Boo to Billable Hours, but Hooray for this Freebie

This post at Greatest American Lawyer reminded me that I'd forgotten to announce that John Derrick of California Appeals is making his book, Boo_to_Billable_Hours available free (that's zero billable hours!) at his site (click on the book link to access it).   I reviewed the book here back in February 2008 (by the way, it's a good review because I actually read the book!) but now, you can read Derrick's book for yourself. 

So why is Derrick making the book free online?  Simply put, he wants to get these ideas circulated to a wider audience - and indeed, discussion over alternative billing could'nt be more timely. 

 

 

 

Clients Search Globally, Act Locally

Over at my roost at Nolo Legal Marketing Blawg, I posted about the Google Local Business Center where in exchange for listing a business, users receive access to a suite of tools that enables them to track traffic to their site and even identify the locations where clients are coming from.   I registered my firm and I'm curious to see the results.  The cost is free, plus the new Google local directory helps address the blind spot that most search engines seem to have for local listings. 

Spaghetti 2.0 and Law Practice - Customizing for Clients

Via Jeff Berman of Lawyer Marketing Sync, I discovered this video clip of Malcolm Gladwell discussing how Prego spaghetti sauce successfully took on Ragu by offering customers a few different sauce options - chunky, spicy and a third (which I can't now remember).  Today, we consumers are accustomed to different varieties of products. But back in the '80s when Ragu dominated, the food industry aspired to a one-size fits all standard - in the case of spaghetti sauce trying to create the most authentically Italian sauce - rather than devising different recipes to suit different tastes. 

Jeff Berman's take-away from Gladwell's talk is that it demonstrates the importance of developing a niche practices (a concept that I too endorse) that cater to the differing needs of clients.  In Berman's words:  

lawyers need to find out how to become one of the "perfect sauces" rather than fighting with everyone to become the "perfect sauce.

Berman is right, but at the same time, I think there's much more to Gladwell's lesson than the importance of niches.  Gladwell points out that the evolution of Prego's product corresponds to an overarching historical movement from universal to variability.  Gladwell uses the example of medicine - how doctors no longer search for "the cure for cancer," but instead focus on a patient's specific variety of cancer and how it differs from another.  And of course, Web 2.0 is another example of the transition from universal to variability by empowering users to customize their on-line experience.

 

Continue Reading...

Lawyer Marketing Resources

I'm not flashy about marketing, nor am I a believer in those pricey "silver bullet" systems, where the only people who win are the experts selling their products.  Still, I do cover marketing issues, both here at my blog in the Marketing & Making Money category and at the Nolo Legal Marketing Blawg (Nolo is a valued sponsor of this site).  I've got around 20 posts up over there, on a range of topics from eBooks to video to article archiving and how to hire a marketing expert or delegate marketing responsibilities, and more, as listed in the archives.  If there's a topic that you'd like to see covered let me kno.

Ratings Rate With Clients

Lawyers may not be fans of ratings systems, as I've posted previously.  But what lawyers, or bar associations think about ratings doesn't matter, if clients think otherwise.  And as the Washington Post  reports, increasingly, consumers are turning to ratings to make decisions about service providers like real estate agents, plumbers and movers.  Moreover, at least one of the sites discussed -- Angies List -- now reviews dentists and doctors.

In contrast to lawyers, you won't find other service providers complaining about ratings services or trying to shut them down.  In fact, the Post points out that companies find feedback as just as important as consumers:  "The good and bad reviews keep us on our toes," said 1-800-GOT-JUNK? spokeswoman Shaye Hoobanoff. "During these tough real estate times, customers are more cautious about what service they use and base much of their decision on real customer feedback, not just the stuff that people pick and choose to advertise on their Web site."According to O'Keefe of VCU, the growth of consumer reviews can improve the quality of services."It tends to raise the level of everyone's game. The weak are getting found out, the strong companies are being rewarded, and it's raising those in the vast middle," he said.

But what about the potential for complaints by disgruntled customers or sabotage by competitors?  Thus far, the ratings companies are dealing with the potential for mischief by spot checking reviews and using computer programs to weed out false comments.

Lawyers had better wake up - we can't insulate ourselves from ratings systems much longer.   After all, why should lawyers be exempt from ratings when real estate agents or plumbers or doctors or dentists aren't?  Instead of trying to shut down ratings systems, which are inevitable, lawyers should  instead develop strategies to encourage positive feedback and minimize the adverse effects of negative impacts.

Does A Client Really Care if Your Firm Has Great SEO? Higbee dba RecordGone.com Does.

It must have been a slow news day for self-described upstart small law firm, Higbee Associates dba RecordGone.  What else could inspire the firm to issue this bizarre press release Press Release, trumpeting the firm's Alexa search engine ranking of 127,628 and boasting that the ranking outscores any of the top ten largest firms?  For starters, who uses large law firms as a metric of anything Internet or Web 2.0 related anyway?  Large law firms don't have much interest in SEO, so beating them on that scale doesn't mean much in my book. But more importantly, why should potential clients care one way or another whether a law firm that provides records expungement services has a high search engine ranking? 

The other drawback to boasting about SEO is that it invites investigation by intrepid bloggers like me.  I went to Alexa to check RecordGone's ranking, but confirmed that it is indeed around 127,628.  Then, I ran some organic searches on Google and found the following results for RecordGone:

Expunging criminal records (no top page listing on Google)

"expunge" and criminal records (#10 on first page of Google)

how can I expunge my criminal record (no top page Google listing)

criminal record expunge - (#2 top page of Google).

Since prospective clients will likely use all of the above search phrases, RecordGone's 50-50 track record for first page listings isn't much to boast about, in my view.

Fixating on and understanding SEO rankings and page traffic may be interesting, but in the end, it's results that count - the quality of the traffic generated, not sheer quantity.  RecordGone.com may have a pretty good Alexa ranking, but so what?  Based on my own non-scientific study, my guess is that the firm is missing out on a large chunk of potential traffic by "being gone" from the first page of Google in several plausible search engine scenarios.   

Could You Be A Front for A Firm?

I'm getting ready for my upcoming conference, but couldn't resist posting about this article that describes the trend of minority owned firms partnering up with larger firms to help meet diversity requirements.  It's a trend that I mentioned in my book Solo by Choice, so I was interested to learn that the trend has since gained more traction.

Seems to me that this set up could work quite well for small minority or female owned firms.  They could serve as front-bidders on projects, then sub-contract the work out to larger firm partners (as an aside, I don't mean to imply that a minority or woman owned firm isn't capable of handling the substantive work.  But once in a while, why not get rich off of some one else's labor and manage the project instead of toiling on it?  Sounds like a good idea to this woman-owned law firm!)  

This kind of "partnering-up model" is very cutting edge indeed; how refreshing to see large firms thinking out of the box, even if it took cooperation with smaller, minority owned firms to get them there.  The partnering up concept is consistent with the lawyer-to-lawyer collaboration model that Jordan Furlong describes at Law21 and it requires the types of project management skills that Richard Susskind emphasizes in The End of Lawyers? In fact,  since the issuance of my book, I've been researching this subject and will be providing more information in a couple of weeks when I upgrade MyShingle.  

In the meantime, do you have any experience serving as a woman or minority owned partner to another firm or business?  Share your experience below.

Be THAT Lawyer!

Not sure how many of you remember the T.V. Show, That Girl, featuring Marlo Thomas as a small town gal trying to make it big as an actress in New York.  Truth be told, I never much liked the few reruns that I saw (I'm too young to remember the originals), but the concept of being a stand out - of being that girl, or that something always appealed to me.

Years later, I find myself referencing "That Girl" as I try to convey the significance of finding - or better yet, creating a niche, which is defined as a distinct segment of a market.  For starters, niches offer a way to follow your passion, as described in this recent, excellent article by Ann Macauley, Discover and Market Your Niche, which identifies wine law, video law and international art law as three niche practices in Canada.  Niches seem narrow, yet they run deep, often requiring mastery of a cross-section of legal issues. 

Niches also make it easier, not to mention more enjoyable to target your marketing efforts.   Indeed, blogs are virtually a tailor-made marketing tool for niches, because you can set up a blog on a discrete topic in a matter of minutes.

But more than anything else, niches put some pizazz into your practice; they make you memorable.  In short, they make you That [fill in the blank] lawyer.  The best example I can give relates to a David Kaufman, colleague and friend of mine, not to mention a first-rate litigator here in the DC area who specializes in Business Brawls, the knock-down, no-holds-bar disputes that arise out of business deals gone sour.  A few times a year, I'll wind up at a local solo lunch with David, where he introduces himself with the tag line "I do business brawls."  Months later, if I run into folks from the lunch and mention David or refer his services, the response is always "Oh yeah, Kaufman - he's that business brawls guy."

That's what I mean by being that lawyer.  David Kaufman is THAT business brawls lawyer, just like Lisa Solomon is THAT legal research and writing lawyer and Kelly Erb is THAT tax girl lawyer and Chuck Newton is THAT Stay Violation and Third Wave lawyer and Tom Goldstein is still, forever THAT ambulance chasing, Supreme Court lawyer...the list goes on.  As for me, well by day I'm THAT ocean energy lawyer (and of course, THAT MyShingle blogger).

Being THAT lawyer doesn't have to consume your entire practice.  Ocean renewables account for maybe 15 percent of my revenues, but it also gets me attention in more conventional, bread-and-butter energy matters.  But being THAT ocean energy lawyer makes me stand out from all the other lock-step cookie-cutter energy regulatory attorneys. 

So why not give it a try, and think about what kind of THAT lawyer you want to be.  And if you're already THAT lawyer, post a comment and let us know what kind of THAT lawyer you are

Note:  By the way, for the next three days, I am seriously going to be slipping into THAT ocean energy lawyer mode from Wednesday forward as my trade association hosts our second annual Global Marine Renewable Conference here in Washington D.C.  Expect light postings through the week.

How Much A Solo and A Blogger Earn

Most of us are curious to learn how much solos earn, yet few solos are willing to publicly share. So here's a huge hat tip to Peter Olson of Solo in Chicago for posting his monthly financials for 2009.   Because Peter's so disciplined with expenses, he manages to keep virtually everything he kills. 

Interestingly, it was these financial disclosures at the Consumerism Commentary that inspired Peter's posts - and the Consumerism data gives some insight into the revenues that a successful blog can generate.

Data on solo earnings is notoriously sparse.  Solos are a disparate group so it's virtually impossible to aggregate meaningful data.  Still, it's a question that many solos to be want answered.  So  if you're aware of any other sources on solo earnings (or want to volunteer your own!), feel free to post below.

Additional resources: Department of Labor data on all lawyer earnings, Indiana solo salary data at Empirical Legal Studies Blog, survey on NY solo salaries (2004).

 

Real Life Marketing: Collaborating to Market Your Law Practice

So what does Mr. Clean have to do with law firm marketing?  Not much, if you're talking about Mr. Clean all by his lonesome -  though I suppose there's some buried lesson there about branding or image.  But what caught my eye about  this cleaning product, however, is that it's a real life example of collaborative marketing - the pairing of Mr. Clean Magic Erasers and Febreze deodorizer - as well as proof of the benefits that collaborative marketing brings to each product.

I love Mr. Clean magic erasers - they're probably one of the best and most effective cleaning products that I've ever used.  But the magic erasers aren't scented and so if your problem is a combination of grime and lousy odor, you might decide against the eraser in favor or a scented, counter-top spray product.  Similarly, I also like Febreze to combat odors (for those of you who've seen my Twitter profile photo, you know I have a puppy who can occasionally stink up the carpet) - but you can't use Febreze as a cleaner.  By combining the best of both products, Mr. Clean and Febreze benefit by keeping existing users happy and potentially attracting other users who might have otherwise opted for a competing product.

So what does all of this mean for lawyer marketing?  Easy.  Perhaps as a young lawyer, you've got the energy and attitude and tech savvy to attract young tech clients, but you lack the expertise to really handle all  of their matters capably.  Why not, like Mr. Clean, bring in your own "Febreze" - an experienced lawyer who can co-counsel on tougher matters.  And like Mr. Clean, you could advertise your affiliation with your co-counsel to let clients know that by hiring you, they can get the best of both worlds.

Or, let's say that you're a family law attorney and you've noticed that newly divorced clients frequently ask you for advice on changing their estate plans.  You could affiliate with an estate lawyer and hold seminars together, maybe even market different packages together (reciprocal discounts, perhaps - though they'd have to be structured to avoid running afoul of evil bar regulations). 

Opportunities for collaboration abound, as evidenced in the real-life world of marketing.  As lawyers, we should look to these ideas for inspiration on ways that we can collaborate so that we can offer potential clients the best of both worlds, and in so doing, realize the best of both worlds ourselves.

Looking for a New Practice Area...Just Pick Up the Newspaper

May you live in interesting times... -- Chinese Proverb

No doubt, today we live in interesting times, where 250 lawyer firms vanish overnight, where the legal trade press goes from an obsession with PPP (partners per profits) to LPL layoffs per law firm, and where top lawyers are pounding the pavement for work.  But what's so interesting about the proverb "may you live in interesting times" is that it's at once a blessing and a curse.  And while disastrous news flies around us, at the same time, there's opportunity if you take the time to look.

The good news is that when it comes to marketing ideas, you don't need to look much further than the newspaper, Twitter or your RSS feed.  In fact, in today's news alone, I stumbled across a couple of interesting practice niches that can work right now:

1) Over at Legal Blogwatch, I posted about a large law firm that started a law practice area on issues arising out of the Bernie Madoff Ponzi scheme;

2) Today's Wall Street Journal carries an article about how more women are donating eggs and serving as surrogates to earn money in an economic downturn.  That means there's potentially an increased demand for lawyers who handle surrogacy and donor issues;

3) New York is planning to tax music downloads, which could raise all kinds of legal issues for site owners who sell music, universities (who may want to advise students on the implications of downloading music) as well as potential constitutional issues. 

4) And, from Bob Kraft's P.I.S.S.D. blog comes news that the government may raise the attorneys fees cap on SSD cases - which could possibly make them more lucrative for lawyers (it's not a huge increase).

And that's just from a day on my RSS and Twitter.  What kinds of riches might today's news bring to you?

Another Pitch for the Niche

I've posted before on the value of a niche practice to a successful law practice, but two items in today's news make me realize that it's time for an encore.  First up, this Los Angeles Times story describes a 26 year old biglaw associate who heads a team of lawyers at a large firm -- all because he came up with the idea of a video game practice area.  Today, the group handles a variety of issues, including licensing, IP, legal issues related to virtual worlds, contracts, tax, immigration issues associated with foreign workers and consumer fraud and class actions.  Second, here's a story
 about Texas lawyer Zandra Anderson, who decided to spealize in dog law, after she was pushed out of medical malpractice and personal injury work by tort reform legislation.  Today, she has a statewide practice, Texas Dog Lawyer.com.

Most lawyers resist niches, fearing that they're too limiting - both intellectually and from a marketing perspective. As to the first point, niches, though deep also run broad.  Most niches require knowledge of a variety of cross over practice areas.  For example, a dog lawyer encouters issues related to wills and trusts (i.e., who will take care of a dog after you're gone); custody in divorce cases not to mention regulatory issues governing veternarian practices or animal control and of course, dog bite cases.  In many cases, a niche lawyer may need to team up with other attorneys to handle these diverse issues.

A niche also makes you more marketable, not less because it makes you memorable.  Here in DC, one of my colleagues David Kaufman is an attorney who does Business Brawls - litigating business deals gone bad.  I've been at networking lunches and even though there may be 20 other people who do litigation, the one person everyone remembers is David or "that business brawls guy."  Though I've never asked him about it, I'm sure that he winds up getting other types of litigation matters just because of the memorability factor.

Niches have at least two other benefits.  First, they give you broader range.  As a niche attorney, you can often capture a state wide or even national market instead of just competing on a local level.  Second, niches are great for the ego because they allow you, in the words of Seth Godin to be "the best in the world," even if that world is narrow.  For a lawyer starting out, being the best "event and party planning lawyer in Illinois" or the best entirely virtual, non-profit lawyer in the country can offer a huge boost to the ego. 

Remember, you don't have to do the niche all the time - starting out, your niche may not account for more than 10-20 percent of your revenue.  But even a narrow focus can get you broad exposure for your entire practice.

Do you have an interesting niche, or idea for a niche?  Please share it below.

Law Marketing in a Time of Less Than Plenty Now Up At Nolo

My post, Legal Marketing in A Time of Less Than Plenty is up at Nolo's Legal Marketing Blawg, with lessons for lawyers drawn from what retailers are doing to keep sales stable in a wobbly economy.  Here's the opener:

Though we lawyers prefer to think otherwise, for many consumers and small businesses, legal services are a discretionary expenditure.  In times of less-than-plenty, consumer clients may decide that estate planning can wait, while small businesses may choose to make do with do-it-yourself contracts even in complex situations where retaining a lawyer would make more sense.  Couples are even putting off divorce in part because of the costs associated with the divorce process itself!

So what can lawyers do to make procurement of legal services more palatable for clients in lean times?  For starters, they can take a lesson from some of the initiatives that retailers are adopting to retain customers and stimulate sales in the holiday season.  I've listed some of these measures below, and I'll leave it to you to determine whether these ideas can work for your practice...
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The Whole Pig

One of my favorite chapters in the Laura Ingalls Wilder's Little House On The_Prairie series is the one recounting Pa's annual hog butchering ritual.  At least sixty years later, Wilder was able to describe the event in vivid detail (if you're a fan of the series, I'm sure you remember these details), from the somewhat gory slaughter to the process of curing and preparing the meat to last through the winter.  What always amazed me was how Pa used every last bit of the pig -- he cured and smoked the meat for winter, carved up the spare ribs, turned some part (don't remember which) into head cheese, saved the lard, roasted the pig tail for Mary and Laura (with bones for their dog, Jack) and even blew up the bladder into a little balloon for Mary and Laura to play with.

Pa's treatment of the pig got me thinking about the analogies for solo practice.  As solos, the legal services we provide comprise the meat of our practice.  But are there other ancillary services or products that we can recycle or re-purpose?  For example, if a firm handles traditional divorce work, it could also reuse its expertise to provide unbundled services to clients who want a lawyer to handle the work but can't afford a large fee.  A litigation lawyer can offer consulting services while an insurance attorney might set up a risk management company.  A lawyer who practices in a unique area (such as a former energy colleague of mine) can offer for-fee seminars and trainings (either in person or online) to in-house counsel, which can provide a stream of revenue, and help the lawyer continue to market his practice.  Some lawyers develop systems to streamline their law practices, then market those systems to other lawyers to generate a flow of passive income, while others use toll bridge agreements that provide low cost service to clients with some regularity.  The list of innovative practices is endless, and the blogosphere abounds with examples of lawyers who are doing all of these exciting things. 

The problem with being a solo is that we're necessarily limited by the number of hours in a day.  Without associates against whom we can leverage our time (and look at how well that's working for biglaw these days?!), we need to come up with other ways to extract multiple streams of value from every minute of our labor.

What can you do to go whole hog with your practice?  Or if you're doing something innovative already, please share with us below.

 

 

Round Up of Posts on Marketing Lessons from The Election

Throughout the election, I'd planned on writing a post on marketing lessons but didn't get around to it.  Now that the election is over, this kind of analysis abounds, so rather than repeat it, I'll offer this quick round up of some of the best, interspersed with my own commentary.

Steve Harrison of MillionDollarAuthorClub offers these six lessons which include not letting lack of credentials hold you back and   For new grads fresh out of law school or lawyers who've never seen the inside of a courtroom, this messages ought to resonate. 

So how did Obama manage to convince the public to give him a chance when he didn't have the experience to back him up?  First, he (like Sarah Palin) applied a principle known as repackaging or repurposing.  Though neither had direct executive experience, or had spent much time in Washington D.C., they both managed to make a compelling case for why their experience in other contexts mattered.  For Obama, his background as a community organizer enabled him to demonstrate an ability to lead and a committment to public service.  For Palin, her executive experience as the governor of even a small state allowed her to portray herself as a seasoned decisionmaker, accustomed to being in charge.  Even if you're just out of law school, or spent the past five years reviewing documents, you likely have some experience that you can repackage.  You could, for example, cite your law school experience working in a clinic to reassure that you're comfortable dealing with clients and accustomed with their needs.  If you've spent your time cite checking as the low man on a team of five other lawyers, you could explain that you've gained familiarity with how large firms work, which is why you'll be so effective fighting against them.  We are all an amalgamation of our past experiences, and you never know where something you've done in the distant past can make you more appealing to a client.

Strategic guru Seth Godin gives another great run down of lessons in this post.  Godin's post is actually one of the best I've seen because he doesn't trash the McCain marketing machine, but rather, shows some of the campaign's decisions as a risky venture that it couldn't pull off.  For example, Godin argues that in selecting Palin as a VP candidate, McCain tried to co-opt the conservative base of the party (or as Godin puts it, the Rove/Bush Tribe but the effort failed, raising the question of whether marketers should try to co-opt someone else's tribe or create their own. 

