We all know this blog is about starting a law firm. There are tons of questions when you are starting out that need to be answered: what kind of business entity do you want; where are you going to have an office; are you going to have an office; how are you going to set up the phones; how much is insurance? The list goes on and on. But the more I talk to people about starting a law firm and the more I grow in my business, the more I see it coming down to two things -
law firm marketing and getting your money. So I'm going to talk about both of them today, and I'm going to probably lean more toward talking about them in the future. Here we go!
Law Firm Marketing - Matchbooks and Internet Marketing
I had lunch with this guy this week, we'll call him Alphie. I met Alphie about a year ago. He'd just gone out on his own and wanted to hear what I had to say about internet marketing. So we met. I told him what I did, which involves about two hours of work a day (or at least it did at that time) and he was blown away. I knew right away he wouldn't put the work in - it just didn't seem like a priority for him.
So we met, and I asked him how he was doing, and I don't even remember what he said but on his face I could see that he was struggling. I asked him if he was doing the
law firm internet marketing stuff like we'd talked about and he said no, he just didn't have the time (we'll get to that aspect of the talk in the getting your money portion of this post). So I asked him what he was doing to get new business. Know what he told me? Matchbooks.
Turns out he talked to some old lawyer that told him about a guy he knew that used to drop off a bunch of matchbooks with his information on it around town and the guy was getting all kinds of clients off of it. "Okay," I said. "What's your plan when you get the matchbooks?"
"Oh, I think I'll just drop a bunch of them off at a couple of bars around where I live. I've gotten to know some of the guys there and they are always telling me I should leave a couple of cards."
Timeout. Do you see the problem here? Or, I mean, problems? Take a couple of minutes to think about it before you read further. What is wrong with his approach here?
Did you think about it?
Really? Come on, don't just skip to the end!
Okay, let's break this down. First, the matchbooks for law firm marketing. I have no idea if that idea works. Maybe it does. The way I see it, the only way you are going to get someone to call you like that is if you get people to put them in their cars or their house. No one is thinking about which DUI lawyer they're going to call when they are in the bar. They are thinking about hanging out with their friends or hooking up with that chick.
Let's assume it does work. Problem number one with what he's doing is that he's got absolutely no
plan to utilize the matchbooks. "I think I'm going to drop a couple off at some bars around my house." Really? Maybe you should think about it a little bit more. Maybe instead of just feeling good because you dropped a couple hundred bucks on matchbooks you should think about how that couple hundred bucks investment is going to pay off for you.
Problem number two with what Alphie told me was he could have just dropped off some cards! Not only are the cards better than matchbooks because they would probably be given to the patrons with a personal referral ("use this guy, he's good") but the cards are something anyone can throw in their wallet and keep. If anyone ever tells you to bring over a bunch of business cards, by all means do it!
I hope the matchbooks work for him. The problem is I don't think he's really thought about how to use them so he actually gets some clients from them. If you haven't thought of that or can't come up with an answer for that, then you should think twice about letting go of your hard earned money to pay for it.
Starting a Law Firm | Getting Paid
Another thing that struck me in my conversation with Alphie was how busy he seemed compared to how much he was struggling financially. He told me he was having a hard time getting people to pay. Now, before I get too far on this subject, I want to tell you the golden rule of opening a successful law firm -
if people don't pay, you don't work for them.
The sooner you learn this lesson, the faster you will become successful. That means if you don't have a credit card number, post dated checks, or some other way to collect money, you better be damn sure the client knows if they don't pay you will be off the case immediately. And then when the time comes to get off the case, you've got to get off the case. Cut your losses. If you don't people will milk you and milk you until their case is over and you have no leverage to get your money.
Get your money up front.
And here's lesson number two that goes right along with this -
you don't need work to be successful. Most attorneys I know feel like if they aren't doing work they aren't successful. To achieve this feeling of success they'll take clients they know won't pay and do work they don't want to do. This is a recipe for disaster. In reality it erodes your confidence, makes you hate your job and your clients, and leaves you broke. Who really wants that?
When Alphie described this exact problem to me I told him what I did when these feelings crept up - I worked harder at marketing and executing my plan. If someone couldn't afford me, I sent them to someone cheaper. If someone needed help in an area that I didn't want to work in, I referred them to someone that worked in that area. And if the phone wasn't ringing I kept busting my ass doing law firm internet marketing. The phone started ringing, my clients pay, and it's all good.
The bottom line is, if you want to get paid, you either have to get it up front, get a credit card number, or get some post dated checks. If the credit card goes bad, the checks don't clear, or something else crops up, you can't call the client and say "there must be a mistake, the card isn't working," because they'll just give you an excuse. You've got to instead say (politely), "we have an agreement. I'm busting my ass for you in your case and I deserve to be paid for it. If you don't meet your obligations by x date, our arrangement will be over." And then if they don't pay, end the arrangement.
It's
extremely scary when the phone isn't ringing and you're not sure if you are ever going to have a steady stream of clients. At that point you have one of two choices - you can take on the bad client or you can put more work back into your firm. I don't have to tell you which decision yields the best results.