are hiring marketing coaches, the most successful attorneys continue to diligently work their long-cultivated referral network, get more business from existing or past clients, and stick close to their clearly defined goals.
Read the WSJ Law Blog article.
Wednesday, May 13, 2009
Web Sites Outlive some Law Firms
What happens to a law firm's web site when the firm closes? Law.com looks at 13 failed firms for online ghosts. See the full story.
Friday, May 08, 2009
Responding to a Law Firm PR Crisis
An unfortunate Manhattan insurance defense firm that shall go unnamed here found itself the subject of a Daily News (New York) story today. In preparation for an office move, the firm was cleaning out some old client files. Rather than dispose of them confidentially, the Daily News found six overflowing dumpsters full of intact client files on the street.
Yikes! This warrants immediate implementation of the firm's crisis plan. (There is a crisis plan, right?)
Here are a few law firm crisis communication tips:
1. Recover the trash
2. Determine what happened
3. Plan to notify any client whose files were affected
4. Try to make some amends, like offering anti-identify theft protection
5. Appoint one person as the media spokesperson (inside or outside of the firm)
6. Some type of a public statement appears to be in order
7. Notify key clients personally
8. Hire an attorney
9. Post information to the website, like a firm contact for client questions
10. Instruct employees on what to do (which is direct all inquiries to one person)
This firm has a tough challenge.
Yikes! This warrants immediate implementation of the firm's crisis plan. (There is a crisis plan, right?)
Here are a few law firm crisis communication tips:
1. Recover the trash
2. Determine what happened
3. Plan to notify any client whose files were affected
4. Try to make some amends, like offering anti-identify theft protection
5. Appoint one person as the media spokesperson (inside or outside of the firm)
6. Some type of a public statement appears to be in order
7. Notify key clients personally
8. Hire an attorney
9. Post information to the website, like a firm contact for client questions
10. Instruct employees on what to do (which is direct all inquiries to one person)
This firm has a tough challenge.
Thursday, May 07, 2009
Leadership Council on Legal Diversity Launched by Fortune 500
Improved diversity in the workplace is a primary goal of the LCLD, announced yesterday by senior legal officials from Wal-Mart, Microsoft, Coca Cola, O'Melveny & Myers, DLA Piper, and other firms.
“The LCLD is doing what no other initiative has done – uniting the legal industry’s senior leaders in one organization to address and resolve the enormous diversity challenges in our profession,” said Rick Palmore, General Counsel of General Mills and Chair of the LCLD Board.
One goal is to promote the ACC's Call to Action in regard to law firm diversity.
As part of this initiative, several very positive actions are being pursued that can apply to other types of corporate-legal collaborative efforts. These include:
1. Samples of "best practices" are being collected from throughout the corporate and legal market for use in building a knowledge base.
2. Success metrics are being defined through goal establishment and achievement measures.
3. Identification of outreach efforts proven to work in facilitating the success of professionals from diverse backgrounds.
From a legal marketing perspective, it is not clear if the group has launched a website to extend the reach of the press release. A website can serve to invite interested parties to sign up for an email list, seek volunteers for committee activities, attract candidates for the Executive Director position, promote sponsors, and more. They may be missing an important opportunity in this regard.
Read the full press release here.
“The LCLD is doing what no other initiative has done – uniting the legal industry’s senior leaders in one organization to address and resolve the enormous diversity challenges in our profession,” said Rick Palmore, General Counsel of General Mills and Chair of the LCLD Board.
One goal is to promote the ACC's Call to Action in regard to law firm diversity.
As part of this initiative, several very positive actions are being pursued that can apply to other types of corporate-legal collaborative efforts. These include:
1. Samples of "best practices" are being collected from throughout the corporate and legal market for use in building a knowledge base.
2. Success metrics are being defined through goal establishment and achievement measures.
3. Identification of outreach efforts proven to work in facilitating the success of professionals from diverse backgrounds.
From a legal marketing perspective, it is not clear if the group has launched a website to extend the reach of the press release. A website can serve to invite interested parties to sign up for an email list, seek volunteers for committee activities, attract candidates for the Executive Director position, promote sponsors, and more. They may be missing an important opportunity in this regard.
Read the full press release here.
Wednesday, May 06, 2009
A Corporate Twitter Policy in 140 Characters
Since it's all about Twitter these days, here is a corporate Twitter policy that I just came across. It is the work of attorney Jay Shepherd of the Shepherd Law Group.
Read the full story.
Read the full story.
Tuesday, May 05, 2009
Cal Bar Monitors Loan Modification Ads
Watch TV for even a few minutes these days and you are likely to see an ad for a loan modification service. Same for radio advertising.
Some of these ads sound very promising ... are they too good to be true?
The California State Bar is asking that very question. Last month the Bar began notifying lawyers that the chief trial counsel’s office wants to monitor their loan modification-related advertising.
"Included in the scrutiny of violations of the Rules of Professional Conduct regarding false and misleading advertising, bar prosecutors will be looking at whether lawyers are guaranteeing success in securing loan modifications or are implying that they have expertise or a special license from the State Bar to work on foreclosure cases, said Chief Trial Counsel Scott Drexel."
Read the full story here. Other state bar associations are undoubtedly paying attention. Florida requires all TV advertising on any topic be filed for approval in advance of use. Check with your local state bar association for any recent rule changes that may apply to your firm.