That's another question that lawyers face.  Do you reach out to new constituencies - e.g., by providing unbundled low cost legal services to clients who can't afford more or targeting younger people who've never used a lawyer before.  Or do you try to co-opt disatisfied clients -- for example, targetting clients who've always preferred large firms by educating them about the benefits of independent practices. 

Godin also explains why the attack ads launched against Obama didn't work in this cycle: because "the tribe that Obama built identified with him.  Attacking him was like attacking them."  That lesson -- the idea of turning customers into loyal, raving fans, is also important for marketing your practice, because when clients love you, they'll send you referrals. 

Feel free to send your thoughts on the marketing lessons that you learned from the Election 2008.

 

How Tollbridge Businesses Can Provide An Annual Revenue Stream for Solo and Small Firms

Yes, I still read the local newspaper (in my case, the Washingtonpost) in hard copy every so often, and today I came across this article on the value of annuity contracts -- or as Warren Buffett calls them toll bridge businesses -- to small service providers like heating or air conditioning contractors.

So what's a tollbridge business?  Essentially, it provides a service -- often one that's a low cost -- that you pay for with some regularity.    But the benefit of tollbridge businesses is that they provide a steady stream of revenue between major tasks and further, increase your stickiness to your customer.  Here's a tangible example from the article:


I [writer] wanted to know more about these tollbridge businesses so I called Ken Tucker and asked him how much my heating and air conditioning service agreement -- and the 700 other customers who have them -- contributes to the bottom line at his company.

"The service contract is our bread and butter," said Tucker, who is 45 and a native of Silver Spring. The 700 contracts bring Tucker about $140,000 a year, or less than 10 percent of the $2 million in gross revenue the company collects. But it leads to a lot more money because it keeps the company in regular touch with its customers. And on many visits, technicians find something additional you need (remember my coils?).

"These are the people we take care of," said Tucker. "My mantra is repeat customers. They are customers who, if they ever need to have equipment, we are the first they look at."

The money helps his cash flow too. "We bill those service contracts out March 1 and Sept. 1, and it increases our cash flow before we stock supplies for the season. So when I have to buy my heating supplies to stock my trucks, I use the cash flow from the September service contracts."

He said his goal is to double the number of service contracts to 1,500 a year. That would bring him around $300,000 in reliable cash.

Can lawyers implement the "tollbridge business" concept?  Absolutely, but it needs to be well conceived.  I know many lawyers who've attempted to sell "outside counsel" arrangements, charging a set fee fo a certain number of services, but who haven't succeeded because the work scope was too ill defined.  To make the tollbridge concept work, it's better to focus on smaller tasks, that are definitive in nature and follow up on tasks already performed.  Consider:

--After incorporating an LLC, offer an annual corporate check-up to  ensure all annual corporate paperwork is filed and that there haven't been any changes to the LLC structure.

--For trust and estate clients, an annual check up to review the plan and determine whether any updates are needed to reflect changes in marital status, acquisition of new property or changes in the law.

--For bankruptcy or consumer credit clients, an annual post-filing monitoring report of credit status.

--For divorce clients, an annual review of terms of separation and determination as to whether any changes or amendments are required.

As for pricing the service contracts, if you're thinking billable hours, I'd make them approximate an hour or two of time, if you use flat fee or value billing, set them at a cost to approximate other comparable type services or to reflect the value to the client.  Finally, you'll want to check your bar's rules to determine whether you can treat the service contract fees -- which are essentially, an advance of fees - that may be considered property of the lawyer immediately upon receipt.  (see, e.g., DC Bar Ethics Opinion 264 for some of the ethics issues involved in these arrangements).  If you need to put these fees into a trust account, these tollbridge plans lose some of their value as a revenue stream.

Hey Lawyers - What Ever Happened to Value Billing For Legal Services?

About four years ago, one of my very favorite bloggers, David Giacalone wrote this provocative post, Value Billing versus Value Bilking, arguing that in many instances, value billing represented just another way for lawyers to extract more money from clients when the billable hour didn't yield as much.  Back then, I didn't completely agree with David; I assumed that like me, most lawyers offered alternatives to the billable hour to increase efficiency and give clients more for their money, not less.

Now, I wonder whether I may have been wrong.  Because the recent weeks of economic crisis have brought all kinds of articles and blog posts on law firms rethinking legal fees and law firms competing on price, or at least, highlighting price advantages.  What happened to those $1000/hr billing rates which last summer, didn't make anyone blink, or those value billing proponents who advocated lawyers charging premium fees just because they could? You'd think that in troubled times, the services of good lawyers would carry more value, not less.  Yet if the recent news is any indication, lawyers are charging less, rather than more.  

Well, some lawyers anyway.  Not me, and not many of my colleagues here in the world of the independent practitioner.   Because for us, being a lawyer has always been about doing good work, delivering top value, providing clients the best possible service and always keeping clients' budgets in mind when taking on a case.  As I've written before, it's not the pricing mechanisms that make legal fees unreasonable...it's how we lawyers use them.

Don't Negotiate, Do Accommodate

Last season, my daughters and I became fans of Donald Trump's Celebrity Apprentice.  While my girls enjoyed  the show for the recognizable products that were often the subject of the challenge, I watched for marketing lessons.  And one of the lessons that's remained with me now, even several months later, was gleaned from a competition between two teams to earn the most money from selling a product on the QVC Home Shopping Network.

The contest worked as follows:  QVC identified five potential products and each team would choose one that it would market during a one hour segment.  The team making the most sales, based on amount of dollars, would win.  Both teams coveted one product, a combination chair/stepladder (in my view, the best of the bunch as well), and Team A, which drew first pick, claimed it.  Team B settled for its second choice, a lightweight vacuum that could pick up ordinary debri as well as larger items like pebbles or paperclips.   As I recall, both items were comparably priced.

Despite having less enthusiasm for the vacuum, not to mention a less riveting TV demonstration, Team B won the contest.  The reason?  Team B had thought to ask QVC about its easy pay option, which allows buyers to purchase a product and spread payments out over a two or three month period.  So, rather than pay the $70 price of the vacuum up front, or put it on a credit card to accumulate interest, easy pay buyers are auto-matically charged $35 over a two month period.  The easy pay option accounted for a large percentage of Team B's sales, thus giving it an enormous edge over Team A, which hadn't thought to make it available.  Let's be clear - Team B didn't reduce or modify the price of its product and try to make it up on volume.  But it did make the product more affordable by allowing buyers to spread out payments. 

And that's the lesson that lawyers should consider in this economic client:   don't negotiate, accommodate. For example, let's say that you ordinarily require a $2000 retainer to begin work on a matter.  Rather than requiring the client to pay the entire retainer before starting work, could you allow the client to pay $1000 the first month and $1000 the second month?  Or could you have the client to agree to pay you $500 on a continuing monthly basis (you would send bills each month noting the balance owed, or amount accrued in the trust account) until the matter is paid off.   Some of my colleagues have had good luck with a phased approach, where they outline tasks upfront and take payment only for the most immediate one.  Each time a new task arises, the client is asked for a payment; if the client can't pay, the lawyer withdraws.

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How Cutting Costs Make A Difference in Your Bottom Line

Most solos realize that cutting overhead can sustantially increase our bottom line.  That's why increasingly, many solos favor virtual offices over costly downtown space, or prefer to outsource projects to deal with short term work spurts to avoid adding new staff. But if you're still not convinced that cutting costs can make a real difference in your income, consider the example of Google (disclosure: my husband is a Google employee).  According to this news item, even in this tough economic climate, Google managed to increase revenues and profits by slowing recruitment (hiring 519 people compared to 2130 the previous quarter) and downsized some of the selections in the free employee cafeteria (though if they have, my husband hasn't really noticed). 

Of course, cutting too much from the budget can hurt you in the long run.  Below the jump are some suggestions for where you may be able to cut:

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The Art of the Chart

A few weeks ago, I read an article much like this one about how "charticles" - short news pieces depicted with charts and other graphics - are all the rage in conventional print media.  I didn't think much about this trend, however, until I started getting a noticeable increase in traffic as a result of the Social Networking Continuum graphic that I posted a few days ago.  But now, I too realize the power in the art of the chart.

Charts --- and their second cousin, the checklist -- aren't just for juries.  You can use a flow chart to show clients how long a divorce proceeding might take, or use a chart to compare the costs and benefits of a trust and a will to estate planning clients.  Use Venn diagrams to depict the overlap - or potential conflict - in two different sets of laws.  Even putting acronyms commonly used in an area of law into a colorful chart rather than a plain list can make clients take notice.

Make your charts colorful and eye-catching, and put them up on your website or distribute them to clients in your office.  If you think clients will have frequent use for the chart or checklist, have it produced on a bookmark or laminated sheet for clients to carry with them. 

Preparing a chart also requires different skills than simply explaining a process verbally or describing it in writing.  You need to think of how to present the material in an elegantly organized manner.  A poorly designed chart will cause confusion rather than bring value - so if you can't devise a way to compile information in a chart, you are better off not using one. 

So why not make a start on your chart - and if you have a chart or checklist at your website that you're particularly proud of, send the link to the comments section.

 

Social Networking Continuum

I've just updated my online book on Social Networking -- it should be available for download in the next day or two (if you've already downloaded a copy, you'll automatically receive the update).  But I thought I'd share a diagram that I've included in the new version, which focuses on the intermediate step of taking online relationships offline.  I used Gliffy for the diagram.
 

Making the Most of Solosez

In a response to my last post, the Underground Solo Railroad, a reader wrote asking for advice on the best way to manage Solosez, the ABA Solo listserve that's now grown to 3500 members.  Without a doubt, the listserve generates over one hundred messages daily.  Though I joined the group when it stood at a much more manageable 700 or so members, it's still possible to use Solosez to find a gateway to the Underground Solo Railroad - that informal network of solos who exchange practice tips and information and how-tos and "where can  finds?" - that I discussed in my last post.

1.  Put A System in Place  Three years ago, when Solosez was much smaller, I linked to
this post by Oklahoma PMA Jim Calloway on using Gmail as a tool for managing Solosez.  Jim recommended setting up a Gmail account dedicated specifically to Solosez mail as an easy way to segregate solosez messages from other incoming mail and also as a mechanism to archive and search through older messages.  

Even if you don't set up a separate email account for Solosez, by all means, create a folder for Solosez emails in your existing system, or the email will overrun your box.

2.  Read the Solosez Rules Having been around for a decade, Solosez has generated a long list of Administrivia that explains to users everything from permissible topics to protocol for making introductions.  Even if stringent rules are a turn off to you (and they are to me), recognize that rules are a necessary evil for a list of this size.  So read the rules and follow them because failing to do so will make you less than welcome. 

3.  Take Advantage of Introducing Yourself Make the most of your introduction to the list - after all, where else do you find a receptive audience of 3500?  Include descriptive information about your status and location n the subject line of your introduction - e.g., "Intro from a Brand New Lawyer in New York City" or "Intro from Former Employment Law Biglaw Parter at XYZ Law Firm."  Most Solosez members read posts selectively, so by giving details in your intro, you'll automatically flag people who may be interested in getting to know you.

In addition, be sure to include a descriptive signature line, with your name, contact information and jurisdictions where barred so that people who want to get in touch with you quickly can track you down.

4.  Follow and Participate in Topics of Interest - You can't possibly read every message that comes across Solosez and still get work done.  So skim through subject headings, and follow and contribute to those conversations where you have something to offer.  Even if you're a new attorney and don't know anything, you can surely offer advice on WC (Water Cooler) topics like finding the best vacuum cleaner or travelling with teenagers.  Sure, these questions have nothing to do with your legal skills, but they're a way of sharing personally, and lay the foundations for offline relationships.

5.  Reach Out Off the List Ultimately, Solosez won't have any value to you unless you find ways to break off from the group of 3500 and start your own conversations.  So after you've participated a while, make a point of introducing yourself with a personal email to others on the list.  Perhaps there's another lawyer who shares your background - why not send an offline email and introduce yourself.  Or perhaps there are a couple of lawyers who regularly offer particularly sage advice.  Why not contact them and let them know and start a conversation that way?

Many Solosezzers in various cities have started offline lunch events to get together in person.  The DC and Boston contingents meet monthly, for example.  If your city or area doesn't have a monthly lunch event, why not put one together yourself?   It's a great way to start building relationships with other lawyers who you know through the group.

On the one hand, Solosez is the main line of the Underground Solo Railroad, a central point where lawyers share advice, revel in each others' successes and comfort each other after a bad day.  But if Solosez is merely the main line - there are also dozens of arteries -- the meet-ups and alignments and relationships that take place off the main list and in many ways, are the more enjoyable and productive part of the journey. 

The Underground Solo Railroad

Remember the Underground Railroad, the hidden network of safe houses and secret routes created by abolitionist sympathetizers to help slaves escape to freedom during he pre-Civil War era?  After spending time in the company of my fellow solos at the National Solo and Small Firm Conference this past week, I realized that another type of underground railroad exists - one comprised of solo and small firm lawyers who help their colleagues escape to the freedom of solo practice, through  informal measures such as mentoring colleagues, volunteering information about "where can I find (a virtual assistant or a good blog designer or shared ofice space) and providing feedback on marketing plans or substantive pleadings.  Each time, I return from a gathering of solos, I'm always amazed by the generosity of solos and their willingness to share information and generally help each other out. 

Blogs and books are great resources for starting a solo practice.  But they can't cover every topic or address every question.  That's why there's nothing quite as powerful as the personal advice that we solos pass along, generation to generation, colleague to colleague, building a pathway to help other lawyers travel to success.  And as those lawyers travel the solo route, they transform from passengers to participants, building the railroad out even as they engage in the journey.

Where can you find a gate to the Underground Solo Railroad?   In my case, I boarded through Solosez, which now stands 3500 members strong.  But these days, you can find solos willing to share on local listserves and even Twitter.    And if you're currently a practicing solo, reach out to those whom you think, like you, might also enjoy this very special ride.

 

Building a $2 Million Practice From Scratch

Are you building your law practice from scratch?  If so, you might want to follow some of the lessons that Wilton McDonald, winner of one of  Originate magazine's Rainmaker awards shares  here.

McDonald isn't a true solo - he was hired by a small firm in Grand Cayman as senior associate for an eat-what-you kill position in the Investment Funds Department.  In January 2007, two months after McDonald joined the firm, the department's billable hours totalled 43.  But over a period of two years, McDonald built the practice to $2 million in annual billings.  He reached his goal by putting together a plan to identify his best opportunities, delivering value -- even though it meant hiring and training his own staff, and taking advantage of all connections, no matter where they might be (for instance, McDonald mined business opportunities in Poland, his wife's native country).

One of the most interesting aspects of the article to me was the way that McDonald was able to leverage his relationship with other law firms through participation in Terralex, a global network of law firms.  By working with other member firms, McDonald was able to tap clients in other countries and also offer his clients more value.  In addition, McDonald recognized that at least initially, he probably couldn't compete for business from large institutional funds, so he focused on smaller alternatives.  Even today, his portfolio is comprised largely of smaller clients, though he has secured some larger ones as well.

So how can McDonald's lessons work for you?  First, if you can't find a network that serves your needs, then consider starting your own.  For example, if you're a new solo with a family law practice, you could create a network with a bankruptcy lawyer or an estate planning lawyer so that you can offer clients full service.  Second, if you compete for business with larger firms, rather than targeting major players, identify newcomers to an industry, where you can get in on the ground floor.

The Originate article is fairly extensive and contains plenty of good ideas that have been proven to work.  So take a look and see if any will work for you.

Making Opportunities for Your Practice: An Interview With Ari Kaplan

A few months back, I had the opportunity to interview Ari Kaplan, author of a terrific new book, The Opportunity Maker: Strategies for Inspiring Your Legal Career  Through Creative  Networking nd Business Development.   Though the book is relatively short, it's incredibly dense - reading it literally made my head spin, because there are dozens of ideas for networking and building relationships and reputation in every chapter.  Though Kaplan has personally tested many of these techniques, he didn't come up with all of them.  Instead, he interviewed over 100 people, from large firm attorneys to marketers to solos to glean the material for the book.

During the interview, I asked Kaplan to identify what he considers the top three networking ideas for solos, which are: (1) getting published and leveraging articles to meet people; (2) participating in charitable endeavors and (3) assembling panels.  And don't worry - if you don't think that you have time to write articles, Kaplan also shares some great practical tips for coming up with ideas and actually writing a piece. 

If you're currently developing a business or marketing plan or looking to amp up the one you have, pick up a copy of Kaplan's book.   I guarantee you'll find at least a few ideas that you can put into practice right now. 

And for the interview, click here:

I'm Back, With Lessons from London

Well readers, after a two week absence I'm back.  And in the tradition of previous trips, I bring you real life marketing lessons from London. 

By way of background, this vacation grew out of my husband's two week business trip to his employer's London office.  Rather than spend the last few weeks of my daughters' summer vacation at home, particularly when camp was finished, I figured that we could take advantage of our frequent flier miles and my husband's accomodations to enjoy an affordable trip overseas.  At the same time, I realized that I'd be doing most of the touring with my daughters on my own.  So here's what I learned on our adventures through London.

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NEW- Free e-book: Social Networking for Lawyers: The What, Why and How

This past Friday, I hosted a proof of concept course on Social Networking for Lawyers.  As part of the course materials, I prepared a 30 page ebook, entitled Social Networking for Lawyers: What, Why & How that gives an overview of social networking tools for lawyers (the "what"), describes how these tools can help build the 3 Rs of a successful practice - relationships, referrals and reputation (the "why") and offers best practices for using social networking tools as well as a preliminary analysis of some of the potential ethics issues (the "how.")  There's also an Appendix that contains powerful adjectives and verbs for use in a social networking profile and various screen shots of social networking applications, including a fairly detailed mark-up version of LinkedIn.  The ebook is intended to serve as an introduction to jump start your use of social networking tools; it's by no means comprehensive.  In September, I will be launching a series of online trainings for groups of individual lawyers as well as turn-key programs for bar associations and law firms; by downloading the e-book, you'll automatically receive updates on these upcoming events.  Also, watch for a CD recording of the course that I'll be making available soon.

Note:  If there are topics that you'd like to see covered in the book, or have any other feedback to offer,  please send me an email or drop a post in the comments below.

Here's the registration form for the e-book:
Email:

Should the Law Marketing Message Fit the Medium?

Lawyers sell advice and legal services.  So should lawyer marketing focus on, or educate clients about what lawyers provide - or try to identify ways to get in front of prospective clients for any reason.  That's the question that law marketer Russ Lawson considers in this post which discusses a  99 cent/gallon gas promotion by a Kentucky law firm.  Essentially, the firm distributed $15 vouchers entitling the first 250 drivers to gas for a price of .99, with the firm making up the difference in price.  Firm lawyers and staff pumped gas for the customers.  Lawson isn't sure if this practice is even ethical, but even if it is (and I think it would pass muster - it's not all that different from distributing pens or tee-shirts at a convention, just higher value), Lawson doesn't like it.  He argues that gimmicks like these "buy the brief attention of the market," but they don't educate clients or help the firm learn what prospective clients really want or need. 

What do you think?

Still An Uphill Battle In Getting Clients to Hire Solos, But There's A Fix

At first blush, this letter to the editor criticizing the Duxbury school board for considering the possibility of replacing its current law firm with a one-person "cut rate" shop seems discouraging for most solos who compete with the big boys.  Among other things, the writer expresses concern about the solo's cut rates, noting that "you get what you pay for,"  questions what will happen if the solo is "sick or on vacation" and adds that the solo does not even have malpractice insurance.  The writer also notes that the current firm had a winning record.

While some lawyers, after seeing this letter, might simply give up on trying to attract clients like the school board or rant about the unfairness of the system, the more productive response is to use the letter to understand client bias against solos and figure out how to address it.  For example:

--Where as here, an existing firm already provides good value, competing on price won't work - and indeed, looks desperate.   That's not to say that the solo should intentionally increase his or her rates, but instead might offer an alternative billing structure or some type of "preventive" package to give the board more certainty and avoid litigation and associated cost spikes.

--In any proposed retainer or office policy, the solo should describe his or her system for coverage in the event of an emergency.  This might include a specifically designated back-up law firm or contract associates.  Honestly, clients don't really care so much who will step in if there's an absence or emergency, just that someone will.

--Get malpractice insurance.  This case offers good reason to do so.

If you have any other suggestions, please post them below.

Getting A Start as A Personal Injury Lawyer

Many readers of this blog and my book, Solo by Choice frequently ask for advice on how to get a personal injury practice up and running.   My fellow blogger and colleague here in the Maryland area, Ron Miller explains how lawyers can build a referral based personal injury practice in this comprehensive post at  Maryland Injury Lawyer Blog.  What I like Miller's post is that he's honest and realistic in acknowledging that starting out, most lawyers aren't going to attract quality cases.  However, over as they do a good job with the smaller cases that come their way, better cases will follow.

