Once you have a lead on a potential client, the next step is to engage this individual or company in some way so that they decide to go with you and your firm for their legal matters. In some cases, you get a “slam dunk”, where they chat with you for a few minutes and it is a go. Other client engagements take a little more finessing, but at the end of the day, both you and the client are comfortable moving forward.
With others, the challenge is figuring out who is trying to get a freebie and just walk away with some free services and advice…
Ed. note: Please welcome Christina Gagnier, who will be covering small law firm practice. You can read her full bio at the end of this post.
When you are starting out, or even eight years in to running your own firm, you want clients. You need people coming through the door, physically or virtually, who are willing to pay for your legal services.
As much as you want to take all of the clients that you can get, you have to look out for the red flags — those potential clients who are going to be more trouble than they are worth or may lead you down a rabbit hole. Two stories highlight different types of potential client red flags…
I was sitting in my office yesterday afternoon when my phone dinged. It was one of my law partners. He had sent me a picture of our other partner standing in front of an auditorium with about seventy-five people in it. They had gone to one of the local law schools here to speak about dealing with clients. Like many other law schools, this law school is focusing on providing their students some manner of real-world experiential education in the elusive hopes of making students “practice-ready.” An impossible task, but at least students are exposed to practicing lawyers, even if just for a day. I mean, it’s better than a seminar on Harry Potter and the Law.
After speaking for a bit, they took questions from the students. Eventually, someone asked what to do about a difficult client. The response?
“Double the retainer.”
After the crowd chuckled, he added: “In all seriousness, double the retainer.”
I know you were expecting a round-up of last week’s Legal Marketing Association rainbow and unicorn festival conference where this year’s theme was… well, the same as last year and the year before: “Why won’t lawyers listen to our buzz words?” Instead of a round-up of the group hug, which will only make you dumber, here’s all you need to know based on the #LMA13 Twitter feed:
Formalizing client process via increased measurement and increased services provided is making difference in accounting client satisfaction.
That comment was made after Popehat read the Twitter feed and instead of voluntarily running into the path of a fire truck, asked this question:
How will your firm embrace synergizing social leverage rebranding communication channels to market integration strategies of scale?
Of course if you didn’t go, you also missed the 4,759 announcements of:
We have another winner for our iPad giveaway! Stop by booth 300.
And that was it, buzz words and iPads. Get ready for an onslaught of marketeer emails and cold calls with game-changing new normal worthless ideas that will be criticized at next year’s conference, after you’ve paid for the marketeer to implement them in your practice.
So while all the marketeers are busy convincing you with buzz words that they have ways to get you more clients, clients, clients, I, of course, want to talk about getting rid of clients.
Young lawyers just starting out with their own practice usually tell me the type of work they’re doing is “whatever comes in the door.” Of course the pedigree Biglaw types criticize that type of practice, but probably don’t know that when the now dead founders of their firm started, they probably had a similar type of practice. They did real estate work, wrote a will, and maybe even (God forbid) found themselves defending a client in criminal court. At some point, they developed a practice and became known for a certain type of lawyering.
What I see today is lawyers doing any kind of work in order to eat, and lawyers who are lucky enough to have a niche, but are still taking cases in which they have no idea what they are doing. It’s like the lawyer whose niche is probate, but has never stepped foot in a probate litigation case, or the lawyer who handles misdemeanor cases taking on a complex white collar case because “it’s a good fee.”
Those of us who suffer through lawyer e-mail listservs see these lawyers all the time. “Has anyone filed a motion for ____________ who can send me a copy?” That same lawyer asks for multiple documents in a period of several weeks and then asks about procedure and whether anyone knows opposing counsel. They’ve never handled a case like this, and worse, have no idea what they are doing. They’ll never realize how pathetic they look to everyone else on the list, many of whom will have an opportunity to refer a case, and will remember not to send it to them.
There’s nothing wrong with learning, unless you are learning to the detriment of the client. There’s no doubt we’ve unknowingly been on an airplane with a pilot who is in the captain’s chair for the first time, but there’s also someone sitting to the right of him.
This post isn’t simply about asking for help, it’s also about determining whether the case is something you should take. When you’re starting out, or struggling, and someone comes in with more money than you received in the last three months, you’re all too eager to pretend you know how to handle the client’s case. You’ll just take the retainer and start typing away on the listserv, or fake it and hope you can figure it out. You also hope the client will never know that they’ve hired a lawyer that has no idea what to do.
I’m not saying you shouldn’t take these cases; I’m saying you should protect your client, and yourself, in that order….
One of the main differences between small law firms and Biglaw is who hires the lawyer. While both receive calls from the actual individual (person) client, general counsel, or corporate representative, the consumer-type disciplines (personal injury, criminal, divorce, employment (plaintiff), and immigration) are usually smaller shops, and usually get the call from the actual person needing representation.
Most of the time this person has never hired a lawyer. So the conversation will be much different than the call from a general counsel who understands typical billing formats, or an insurance company agent, who tells you what you’re going to bill and not bill.
I’m writing today for those who’ve been in small law firms for less than five years. The rest of you know the drill, you’ve heard the buzzwords and phrases, and (hopefully) you’ve taken control of your time in a way that shortcuts the worthless conversations from potential clients. From a business perspective, small law firm practice is an exercise in cash flow. While lines of credit are available, many small law firms don’t like to go that route. So every potential client is important, especially when you haven’t reached that stride where you can claim a “book of business.”
Saying “no” before the client makes it clear that it’s “no,” is tough. Did you just give up money? Was there another way to get the client “signed up?”
