Ever since I stopped billing by the hour in 2006, lawyers are constantly asking me, “How do you set your prices?” It’s a topic I’ve lectured on and written about frequently, and my new consulting firm, Prefix, LLC, focuses on teaching lawyers how to do it for themselves. But today, I want to turn the question around:
How do you set your billing rates?
It’s an important question, and one you should know the answer to.
I know what the books on starting your own firm say (I’ve read them). Most of them come up with a formula along these lines: Decide how much profit you want to make in a year, add your estimated annual overhead, then divide the sum by the number of hours you think you can bill in a year. That’s your hourly rate.
That’s not how anyone sets their billing rates, regardless of what the books say. Instead, their rates are based on three factors.…
When 1,500 lawyers gathered at this week’s ABA TechShow in Chicago, an interesting thing happened:
The business card died.
When these lawyers weren’t listening to the dozens of cutting-edge seminars or browsing the exhibitors’ booths, they were making new friends and new professional connections. But instead of exchanging business cards, many of the attendees were trading Twitter handles — their online identities that begin with the @ symbol. (I’m @jayshep.) Massachusetts lawyer Gabriel Cheong (@gabrielcheong) told me that by the end of the conference, he had collected exactly zero business cards. (I immediately gave him one of mine. #irony) Instead of accumulating two-by-three-and-a-half-inch scraps of cardstock, he typed their Twitter names directly into his iPhone. (And I doubt anyone actually said, “Uh, I’m not on the Twitter.”) Molly McDonough (@Molly_McDonough), online editor at the ABA Journal, tweeted at the end of the conference: “For first time, I didn’t collect any biz cards at #abatechshow. Just made note of names and followed on Twitter.” Others retweeted (quoted) her tweet with approval.
So does this mean it’s time for small-firm lawyers to learn how to tweet?
I’m reporting to you live from Chicago at the 25th Annual ABA TechShow, where an amazing group of passionate lawyers from around the country have gathered to talk and teach about the future of law practice. While many of the programs deal with technology, the underlying theme seems to be that change is coming to our industry, and we should probably figure this stuff out before it’s too late.
If you want to send a message that you really don’t care what your document looks like, or that you never really gave it any thought, then this is the font for you. It might mean that you don’t really understand computers very well, and never bothered to learn how to change the default font. It probably also means that you never took a moment to consider the judge (or the client or whoever is reading what you wrote) and how she will have to slog through yet another gray document filled with too-small text that looks like every other one she’s read today.
But mostly it just means that you’re apathetic, and that you don’t consider what you write to be work worthy of craftsmanship.
So what is this font that says so much about you, and what should you use instead?
So you’re at a small firm and you want to be successful. Good. Why you wouldn’t want that is beyond me. But if you want to be a successful lawyer, you need to make a name for yourself. If you don’t want to be a successful lawyer, you can leave this post now. We’ll wait. [Waits while the preternaturally mediocre leave ATL for Dlisted or whatever.] OK? The rest of you stick with me.
Look. You didn’t end up at a big firm, because you didn’t go to a top law school or because your first-year grades weren’t as stellar as they could have been. So you’re not going to be making a huge salary in exchange for billing 2,500 hours a year. Deal with it. That doesn’t mean that you can’t have a very successful career as a lawyer. It just means that you need to take a different approach.
The most important thing you can do to make a name for yourself as a lawyer is to find a way to stand out from the crowd. Here are six tips on how to do it.…
No, not in the way you think. I’m not talking about E-tickets and giant bow-tied mice and screaming, overtired kids being dragged around by the half-crazed parents determined to get their money’s worth. (“Have fun, dammit! Have fun!”) I mean in the way that the company, Walt Disney, creates a consistently positive and memorable experience year round for people from all over the world.
Whatever your impressions or memories of Disney World, most people agree that the company’s ability to make people happy is unrivaled. Executives and managers from companies in every industry pay thousands of dollars to study how the company does it at the Disney Institute. And the Institute even published a book on how to Disneyify your company called Be Our Guest. You can get the book at Amazon for about ten bucks; I recommend it.
So what can your law firm do to create the kind of world-class service that Mickey would be proud of? Let’s discuss….
As with love affairs, all lawyer-client relationships must eventually end. If you’re lucky, they won’t end until retirement or death (not the untimely kind; that would be unlucky). More often though, they will end with one of you — usually the client — finding someone new or simply no longer needing the other. The goal, then, is to try to stave off this end for as long as possible. But it will come eventually. And while no one likes to lose a client, it’s not the end of the world.