Miller also recommends that if you want to practice personal injury law, you shouldn't take on other cases.  That's good advice, but not always realistic for new lawyers particularly if they need to come up with money to cover the costs of personal injury cases.  You could try to find contract work on other personal injury matters, but you might also take cases in other practice areas that will have some synergy and potentially lead to PI referrals or that call on the same skill set -- investigatory work, working with experts and litigation.  As you build your PI practice, you can decide at that point whether to drop your other matters or stay a bit more diverse. 

Look Who's Discounting Their Fees

If you've ever discounted your fees, either voluntarily to lure a client to your firm or involuntarily because  your client ran out of cash, you're in strong company.  As I posted over at Legal Blogwatch, 76 percent of law firms discount their fees.  But what's even more interesting is that 89 percent of the discounters practice in firms of ten lawyers or more, while only 59 percent of the smaller firms cut their fees.  However, the study that I cited as summarized by Greatest American Lawyer (the study is not free) does not explain when or why firms offered these discounts.

So what does this mean for solo and small firm lawyers?  First, if you compete with the big boys, don't assume that your $400 an hour rate is necessarily a bargain compared to biglaw - since the partners may be chopping their billing rates.  You may still be cheaper, but not as much as you think.  So when you make your pitch, don't rely on cost alone (which still matters, at least based on my own review) but also the added value that you can bring with better client service.  Second, if you find yourself involuntarily cutting fees after the fact, ask yourself why.  Did you under budget and leave your client unprepared to pay a higher fee?  You might want to consider flat fees, where the client knows the firm cost up front and can budget for it. 

Real Life Marketing Lesson: Are You Charging Clients Like American Airlines?

Not surprisingly, many American Airlines customers expressed significant outrage over the airline's recently announced plans to charge passengers additional fees for checking bags and for certain services related to reservations. Indeed, the news may have irked you as well. But before you start venting, ask yourself whether your billing policies "nickel and dime" your clients just as the airlines are doing to passengers.

For example, do you charge your clients when you call them to get additional information that you need for the case that you neglected to request? Do you bill them for correcting an error that you made on their bill? Does your $750 bill also tack on a .44 cents charge for postage and a $43 LEXIS charge? If those are some of your policies, you might want to re-examine them before complaining about American Airlines.

The bottom line is that most people don't like to feel as if you're squeezing money out of them every time they turn around. If American Airlines had simply raised fares an extra $50 to reflect increased gas prices, I doubt that most people would have raised a stink. But what bugs them are little charges here and there that should simply be rolled into the overall cost of a ticket.

For that reason, clients prefer flat fees, where they can pay one price and there's no uncertainty about added charges. But even if flat fee billing isn't feasible, consider rolling incidental costs like legal research services, phone, fax, postage and photocopying into your overhead and simply charging a higher hourly rate to cover these fees. Clients will balk less about your rates when they perceive them as encompassing full service rather than pay as you go.

Do They Always Dance With the One Who Brought Them?

Many small firms wonder whether they should offer free or low cost legal services to start-up companies or small businesses in the hopes that those companies will generate more lucrative business as they grow.  Sounds great in theory, in many cases, once those baby start-ups mature, they may dump you for a more established law firm, irrespective of the quality of the work that you performed or the value that you created.   At least, that's been my own experience, recently confirmed in a post by Bruce Macewen of Adam Smith, Esq.:

Partners with those small clients will tell you (will they not?!) that "somewhere in here is the next Microsoft." Not true. Almost universally, small clients remain small clients. And experience has shown that those that grow into sizable enterprises are disloyal to their "starter" law firms and want to rapidly move up to more established and burnished brand name law firms as soon as they feel they have the stature to do so. How does it feel to be a money-losing doormat to greatness, which will decamp?

You can't blame these companies either, at least without being hypocritical.  After all, as we grow our law firms, don't many of us try to phase out small fry clients in favor of bigger fish?  As we begin to earn more money, we all upgrade our practices in one way or another, and for many companies (especially once VC enters the picture) upgrading means bringing in a name brand firm.  It's like buying the Lexus or BMW after having driven a Prius:  the fancy cars don't drive any better nor do they add value when it comes to gas mileage.  But they're a status symbol that many believe conveys an image of success.  (That's why salespeople and realtors often drive fancy cars).

Now, this doesn't mean that you shouldn't cut your rates for a start-up if you perceive a worthwhile trade-off.  Will representing the company provide an entre into a new industry?  Will it generate referrals or a positive testimonial?  Will it keep you at the cutting edge of your practice?  And of course, you can still take credit for helping to build a successful company even if it eventually leaves you for another firm.  So why not experiment with offering your services to a start-up once or twice and assess whether it's worthwhile.? Perhaps you'll even find a way to make yourself an exception to the upgrade rule.

What is your experience with representing small companies that grow? Have they kept you on...or moved on?  Send your comments below.

Starting Non-Conventional Solo Practices and a Free Marketing Call

Some lawyers start their own practice, but rather than specialize in traditional legal work, opt for or incorporate alternatives like contract lawyering, mediation or lobbying.  If you're interested in how to build a practice in those areas, consider these resources:

Lisa Solomon, a nationally recognized contract attorney who practices as  Question of Law offers some quick tips on running a contract law business in the March 2008 issue of GP Solo Magazine.  She offers other products on starting a contract law firm at Legal Research and Writing Pro.

Victoria Pynchon, who blogs at Negotiation Law Blog shares a grab bag of ideas on how to make money in a mediation practice, including a link to blogger Tammy Lenski's book, Make Mediation Your Day Job.  I purchased and read Lenski's book a few months ago based on rave reviews from other  bloggers and even though I don't  have  a mediation practice, I found much of Lenski's advice applies to building any type of law practice.  If you're not comfortable with some of the hard sell, "get rich quick" genre of marketing materials, you'll particularly enjoy Lenski's book because she explains how to tools that you're already comfortable using in your practice (in her case, mediation, but it could just as easily be advocacy skills or writing skills) to  make your case to others.

Finally - and this is a bit late, but personal injury lawyer and marketing guru, Ben Glass of Great Legal Marketing is hosting a conference all on Wednesday April 16, 2008 - no registration required, where he'll be speaking with two lawyers and what they've learned (and more importantly applied) at his seminars.   I've never attended one of Ben's events, but I have trusted colleagues who have reaped value from his programs.  Here are the details:
 
Date: Wednesday, April 16
Time:  3:00 p.m Eastern
Dial In: 419-400-0202 Code 332894#

Notice: Dial in early, we only have 197 lines for this call.

For more information:
www.GLMSuperConference2008.com - More info on the SuperConference

Contests as a Way to Attract New Clients

I came across this Press Release about a Clean Tech competition that's awarding $600,000 in prizes to early stage clean energy innovators.  And guess what?  The awards include not just cash but also in-kind services offered by accounting, public relations and law firms - in this case, tech counsel to the "stars," Wilson Sonsini

Sponsoring a contest offers several benefits for any law firm.  By offering in-kind services, the law firm gets the benefit of whatever publicity that the contest sponsors use to attract participants, at no cost.  And the firm gains access to an early stage company with the potential to grow. 

So the next time you see a contest in your community, think about what you can offer to help you win business and good publicity.

An Off Hours Law Practice Is An On Point Idea

One of the five "high impact" marketing practices that I discuss in Solo by Choice is non-traditional consultations, such as house calls or an after hours practice.  Not only are are non-traditional consults a way to stand out and accomodate your clients, but they're also compatible with many solos' business models.  Making house calls or site visits minimizes the need for a physical office, thus enabling you to work from home or in less expensive shared or virtual space.  And an after hours practice lets you keep a day job to keep revenue coming in as you get up to speed, or enables you to stay home with your children and work at a time when your spouse can watch them. 

I didn't give many examples of non-traditional consults in my book because I hadn't found many at the time.  So I was glad to see this blurb about James Perullo's Bay State Legal Services After Hour Law is open for business from 6-10 for convenience to clients.  Many of the lawyers affiliated with the venture, like Perullo, work during the day.  My guess is that these hours will bring in clients who didn't want to lose work time to schedule a daytime meeting with a lawyer.  Why aren't more lawyers developing and implementing other types of nontraditional consultation times.  If you are, let me know in the comments below.

Making Sense of Online Marketing Options...With A Circle

Consistent with the Second Law of Thermodynamics, the entropy (or in lay terms, randomness) of the array of online marketing options is ever-increasing.  But thanks to this diagram (and post) by Anita Campbell of Small Business Trends, there's hope of imposing some order on all of the chaos.

You need to link here to view an enlarged version of Campbell's diagram of online marketing options for small businesses.  Arranged in a target, concentric-circle fashion, the business website lies at the bulls-eye center of the chart.  The second layer directly around the center consists of Search Engine Optimization, blog, email marketing, pay-per-click ads and online press releases.  The largest and outermost circle contains many of the familiar social networking sites - Twitter, Facebook, Linked-In as well as other media type sites such as You-Tube, Flickr and podcasts.  Here's what Campbell has to say about each of these:

Center circle – At the center of the chart is your website, which should be the core of your online marketing plan. Hopefully if you are reading this article, you already have a website and it’s not a question of IF you should have a website, but how you can improve it. First impressions count and today’s prospects and customers will form impressions of the quality of your products and services from your website. Plus, by investing in smarter technology you can make your website work harder to generate leads and sales. Consequently, spending time to improve your website can bring the biggest payoff. (If you don’t have a business website, get thee to a Web designer now!)

Second circle – The second circle outlines activities that most businesses will see a meaningful return from. Investing in search engine optimization, setting up a blog, growing and leveraging your house email list, issuing press releases through an online distribution service such as PRNewswire or PRWeb, and doing PPC ad campaigns are key strategies most small businesses in America can get value from commensurate with the time and money invested.

Outer circle – The light yellow circle on the outside contains activities that generate a lot of the “noise” that confuses most small businesspeople.  Not that I’m against those activities — not at all. In fact, some of them bring excellent results for the right kinds of businesses. It’s just that the return from such activities tends to be lower compared with the time or money you put into them.

While I like the Campbell's "concentric circle" way of prioritizing, I don't think that her model works as well for solo and small law firms, as I'll discuss below the jump.   Continue Reading...

Eric Turkewitz's April Fools Joke Shows the Importance of Ledership in Blogs

If you're scanning this in your news aggregator, I'll bet my headline, with its apparent misspelling probably jumped right out at you.  In fact, I meant to spell "ledership" just as I did.  A lede is the introductory section of a story, and New York Personal Injury Law blogger Eric Turkewitz's
 recent masterful April Fools' Day Spoof shows just why a lede matters so much.

For those unfamiliar with the story, on April 1, Turkewitz ran a lengthy post captioned  Supreme Court Grants Cert  in Fantasy Baseball  Case; Three Justices Recuse Themselves Due to Participation in High Court League.  Turkewitz's first paragrah then described how the court granted cert (even linking to the Eighth Circuit case on major league baseball that's now pending a cert decision) and wrote authoritatively about the justices seeking recusal - something that has been the subject of frequent discussion recently in the blogosphere.  As a result of his authoritative opening, Turkewitz managed to  fool multiple bloggers into believing the story without reading to the end, where they would have discovered telling clues.

My guess is that most of the bloggers taken in by Turkewitz's prank rely on aggregators to scan news stories quickly.   And Turkewitz's joke, cleverly executed as it was, might not have duped as many people a few years back when aggregators were not as pervasive.  Even today, while it's true that not many lawyers or consumer readers use aggregators, journalists and major bloggers all do.  So if you're interested in getting coverage for your blog at major sites, follow Turkewitz's example, and lead off with your best lede.

New Ideas for Business Cards

Over at my roost at Legal Blogwatch, I posted about ways that lawyers -- including solo and blogger, Ernie the Attorney are rethinking the concept of business cards.   As Ernie points out, these days, it's not hard (or at least it shouldn't be hard) to find a lawyer's website by running a Google name search on the Internet.   Thus,  a business card doesn't need to serve as a source of contact information, but rather, as a tool to encourage people to contact you.

Of course, Ernie's theory assumes that you already have at least a minimum presence on the Internet (which every lawyer should!)  Unless people can find you easily on line, you may not want to radically change those business cards any time soon.

Marketing on A Shoestring

My friend and colleague, Allison Shields of Legal Ease Blog is starting the next round of her course Lawyer Marketing on A Shoestring, which she teaches with Paramjit Mahli, of the Sun Communcations Group.  I haven't taken the course, but the syllabus shows that it's value packed.  Plus, I am a huge fan of Allison's blog and her body of work and included several pieces of hers in Solo by Choice. 

Boo to the Billable Hour: A Book Review

I finished lawyer John Derrick's engaging and well written book, Boo to the Billable Hour several weeks ago (and in one sitting), but I'm just getting around to posting my review now.  As I'll describe in more detail below, Boo to the Billable Hour offers a great primer for lawyers who haven't even thought about getting rid of the billable hour as well as those who recognize some of the drawbacks but can't come up with a viable alternative. 

Boo to the Billable Hour is structured into three main parts.  The first section - and to my mind, the heart of the book - systematically dismembers the billable hour by showing its many drawbacks: its inability to capture the value (rather than price) of time spent, problems with the accuracy of record keeping, difficulties in fairly allocating time to avoid double billing, and (in the law firm context), the billable hour's incentive to associates to overbill or bill pad to meet a firm's billable hour targets.  However, I think that Derrick also overlooked another problem with the billable hour that is unique to solos.    Because solos can't leverage billable hours, they're salary is limited by the number of hours they bill.  If a solo bills 40 hours a week at $200/hr, they'll earn $400k a year (assuming 2 vacation weeks) - but they're also working not much less than large law firm hours.  Unless solos can find a way to get more "bang for the buck" out of their day, they remain slaves to the billable hour.  Continue Reading...

Lessons from a Mouse and Hamster - Marketing Is All About Context

I'm not squeamish about rodents.  As a youngster, I raised several dozen pet mice and even now, as an adult I find my daughter's Chinese dwarf hamster, Puck completely irresistable  Yet this morning, while out walking the dog, I screamed with fright when a tiny little field mouse scurried across my path.

Why does a loose wild mouse terrify me whereas I don't mind cuddling a mouse-like hamster?  In larg part, I think it's the context:  the mouse appeared unexpectedly and caught me off guard.  And seeing the mouse in the wild evoked visions of wild rats, which have creeped me out ever since I read The_Plague back in college.  By contrast, the hamster lives in a cute Habi-trail cage, he smells of the sweet sawdust where he makes his nest and he scurries happily on a little orange wheel.  Nothing scary about him.

When it comes to marketing, context matters.  The pitch that may work for a consumer client may fall flat when we approach a business.  A technique that stands out in one particular niche and distinguishes us may be so over-used in another area that it just gets lost in the noise.  As someone who practices in multiple pratice areas - I serve consumer clients, mom and pop businesses corporate clients and municipalities and law firms - I've been giving some thought to what type of approach fits best for a given context.  At the same time, I find that some of the marketing materials that I read don't take context into account, but instead, assume, a one size fits all approach. 

Do you think that there's a "killer app" when it comes to marketing a law practice, a single technique that can guarantee success?  Or are the types of tools that work in some fields versus others as different as mice and men? I'm happy to hear your comments below.

In House Counsel Looking for Deals...Why Not With Solos?

If you thought that large corporations had deep enough pockets to pay whatever fees their outside counsel demanded, you'd be wrong.  Turns out that corporate counsel are positively simmering over the way that many large law firms are ripping off clients with exorbitant mark-ups on contract law attorneys.  Indeed, corporate counsel are so steamed that they voiced their discontent publicly at the recent ALM Legal Tech Show, as reported in this story from Conde Nast Portfolio.

The upshot for solos here is ...opportunity.  For example, some corporate counsel take e-discovery inhouse, but they may still need to hire contract lawyers for review - and may be willing  to pay better after removing the biglaw middle man.  Or, corporations may have a need for more skilled outside counsel to help manage the inhouse discovery teams.  So if you've worked on massive  litigation projects at law firms, and decide to strike out on your own, you may find more opportunities for than you imagined.

Corporate counsel are looking to keep costs down in other area as well.  Although as this post at Law and More suggests that inhouse lawyers are looking for large discounts from brand name firms, if firms aren't forthcoming with lower rates, perhaps these clients will look to solo and small firms.

Taking Online Networking Off the Grid

Like most of my solo and small firm colleagues,  I'm a fan of online networking, i.e., building meaningful and trusted relationships through listserves, Linkedin.com and Facebook.com and blogs.  Not only do these online tools help us find clients or share our knowlege and expertise with others and improve the quality of the profession at large, but they also mitigate against sense of isolation that many solos otherwise experience. 

For those who don't use online networking tools, John Jantsch of Duct Tape Marketing has an instructive post on how to get started.  Jantsch writes that ultimately, online networking isn't all that different from conventional networking - only the tools have changed.

Jantsch's advice is terrific, but I think he overlooks one important point:  ultimately, to get the most out of online networking, you need to take it off grid.  I've built many, many close relationships online blogging, listserves and email correspondence.  But in every case and without exception, what's always solidified the relationship and made it click is a personal  rather than virtual connection.  Maybe it's an in-person meeting, but even a phone call does the trick.  Hearing the sound of a voice or a laugh, seeing a smile or shaking a hand satisfies a human curiousity and conveys the kind of information that no amount of bandwidth is broad enough to carry.  And in person meetings or phone calls not only smooth a tense online relationships characterized by vigorous disagreement, but actually make them bloom --  because the personal interaction somehow makes us realize that because of our passion, we have more in common than our online discourse (and even namecalling) might suggest.  That's not to minimize the value of building relationships online - that process lays the groundwork for personal interaction and helps us to screen out those whom we'd like to meet.  But at the end of the day, an online relationship will eventually falter without a dose of human contact.  

So tomorrow before you head home for the weekend, why not pick up the phone and calling an online friend or colleague, with no other motive than simply to say hello or invite them to share a cup of coffee?  Taking that relationship off line will ensure that you keep it on course.

The $25 NYC-DC Bus: Another Real Life Marketing Lesson

This coming Tuesday, I'll drop my daughters off at school, return to my house, pick up my trial bag (which doubles as a suitcase and computer case for short trips) and walk 15 minutes to the $25 bus that runs from Bethesda, Maryland, where I live to Penn Station in New York.   I'm headed up to New York for an event filled 24 hours that will include a stop by the ALM Legal Tech Show (where I'll hopefully be posting some dispatches for Legalblogwatch), dinner with a bunch of NY based solosezzers, and a bunch of blog or book related meetings. 

So why am I taking a $25 bus up to NY instead of flying or taking Amtrak?   For me, it's mostly convenience -- the bus is so close to my house, I don't need to allow extra time (that I don't have with my tight schedule) to get to the bus, as I would with a trip to the airport or Union Station in D.C.  Plus, a benefit of taking the bus on mid-week is that the trip will be traffic free and the bus won't be filled, so I can expect a double seat to myself.  Still, more than anything, this $25 bus phenomenon intrigues me; it's a market that didn't exist back when I was in college and not even as recently as ten years ago and it's a market that's absolutely booming because it fills an until-then unsatisfied demand.

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Why You Get As Much As You Give When It Comes to Testimonials

Most of the time, we give testimonials because we believe in the person who has solicited our recommendation and because it's a nice thing to do.  But if that's not enough incentive to give a testimonial, then consider this benefit:  testimonials can also make you look good!

For example, let's say that you've used a virtual assistant who asks for a testimonial for her website.  To give a good testimonials, you'll have to describe the matter that she helped you with, and in doing so, you're letting others know about your skills as well.  Consider this hypothetical testimonial:

I'm a solo practioner who stepped into a complicated appeal two weeks before deadline.  I needed a reliable paralegal to assemble the 2500 page record, insert cites into the brief and proof and cite check the product.  Further, I needed someone who could work independently so that I could focus on drafting the brief.  At the recommendation of a colleague, I called [VA].  She took over preparation of the Appendix entirely on her own.  However, she sent me daily emails so that I could stay abreast of her progress.  On deadline day, I emailed the brief to [VA] who took care of preparing the Table of Authorities, Table of Contents and filing.  [VA] was so efficient that the final product came in several hundred dollars below my estimate to the client - and ultimately resulted in a precedent setting decision.  The client has since retained me for another matter, and I will surely be calling [VA] to help out on this one as well!
The testimonial shows that the VA is efficient, cost-effective and reliable.  But it also highlights the attorney's skills as well - skills that will come to light where, for example, a client runs a search for an appellate lawyer. 

So the next time someone asks you for a testimonial, you should jump at the chance.  After all,  it's not often that you have the opportunity to do something good for someone else, while doing well for yourself.

Related post on guerilla marketing techniques: Go Forth and Comment.