I draw lines. I am criticized for that, but it’s my practice and it’s worked for me. Normally when I don’t get the case these days, I hear about who got the case, which vindicates my choice to shortcut the conversation.
A recurring theme here is that what works for me may not work for you. OK. Did I ever indicate I give a crap?
I rarely follow up on potential clients anymore. You want to hire me — you’ll let me know. I’m not playing your game of calling you back after the initial interview so you can tell me you’re “thinking about it,” but “the fee is really big.” Yeah, the fee is really big; so is your problem. You want to take your big problem to a bargain basement lawyer — knock yourself out. I don’t run a booth at the Straw Market in the Bahamas. If I’m going to negotiate, it’s going to be with opposing counsel, not you.
It’s killing you, though. You spoke with the client, they seemed interested, they asked all the right questions, and you gave all the right answers. They told you “money is no issue” (first clue they have no money.) It’s been a day or two, and nothing. No call, no email, and no questions about the retainer agreement you gave them.
Lawyers often let themselves be abused by clients. After all, the clients pay the fees, and because they pay the fees, they are entitled to behave how they want. Part of being a lawyer is learning that you have to accept clients who treat you and your staff like garbage.
And I’ve never understood that.
Sure, lawyers have clients that are emotional, anxious, demanding, time consuming, or confused, but our job is to try and use the “counselor” part of “attorney and counselor at law,” and help them through the journey as best as possible. Why that has to mean we just take their crap to no end is a ridiculous notion.
Small-firm lawyers are more often the recipients of abusive clients. The fees are usually being paid by an individual or small company instead of by some insurance company in another state. Instead of dealing with a legal issue that affects a whole company, it’s often someone’s marriage, injury, arrest, or contract dispute — something personal. The client has more of a one-on-one relationship with a lawyer and sees that lawyer as the reason for success, and failure.
The reason lawyers think state bars go after small-firm lawyers more than Biglaw lawyers is simple — there are more of us, and Biglaw clients usually (but not always) don’t see the bar disciplinary process as a worthy forum for their issues.
So we get threatened more, asked for fees back more, and often feel under siege by bad clients….
When I started my firm, several mentors gave me the same advice: Don’t work for free. It’s easy to see the problem with working for free. Giving away what you’re trying to sell isn’t exactly in the business plan. Unfortunately, this sage advice can only really be learned the hard way, through experience.
Working for free can arise in many different ways. The most obvious example is a client who wants you to represent him but can only promise to pay you later.
Even if your gut tells you that taking on that client is a bad idea, this can be surprisingly tempting to a new firm or solo practice. For starters, there is such a thrill with getting your first client, or your first “real” client, or your first big client, or your first whatever client, that the excitement can cloud your better judgment. You will be tempted to overlook the red flags that you will not be paid for your work….
This weekend I was able to catch up on my favorite reality television show, Real Housewives of Atlanta. I assure you that I watch the show only because of its profile of small-firm lawyer, Phaedra Parks. The November 27, 2011 episode entitled “Jewels Be Dangled,” taught us a very important lesson for small-firm practitioners.
Phaedra brought Kandi a special present for her 35th birthday. All wrapped up in a giant box with a bow, Phaedra presented her friend with a special performance by her client, Ridiculous. For those of you unfamiliar with the Infamous Ridiculous, he is a very well-endowed stripper who will shake his business in the face of audience members and then, as an encore, his own. The performance upset at least a few party guests and, in typical Housewives fashion, drama ensued.
While the naive observer may think that Phaedra brought Ridiculous to the party because the show is, well, ridiculous, the truth is Ms. Parks was warning small-firm lawyers about an issue they must confront in running their practice….
As part of a nationwide tour, Above the Law is coming to the great city of Chicago.
Join preeminent law firm management consultant Bruce MacEwen, Katten Muchin Chicago managing partner Gil Sofer, and JPMorgan Chase & Co. assistant general counsel Jason Shaffer for a panel discussion (sponsored by Pangea3) on the evolutionary and market forces bearing down on the law firm business model. Come on by Thursday, November 20, at 6 p.m., for thought-provoking discussion, food, drink, and networking.
Space is limited and there will be no on-site registration, so please RSVP
Average law school debt for graduates of private universities hovered around $122,000 last year. With only 57% of new attorneys actually obtaining real lawyer jobs, recent graduates have a lot to consider when it comes to managing their student loan payments. Thanks to our friends at SoFi, today’s infographic takes a look at student loan debt, including the possible benefits of refinancing for JDs…
Kinney Recruiting’sEvan Jowers is currently in Hong Kong for client meetings and still has a few slots available through October 22. Evan will also be in Hong Kong November 14 to December 15. Further, Robert Kinney has been in Frankfurt and Munich this week and is available for meetings with our Germany based readers.
One of our key law firm clients has referred us to one of their important clients in the US, Europe and China – a leading global technology supplier for the auto industry – in order to handle their search for a new Asia General Counsel and Asia Chief Compliance Officer.
Kinney is exclusively handling this in-house search.
This position will have a lot of responsibility and include supervision of eight attorneys underneath them in the Asia in-house team. The new hire will report directly to the global general counsel and global chief compliance officer, who is based in the US. The new hire’s ability to make judgement calls is going to be as important as their technical skill set background.
The position is based in Shanghai and will deal with the company’s operations all over Asia and also in India, including frequent acquisitions in the region.
It is expected that the new hire will come from a top US firm’s Shanghai, Beijing or Hong Kong offices, currently in a top flight corporate practice at the senior associate, counsel or partner level. Of course, the candidate can be currently in a relevant in-house role.