But there’s one situation where losing a client is a much more serious problem:
When it’s an uberclient.
Let me explain. When I got the offer at my first law firm, I met with one of the partners one last time before accepting. I felt like I was supposed to ask him important questions about the four-lawyer firm, to help me decide whether to accept. The first question I asked was whether the firm had any debt. Someone told me that this was a good question to ask. He said they didn’t, and that seemed like a good answer. Then I had a brain flash, and asked a much better question:
“Is there any one thing that could put the firm out of business?”
Seriously. Why? I don’t mean in a “because I couldn’t get a BigLaw job” way. I mean, “Why are you practicing law in a small firm?” And if you’re looking for work in a small firm, why? In fact, I really want to know why you’re a lawyer in the first place.
More importantly, your clients want to know. They might not realize it, and they probably will never ask you, but deep down, they want to know why. Why do they want to know? Because why you do what you do is what attracts clients; it’s what makes them want to work with you.
I can already hear you scoffing: “My clients work with me because I’m a good lawyer, or because they like me, or because they have a history with my firm, or because I’m so freakin’ good-looking.” Maybe so. Maybe that’s why they started working with you. But that’s not why they’ll stay with you. They’ll stay with you because of why you do what you do. So you need to figure out your why.
But how do you find your why? This guy can help you….
As the owner of a small law firm, I’m always surprised at how many blind résumés I receive in the mail. First of all, who even uses mail anymore? Does anyone seriously think that I’m going take them more seriously because they used cream-colored, 100% cloth, 24-pound bond paper? I’m not.
But forget the résumés for a minute; for me, it’s the cover letter that tells me whether I want to interview this person. Over the years, I’ve received thousands of cover letters from lawyers and law students. I’ve gotten to the point where I really don’t need to read the résumé before I’ve made my decision.
So with that in mind, here are 11 tips for writing cover letters to potential employers.
1. Spell my frikkin’ name right. You’d be astounded at how many times candidates blow this one.…
Ed. note: The Asia Chronicles column is authored by Kinney Recruiting. Kinney has made more placements of U.S. associates, counsels and partners in Asia than any other recruiting firm in each of the past six years. You can reach them by email: [email protected].
Since late last year, things have been booming in Hong Kong / China in cap markets, especially Hong Kong IPOs. M&A deal flow has recently been getting a bit stronger as well. Although one can’t predict such things with any certainty, all signs are pointing to a banner entire 2014 for the top end US corporate and cap markets practices in Hong Kong / China. This is not really new news, as its been the feeling most in the market have had for a few months now and things continue to look good.
The head of our Asia practice, Evan Jowers, has been in Hong Kong for about 10 days a month (with trips every other month to both Shanghai and Bejing) for the past 7 months (Robert Kinney and Evan Jowers will be in Hong Kong again March 15 to 23), and spending most of his time there meeting with senior US hiring partners at just about all the major US and UK firms there, as well as prospective candidates at all associate levels and partner levels, and when in the US, Evan works Asia hours and is regularly on the phone with such persons, as our the other members of our Asia team. Our Yuliya Vinokurova is in Hong Kong every other month and Robert is there about 5 times a year as well. While we have a solid Asia team of recruiters, Evan Jowers will spend at least some time with all of our candidates for Asia position. We have had long standing relationships, and good friendships in some cases, with hiring partners and other senior US partners in Asia for 8 years now.
Are you challenged by the costs and logistics of maintaining your office, distracting you from the practice of law?
Many small firms are successfully moving part—or even all—of their practice to a virtual setting. This even includes multi-jurisdictional practice spanning several states and practice areas, although solo and small partnerships are still the largest adopters of virtual law.
Can you do the same? The new article Mobile in Practice, Virtual by Design from author Jared Correia, Esq., explores how mobile technology bring real-life benefits to a small law firm. Read this new article—the next in Thomson Reuters’ Independent Thinking series for small firms—to explore how a mobile practice:
Everyone is talking about the importance of Social Media in Corporate America. But it is relatively safe to say that most law firms and lawyers are slightly behind the social curve. Most lawyers, at minimum, use LinkedIn, for networking. Some even use Twitter for pushing out short, pithy content, while many have Blogs, where they write their little hearts out. The adage “it is better to give than to receive” is not always true though in the world of Social. In the Social World – it is best to listen, give back and engage.
Social Media is a communications tool that can deeply educate you about the needs and wants of your clients and prospects when used in conjunction social media monitoring and sharing tools.
Take this quick quiz and see if you know how to use Social to help you engage more with your clients or to better service the ones you have.