Ipods for Clients

Here's a neat law firm business development idea reported in Scotsman.com, that initially struck me as a bit high end, but is actually quite feasible even for smaller operations.  The story reports that Pinsent Masons, an international law firm with offices in Edinburgh and Glasgow have launched a service to keep clients up to date on developments in employment law.  Clients who sign up receive a number of iPods programmed to allow users to download videos and news updates prepared by the firm.   Clients can then watch videos containing both news updates on the latest developments in employment law and monthly risk management programmes.  According to the article, the service is quite popular, with several large corporations signing on.  And the law firm won an award for "most enterprising firm."

When you think about it, decent iPod nanos start at around $150.  For most of us, that price doesn't even amount to a full billable hour.  Moreover, if that iPod helps  you lure clients to a monthly business and counseling service for which you can charge $500 or $1000 a month, then you've earned a great return on your investment.   Not to mention, making your firm look really classy besides.  


More Lawyer Videos, From Beverly Hills IP Solo Michael Cohen

As my regular readers know, I'm a major fan of videos - and I've been tracking solos' use of videos for marketing in posts here and here. And I see today that my Third Wave colleague Chuck Newton has posted on the topic as well.

More and more solos are using videos to convey their message. Recently, I discovered this video series by Beverly Hills IP attorney, Michael Cohen. Cohen's videos are more polished than the usual YouTube fare; they're posted here at Video Jug.

If you're using video drop me a line - I'd be happy to link to it here at MyShingle.com

Book Trailer for Solo By Choice: Proof of Concept and Work in Progress


Here's a video trailer that I created for my upcoming book, Solo by Choice: How to Be the Lawyer You Always Wanted to Be. It's a proof of concept in learning how to use my iMac software. Unfortunately, I'm still learning how to use the editing tools, so the transitions aren't entirely smooth and there's a very, very long dead space at the end, because I couldn't figure out how to cut the audio clip. But I'd spent so much time on the video, that I decided to put it out here in beta, and solicit advice from readers on how to fix some of these problems. So please send your input below.

This Solo Has No Problem With Avvo

For a few days now, the blogosphere has been abuzz with news of the dismissal of a class action lawsuit against lawyer directory and rating service, Avvo and the subsequent Wall Street Journal's endorsement of Avvo. These events evoked an impassioned post by respected solo-centric blogger Susan Cartier Liebel, who argues that Avvo's rating system harms solos, does not help consumers and unfairly generates investor profits off the backs of lawyers who never asked for a ratings system. As such, Cartier Liebel urges lawyers not to participate in Avvo's system. Since then, commenters to Scott Greenfield's Avvo posthave launched a debate over Avvo's benefit to consumers and its impact on solos. Though I'm a little late to this party (having been away and off the grid for two days), I wanted to chime in to make clear that not all of us solos oppose Avvo, nor should we. Here's why.

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Google Yourself...For Fun and Necessity

AP is reporting here on a recent study by Pew Internet and American Life Project that found that 47 percent of US adult internet users have searched for information about themselves through Google or some other search engine. That's double the percentage of users who did so in 2002. Mary Madden, a Pew research specialist quoted in the article expressed some surprise that more users don't engage in "self-searching," particularly with the increase in content that's posted about us on the Internet.

For lawyers practicing in an Internet age, self-searching isn't just an act of fun or vanity, but one of absolute business necessity. In this electronic era, we must assume that existing and prospective clients and colleagues will search for us on Google, so we need to stay ahead by always keeping on top of what's out there.

One More Day to Register for Business Building Accountability Club

If you're still interested in registering for the upcoming Business Building Accountabilty Club, scheduled for December 5, there's still time...up until midnight tonight. To view more details on the event and/or to register (there's no cost), visit this link. And for those who have already registered, watch for the agenda and course materials in your email tomorrow.

UPDATE - CONF. CALL # NOW AVAILABLE: - Come Celebrate With Me...Join My Business Building Accountability Club

As 2007 draws to a close, I'm anticipating my 5th Anniversary of blogging at MyShingle and the long awaited release of my book, Solo by Choice: How to Be the Lawyer You Always Wanted to Be. Yet, while I'm in the mood to celebrate, at the same time, I find that I still have a list of marketing initiatives and law-firm related projects a mile long. I'd like to finish many of these tasks to lay the foundation for making 2008 great. So to get myself on track and to celebrate my impending milestones, I'm forming a Business Building Accountability Club.

Are you trying to get a blog up and running? Interested in putting video up on your website? Finish up an article? Can't get your nerve up to make those cold calls? Have a marketing idea that you're not sure how to implement. I've got those items plus dozens more on my list! So why don't we work together to keep ourselves on track to finish up what we need to before the year ends? I'll admit that I have another ulterior motive in starting up this group: it's allowed me to cross one item off my list - figuring out how to use registration software and set up a teleconference.

So...if you're interested in joining my group, follow this link to the event registration. The kick off call is scheduled for December 5, 2007 and there's NO CHARGE! I hope you can join the call. [NOTE: For those who signed up anytime before today, Nov. 27 at 2:45 pm, you can revisit the link to obtain the call in phone number. I will also be emailing the call in number along with the agenda].

What Does A Sample Invoice Look Like?

I realize that these days, alternative billing is all the rage - and I too am a proponent of alternatives to the billable hour. Still, there are times when you have to resort to the billable hour, either at the insistence of a client, or under some of the guidelines for submitting a fee petition to the court.

So if you're billing by the hour, what should your invoice look like? When I started my own practice, I had the benefit of knowing what a sample invoice looked like, having reviewed many of the outgoing bills at my former firm. Since then, I've seen many other invoices: as a contract attorney for a federal agency (a part time position that I held in the early years of my practice), my responsibilities included evauating and ruling on fee petitions submitted by lawyers on behalf of clients who prevailed in litigation against the agency. And I've come across other fee petitions in researching caselaw for fee petitions that I've submitted on behalf of my own clients (which favorable results, I'm happy to report).

So while invoices are second nature to me, I realized that some lawyers, either those starting a practice from government, or those straight out of law school may not know what an invoice looks like. And because I believe that the best examples are those straight from real life, rather than create a "pretend invoice," I'm presenting a copy of this Fee Petition, one of several submitted by the attorney representing the defendant in Capitol Records v. Foster, who was sued for allegedly downloading copyrighted materials. Ultimately, in this decision, the court granted $68,685.23 of the $105,680.7 total amount sought. While recovering only sixty percent of a bill doesn't seem like much of a victory, chances are that the individual defendant in this matter could not have afforded more than a fraction of that bill. Plus, the court noted in its decision that once it had decided preliminarily to grant attorneys' fees, the defendants' activity stepped up considerably, thereby suggesting that some of the work may have been performed to run up the bill since the record company would be paying.

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Score By Using SCORE For Your Practice

This week, Duct Tape Marketing features a post about SCORE, a non-profit association dedicated to entrepreneur formation, growth and education. Among its many services, SCORE can match you up with a counselor who can help with your business plan or advise on other issues related to getting a business off the ground.

What most lawyers don't realize, however, is that they too can use SCORE as a resource for their practices. Two years ago, I posted on how solos can use SCORE, after receiving a tip from a reader who'd had a successful experience using the group. Though SCORE may not suit your specific needs, since it's a free service, you have nothing to lose by trying it out. And don't forget other resources, such as law practice management advisors (if your bar has one) who can also provide advice on starting a firm at no cost. After all, you've been paying bar dues long enough; might as well get your money's worth by using an LPM Advisor's services.

Don't Forget Conventional Media When Plugging Your Blog or Your Products

Michael Melcher, author of the The Creative Lawyer reminds us here of the huge impact that a mention in a
good old fashioned media source can have on blog traffic or book sales. Melcher reports that after his letter to the editor appeared in the New York Times, traffic to his blog increased substantially and his book sales jumped, placing him briefly at the atop the list of best selling law related books.

Incidentally, I've read through much of the Creative Lawyer so that I could review it here. But reading the book doesn't do the book justice; you've also got to do the exercises and complete the checklists to derive the full value, I think. I'm still working my way through some of those which has delayed my review. However, even now, I can say that Creative Lawyer will force you to rethink your practice and lead you to ideas to change it to achieve more satisfaction. With just eight weeks left until the end of 2007, you'd do well to purchase this book now and lay the foundation for making 2008 a more creative and personally satisfying year for your practice.

Billing Alternatives For Solos

Here's an article from the ABA Journal entitled Billing by the Slice, which offers some alternative billing ideas by and for solos. With "billing by the slice," lawyers bill for a case in stages - a practice used by Ted Waggoner of Rochester Indiana. From the article, Waggoner describes that:

he might tell a client that for a certain fee he will make calls and write letters to settle a case. If the case doesn't settle, he will conduct discovery for another set fee. If the case still doesn't settle after discovery and the client wishes to continue and file the lawsuit, a third specific fee will be due.

On the other hand, a new lawyer, Harsharn Makkar admits that she sometimes lowballs prices to bring cases in the door. But she derives value from these cases because "she learns about an area of law that will make her more efficient the next time she handles a similar issue."

Both Waggoner and Makkar say that what's most important to clients is knowing prices up front. When clients know how much it will cost, they're less likely to argue about the bill down the line.
And clients are less likely to argue about their bill if it's what they expected, he notes.

That's what makes flat fees or alternative billing options preferable to open ended cases where lawyers charge by the hour. And solo and small firm lawyers aren't the only ones who fall prey to clients who can't pay. Consider this lawsuit filed by Fulbright & Jaworski against its high profile client, Bernard Kerik. The firm ran up a bill of over $200,000 - fees which Kerik claims were unexpected and which he'd have avoided with a lower cost attorney had he known.

Many litigation attorneys complain that they can't set budgets for their cases because they have no control over opposing counsel. While I agree that it's difficult to account for every variable in litigation, that doens't mean that lawyers can't at least attempt to ballpark an estimate - or give a "not to exceed cap" (subject to change for legitimately unanticipated events). But setting those kinds of budgets takes work. For a look at some of the factors that go into setting a fee estimate in a litigation case, consider this resource, John Tothman's Devils Advocate Managing Legal Fees Guide. Tothman's resources are not frequently cited by most value billing proponents, perhaps because he advocates for clients seeking to trim bloated legal bills rather than lawyers looking for creative ways to increase revenues. But Tothman does endorse alternative billing strategies and he's clear that cheaper is not always better. Also, for additional intelligent discussion of alternative billing, check out Allison Shields' collection of posts at her Legal Ease Blog.

Wear Your Scarlet H Proudly

As I wrote in my upcoming book, back in 1993 when I started my law firm and worked primarily from home, I often felt as if I had a huge scarlet "H" emblazoned on my chest. Back then, I jumped through all kinds of hoops to prevent clients from discovering that I only had a virtual office and much of the time, worked from home.

But times have really changed. As Headquarters at Home and Proud to Be Moreover, there are advantages to home based businesses, There(9/27/07), fifty percent of businesses in the United States are run from home and business owners have grown more transparent about home based status. And with the advent of more home based businesses come opportunities to network and connect such as Start Up Nation's Home Based 100 rankings and resources as well as my friend Grant Griffiths' upcominghome office blogging network.

So for all you home office lawyers, go ahead and expose that big H - as in "Ha! - I actually get paid to say home!"

Building Relationships as a Way to Market

At my Legal Blogwatch beat, I posted here about marketing through building relationships with other lawyers and prospective and existing clients. As I discuss, one tool that is faciliating relationship building is Face Book - so maybe it's time that you got yourself an account.

The Problem With the Billable Hour...Or the Problem With Lawyers?

Novelist and lawyer Scott Turow takes aim at the billable hour in this provocative piece, The Billable Hour Must Die, featured as (of all places!) the cover story of this month's ABA Journal (more on the redesign in another post). Turow acknowleges the usual litany of criticisms of the billable hour: the toll that the billable hour takes on our lives and the inefficiencies created. But he also goes a step further, and makes the case that the billable hour is downright unethical because it creates a conflict between the lawyer's interest in earning more money and the client's interest in a reasonable fee and quick resolution of a matter. And Turow offers good evidence to support his case, pointing out:

More tellingly, who among us can say he or she has never accused the lawyer on the other side of "running the meter"--of doing unnecessary discovery, filing frivolous motions or foot-dragging before engaging in meaningful settlement talks--all to pad the fee. And that's not just to make excuses to the client. When we say it, we mean it. Looking at the lawyer on the other side of the v., we can see clearly how the temptation to earn more might impact a representation. If we can see the effects of the dollars-times-hours system so clearly when we look across the courtroom, how can we be so fully confident about ourselves?

While Turow's view on the billable hour is accurate, his diagnosis makes me wonder whether any nilling system can ever align the lawyer's interest and the clients if lawyers are most interested in maximizing profits rather than protecting their client's financial interest. In my own case, I have billed by the hour and I have billed through use of flat fees and alternate billing. Yet even billing by the hour, I've never once recommended that a client undertake an unnecessary task or use a more complicated process when a simpler one was available just to increase my bill. If lawyers are driven by maximizing revenue, then any system - be it the billable hour or alternative fees won't bring relief, because lawyers will simply find another way to squeeze more money out of clients.

Perhaps the better way to resolve the ethical problems that arise when lawyers bill clients is through reference to another ethical obligation that we lawyers have: our fiduciary duty to our clients. Basically, in a fiduciary relationship, our client's interests come before our own. Until lawyers start realizing that we owe special duties to our clients because of our fiduciary relationship, not to mention our ethical responsibility, there isn't a billing practice in the world that will produce reasonable and fair fees - and let us sleep guilt free at night.

Building an Innovative Law Firm: A How To With An Innovative Power Point

I haven't been checking in to Matt Homann's Non-Billable Hour site recently, which is a shame, because I nearly missed this amazing presentation on Building An Innovative Law Firm. Matt makes the presentation available using Slideshare, a very cool tool that I recommended back here back in February that allows you to embed a Power Point presentation at your website or blog.

Walmart v. Neiman Marcus Pricing for Legal Services

Over at my Legal Blog Watch Beat, I posted about the Walmart v. Nieman Marcus pricing dichotomy, initially described by Mike Sherman of Law for Profit. Now many of you have heard about this model before: basically, you have a choice between selling lots of legal services (volume practice) at a narrow profit margin or handle fewer cases with higher paying clients and larger profit margin. Clearly, the latter model makes sense; after all, why not work less and make more?

At the same time, because I'm a lawyer and part of a system whose very integrity depends on access to law, I wonder what's going to happen to all those clients who can only afford volume service. Services like We the People offer some hope, as do robust pro se programs. But frequently, the bar opposes expanding the scope of services that non-lawyers can provide because it vitiates lawyers' monopoly power.

We're at a cross roads where we can't have it both ways. If we solos want to focus on high end cases and earn more, then go for it! But as we do so, let's not stand in the way of options for those whom we've priced out of our markets.

Make a positive contact, write away!

Perhaps you've just started your firm, and you're already tiring of those "informational" interviews and "getting to know you lunches" with more experienced attorneys. Of course, you've met some jerks, but on the whole, they're all nice enough, incredibly supportive and genuinely interested in helping you out with advice and war stories. But at the end of the meeting or the lunch, you still come away empty handed, with no referrals, no offers of contract work and no idea of whether you've made a lasting impression or not.

Here's a thought that could make one of these meetings a win-win for both you and the other attorney. Consider this advice by Ari Kaplan, entitled
Summer Associates Can Write Their Way to Success (National Law Journal 6/19/07). Kaplan recommends that summer associates volunteer to co-author an article with a partner to distinguish themselves from the dozens of other eager colleagues. Why an article? Well, as Kaplan describes, it's tangible and lasts longer than a memo, but more importantly, it provides a huge benefit to the partner.

Though Ari gears his article towards summer associates, there's no reason why the same advice can't work for a newbie attorney looking to make a positive impression. For example, let's say that you're hoping to get overflow work from an employment law attorney? When you meet with the attorney, why not offer to co-author a quick article for a bar newsletter or local newspaper on a recent Supreme Court case or a list of how-to's or even a post for the lawyer's blog or an online publication. I'm not suggesting a scholarly piece that will consume hours of time, but just a quick piece that takes a couple of hours of time.

Of course, you'll have to do most of the work, with your "co-author" merely editing the piece. Still consider the benefits: the other attorney's credentials will make it easier to place your article in a more visible publication, you'll get your name in print and best of all - you'll be at the top of that attorney's referral list.

So why are you still reading...get in touch with some prospective co-authors and start writing!

A Tale of Two Lawyer Ratings Systems

Imagine a lawyer rating system that assigns lawyers different categories of grading and purports to provide an objective way to assess a lawyer and through "third party validation of ethics and legal ability provides that extra level of confidence that the right lawyer or firm has been selected." A ratings system that takes years of experience into account in issuing ratings and removes positive ratings where a lawyer has a negative disciplinary record. A ratings system that even generates enough profit to fund a fellowship. And a ratings system that includes some errors and omissions.

If you thought that the lawyer rating system that I just described would be the subject of class action lawsuits, you'd be wrong. But that rating system sure sounds like this one, which is the subject of a class action lawsuits. And indeed, many of the claims alleged in the class suit (which you can access here) would seem to apply to both ratings systems: such as complaints of arbitrariness of ratings or that the rating service makes deceptive and false representations that clients can rely on the ratings in choosing a lawyer.

So, one of these ratings systems is sued, while the other is not. And if you're wondering about the reasons for the differential treatment, I can think of at least one: consider the ratings of the class action's lead plaintiff by this ratings service and this one.

Note: for the record, I have criticized both ratings services for various reasons here and here and here. In my view, ratings systems aren't worth much because choosing a lawyer isn't like picking a restaurant or buying a house. So if we lawyers allow ratings system, we should explain that they're one of many, many factors in picking a lawyer. But more importantly, if we allow ratings systems, we must tolerate all systems; we shouldn't be able to pick and choose by filing class actions between those ratings systems that we want (because they grade us better) and those we don't.

What Judge Bork's Choice of PI Counsel Says About Lawyer Rankings like Avvo and Marketing

Over at some of the more conservatively inclined blogs, like Overlawyered, there's some interesting discussion over whether conservative judge and jilted Supreme Court nominee Robert Bork betrayed his conservative principles by suing the Yale Club for $1 million (both compensatory and punitive damages) for injuries sustained following Bork's fall from a dais a speaking event sponsored by the club. The discussion is interesting enough, but what captured my attention even more is Bork's choice of representation: Randy Mastro, a partner at Gibson, Dunn . Indeed, Bork's choice defies the advice of lawyer ranking systems like Avvo which advise clients to examine whether a lawyer has experience with cases similar to theirs. Mastro's firm bio doesn't indicate that he has any PI experience, and indeed, his Avvo rating is 6.5 (Apparently, the default ranking . Yet Bork chose Mastro anyway, which raises the question: Why?

The answer is easy. Because when clients choose lawyers, above all, they want someone who makes them feel comfortable, someone they know and believe they can rely on. I'm certain that Bork has some kind of relationship with Gibson, Dunn (through some kind of Ted Olson/former Solicitors' club affiliation, if nothing else). And even though Gibson, Dunn apparently has no experience bringing personal injury cases, Bork has enough confidence in their work that he must believe that they're up to the task.

So what does all of this mean for lawyer rating services like Avvo? That in spite of efforts to objectively rank lawyers, a lawyers' ranking is probably the last thing that a client cares about in making a hire. Clients will choose lawyers based on

their expressed opinions or as in the Bork case, a personal relationship. I've been hired for both reasons (my writings and personal recommendations) myself. In both cases, I wasn't necessarily the best lawyer for the job, but I was the right lawyer for the client. And at the end of the day, that's what matters - and what we can't lose sight of - when we market.

The Asking Bird Catches the Worm, er, Client

I'm not sure how I overlooked this gem that Dan Hull of What About Clients which asks why are lawyers so shy when it comes to asking for work.  In Hull's experience, his pitch to clients, which concludes with "we'd love to work with you.  How can I win or earn your business" typically wins raves because it's refreshing and direct.

Hull  concludes:

Is the careful, rational, polite, risk-averse "lawyer personality" to blame? I have no idea.....but I do know that business clients--whether or not they buy the image of the fire-breathing lawyer-AlphaHuman they see on television--expect lawyers to have the business instincts and the stones to ask for the work. So ask. Practice first if you must. Get a pitch and a strategy for each meeting. Don't wait until 30 minutes goes by or the table is cleared. Ask.

That's great advice, because after all, the worst the client can do is say no.

How Doing Good Can Help You Do Well

Many solos who'd like to perform more pro bono work can't do so for lack of time.  So why not multi-task, and make pro bono work part of your marketing activities portfolio?  Consider the example of lawyers profiled in this article, Creating a nonprofit helps others - and doesn't hurt business either (ABA Journal, April 2007), such as Anthony Hayes who created the non-profit organization Wills for Heroes (which provides no-cost estate planning documents for police, firefighters and emergency workers) or Wynnia Kerr who set up an animal adoption shelter in Seattle.  In setting up these organizations, Hayes and Kerr simply wanted to help their respective communities, but their groups have expanded beyond their wildest dreams.  And through their role as founders, Hayes and Kerr have gained positive visibility and developed contacts with other lawyers who have participated in their organizations.  And eventually, these connections and publicity can potentially lead to referrals or generate clients. 