Some of these ads sound very promising ... are they too good to be true?
The California State Bar is asking that very question. Last month the Bar began notifying lawyers that the chief trial counsel’s office wants to monitor their loan modification-related advertising.
"Included in the scrutiny of violations of the Rules of Professional Conduct regarding false and misleading advertising, bar prosecutors will be looking at whether lawyers are guaranteeing success in securing loan modifications or are implying that they have expertise or a special license from the State Bar to work on foreclosure cases, said Chief Trial Counsel Scott Drexel."
Read the full story here. Other state bar associations are undoubtedly paying attention. Florida requires all TV advertising on any topic be filed for approval in advance of use. Check with your local state bar association for any recent rule changes that may apply to your firm.
Monday, May 04, 2009
Relevance in Legal Marketing
I recently read the book, "Relevance: Making Stuff that Matters," by Tim Manners (Penguin Books, 2008). While focused primarily on consumer marketing, the basic concepts are worth some discussion in regard to legal marketing.
The main premise of the book is that advertising (print, TV, etc.) is no longer relevant, in part because it can not be held accountable for results. Another key reason is that advertising disrupts our lives with irrelevant messages.
The author states that the ultimate accountability in marketing is how relevant the brand is to the consumer.
Does this hold for law firm advertising? I would answer yes and no. The "yes" is in regard to general purpose "image" advertising. In fact, I recently heard an active law firm advertiser admit that their weekly print ads in the local business press did not generate new business. The purpose here is to increase your firm's name recognition.
Legal advertising can be useful and productive for consumer oriented law firms, like family law or personal injury law.
"Direct response" TV advertising, for example, which encourages the viewer to make a phone call handled by an intake center, can easily be measured. The same holds true, perhaps to a slightly lesser degree, to billboard advertising or the Yellow Pages.
Search engine marketing for law firms, including pay-per-click ads like Google AdWords, is another form of advertising that is very effective for lead generation.
One concept in the book that is highly relevant to legal marketing is this: focus on solving your customer's problems. Nike does this very well, for example. They listen to clients, understand what their needs are, then create a series of special events to bring clients together with the Nike brand to reinforce the relationship.
Finally, author Tim Manners advises readers to connect with their most progressive, creative clients, then build client needs / suggestions into new product and service development.
Law firms that create a favorable experience for clients as they go through the legal process will see a strong return on investment in client satisfaction, referrals and repeat business.
The main premise of the book is that advertising (print, TV, etc.) is no longer relevant, in part because it can not be held accountable for results. Another key reason is that advertising disrupts our lives with irrelevant messages.
The author states that the ultimate accountability in marketing is how relevant the brand is to the consumer.
Does this hold for law firm advertising? I would answer yes and no. The "yes" is in regard to general purpose "image" advertising. In fact, I recently heard an active law firm advertiser admit that their weekly print ads in the local business press did not generate new business. The purpose here is to increase your firm's name recognition.
Legal advertising can be useful and productive for consumer oriented law firms, like family law or personal injury law.
"Direct response" TV advertising, for example, which encourages the viewer to make a phone call handled by an intake center, can easily be measured. The same holds true, perhaps to a slightly lesser degree, to billboard advertising or the Yellow Pages.
Search engine marketing for law firms, including pay-per-click ads like Google AdWords, is another form of advertising that is very effective for lead generation.
One concept in the book that is highly relevant to legal marketing is this: focus on solving your customer's problems. Nike does this very well, for example. They listen to clients, understand what their needs are, then create a series of special events to bring clients together with the Nike brand to reinforce the relationship.
Finally, author Tim Manners advises readers to connect with their most progressive, creative clients, then build client needs / suggestions into new product and service development.
Law firms that create a favorable experience for clients as they go through the legal process will see a strong return on investment in client satisfaction, referrals and repeat business.
Saturday, May 02, 2009
Link Law Firm Marketing to Breaking News
Here's an example of how one enterprising Grand Rapids, Michigan law firm used breaking news to create a "hook" for press coverage.
The labor and employment law firm of Palmer & Wood, P.C., is advising employers on creating emergency preparedness plans for the outbreak of H1N1 flu (aka swine flu). The Grand Rapids Press gave attorney Greg Palmer top billing in a May 2nd story titled "Law firm preps business for health crisis during swine flu scare."
This PR technique - one of many covered in my legal marketing book Courting Your Clients - works reliably when a breaking news story opens the door to reach reporters scrambling for experts available to quote on various aspects of the news.
News coverage like this can be used for front page web site postings, direct mail to clients, inclusion in proposal packages, and other purposes. (Alas, I couldn't find a web site for Palmer & Wood.)
The labor and employment law firm of Palmer & Wood, P.C., is advising employers on creating emergency preparedness plans for the outbreak of H1N1 flu (aka swine flu). The Grand Rapids Press gave attorney Greg Palmer top billing in a May 2nd story titled "Law firm preps business for health crisis during swine flu scare."
This PR technique - one of many covered in my legal marketing book Courting Your Clients - works reliably when a breaking news story opens the door to reach reporters scrambling for experts available to quote on various aspects of the news.
News coverage like this can be used for front page web site postings, direct mail to clients, inclusion in proposal packages, and other purposes. (Alas, I couldn't find a web site for Palmer & Wood.)
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