Beyond Biglaw: Making Your Points (Or: Some Tips About Credit-Card Rewards)

How can you make the most out of your credit-card spending points?

Blank Lawyer Type Sign or Shingle.No, this is not a column on persuasion, even if that is a topic I have been doing a lot of reading on lately. Instead, in honor of Black Friday, Cyber Monday, and Gift Card Tuesday (in case anyone wants to start up a new holiday by sending a gift card today to a friend), I wanted to talk about actual points — as in the kind you earn for spending money on different credit cards. Personally, I have long enjoyed the “points hobby,” using credit-card sign-ups and other tricks to earn free or cheap travel for myself and my family. Living in New York City, spending money is never a problem, so I may as well get something of value for doing so in a thoughtful way.

As with many hobbies, the points game can be as simple or as complicated as you want it to be. While I have run into other lawyers who enjoy the game, the demands of maintaining a functional legal practice usually mean that even the most dedicated lawyers would fall into the category of hobbyists, rather than points professionals. Yes, the latter category exists, and there are a plethora of blogs dedicated to the hobby written from a number of different viewpoints by said professionals. (Beware, however, that many of the bloggers make their money by enticing readers to sign up for new credit cards through links on their website. It can be easy for newcomers to get in over their head and practice poor credit management, especially if they have busy lives. So tread carefully before jumping into this hobby.) Their guidance can be very helpful for hobbyists like myself who just want to maximize the returns on spending we are already doing.

At the same time, just like we all choose the ideal payment method for our personal purchases, it is important to remember that small law firms in particular can really benefit by maximizing the rewards for the spending they are doing. Unlike at Biglaw firms — where individual partners have little control over the firm’s spending — at smaller firms it is often the purview of one or more of the firm’s partners to make necessary purchases on behalf of the firm. Whether those purchases are for office supplies or marketing travel is irrelevant for purposes of this column. What I’d like to suggest is that by smartly allocating the firm’s spending to the appropriate credit cards, the firm can actually earn back some of the money it is spending anyway. That remuneration for spending using a particular credit card can be in the form of cash back, or points that can be used by the firm for other things.

credit card credit cards debit card money personal financeAs an initial matter, it is important for any law firm (even solos) to have at least one business credit card. Different practices can have different types of cash flow, and many firms will come upon the need to make a purchase on credit to help further the business. I am not advocating loading up the firm with credit-card debt, of course, since practices that require lines of credit would be better served getting that money from a bank in many cases. Instead, there are many routine (internet/telecom bills, filing fees, etc.) and occasional (travel, technology, etc.) purchases that firms make where paying via credit card can be of benefit to the firm (as long as you are not paying a premium for the privilege of charging a particular purchase, of course). Whether that benefit is some form of travel insurance, or an extended warranty, or simple cash back — it would be a shame for firms to miss out on those benefits by paying cash. Unlocking the door to those benefits is simple for many firms. They just need to pick a business credit card or two that fits the firm’s needs.

The right credit card or set of cards will be different for different firms. Some firms would benefit from cash-back cards, where a portion of every purchase is returned back in the form of cash or a statement credit. Other firms may benefit from travel points cards, whether they are issued by a hotel chain, an airline, or a bank that offers transferable points to a mix of travel providers. For example, because our firm has a nationwide practice in various federal courts, as well as a client base that is geographically distributed, we have always had a travel-focused firm credit card. The points we earn go to marketing travel, when we have somewhere to go on business but don’t want to spend cash to get there because it is not a client-reimbursed trip. Likewise, we have always had firm credit cards that provide other travel benefits, such as elite status with a hotel chain, or lounge access at airports. Considering our travel frequency, those benefits are most welcome.

Ultimately, every firm will have their own needs and desired benefits when it comes to the firm’s mix of credit cards. Coming from a Biglaw partnership, I can say this is not an issue that had much relevance while I was at Biglaw. But now that I am at a small firm, I want to maximize every possible benefit our firm can receive from credit-card issuers. Anything that takes away some of the sting of the firm’s expenses is worthwhile, and it is well worth the time investment (for someone at the firm, if not you) to learn the different credit-card options available before choosing the right one(s) for your firm. The points are there, you may as well grab a few.

Please feel free to send comments or questions to me at gkroub@kskiplaw.com or via Twitter: @gkroub. Any topic suggestions or thoughts are most welcome.

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Gaston Kroub lives in Brooklyn and is a founding partner of Kroub, Silbersher & Kolmykov PLLC, an intellectual property litigation boutique. The firm’s practice focuses on intellectual property litigation and related counseling, with a strong focus on patent matters. You can reach him at gkroub@kskiplaw.com or follow him on Twitter: @gkroub.

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