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See your name up in lights

I don't attract any business through signs or billboards, but I found this story neat. This blurb from the New York Times (4/3/07) reports on a dentist who put her name up in lights. From the story:

This was about 18 months ago, after Dr. Correa had opened an office above a McDonald's, overlooking what was then the TKTS discount ticket booth in Duffy Square. She simply had a sign installed in one of the two windows in her office that faces Broadway. The sign cost $3,500, which is -- what? Three root canals? Now her message crawls by in not-so-little letters, about 20 words every 20 seconds, not counting her address and telephone number. The address -- 165 West 46th Street -- is necessary because the building is also known as 1560 Broadway. But the entrance is around the corner.
How many patients has the sign brought in? A dozen? "More," she said. "When the TKTS booth was there, there was a lady from Korea with a toothache. She got her tickets and came up here. She had very large decay. I wanted to do a root canal, save her tooth, but she was traveling and said, 'Just pull the tooth.' " She has patients who reported seeing the sign on New Year's Eve (when she was in the office, watching the ball drop). She has patients who work in Times Square, including one from Rudolph W. Giuliani's office.

Wouldn't you love to see your name up in lights?

How Not To Price

Over at Legal Blogwatch, I posted about a case of outrageous billing by Debra Opri, attorney to Larry Birkhead, who claims to be father to Anna Nicole Smith's daughter. Exhorbitant charges included thousand dollar dinners where Birkhead wasn't present, substantial cell phone roaming charges and even expenses for personal laundry. The 112 page invoice totaled more than $600,000. Take a look at my Blogwatch post for more commentary.

Introductions Matter In Marketing, And Why Women Can Do Better Introducing Themselves

Lawyer Mama, a 30 something female law firm attorney, expresses her exasperation when an older male to whom she's introduced by her boss (a firm partner) mistakes her for a secretary. While Lawyer Mama's wrath is justified, she also unfairly directs her anger. As I see it, manner in which Partner introduced Lawyer Mama caused the confusion to begin with.

As Lawyer Mama describes, she attended a networking event with a Partner with whom she works closely. After the lunch, the Partner took the opportunity to introduce Lawyer Mama to others at the event, at which point the offending incident took place.

As we were making our way through the crowd, Partner introduced me to several industry players. Everyone seemed pleased to meet me and, while no one ever looks forward to needing to consult their lawyers, I am sure that I will be working with some of them in the future. Then Partner introduced me to an Older Gentleman who placed himself in our path. Partner made some flattering comment about how I generally "keep him out of trouble." Polite chuckling ensued and then Older Gentleman proclaimed that he could use someone like that because he could never "remember how to work that pesky teleconference feature on his phone."

Seems to me that the Older Gentleman's reaction flowed from the Partner's introduction of Lawyer Mama as someone who "keeps him out of trouble." Come on - what kind of an introduction is that? Personally, I've always thought that lawyers make those kinds of remarks either are either engaging in false self-deprecation or trying to make themselves look good for respecting "the help." When I introduce the younger attorneys whom I've mentored or hired for contract assignments, I always try to mention some attribute of theirs that will make them attractive to a potential client or stimulate additional conversation.

Why didn't Partner say "This is Lawyer Mama, our firm expert on XYZ" or "This is Lawyer Mama who has taken the lead on developing our ABC practice from the ground up." Had Partner introduced Lawyer Mama that way, her status would have been clear from the beginning and the confusion that she gripes about would not have ensued. Moreover, Partner might have helped generate more business for his firm by mentioning matters that Lawyer Mama handles that would interest prospective clients.

Lawyer Mama's complaints also remind me of why women in solo practice rarely suffer these same indignities. When you introduce yourself as "I'm Ms. X, and I'm a lawyer with my own law firm" you tend to make your status crystal clear right from the beginning. I realize that women working at law firms can't claim ownership of a firm, but they can claim ownership of the work they handle at their firm.

There are lots of Older Gentleman types still out there in the world. You can complain about their neanderthal attitudes, but you can't avoid them. Nor would you want to, because some might eventually become clients. But what you can change is the way you present yourself to the world. So why not eliminate any confusion about your status at the outset and introduce yourself the way that you want others to remember you?

Cold Calling Works

I've always been a fan of the cold call ever since I started my practice back in 1993. Not a fan of making the calls, because I'm not fond of doing it, but rather, a fan of the returns that cold calls can bring. Of course, like many of the techniques I write about here, I don't endorse them unless I've applied them myself. And indeed, I have cold called for a variety of reasons ranging from seeking advice from other energy lawyers when I started my firm, as I described here or attempting to drum up business, as I wrote in this short piece, Pick Up the Phone and Make Yourself A Better Lawyer . And I wrote a chapter on Cold Calling for the ABA Book,
How to Capture and Keep Clients
.

So naturally, I was gratified to read that marketing guru Larry Bodine report that cold calling works; it is second only to referrals as the number one lead generation. Bodine also addresses why so many lawyers dislike cold calling. The study found that "people are doing cold calls the wrong way: the purpose of a cold call is to set a meeting to introduce yourself, and to learn about the prospect... not to go into a detailed sales pitch. Another expert who knows about cold calls is Rjon Robbins, who offers these resources.

As for me, as I said at the outset, I don't like making cold calls, though with the passage of time, I've toughened myself to rejection. But, as I've said in all my writings, if you can't sell yourself as a lawyer, how can you sell your client's case?

Update (3/19/07) - Somehow, in writing this post, I overlooked Chuck Newton's excellent post on the same topic.

A Cool Marketing Idea from Sharmil McKee: The Harpers Index

I've always enjoyed the Harpers Index and its ability to convey so much information in so few words.  So that's probably why I was so impressed with Philadelphia based attorney Sharmil McKee's marketing sheet entitled Interesting Facts About Sharmil McKee.  In contrast to a lengthy firm resume, the fact sheet offers just the facts such as number of clients served, average dollar value of transactions, number of transactions handled by Attorney McKee.  It's a persuasive and attractively packaged document that answers all of the questions that you'd want a prospective client to ask.

Other advantages of the fact sheet:  you don't need to include dates which might reveal lack of experience (for example, you may have only practiced for 6 months directly out of law school) or too much experience (you may have been working as an attorney for 30 years but just started a practice and haven't had much experience in a new field).  And, you don't need to specify where you acquired the experience.  So, for example, in my case, if I were to list "number of federal circuit court appeals briefed and/or argued," I could claim around 38 (even though only 2/3 of those have been at my own practice, while the others have been with other attorneys or firms).   

I'm going to prepare a fact sheet for my practice.  How about the rest of you?
 
Editor's Note:  you have a really neat practice idea that you've not seen used elsewhere and that you'd like me to write up at MyShingle, just drop me a line at carolyn.elefant@gmail.com and I'll try to post it here.

Second Life for Marketing

In this post at Legal Blogwatch, I highlighted this article, Fantasy Life, Real Law from the ABA Journal (March 2007) on how lawyers are using the virtual community Second Life.  While some lawyers have set up virtual offices on Second Life, others use the site to make connections with real world clients. 

As I wrote in my post, the bar grievance committees are still trying to wrap their brains around how ethics apply in a virtual world.  But as lawyers turn to Second Life for business, I have no doubt that the bars will find a way to issue real sanctions for lawyers' conduct in a virtual world.

Real Life Marketing and Client Service Lessons, Courtesy of Jet Blue

Even after practicing law for 18 years, underneath my general air of confidence and my excess precaution with much of what I do lies a deep fear that at any minute, I could screw up in a major, big time way.  But now, courtesy of Jet Blue, there's a lesson from the school of real life marketing on how to you can begin to deal with the fallout from those inevitable gaffes (or not).

This article, Jet Blue's Survival School offers a run down on some of whatJet Blue's done right since everything went so terribly wrong with its Valentines' Day Meltdown.  Most significantly, Jet Blue's CEO, David Neeleman has stepped up to the plate to take responsibility and apologize:

But rather than hide behind his desk and speak through a flunky, Neeleman stepped up. He assessed the situation early on and spoke to the press. He explained exactly what went wrong and apologized. He said he felt "mortified" and "humiliated." That culminated Tuesday when he appeared on CNN's American Morning, Today, Fox and Friends and Squawk Box before most people arrived at work. He's been so visible, appearing live on so many media outlets, that it's a quasi-miracle he's been able to traverse New York City traffic to make the appointments.

I've read that good bedside matter often spares doctors, and other professionals from malpractice.  So Neeleman's apology, as well as the compensation (free flights and refunds) and a Passenger Bill of Rights put him on the right track to making amends.  Still, Jet Blue's efforts may not suffice to win back the affections of customers such as the one who started the blog, Jet Blue Hostage and has collected at least 150 stories from other passengers seriously inconvenienced by Jet Blue. 

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Whose Blog Is It Anyway?

My blogging buddy, Chuck Newton recently posted on the latest  brawl between Greatest American Lawyer and his former firm.  Seems that GAL's firm is suing him a second time, this time for rights to GAL's blogs, which the firm claims it would have developed itself. Newton doesn't think the firm's suit against GAL will fly, in large part because GAL has been blogging anonymously and that his blog was essentially personal.  But as Newton points out, and I agree, the case raises the significant question, that GAL analyzes about who owns the rights to your blog.  And if today's trends of law firm to blogging to solo practice or law firm to blogging to book or online magazine deal continue, the issue of blog ownership matters more than ever.

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What Do You Do If Your Clients Want to Lead A Revolution? Join Them, Of Course!

Over at my Legal Blogwatch beat, I wrote about Cisco GC Mark Chandler's speech taking big law firms to task for their "guild" mentality and lack of responsiveness to clients.  You ought to read the whole post, which excerpts the speech, but Chandler argues that companies like his are concerned about legal costs, want fixed fees and access to information without having to pay someone to find it. 

You may think that if you represent consumers, that Chandler's speech doesn't apply.  But it does, even more so.  Consumers are becoming increasingly sophisticated.  Many want information about their case provided regularly, and expect that lawyers have the technology to provide it at no cost.  (Grant Griffiths and Greatest American Lawyer both recognize that, and they've each implemented Base Camp to facilitate client access to information).  And as David Giacalone points out here at Shlep (self help law express), as technology increases, more and more clients may start taking matters into their own hands. 

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What Solos Earn

I came across this Salary Chart for Solo Practitioners, updated as of January 21, 2007.  I can't say that it's all that scientific, since it sampled 244 respondents.  But for what it is worth, according to the chart, median salary for a solo 1-4 years out is $50k, 5-9 years, $80k, 10-19 years - 82k and 20 years or more, $110,000.  Not surprisingly, salaries vary by city, where Houston solos earn $100k, and and Atlanta solos down at $50k (it's not clear how experienced the solos in each city were).  As for practice area, all seem very close n range; family law is on the low end with a median of $55k, most others up around $75k.

The chart corroborates a couple of observations I've had about solos and salary.  First, for newbie lawyers (under 5 years out of school) who don't have the $160k large firm option, solo practice either matches or exceeds the salaries that these lawyers would earn at a small firm or working for a prosecutor or public defender.  Farther down the line, solo practice continues to match earnings at other alternative employment until leveling off at around the 10 year mark.  At that point, I think solos have a choice if they want to increase earnings:  either diversify their business model to take on alternative fee or contingency cases, or outsource or hire an associate, and earn a profit off that person's work. 

As for large firm attorneys, the comparison is obviously different.  Initially, you may take a pay cut moving from a large firm to solo practice, unless you can take one or two "anchor clients" who can guarantee a decent baseload income.  At the same time, you gain more flexibility over your schedule and more hands on experience.  And though you'll still work hard, you'll likely work less than the regular 60-70 hours that large firm associates put in on a regular basis.   And over time, having a "biglaw" specialty will give a larger payout in the future.  You may not regularly match the salary of a biglaw rainmaker/partner, but you can certainly earn 4-5 times what the average solo does.

The ROI of Blogging

Over at my Legal Blogwatch beat, I posted about measuring the ROI of blogging.  Specifically, should lawyers attempt to quantify the value of blogging in dollars and cents, or evaluate the benefits of blogging in the same way that we evaluate the benefits of other marketing techniques like dining with clients or networking.  Let me know what you think.

Will Video Kill the Blogging Stars?

I always loved this song, Video Killed the Radio Star.  But I never thought I might be witness a paraphrased version of it someday. Specifically, is video going to kill the "blogging stars" - and maybe even the "lawyer stars?"

Consider this trend.  Lawyer bloggers  Imke Ratchko of  New York Small Business Law and Nicole Black of Sui Generis have stepped way, way out in front of others, with video greetings on their blog.  (I tried my own shaky little video experiment but here, but have yet to add one permanently as Imke and Niki have done).  The greetings are short, but they give us information about each blogger looks and sounds, and even what their personality is like.  They're a way for each blogger to step off the page and outside the screen and introduce themselves to the world.  If, as blogger Craig Williams said, blogs are a handshake to the world, then video greetings are a huge embrace.  And though some might say that an embrace isn't appropriate in the business setting, technology hasn't replaced our humanity.  Quite simply, people crave the human touch, we still remain intensely curious about how others look and sound, indeed, even more so after we've read what they've written. And in a world that's become increasingly one dimensional, as we conduct many transactions remotely by email, the video blog captivates our attention and satisfies our curiosity.

According to reports like this, YouTube will play a huge role in the upcoming 2008 elections, and indeed, had some impact in 2006.  And it's going to be a huge marketing tool for lawyers, because the more information that we can share with our clients, the more likely we are to be hired.  So follow our leaders, Imke Ratschko and Nicole Black into this brave, new visual world while it's still wide open.  And I'm looking forward to seeing all of you (at least virtually) on the web this year!

Good News for Solo and Small Firm Estates Lawyers?

It's not clear whether it's too soon to call this a trend, but Joel Schoenmeyer at the Death and Taxes blog notes that at least one large firm, Chicago-based Sonnenschein has decided to get rid of its estates group.  Shoenmeyer writes:

I wouldn't be surprised at all to see other big law firms start to follow suit (an exception might be firms like McDermott, which are built around their estate planning and probate practices). I enjoyed my experience at Sidley & Austin, but it was clear that the estate planning department generally was treated as second class citizens. My understanding is that compensation for estate planning partners is lower than for litigators and corporate attorneys. I suspect this is true at a number of big firms, many of which view estate planning as a "service group" (there to provide support to other groups, or planning to the firm's attorneys).

Schoenmeyer writes that part of this is money - estate planning, even the largest matters, don't generate the same million dollars in fees as do large corporate clients. 
It may be that big firms don't need estate planning groups.  But at this point, it doesn't matter, suggests Schoenmeyer, because "good estate planners don't need big firms either."  Trusts and estates boutiques are likely to be the wave of the future.

Real Life Marketing Lessons

I come from a long tradition of hands on learning.  Back when I was around 8 years old, my dad, who's a chemist, would let my younger sisters and I loose in his lab on the weekend, where, unsupervised, we'd mix up solutions with "HCl" (hydrochloric acid), phenolthaline and other chemicals and watching them turn pretty colors.  It wasn't until I took Chemistry, and then AP Chemistry years later that I understood the process behind the "potion making" that I'd engaged in long ago (and only then that I learned that HCl can be kind of dangerous, depending upon the concentration). Now that I'm a parent, I try the same techniques with my daughters too.  I've let them go crazy with the baking soda and vinegar and menthos and diet coke in the back yard, learn fractions through baking and math by counting change at the grocery store. 

Today, as a lawyer, I recognize that there are plenty of marketing lessons all around us, examples of what makes for good and bad selling that we can extend to our practice.  I've shared a real life marketing lesson at least once before, and now, I see that blogger,Jay Fleischman has done the same here.  Fleischman writes about an enterprising delivery man who marketed his service by handing out business cards outside a shuttle bus that home furnishings company IKEA runs from New York to its Elizabeth, New Jersey store.  Fleischman offers some ways that the delivery man could polish up his act (a nicer shirt, a business card with a photo of his delivery truck, and more) to generate even more business.  And Jay argues those changes, which seem superficial, can make a big impact on clients as well.

Sometimes Price Matters - And So What If It Does?

Believe me, as a solo who competes frequently with large firms for clients, I'd love, love, love to buy the arguments made by my blogging colleagues, Chuck Newton and Tom Collins that small firms don't need to, and shouldn't have to compete on price (Chuck's post is here, Tom's post is here).  And perhaps that's true in some cases.  For example, if you're dealing with a multi million dollar company involved in a multi million dollar deal, whether you charge $300 an hour or $450 an hour doesn't matter much in the greater scheme of things. But that's nice work if you can get it, and many solos and small firms can't.  Instead, many of us target that niche of clients who can't quite afford biglaw, but at the same time, aren't destitute.  For those companies, saving $50,000 or even $25,000 on legal fees can make a difference.  And we solos and small firms can capture those clients without it making a dent in our bottom line, because of our lower overhead.

In addition, while it's nice to hear from lawyers who say that price doesn't matter, I'm more interested in what clients say about price and small firms.  Consider this article at law.com about why clients hire solo and small employment lawyers.  At least two of the lawyers quoted in the article cited "cost efficiency" and low price as one of the reasons why they preferred their small firm employment lawyers.  Sure, other things mattered, like knowledge and quick turn around.  But price was also cited as a factor.  Similarly, consider this year old post by Larry Bodine about the trend towards "pinpointing," where firms seek out smaller firms in other cities to handle litigation rather than relying on their biglaw attorneys in major urban centers.  Obviously, cost is a factor in those cases as well.

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Bill Less and Prosper!

Yeah, yeah, I know - it's not about price, it's about value; talk about price and you'll forever be haggling over cost with your clients.  I buy all of that...and yet, sometimes, clients do measure value in terms of price.  Let's be honest - aren't there matters where clients would hire a 700 person law firm instead of you if they could afford it?  I'm not saying that's true for all cases (for example, for most day to day business matters, a small firm is always preferable).  But let's face it - look at how many dotcom companies went with large firms like Wilson, Sonsini and the former Brobeck, Phleger instead of small fry because they provided legal service for free or at cut rates in exchange for a stake in the company.

In any event, this is all a set up for the main point of this post, which is this nifty tool for selling your fees and your value, all in one shot.  The tool is AmLaw's recent chart showing associate billing rates by class for a number of geographic markets.  According to the chart, associate rates in New York range from around $260/hr for a first year up to $425-$485 for an eighth year.  Rates don't go nearly as high in Buffalo, where the $130/hr billing rate for a first year and the $210 rate for an eighth year are just half of those in the downstate, metro New York market.

So how does all of this help solos and small firms?  First, if you're a Boston area solo or small firm competing for business with biglaw, the chart can help you set your rates.  For example, if you've got a decade of experience, you don't want to charge much less than $275 an hour, the going rate for a first year at a large firm.  And if you set your rates at $350, you can argue that you're worth it, because you've got double the experience of a 5th year who bills at $485. 

The comparison works even better for flat fees and "value billing charges."  Say you decide to charge a flat fee of $18,000 for an appeal that you predict will take you 40 hours to research, brief and argue at your most efficient.  That's around $450 an hour, $360 even if you take 10 hours more than planned.  Moreover, a $18k appeal is a pretty good deal for a company.   Now, let's take that same appeal to the big Boston law firm.  Figure 30 hours for the 5th year associate to reseach and draft the brief ($14,550 at $485/hr), with 15 hours research and proofing assistance from the first year ($4125 at $275/hr).  But then once the briefs have been filed, we can assume that an upper level partner will argue the case, so he or she will need at least a conservative 8 hours of review and prep at $600/hour.  Suddenly, that appeal is up to $23,475, $5k above what you've offered, not to mention better value, since when you argue the case, you'll have the benefit of having done the research yourself.

So take this chart and laminate it, and stick in it your desk drawer for the next time you draw up a fee proposal.  And to paraphrase Mr. Spock, bill less and prosper!

The Best Reason Not To Believe The "Experts"

Over at Lex Blog, Kevin O'Keefe posts about some of the negative reaction to his earlier discussion about how younger lawyers are using MySpace for advertising.  Seems that some marketing experts don't find MySpace a sufficiently dignified or suitable marketing tool.

While I find much value in the advice that practice management advisors and experts have to offer and indeed, follow much of that advice, I never take it as gospel.  Because for every rule, there's an exception, for behind every exception there's an amazing success story.

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Trends for Solos

Robert Denney has an article in this month's Oct/Nov '06 issue of  Law Practice Management on What's Cooking for Solos and Small Firms.  At least one the trends is kind of old news to me, such as the move towards specialization, though in rural areas, clients seem to want and need the old-fashioned "country lawyer" who has a diverse practice and can serve as "one stop shopping" for the client's legal needs.  Solos, however, who specialize, are offering one stop shopping as well by affiliating with other specialized lawyers. 

As for trends, standbys like estate planning, divorce and criminal remain hot, with elder law and immigration law growing in popularity.  Consumer bankruptcy has cooled because of reforms, as had medical malpractice, because of tort reform.   

And there's good news for lawyers who want to pursue traditional biglaw practice areas:

Because of Sarbanes-Oxley and other potential conflicts, the lawyers in large firms no longer serve on the boards of publicly held companies. Recently, however, there seems to be an increase in solos and small firm lawyers sitting on the boards of privately held companies. And not only are these lawyers serving, in effect, as "in-house" legal counsel, they are also serving as trusted business advisors.

More On Fee Setting from Legal Ease Blog

Allison Shields of Legal Ease has started a series on how to set fees, with these two posts here and here.  Shields spends a good deal of time describing how lawyers examine a case up front in detail, so that you can figure out how to assign a fee.  And her advice garners compliments from Michelle Golden at Golden Practices who writes that Shields' approach enables clients to count on a fairly well defined price, phase by phase.

Is preparing a fee estimate a radical idea?  Is it true that most lawyers don't evaluate a case in advance or give client estimates?  I've been giving clients estimates for thirteen years in my own practice, primarily because I learned it from the lawyers at my former firm.  If this technique is new to lawyers, than I've learned something from Shields and Golden that I'd rather not know.

Make More With Flat Fees

Here's a story from CNNMoney.com/Fortune Small Business (10/25/06) on how one Portland, Oregon law firm, Ambrose Law Group bolstered its revenues by a whopping 85 percent, after participating in Fortune Small Business' Money Makeover Program and converting from the billable hour to flat fee arrangements.  From the article:

"Flat-fee billing is better for clients and better for us," he says. "Clients value the certainty of knowing up-front what their legal work will cost...For common items like document preparation and filings, there's been very little resistance to the idea." The firm still bills by the hour for most of its complex litigation work. "It's hard to predict how much time a big case will take," says Ambrose.

But the firm has started charging flat fees for tasks such as taking depositions and filing complaints. Revenues at the firm were up 85 percent over the first eight months of this year vs. 2005, according to Ambrose COO Jan Alexander. Staff turnover allowed Ambrose to hire more productive attorneys. But Alexander says that flat-fee pricing deserves a lot of the credit.

I wish that the article had provided more detail on the difference in cost between flat fees and billable hours.  It's not clear whether the flat fees enabled the firm to attract more business (thus accounting for more revenues) or whether flat fees in essence, enabled lawyers to collect more per hour (e.g., instead of charging $250 an hour for a 2 hour deposition or $500 total, lawyers would charge a flat fee of $1000 for every deposition regardless of length).  Or does the flat fee encourage lawyers to work more efficiently, so that work cycles through more quickly? 

I use flat fees wherever possible, since my clients don't ever dispute the amount owed and always have enough budgeted for the flat fee, since it's a fixed, rather than moving target.  For that reason, solos ought to consider using flat fees, even if your flat fee is nothing more than a firm prediction of your hourly costs. 

What's your experience with flat fees?  And how do you set them?  Do you pick a number out of the air - or do you tie the fee to your predicted costs?  Please enlighten me and my readers, below.

Do We Really Need OLM (OnLine Marketing) With Blogs?

This article, The Future of Client Acquisition, Ed Collar (October 6, 2006) extolls the virtues of OLM - online legal match services.  Trouble is, the article is probably 5 years out of date.  In my view, opportunity for legal match services has already come and gone, replaced instead by more sophisticated technology users who can find attorneys through Google ads or blog visibility.

Collar writes that that the $173 billion OLM industry has been around since 1999 and that:

Clients immediately embraced this useful electronically enabled innovation but attorneys were reluctant, and were a tad skeptical about replacing their traditional forms of client acquisition with the uncertainties of the Internet.

Today, these attorneys have a bit of a different attitude. With the proliferation of the Internet and as bar associations in state after state issue opinions (overwhelmingly coming to the conclusion that, when done within reasonable guidelines, online legal matching doesn't violate lawyers' ethics on garnering clients), lawyers and law firms from Albuquerque, N.M. to Yonkers, N.Y., from Portland, Maine, to Portland, Ore., are meeting with their accountants and running "cost-of-client-acquisition" numbers with a new variable inserted -- using intelligent e-commerce as a strategy.

And, perhaps more important: Millions of average people looking to hire a lawyer have found this new online avenue, and it's quickly becoming quite fashionable.

I don't buy this analysis.  First, the reason that many lawyers hesitated to participate in OLM was the cost.  Many online services hoped to build their success on the backs of lawyers, who were required to front considerable costs - sometimes as much as $15,000 a year - to gain a listing in an OLM service.  And the companies rarely offered guarantees, which meant that if you'd lose a sizeable chunk of change if your participation didn't yield clients.  In response, the OLM services contended that they could not charge on a "contingency" basis, i.e., where lawyers would not pay up front, but instead, OLM would collect a percentage of any fees generated through the service.  OLM said that the the bars (who else?!) considered this type of arrangement unlawful fee splitting, though truth be told, bar referral services frequently take a cut of cases referred to attorneys.  Moreover, there's nothing wrong with fee splitting if disclosed to the client up front.

And that's the real rub; though Collar makes a big issues of how the bars have come around on OLM services, they've only come around on the issues that don't matter anyway.  What we really need from the bars to make OLM work (or at least make OLM claims transparent) are rulings that cost sharing between OLM and lawyers is permissible.  If OLM could have implemented cost share programs,  it would have attracted more lawyers and the programs would have grown much more rapidly.  And, if despite bar rulings allowing cost sharing, OLM programs still required hefty sums from lawyers up front, the OLM companies' true motives (financing themselves through lawyers) would have been clear up front.

In my mind, that's the reason why OLM never took off: because cutting edge lawyers taking advantage of the internet were doing so precisely to save money, and were not willing to buy into a costly service with no assurance of results.  And in a fast moving internet world, when something doesn't work, another superior method generally comes along.  Here, that replacement is blogging.  Blogging gives lawyers visibility and an opportunity to strut their substantive stuff.  As the public grows more comfortable with the Internet, they're going to run google searches to find lawyers, rather than visit a "middle man" OLM site.  And because OLM doesn't offer a fraction of the search engine visibility that blogs do, lawyers will again question whether it's worth while to make a considerable investment in OLM.

Don't get me wrong - I'd love to see OLM services succeed, because online referrals give clients yet another option for finding a lawyer. But the way I see the OLM market going, unless the bars change their position on cost sharing between OLM services and lawyers such that OLM services reach a reasonable price point, OLM will simply become another expensive advertising tool for personal injury firms (like the yellow pages and television) while other lawyers, will generate clients from their blogs and websites.  What a waste of a potentially useful technologies.

Ideas for Standing Out from the Crowd

On most of the listserves that I'm on, new lawyers ask questions about how a particular marketing technique has worked for another attorney.  And while it's great to learn from what others have done and take approaches that have been successful, sometimes, you need to go out on a limb and do something completely revolutionary.  That's what some of the lawyers in this article by Ari Kaplan, How to Stand Out from the Crowd (Small Firm Business 9/21/06) have done or tried to do.

 You'll probably recognize some of the ideas in Kaplan's article, such as creating a website or blog to market a niche practice.  Other strategies, however, have been used less, such as Kathleen Hopkins' idea of branding her firm the Real Property Law Group rather than using individual names, advertising yourself as "your lawyer friend indeed," as does Steven Goldstein, a New York criminal defense attorney or arranging  panel discussions on hot topics that may draw  hundreds of participants, as does Stacey Gray, a  business attorney in New York and occassional court TV commentator.

So don't feel that you always have to reinvent the wheel, but at the same time, think about trying what's never been done before.  You have nothing to lose, except your anonymity.

Make MySpace Your Space

One of the keys to successful marketing is to find yourself a place which hasn't been saturated by lawyers.  Thus far, MySpace is one of those spaces and as Kevin O'Keefe of Lex Blog reports, that's why it's been a successful marketing spot for 28 year old lawyer Anicia Ogonsky, otherwise known as legallyblondepa.  In fact, since Ogonsky set up her MySpace site, she's been interviewed on the radio, been the subject of this article in the Pittsburgh Tribune Review and had ten responses to an online client intake form.  What's more, at sites like MySpace, Ogonsky can market her blondeness, her youth and enthusiasm - which brand her and set her apart from what she calls "the scary lawyers in dark suits."

MySpace won't work for everyone.  But perhaps it's sufficiently out there that it will set you apart from the competition.

Waiting 14 Years for the Call

Most of us know that it can take several months for a marketing connection to pan out.  This is a post about one that was 14 years in the making.  I write this story not to discourage those of you who need your leads to pop now, but rather to make the point that solo practice is one long connected journey and you never know whether or when the seeds you scatter today will finally bear fruit.  Read on for details....

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You Get the Clients You Market For

Via Ernie the Attorney comes this link to a provocative You Tube ad by Florida divorce attorney Steve Miller (posted at Denise Howell's new fun blog).  After insulting paralegals, overpriced downtown lawyers and court clerks, Miller invites clients who want to escape "the hellhole they call a marriage" to visit his website, pay up and "get on your way to getting rid of that vermin you call a spouse."

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Great Advertising for Small Firms

If you want to sell a small business on using your small firm instead of a large, impersonal firm, I can think of no better marketing than this post from Ed Wesemann who describes, bluntly, what small clients really mean to big firms.

How Continuing Legal Education Can Continue To Help You Make Money?

The problem with having less time to write blog posts also means that I have less time to read them.  Which is a shame, because in just a few days off the aggregator, I miss so much, including the recent, terrific string of postings by Peter Olson of Solo in Chicago.  One neat idea that he offered a few weeks back is to use CLE as a profit center
Olson writes:

[CLE] might be a profit center for you. I honestly don't know but it must not be that difficult to get certified by the Supreme Court to qualify. I just got a mailing for a family law seminar put on by former ISBA President Bob Downs, Joseph Gitlin and a handful of others coming up.  Not to be too cynical, but why should any of the fairly prominant lawyers in various practice areas speak for any of the bar association CLEs at this point when they can just form a small business of their own and profit from it?

The reason that Olson's idea is so ingenious is that by offering CLE, you're essentially paid to market.  You collect revenue from teaching the CLE courses, but you also get yourself in front of other lawyers who might refer cases to you and establish yourself as an expert in the field.  Why lose revenue marketing when with something like CLE, you can get paid for it?

Client Service and More on Niches

I realize that my posts have been sparse over the past month.   The slow postings are explained by a couple of factors: my day job as a practicing solo has been fairly busy lately, a project that I'm close to finishing that I believe will greatly benefit MyShingle readers and my divided loyalties now that I'm blogging with Bob Ambrogi at Legal Blog Watch (I'm also on a partial  vacation at the beach right now)

So, even though I'm not able to write a stand alone post, let me refer you to recent Legal Blogwatch posts of interest to MyShingle readers.  First, if you want to learn more about the importance of client service and how to integrate client service into your practice, take a look at this post, Serve Your Legal Career by Serving Your Clients.  And for more on ways that finding a niche can help build your practice (which I've posted on previously here and here), see my post on Advice for Law Firms Who Want to Be Something to Everybody.

I'll be back with more regular postings by the end of the month for sure.  In the meantime, I welcome guest posts from other solos about your experience, advice you want to share - or from other lawyers about your perception of solo and small firm lawyers.  Just drop me an email at carolyn.elefant@gmail.com.  

Flat Fees Are Fine, But Lawyers Can't Have It Both Ways

Like Chris Marston of Inside the Future of the Law Firm who raves about the benefits of fixed pricing, I'm also a fan of the flat fee or fixed price.  Chris focuses on how fixed pricing provides certainty to clients, but from my perspective, it makes my life much easier when I don't have to send out piddly monthly invoices for 2.55 hours of work. 

Chris notes that most lawyers' opposition to fixed billing comes from concerns that they'll underestimate costs and lose money on the case.  In response, Chris argues that lawyers ought to think about a budget before signing clients on and if they do that, the fixed price model should work.  And, as John Toothman, a lawyer and legal fee management consultant writes, it's  not any more difficult for lawyers to estimate fees than construction contractors:

Compared with this array of uncertainties [that contractors face], the cost of most legal projects is much easier to estimate ever hear of a will being rained out? In litigation or negotiation, where adversaries or judges can disrupt one side's plans, there are still plenty of ways to estimate the likelihood of such disruptions and to plan with their likely impact in mind. Lawyers' excuses that they have no way to predict what will happen indicate that they are either inexperienced or evasive. If all else fails, the lawyer can at least disclose how much similar cases have cost. This creates a dilemma for the law firm: Do they disclose just how expensive all those cases were or do they try to distinguish all of them as being different, thereby proving that they have no relevant experience?

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Can Small Fry Catch Big Clients? That's My Shingle's Raison d'Etre

Over at What About Clients?, Dan Hull wonders whether a  how to marketing seminar on how small firms can snag big clients would catch on?  Of course, Hull knows the answer to that.  He writes: 

GCs are now smarter and bolder. Smaller firms can and do land and serve top clients. At top rates, too. It's about service, not price. No point not getting rich just because you start a new, smaller and more client-centric firm. Keep your high rate; savor your lower overhead, if you can achieve one. You deserve it. So a serious course on getting (okay, stealing) and keeping high-end clients (Fortune 500 companies and large Asian and European companies) might actually fly.

The one place where I take issue with Dan's idea is his proposed title - "Stealing and Keeping Biglaw Clients."  I don't think solos need to antagonize large firms, because there are situations where large firms may refer solos and small firms lucrative clients.

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Cool marketing lessons from an Ivy League drug lawyer and an offbeat U-tube commercial

From brainy Professor Bainbridge's blog, of all places, I learned about the coolest, most expertly executed marketing idea I've seen in a while:  a You Tube video by California criminal attorney Allison Margolin.  Why does the video work?  Several reasons.  First, the video gives Ms. Margolin's potential clients an opportunity to see what's she's like - at the office and also in front of the court house.  Second, Ms. Margolin discusses her philosophical objections to criminalizing drugs, particularly for therapeutic uses.  So clients can see that Margolin believes in what they're doing and isn't just interested in defending clients charged with drug crimes for the money or because of the constitutional issues potentially raised.   Third, even though Margolin is young, putting her at a disadvantage against more seasoned practitioners, she's got something many of them don't:  an Ivy league education and a Harvard Law degree, which she displays prominently in the video and apparently, in her other marketing materials.  As I've often said, anyone from any school can succeed as a solo, but if you've got a unique credential like a law degree from a top school, why not flaunt it?   

Is anyone out there getting ready to pull out the video camera yet?

Help, I forgot my business cards....

Whenever I meet lawyers without business cards, I wonder about their professionalism.  Well, yesterday I joined that club when I came out to Oregon to speak at a conference full of prospects and I discovered that I forgot my business cards.  How embarrassing...what to do?  It was a short trip, so not enough time to have anyone ship them to me, even if I had someone to ask.  I asked people for their cards, but that's not the same, because they won't have mine.  And suprisingly, lots of people don't bring business cards.  I have the conference list and I guess this means that I have alot of business cards to send...

So here's my question for you:  what would you do if you forgot your business cards?

Would You Run This Ad?

At Law Firm Blogging, Nathan Burke offers this stand-out ad with the tagline "800 Pound Gorillas are great at getting your attention...but does that make them the right attorney for you?"  As Burke admits, the ad might be a bit "out there," but the point is valid:

just getting your name out there is not enough for small firms. You can't just say why clients should come to you; you also need to address why clients should not go to the big guys.

I'm not sure if I like the ad, but Burke is on to something.  Most of the books about marketing small firm practices assume that solos all target small consumer clients, where tools like yellow pages or library seminars or setting up a booth at the county fair will attract clients.  In reality, the more recent trend in solo practice is where smaller lawyers compete with the big boys in areas like securities, complex litigation, energy regulation, telecom and other traditionally biglaw practice.  Yellow pages and local gigs don't help attract these types of business clients; the ad such as that suggested by Burke is at least a good start in the right direction.

Take an Expert's Advice on Price

I may be a solo who runs an established blog for other solos.  I'm an expert on my own practice and what works for me.  But I'm the first to admit that what works for me may not be optimal for others.  So if you want to get a broader perspective on matters like pricing and value billing, go over to Allison Shields' Legal Ease and see what she has to say about value billing and pricing.  In particular, I enjoyed Shields' piece on value billing because it addressed both sides and wasn't the typical "rah, rah" type of article that instigated my initial post.

The $50 Consult

According to this post over at Larry Bodine's Professional Marketing Blog, at least one firm isn't following the conventional wisdom of charging what everyone else does - and they're making money in the process.  As Bodine describes, Wessels & Pautch, a small, employment defense firm offers unlimited phone consults for $50 a month.  Not surprisingly, many of these small phone calls eventually morph into full blown matters that W&P is then asked to handle.

How would this work for your practice?

Competing On Price - Why Not?

Most marketing gurus counsel lawyers not to compete on price.  So I wasn't surprised to see that advice at the core of this article by Susan Cartier-Liebel, To Solos:  Don't Discount Your Worth, Connecticut Law Tribune (June 5, 2006).  Personally, I disagree.  I see no way for a new solos to get a foot in the door except if they compete on price, and no way for former biglaw-turned-ownlaw attorneys to wrest cases from their old colleagues unless they include price as a selling point. 

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FREE Webinar on Branding an Image for Attorneys

A few days ago, I wrote about the value of marketing.  Since then, I Iearned about a free webinar called The Power of Branding and Image for Attorneys.  The webinar, which will take place on Thursday, June 8 at 2 p.m. EST, will be presented by Mark Merenda of Smart Marketing and sponsored by Legal Research & Writing Pro, a new venture from my friend Lisa Solomon.
 
As Mark says, "Branding and Image are frustrating topics for attorneys since they cost money and show no measurable rate of return: nobody ever says "I hired you because of your brochure." Yet, branding and image are terribly important, for two reasons: (1) Your product is invisible, and when the product is invisible, the package is the product; and (2) your clients are not qualified to judge your services. They can't tell the difference between and A-plus attorney and a C-minus attorney. They are going to have to make up their minds on some other basis. Nothing will affect them more than appearances. (Plus, a dirty little secret: having a sophisticated image will allow you to charge more.)"
 
To register for the webinar, go to www.LegalResearchandWritingPro.com.
 
Lisa has advised me that the teleconference interface is not Mac compatible.  However, this is a great opportunity to get together with a colleague who has a Windows machine, or you can purchase a program like VirtualPC.  Whether you are participating from you office or a colleague's, you can have as many people in the room with you at the time of the webinar as you would like.
 
Legal Research & Writing Pro will be sponsoring additional free webinars in the future, and I'll announce them here.
 

Finding Networking Possibilities in Everything You Do

Great story in this Amy Joyce column from today's Washington Post, entitled Job Connections Start as Social Connections.  Joyce describes how a blind date spawned by match.com went awry romantically, but worked out professionally for the guy when his date helped him to score a job at her company.  The lesson - you never know where any connection you make will lead so don't minimize the importance of social connections to your business. 

Landing Thos First Clients

It's one thing to go solo with a portfolio of business, but quite another to start from scratch.  Yet, many lawyers, including me, have started firms without any business to speak of.  And this article, Solos' First Step: Converting Contacts into Clients , Douglas S. Malan The Connecticut Law Tribune (April 27, 2006) shares stories of how other lawyers found their first client.  One recent grad, Matthew Brovender, built a practice through referrals that he generated as a result of a contacst he met through a judicial clerkship.  He's also got a pen with a great tagline: "The call is free. Will you be?"
Other solos have milked contacts and experience from their earlier career lives, such as formal social worker turned lawyer, Laura Caldwell-Gaines or from serving as pro bono counsel to a youth hockey team, for Eric Opin.

How did you find your first client?  One of these days, I'll share my own story.

60 Marketing Tips in 60 Minutes

Rob Robinson summarizes the list of 60 Marketing Tips in 60 Minutes from an ABA Techshow presentation.  I've used many of these tips with success (like niches with riches) and others, I know I should be using, like following up after speaking engagements or improving my Power Point skills.  Finally, some of the tips, like marketing at trade shows have never worked for me.

I realize that the list is a bit superficial, but it's a summary, after all.  Readers, do share - which of these tips have worked best for you or alternatively, proven ineffective?

Marketing Lessons from Las Vegas

Readers, you may have noticed that MyShingle has been a little bare recently.  The low post volume was the result of a major matter that I just completed and also, a week away from the office in Las Vegas, both business (speaking at a conference) and pleasure (family spring break vacation).  Though the artificiality of Las Vegas made it easy to forget the office for a while, I couldn't help but notice all kinds of marketing lessons as I wandered along the Las Vegas strip.  I lost about $15 gambling but gained lots of little marketing nuggets that I'll share with you now.  So here it is - Lessons from Las Vegas on Lawyer Marketing.

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Will Your Voice Attract Clients?

Between Lawyers has this discussion over whether lawyers should advertise by voice. 
Dennis Kennedy writes:

It does make sense. If you are hiring a lawyer for his or her advocacy skills, wouldn't you ideally like to hear (or see) some examples of the lawyer in action? Event planners routinely ask for samples from prospective speakers.

Has anyone out there gotten hired as a result of an online voice sample?  Write in and let me know.

Host a Happy Hour

Proving that solo and small firm lawyers don't have a monopoly on good marketing ideas, this Press Release announces Thompson, Hine's weekly casual gatherings every Wednesday where "clients, friends of the firm and existing clients" are encouraged to stop in and chat "off the meter."   It's a neat idea that a solo or small firm could readily adopt.  I just wonder, though, whether Thompson, Hine screens its meetings - because otherwise what's to stop competitors from showing up to chat and introduce themselves to firm clients?

Lawyer Hotlines - Another Marketing Tool?

This article, Batman!  There's a Lawyer on the Line! (ABA e-report 2/10/5)
discusses a law firm's use of hotlines, a no-dial phone placed in a high traffic area like a currency exchange.  Clients can pick up the phone, reach a hotline and get a call back within an hour.  The article doesn't describe the effectiveness of this tool and frankly, I'm not sure what a computer kiosk with IM wouldn't work better.

Show Don't Tell Your Expertise

Via Larry Bodine and Patrick Lamb comes a post on an article in the February 2006 issue of American Lawyer entitled "Selling By Doing."  Here's the money quote on how a company decided on its outside counsel:

We needed to hire outside counsel; we looked at a dozen firms, narrowed it to three, and   invited them for 90 minute presentations.  The first two were very good; they had solid expertise and industry knowledge and they had done their homework.

Then came firm three. They said, 'We have 90 minutes with you . We can either do a standard capabilities presentation--which we're very happy to do--or we can try something different. We suggest that we get started on the job, right now--as if you had already given us the contract--and begin the job, right here, right now. After 85 minutes, we'll stop and you'll have firsthand experience of exactly how it feels to work with us.'

Can you make this technique work for you?

Let Your Fingers Do the Walking...At the Keyboard, Not the Yellow Pages

Not sure how many folks remember a tagline for one of the Yellow Pages books - "Let your fingers do the walking...." Seems that our fingers are doing just that, walking right out of the Yellow Pages and over to the computer keyboard.  Or at least, that seems to be the trend as first this earlier post and now this article, Still the Gold Standard? (ABA e-report, 1/27/06) question whether yellow pages ads are still worth the money  - especially, now that the cost of ads is increasing:

Now that lawyers have a variety of options for getting their information out, it would stand to reason that Yellow Pages advertising rates would drop, right? Wrong. Because the Yellow Pages has a high level of overhead due to distribution, rates have in fact skyrocketed, says Charles Laughlin, vice president and program director at the Kelsey Group, a Princeton, N.J., firm that analyzes trends in the Yellow Pages, electronic directories and local media.

Results, however, have not risen in conjunction with rates, and experts say that reason alone should persuade lawyers to reallocate their ad dollars. But what's the best alternative outlet? It often depends on whom you talk to.

There's nothing in the article that gives any reason, from what I can tell, for continuing to advertise in the Yellow Pages.  Perhaps the best thing the article has to conclude about Yellow Pages is that you might be able to negotiate more favorable rates.  But Yellow Page ads will have to come down significantly in price and generate far better return to compete with these kinds of results.

Good and BAD Tips on Making Speaking Opportunities Effective

This article, Speaking Opportunities Need to Be BAD to Be Effective, Julie Meyer (Legal Intelligencer, 1/19/06) starts out promisingly enough, with BAD tips (Before, During and After) on making the most of speaking opportunities.  Among other tips, Mayer recommends sending out an invitation or announcement before making your speech and obtaining the list of conference attendees so you can follow up after.

But the other advice misses the mark.  For example, Mayer suggests:

No need to be shy about selecting a nonclient or two to contact [after the event], either. The approach can be that you were flattered they made the time to attend, you hoped they found it worthwhile and they should contact you if they have any questions in the future. Eager for an opportunity to further develop the relationship? Propose a follow-up meeting of some sort with yourself and someone else from your network who will be an asset to theirs.

Contact one nonclient or two?  You should prioritize contacting nonclients and introducing yourself.  And why invite someone else along for the ride the first time, unless that person's going to help you snag the client. 

In addition, Mayer's article doesn't mention that During the conference, you ought to approach nonclients and introduce yourself.  Sure, you can follow up with a letter, but there's nothing like making an impression in person.  Plus, you have the advantage of approaching people from a position of strength and authority when you're a speaker on a panel. 

For a collection of other tips on getting more out of speaking engagements, check out this link at Legal Sanity.

More on Why Niches Are Delicious

As I pointed out in this earlier post, finding a niche can help grow your practice.  And, as Tom Kane pointed out months ago (don't know how I missed it), a niche can help a solo survive in the big city.  And now, there's yet another article, Finding a Niche (Jan. 2006) that describes how lawyers with niche litigation practices in specific localities are beating biglaw firms big time for big clients.  (see also this earlier post).  Here's Larry Bodine's money quote from the article:

You do have to target," he says. "That's the difference. You never used to have to do that. Nobody wants a generalist. A generalist is nothing to nobody. Everybody wants an expert. Stick to a niche. Be an inch wide and a mile deep, and then you will get all the business that's related to the niche.

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Free Nader Anise Teleconference

Lawyer marketing expert Nader Anise is sponsoring another one of his annual, free teleconferences on Thursday, January 12, 1 p.m. Eastern Time.  Click on the "read more link" for the full announcement.

I have posted about Nader's e-newsletter before which I enjoy, and I found his last free teleconference quite valuable.  I don't often post about solo events because I don't have a formal policy on what to recommend or not after all this time.  But as a general matter, if there's a seminar or phone conference that's free or an otherwise good value for solos, I'm happy to convey the information to my readers. 

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New Business for Women and Minority Owned Solos & Small Firms

If you're a women or minority owned solo or small law firm, there's some new opportunities for you described in this Press Release.  According to the National Association of Minority & Women Owned Law Firms (NAMWOLF), many major corporations have announced an initiative to increase utililization of minority and women owned firms - and have vowed to send at least $16 million in business to these firms in the upcoming year.

Why Not To Burn Bridges, Part II

Following up on this earlier post here is yet another article on alumni networks, this time from the Chicago Tribune, entitled Companies Learn to Value Alumni (December 18, 2005).  As the article reports, law firms are the latest to join the trend:

Law firms are among the latest adopters. Their practice of forcing out lawyers who don't make partner scatters their former members far and wide. "The more successful our alumni are, the more it builds our brand," said Stephen Patton, a senior litigation partner at Chicago-based Kirkland & Ellis LLP, which launched an alumni network Nov. 1.  "Our alums are friends and cohorts, but they're also our current or future clients. It just makes sense to strengthen our relationship with them."

So, is it awkward hobnobbing with a firm that pushed you out the door?  I don't think so (and that's based on personal experience), especially if you've moved on to something even better, like starting your own firm.  And sometimes you find that there are people whom you get along with much better when you don't have to work with them.

Big Companies Starting To Pin Point Small Firms

Finally - it's happening.  Big companies are started to wonder why they should pay $600 an hour to fly their regular biglaw counsel from New York or L.A. out to Buffalo or Kalamazoo to litigate a case, when they can just as well retain local counsel for a fraction of the price - and better service to boot.  This trend of large corporations broadening the pool of law firms that they retain, instead of just hiring from a select few is called pinpointing and Larry Bodine of Legal Marketing Blog blogs about it here.

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Solos Can Profit From Blogs

When it comes to blogs, the question on almost every solo or small firm lawyer's lips is  "Will a blog get me business?"   Once my answer to that question was a qualified "possibly," - I felt that that blogs wouldn't necessarily generate clients directly, but nonetheless, could help diversity a solo's overall marketing portfolio.  Now, I'm wondering whether perhaps I was too conservative.  Because as Kevin O'Keefe of Lex Blog reports, solos are getting clients from their blogs  - and the example he's used is my blogging colleague, Kansas Family Law Attorney (and Home Office Lawyer), Grant Griffiths.

So I decided to try to figure out the reasons for Grant's success.  I visited his blog and it's a great example of a practice-focused blog, a mix of helpful information for clients and links to current events and news stories.  Then, I put myself in the shoes of a prospective client using the Internet to find a divorce lawyer in Kansas and ran a couple of searches like this and this and this.  No surprise that Grant's firm comes in top five under any of these combinations. 

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Some Really Bad Taglines

Patrick McEvoy of Rainmaker Best Practices wonders about who thought of these really awful law firm taglines? (McEvoy doesn't name names, but you can find many of the taglines that he uses as examples and their respective owners on this list.)  So what's McEvoy's test for a good tagline?  Basically, it's a phrase that says something about the company and isn't just a bunch of randomnly generated words.   

By the way, the same holds true for taglines for blogs (someone likes ours!).


Small Firms Need Websites for Marketing - But That's Not All

This article, Making Their Case to Clients (Nov. 13, 2005) reports on a recent LexisNexis Martindale Hubbell survey on small firm marketing practices.  The survey found that small firm lawyers  spend five percent of their revenues and eight percent of their time on marketing efforts.  And the majority of firms surveyed said that "hanging a digital shingle" was their single most most effective marketing tactic. 

You can download the survey at Tom Kane's Legal Marketing Blog, where you can also read his four installment deconstruction of the survey.  Kane notes that the survey is incomplete in that it doesn't report on activities such as joining bar associations, sponsoring seminars or client feedback programs which are also effective marketing tools. 

Lawyers as Resource Hubs: A Fresh Marketing Approach

Usually, those article you read on networking are a lame restatement of the obvious:  attend bar functions, pass your card out to everyone you meet or set up lunch dates.  What's even worse with some of these suggestions is that they put lawyers at the mercy of others, who may reject your card or your invitation to lunch or rebuff you at the bar event.  Thus, networking can become as demoralizing as a series of unsuccessful singles parties - and after enough rejection, you may want to quit (I know that I've felt that way, after both the bar events and singles parties, though the latter did eventually lead to my husband)  So that's why I really enjoyed my colleague David Abseshouse's recent article,  The Power of Networking (November 7, 2005 - NYLJ).  Because David's advice to lawyers to become "resource hubs" is empowering; it puts marketing lawyers in the drivers' seat when it comes to the marketing dynamic.   

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Toot Your Own Horn

You can work round the clock, but it's not going to help you advance unless your colleagues know what you do.  That's the message of this article, Bragging is the Key to Getting Ahead (10/2005).  The same is true for law practice.  If you tell prospective referrals what you can do and what you've done in the past, they'll be more likely to send cases your way.

Face Time Still Matters

Will the Yellow Pages Yellow With Age?

Here's an interesting post from Lawyer Advertising Blog entitled Yellow Page Advertising for Lawyers:  Where Have All the Calls Gone?  According to the post, lawyers are reporting decreased calls from Yellow Pages advertising but are afraid to cut their losses and lose their ad.  Other professionals have reported similar results.  The post identifies the reasons for this trend:

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A Marketing Blog to Follow

This blog, Duct Tape Marketing looks like a great addition for your daily feeds.  I especially like Jill Konrath's channel, Selling to Big Companies.  Why?  Well, most resources for solos tell us ways to pick up individual clients or small businesses.  Nothing wrong with that, of course; I'm proud that we solo and small firm lawyers are really the only resource in town serving the little guy.  But at the same time, we solos ought to think big.  If we have a specialty that would benefit a large corporation, then why not compete with our large firm counterparts?   

A Plug for Small Firms for Big Clients

As Patrick Lamb points out in this blog post (also referencing this post from The Wired GC), general counsels at large companies are getting tired of the fixation on the billable hour.  As Wired GC explains, billable hour not only increases the cost of legal services, but it's making mid level associates miserable - and they're the ones who usually service corporate accounts.  Because sending work to firms based on quality of life surveys isn't really feasible, Patrick suggests that GCs consider migrating work to good firms with lower billable requirements or that are willing to experiment with alternatives to the billable hour.

That's what corporate clients want - and that's exactly what we solo and small firm lawyers can deliver.

Marketing for Associates, er, Prospective Shinglers

Larry Bodine's recently launched  Associate Marketing Blog offers this year-by-year Associate Marketing Checklist to help large firm associates identify and attain business development goals.  Anyone at a large firm who aspires to hang their own shingle or eventually work part time and raise a family, ought to be following - and in fact, even accelerating implementation - of these tips.   Because when you develop your own expertise and client base, you can write your own ticket no matter where you want to travel.  And besides, why not build up some business when you're getting paid to do it?

Two Cool Marketing Freebies

We've got two, cool marketing freebies for those of you interested in starting a firm.  first up is LexisNexis' Small Firm Marketing Tool Kit, first announced in this  Press Release. I took a quick look at the materials and they're serviceable enough.  I'm often asked by solos about good marketing plans online and the LexisNexis one looks quite useful (just don't get scared off by the detail required; tailor it to your needs) 

The second tip comes a from a reader regarding the resources available from an organization called SCORE.  Among other things, SCORE offers free advice from business counselors on plans for small business including law firms, as well as plenty or resources at its website.  Our reader had used one of SCORE's business advisors and was extremely happy with the results.  Do any other readers have any experience with SCORE?



Take A Vacation TO Marketing

Via this post at Arnie Herz's  Legal Sanity comes a bunch of marketing ideas, including a link to this article (Boston Globe 8/21/05) about how to turn vacation into marketing opportunities.  Nothing stressful here that would spoil a vacation, but things you might do anyway such as striking up a conversation with people you meet, carrying business cards and following up with potential contacts when you return from your trip (as opposed to the next day as you might do while working). 

Some New Networking Ideas

This article, Developing Businesses Takes Proper Networking, Stephen Melanson (August 18, 2005) offers some old standby ideas on networking as well as some new approaches. In the category of old standbys, there's the usual advice on joining a chamber of commerce or a trade association.  As for a new idea, Melanson recommends starting your own group:

Form a group that caters to exactly what you need. It's unlikely others aren't in the same boat as you, and if you look around there are people you can work with who won't compete directly with you but who are looking for the same customers you are.

To get started, go meet with your favorite business-owner friends who have a common business objective. Then set a date and begin working on building a group of like-minded professionals who can give some enthusiasm, ideas and some non-competitive support and referrals.

Sometimes, to do something right, you have to do it yourself. In the case of networking, don't assume that your only option is to plug into existing groups. The very best results can come from formal or informal groups getting together to develop relationships and share information.

There are plenty of other benefits that come from organizing a group.  The process of getting people together forces you to make contacts with potential clients or referrals.  At the same time, because you're in charge, you can approach these prospects with an air or authority rather than desperation.  I've recently helped form a trade association and while it's frustrating to try to get it off the ground, it's given me more regular contact with those in the industry than if I'd tried to approach each individually.

Law Firm Alumni Networks Are Proof That You Shouldn't Burn Bridges

A few months ago, we posted about the growth of law firm alumni networks.  Now, there's another article on that topic this month, Law Firms Leverage Alumni to Drum Up Business (New York Lawyer, 8/4/05).  This article discusses some of the the benefits that large firms get from alumni networks, such as contacts with potential clients and positive testimonials from former attorneys.  But the benefits cut both ways.  Former biglaw attorneys can also gain benefits from alumni networks in the form of potential referrals or contract work.

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A Day in the Life of a Solo Blogger

Via Legal Underground, I learned about this neat ABA sponsored experiment whereby marketer Larry Bodine helped solo Andrew Ewalt set up this weblog  and will be monitoring his business growth throughout the year.  I'm predicting that Ewalt's blog will improve his search engine rankings, may get him some interviews or speaking engagements but as with most blogs, isn't going to contribute directly to an influx of new clients (meaning people who see the blog and call to retain him).  I'll be happy, though, if I'm wrong about that.

Doing the Right Thing

All of us solo and small firm lawyers have experience with those "dog" cases that drive us crazy and often lose us money in the process.  This article, Spotting the Losers, James McElhaney (ABA Journal June 2005) offers some ways to clear the duds off your desk - or pass off cases that may not be valuable to you to another firm that could profit from them.  But what I liked best about this article, was the conclusion.  Because even though so many of us have lost money off cases or been burned by difficult clients, the author eloquently reminds us that sometimes, we take a loser case because it's the right thing to do:

Finally, don't carry any of these ideas to excess. There are some law firms that have the reputation of taking only 'perfect' cases with wonderful clients who never act difficult and who always make a good impression with the judge and jury. Some of these firms never take on a hard case or represent an annoying client for any reason. They are lawyers who never know the satisfaction of having made a contribution to the development of the law, or never feel the pride of having given some of their time to make the world a little more fair.

Not every deserving case is a popular cause or earns a big fee," said Angus. "There are times when you need to take the albatross that walks in your office just because it's the right thing to do."

A Unique Marketing Tips - Free Coffee

Via Matt Homann comes this very cool marketing tip:  set yourself up in you local coffee store for a designated hour where anyone can sit down and ask a question about your area of expertise.  And, as an added bonus, coffee for anyone in the store is on you for that hour.  (That is if your local bar doesn't consider a free coffee a way of unethically buying referrals!) Read more about this technique at Matt's website.  But what a terrific and inexpensive way to generate visibility and goodwill.

Why Sponsorship on Lawyers.com Is Not Worth $900/Month

Apparently, LexisNexis-Martindale haven't heard of the Internet.  Because if they had, they wouldn't be hoping to trade in on their name-recognition to lawyers and charge $900 a month for a national sponsorship service available on their lawyers.com data base as reported here in Lawyers.com Courts Legal Marketers, ClickZ News (5/17/05).  The article reports that:

LexisNexis Martindale-Hubbell has begun selling two sponsorship products on its Lawyers.com database of legal professionals. The offerings, which debuted last quarter, give legal marketers access to users of a respected vertical search brand.  Lawyers and law firms can purchase either sponsored links or content sponsorships on the site, which contains legal information and listings for approximately 440,000 lawyers [...] Martindale-Hubbell is offering three levels of coverage for the paid listings product: Nationwide, from $900 per month; statewide, from $160 per month; and by county, starting at $50 per month.

Paul Gazzolo, CEO of LexisNexis Martindale Hubbell believes that these marketing vehicles will allow law firm customers to deliver their messages directly to prospective clients. 

Continue Reading...

Top Ten for Marketing - and Other Unique Ideas

This article, The Lesson is to Network, Business Week (5/13/05) is geared for small businesses generally and not solos specifically, but the ideas are equally applicable.  Here are two of my favorite suggestions from Nancy Michaels in this interview-style article:

Q: What are some marketing essentials?

A: If you can only have two things I'd say get an identity package together and invest in this kind of marketing material. Have a Web site and a great business card that offers something of value that people will keep. I am a fan of top 10 lists. For instance, if you are a pediatrician, have a business card that on the back says three things that will keep your kids safe.

This type of list approach would work for lawyers too - and it's something that I've never seen done before.

Continue Reading...

Lawyer Rainmaker-Trainers Becoming More Popular

This article, Deluge of Clients the Goal for Legal Field Rainmakers (Philadelphia Biz Journal 4/20/05) reports on two Philadelphia rainmaking firms that provide rainmaking training to lawyers.  From what I've seen, I'm not impressed.  One of the training firms does have positive testimonials at its site, but it doesn't specialize in lawyer rainmaking, nor is the company president an attorney.  The other firm is headed by an attorney, but the site is sparse, hardly any articles or tips that would enable me to evaluate the individual's advice.

Perhaps my readers can correct me if I'm wrong, but it seems to me that in order to coach lawyers on marketing, a law marketer has had to have "been there, done that."  Maybe not so much at a large firm, where a good deal of the work involves more traditional P.R..  But for a solo or small firm lawyer, prior experience in building a law practice integral to knowing what works and what doesn't.   Several years ago, I had a bad experience with a so-called lawyer-marketer-coach who was not a lawyer - and if I ever decide to hire another such person, I will be sure to use a former attorney (or even a J.D. who has never practiced).   So what do you think - can a non-lawyer successfully train lawyers to market?

What About Marketing Alternative Rates?

For some time, I'm sure, some law firms large and small, have offered alternatives to the billable hour and probably more have started to do so or at least consider it since Matt Homann started blogging.  But what's different about the alternative billing approach just announced by  McGuire Woods (reported in Hourly Legal Fees Under Attack - Chicago Tribune 4/18/05) is that the firm plans to actively market fee flexibility:

In an advertising campaign to begin Monday, McGuireWoods LLP will market its ability to tailor fees for its legal services that go beyond the traditional hourly rate. The ads, to appear in Crain's Chicago Business, the Midwest edition of Fortune magazine and other local publications, is expected to create a stir in the Chicago legal community because the Richmond, Va.-based firm is taking shots at the competition.

In one ad, a pudgy, balding, middle-aged man in a business suit leans back in a chair and blows bubbles into the air. The caption reads, "Law firms that charge strictly by the hour are about to have their bubbles burst."

The reason that this concept interests me so much is that conventional wisdom suggests that solos shouldn't try to compete with large firms on price, but rather, should sell experience, personal service and expertise.   (Personally, and perhaps to my detriment, I've never fully adopted that approach in my own firm marketing; as my firm website shows, I do sell my firm's lower cost and my commitment to stick to my fee estimates) Yet here, a large firm is now doing just that:  using price as a way to distinguish itself.  I'm curious to see whether this kind of strategy will reduce the cost of large firm services.  But as a solo, I'm still not worried, because even with flexible pricing, bigfirms still carry way too much overhead to depress fees so that they can compete with me.

What role does pricing play in your marketing strategy?  Send me your comments below.

Why Marketing Articles Like This One Drive Me Crazy!

I have a peeve about a great many articles on marketing for law firms.  Some of the articles are apparently written by so-called experts who have clearly never practiced at a law firm.  Others reiterate the same advice - network, seek referrals, join a bar association - without any analysis of whether these methods actually work or the types of practice for which they're best suited.  But the worst marketing article is the one with a great lead - and no follow through (exactly what you don't want to do when you market).  This article, Solo and Small Firm Marketing Hurdles, from the usually worthwhile ABA LPM Magazine (3/05) is a prime example of one of those articles that promises and doesn't deliver.

The LPM article starts off promisingly enough.  The authors polled solo and small firm lawyers to identify top 12 hurdles to marketing and came up with a terrific list, including reasons like "I have a narrow specialty practice," "Potential clients already have satisfactory counsel relationships," "I'm lazy, inert and insecure" and "only poor people know me.  Since at one time or another, I have personally experienced some if not all of these particular hurdles, my initial reaction was "Great, finally, an article that will address what I really want to know."

But the article never addressed these issues.  It provides short sound bites of advice from various marketers - some clearly aimed at large firm attorneys (though the article, I had thought was for solo and small firm lawyer) or a template for building a general practice (as opposed to a niche).  And what about this advice:  "refer a less-than profitable case to someone more miserable" so that you can get a referral fee without shouldering the case management.  Well, if the case is so bad, who's going to take it?  And if the lawyer to whom you've referred the matter is so miserable, is the case really going to have any value?

Legal marketers - if you want to market your services to us solo and small firm lawyers, the best way to convince us is to demonstrate that you know how to market yourself effectively.  And effective marketing starts with answering questions, not bypassing them and addressing the prospective client's needs, not pushing your own agenda.


   
   

The Most Important Marketing Advice You Can Read

Some of the most important marketing advice you can find doesn't come from law marketing gurus who counsel lawyers on what they think clients want.  Rather, it comes from articles such as this one, How To Hire A Lawyer (NJ Star Ledger, 3/27/05) that advise prospective clients on what to look for in retaining a lawyer.   After all, if you know that clients are out shopping for a lawyer using this kind of checklist, you'll be a step ahead if you can provide them with exactly what they're looking for.

So for starters, where should clients go shopping for a lawyer?  The article recommends either asking a friend for a referral or calling the local bar.  That means that lawyers' marketing efforts should focus on actively seeking referrals from existing and former clients - and also signing up for bar referrals.  That's not to say that Yellow Pages or Internet listings shouldn't be considered.  But if prospective clients are being advised to look to referrals to find attorneys, then lawyers are best off marketing where clients will be looking.

Next, the article tells prospective clients to investigate whether "the lawyer is any good," by checking background on a website or calling the bar to find out about disciplinary action.  What does this mean for a lawyer?  First off, it shows that a website is necessary - if not for advertising, than simply for establishing credibility and providing information about your credentials.  Second, if clients are concerned about ethics violations, why not put their minds at ease up front and either volunteer information about your disciplinary method - or give clients a number to call to check you out for themselves.   Asking about violations can be awkward for a clients - so why not help put their minds at ease and give them the information that they want?

Finally, the article encourages clients to broach the issue of fees in advance - and to negotiate fees.   As an aside, I'm not sure why the article encourages clients to negotiate fees - I can't think of any other service profession where people bargain on price.  In any event, it's my own opinion that lawyers should not engage in negotiation over fees with clients.  Those prospective clients who question a lawyer's fee and try to bargain it down most likely do not value the lawyers' service and will persist in asking for discounts or write-offs as the case progresses or if they are unhappy with the result.   A lawyer can simply offer a "take it or leave it" rate, but my preferred alternative to opening the door to client fee negotiation is to offer different fee options (hourly rate, contingency, flat fees, volume discounts) and explain them fully to clients.  When clients have a choice, they are less inclined to negotiate  - and when lawyers have given a choice, they're less inclined to engage in negotiation over fees.

So the next time you see an article advising folks on how to hire a lawyer, don't skip over it.  Clip it, save it and use it as a blueprint for the types of service that you want to sell.


Do the Gutsy Thing

What's the nerviest thing that you've ever done to bring in clients?  For me, I suppose it's been cold calls, though I've always longed to do more.  For example, every time I attend a dull alumni lunch or bar event, I yearn to stand up, ting my glass and introduce myself and my practice.  What harm could it bring?  And yet I hold back.

But I'm reconsidering after reading this post from the blog.inc.com describing how one man's gutsy announcement at jury selection yielded a job:

When [Ben] arrived at the lower Manhattan court house, he was directed to a large waiting room and given instructions to sit and wait until his name was called. He looked around and saw at least a hundred people, and he was immediately frustrated. He was the only one who had forgotten reading material. Rather than dwell on his minor oversight or beginning to recount his to-do list in his head, Ben had a different idea. "Out of all these people, someone's got to be involved with pharmaceutical sales or at least know someone who is."

Ten minutes later, Ben finally mustered up his courage and walked up to the front of the room and stepped up onto the stage. He cleared his throat and said, "Excuse me! Is anyone here involved in pharmaceutical sales or pharmacology?" He paused. "Could you please raise your hand?" (Today Ben jokes about how the potential jurors might have thought he was asking those questions in the capacity of a court-appointed official. Regardless?)

One man raised his hand, and Ben said, "Thank you. I will be right down to talk with you." Ben approached the respondent, introduced himself, shared his interest in pharmaceutical sales, and asked if the man knew anyone in the field. The man was a pharmacist, knew many pharmaceutical sales representatives, and, even more fortunately, was going to a meeting that night that was hosted by a pharmaceutical company. Ben went to the meeting and had a few great conversations with representatives of two major two major pharmaceutical companies. They both asked Ben to contact them about beginning an application and interview process. One thing led to another, and several months later, Ben started working as a pharmaceutical sales representative.

There was no cost to Ben's marketing effort, except guts.  And there's no reason why it can't work for any of us lawyers as well. 


Clout Trumps - So Use It to Market

This article, Unusual Ally Came to Jain's Rescue:  SEC, Seattle Times (3/10/05) - about a former SEC counsel-turned-private lawyer who finagled a deal for a client found guilty of violating insider-trading rules whereby the SEC wound up filing an amicus brief on the client's behalf - isn't about solos per se.  Rather, it's about the indispensibility of clout and contacts - and a reminder of how powerful clout, as a marketing tool, can be.

According to the article, a federal judge rules that Naveen Jain, founder of InfoSpace had engaged in insider trading and required him to pay $247 million to company stockholders.  According to the article, Jain had "deceived the public" about his companies success and sold millions in stock while investors lost billions.  But the SEC never investigated.  Eventually, a federal judge found that he had violated insider trading rules and at that point, Jain hired Peter Romeo, a former SEC lawyer and expert on the practices that Jain had engaged in.  (according to Martindale-Hubbell, Romeo now practices with Hogan & Hartson)  Romeo persuaded the SEC that the judge's ruling was unfair and confusing and managed to convince the SEC to file an amicus brief in support of Jain's appeal.  As a result of the SEC's intervention, the case settled for $65 million, a quarter of the original award.

Did Romeo's former tenure at the SEC make the difference?  According to the article, Romeo insists otherwise:

despite his 15-year tenure with the SEC, [Romeo] has no undue influence there.  "They would never concur with my views if they don't agree with me," he said in an interview. "If anything, they'd go out of their way to appear not to be playing favorites."

I'm not accusing Romeo of any wrongdoing.  I'd imagine he's a highly intelligent and skilled attorney who garnered the respect of his colleagues at the SEC.  As a result, Romeo's arguments most likely commanded more attention and respect than if they'd come from a less connected attorney.  Maybe in a perfect world, our system wouldn't operate this way, but the fact is that it does.  You can rage against using clout by pulling out of the practice area where you have it, but what  good does that serve?  It only means that less experienced attorneys will step in to the void, to the detriment of clients.  Or other clout-carrying lawyers at large firms will sell their influence at a price that's out of range for the little guys whom we solos often serve.

As I said at the outset, the article isn't about solos - Romeo works at a large firm.  But there's no reason that a solo couldn't have similar clout in his or her respective field - perhaps as a former prosecutor or a former agency lawyer.  If you can use your clout to get results that other firms can't, it can be a powerful marketing tool - and one that can get you chosen over a large firm competitor.

Of course, you don't want to oversell clout to clients - or overuse it with the agencies or other governmental bodies.  To clients, you certainly don't want to guarantee a result.  But what you can reasonably say is that if all else fails, at a minimum, you can assure that you'll get the ear of a decision maker who will at least hear the client's case.  Doesn't mean they'll decide in the client's favor and you need to point that out, but at least it will optimize the client's chances.

At the same time, you don't want to squander your clout by making a pest of yourself, calling former colleagues about routine matters.  Save clout as your "get out of jail free" card, to be used sparingly and only if absolutely necessary.   And when you do finally pull out your clout to make your case, do the work for your former colleagues: extensively research and document as persuasive a position as possible to save them time in review.  If the agency ultimately goes with your position, you want the agency to be able to defend its action on the merits, as the SEC did in Romeo's case.

Now for those who have clout, get out there and flaunt it! 

Some Poor Advice on Rainmaking in Law Practice Today

Usually, I like to highlight articles that our audience should read and follow.  But here's one that you really shouldn't - unless you want to learn what not to do to market a practice.  This article from the usually valuable publication, Law Practice Today contains some really poor advice on rainmaking in its monthly Meet the Rainmakers column for the February issue.  The article profiles a biglaw attorney who, by her own description, engages in no rainmaking efforts except for an women's networking retreat every couple of years and just "being the best lawyer" she can be.

Sorry - but being "the best lawyer" you can be isn't a marketing strategy.  It's a given, a starting point, a professional obligation that all of us have to our clients.  How can we compete for business with the numerous other attorneys who are also out there "being the best lawyers" that they can be   ?

Moreover, clients are never going to find out that you're "the best lawyer" you can be if you're not out there to begin with.  This doesn't necessarily mean schmoozing on the golf course, but it involves writing articles, speaking at seminars and constantly staying in people's faces so that when it's time to hire, they'll remember you. 

Personally, I'm leery about attorneys who are passive about marketing.   Because after all, if you can't - or aren't willing - to step up to the plate and sell yourself, then how can you sell your clients' cause when you're working for them? 

What's Your Tagline?

Are you a "Heavy Hitter" - or  a lawyer who means business?  What about a Tiger?  These are just a couple of the slogans mentioned in this brief article here.   What's your slogan - and do you need one? 

To Martindale or Not To Martindale?

When I started my practice back in 1993, I paid for a real listing in Martindale-Hubbell (as opposed to the cheapie listing in the front blue plages) that I kept for four years. By 1997, I'd not gotten so much as a phone call from the listing.  Looking forward, I realized that my website (that I developed myself and went live in late 1995) was already generating more visibility for me than the M-H listing - and so I declined to renew it.

Seems that I was right, as this posting from Wired GC bears out:

When I was at the offices of one of my outside counsel this week, I noticed part of the 2005 edition of Martindale-Hubbell sitting in two huge boxes in a conference room. Not this many but still a hefty set. They do look good on the shelf (often a required back-drop for lawyer interviews), but their days have to be numbered. M-H does offer CD and online versions, as well as search through lawyers.com.  All good information; but I haven't used M-H in years.

A closed system used by Martindale-Hubbell doesn't really work anymore. A9 is a threat, but the bigger challenge is a general counsel who calls a colleague for a referral, checks the firm website, and Googles them. Perhaps you check Martindale, but it's no longer the gold standard.

(from The Wired GC)

More Marketing Tips - For When Business is Slow

January must be national marketing month for lawyers.  Here's yet another article on marketing, this one by Kimberly Fanady on What to Do When the Phone Stops Ringing , Small Firm Business (January 10, 2005).   There's likely to be at least one tip in the article that may work for you - and by turning your focus to marketing, you'll distract yourself from that panicky feeling that the phone may never ring again. 

One tip that Fanady suggests that has worked for her is joining a club that coincides with your interests -  in her case, a bridge club and running club.  While the idea intrigues me, I'm not sure how one goes about bringing up business when everyone else is focused on playing bridge or running.  If anyone has ever could give an idea of how this transition from a social interaction to a business relationship evolves, I'd love to hear it and share with readers. 

Marketing on the Cheap: Some Tips

If you're just starting out as a solo, you may wonder how you can ever get the work out about your practice when some types of marketing measures like Yellow Pages, TV or even ads in the local newspaper are prohibitively expensive.   Or, even if you're not cash strapped, you may wonder whether it's worthwhile to blow several hundred dollars on an ad or networking event that may not yield any returns.  If that's the case, check out this article, Small Firm Life:  Frugal Marketing by Raymond Dowd, NYLJ (1/7/05).  Dowd has some tips on how you can get your name in circulation for free or make the most of for-fee networking events (like introducing yourself to the biggest name or asking one of the lecturers a question).  Many of these techniques may not work all the time; I've had poor luck with a number of them myself.  But at least it won't cost you anything to give these ideas a try.

Law Marketing Ezine

I've started reading Nader Anise's marketing ezine.  I find Nader's brashness about marketing quite refreshing.  So many law marketing experts pussyfoot around the need for marketing or give the same advice - network and join bar associations.  These are fine but you need to diversify your marketing efforts for a couple of reasons.  First, networking and bar association participation take a while to start generating business.  You may need to make a couple of follow ups or to organize several events before people get to know you and feel comfortable sending business.   But if you need cases now, you need to find other more aggressive approaches.  Second, I personally find constant networking - especially meet-and-greet happy hours and lunches - can become demoralizing after a point because you're always chasing the source of business rather than having them chase you.   What I liked most so far about Nader's approach is it's far more proactive - he helps to find ways to make people come to you and encourages lawyers to choose their own path (as Nader did with billing rates) rather than following the herd mentality.   This year, I plan to implement some of Nader's ideas and if you're interested in trying a new approach as well, you can subscribe to his  ezine.  Just send an email to  ezine@naderanise.com  and include:

1. The name and email address for MyShingle (the referral source - carolyn.elefant@gmail.com) and

<>

    2. Your name and email address

I'm not endorsing any of Nader's products or services (except the free teleseminar which I found first rate) because I don't know enough about them yet.  But I think that they are compelling and disinctinctive enough to warrant a look.  So let us know what you think.

She Won't Take No for an Answer

"She won't take "No" for an answer is a great tagline, in my opinion - and it's one that's working effectively as a jingle for West Virginia attorney Jan Dils as reported in this article (WV Gazette, 1/4/05).  As the article reports, Dils' ubiquitous jingle attracts her much attention - and presumably, those frequent contacts eventually generate clients.

As for your own practice, what jingle do you use - and if you don't, why not come up with one for 2005?

The Secret to Successful Blogging Can Make A Firm Successful Too

Robert Ambrogi of Legal Line offers this post on how to succeed at blogging that he in turn learned from Howard Owens, director of new media at the Ventura County Star:

There are two lessons I take away from blogs. First, find your niche and serve it and serve it well. Second, frequent updates.

That advice works equally well for law practice:  finding a niche and keeping clients updated frequently about the progress of the case and new developments in the law.

Can An Hourly Rate Ever Be Excessive?

We've had much discussion here over whether an hourly rate can be too low.  But can an hourly rate ever be excessive?  Consider the new increases in biglaw billing rates reported in Law Firm Billing Rates Climb Even Higher, National Law Journal (12/9/04). 

The article reports that at the upper end, one firm charges $875/hour for partner time while many others go well into the mid-$700 range.   And associate rates, summarized in this chart begin at $160/hr in smaller markets and close to $200 in larger and go up to the upper $300/hr for experienced 8th years. 
But are these hourly rates per se unreasonable?  For example, consider that the hourly rates for 8th year associates equals or exceeds the top rate of $380/hour for attorneys with 20 years or more experience under the Laffey Matrix.  Or consider that many solo and small firm attorneys with double the experience of a 5th year associate typically charge a similar - or possible lower hourly rate.

Whenever I express concern over these increased hourly rates, I'm always told that it's not the hourly rate that matters so much as the overall bill.   And I agree with that in many cases.  For example, in evaluating an attorney, a prospective client will do better with the $500/hour lawyer who can resolve a case in a matter of hours versus the $200/hour lawyer who'll require a full week.   But that's not what happens where large firms set high rates - because they bill those rates not just for short term work but over long periods of time.  As a result, in the end, the aggregate bill will be just as unreasonable as the hourly fee.

Yet, I'm not sure that I see a solution.  Solos and small firms offer lower billing rates but firms will often choose biglaw anyway.  If the market is willing to support higher fees, then I don't know that there's anything that can be done to address the matter - until we reach a point that fees get so high that clients will seriously start seeking alternatives.   And we solo and small firm lawyers will stand ready to fill that need.

Making Ends Meet When Starting A Firm

This article, Money Matters, from Small Firm Business (12/6/04) offers new shinglers advice on money matters, from how to make ends meet when starting out to funding retirement.  The article is really too brief to be of much value, but it does make the point about the importance of keeping overhead low in the beginning, a challenge made easier by the ever-declining cost of computers and cell phones. 

Can't say I agree with all of the advice, however.   For example, the article describes one attorney who worked on overflow work for other attorneys in exchange for office space.  True, it apparently worked for her, but I've heard of similar scenarios which did not work out as well.  This was primarily because the new attorney underestimate the value of their labor and thus, essentially over pay for the space through their work. 

Readers - any tips you'd like to share about how you kept expenses low your first year?  Post them as comments below.

How Do Your Rates - and Income - Stack Up?

Solo practioners in Central New York make about $50,000 a year, making them on average the lowest paid lawyers in the state, followed by solos in Buffalo who, in second place, earn $67,000.  These statistics are included in this article in the Central New York Business Journal (12/5/04) which reports on the findings of the New York State Bar Association's "The 2004 Desktop Reference on the Economics of Law Practice in New York State."

The article offers other tidbits from the report, such as these:

For Central New York attorneys who are partners in practices with more than one lawyer, the news on salaries is better. For equity partners in firms with two to nine partners, the median pay was $112,500 in Syracuse, according to the state-bar-association survey. That's higher than salaries found in Rochester (median pay of $105,000), in Westchester County ($100,000), and outside the state's major metropolitan areas ($110,000). But Buffalo ($122,500), Albany ($160,000), Long Island ($150,000), and New York City ($175,000) outpaced Syracuse for average salaries for lawyers at these types of firms.

At firms with 10 or more partners, Syracuse-area median pay for equity partners ($175,434) topped pay in the Rochester area ($150,000) and pay outside the state's major metropolitan areas ($148,689). But Syracuse can't hold a candle to pay for equity partners in firms with more than 10 partners in Buffalo and Albany (both $200,000), Westchester County ($235,000), Long Island ($250,000), and New York City ($300,000).

The survey also found that Central New York attorneys who are equity partners in their firms are charging less per hour, on average, than attorneys anywhere else in New York State. While the average attorney in New York State charges $236 an hour, Syracuse-area attorneys charge an average of $165. The highest rates are found in New York City ($268 an hour). John P. Langan, managing partner at Hiscock & Barclay, LLP in Syracuse, says the report's findings on pay differentials for attorneys at large firms "does not jibe" with his experience. In particular, Langan says that Rochester provides attorneys with "a good, solid client base" and the potential for high pay.

"My take is Albany is the most steady, least volatile up or down," Langan says. "Rochester is probably the one that is doing the best and has the best potential."

The survey was undertaken in response to requests from members of the bar for additional information about legal practice in New York.  Wonder whether the survey will anything to dispel the public's image of lawyers as rich and greedy (at least the first part, anyway). 

Jay Foonberg's Famous Holiday Cards

Most of us solos know Jay Foonberg as the author of the solo bible,  How to Start and Build a Law Practice.  Who could have guessed that he's also a purveyor of the kind of  "hey, look-at-me!" holiday cards (e.g., pictures with the Pope, at the South Pole) described in this article, Holiday Card Games: The Complex Politics of Winter Greetings, Monica Bay, Law Firm Inc.  (12/2004).

The article lists a couple of pet peeves that other attorneys have about holiday cards they receive, including misspelled names, bland politically correct cards or cards covered with signatures of people that the recipient doesn't know.  Some of those quoted in the article prefer to bypass the holidays entirely, opting for Thanksgiving cards (that beat the holiday rush) or Valentines' Day candy. 

What do you plan on sending out this year?  Drop us a comment and let us know.