Andrew McDermott

Taking steps to increase law firm profitability is always in the back of lawyers minds but their daily responsibilities can quickly take up the need to focus on growing their business. However, it doesn’t have to be time consuming to enhance profitability. These 4 strategies can easily be implemented all at once or at your own pace to support your law firms growth.

1. Position yourself as a thought leaders

Education attracts client attention; information converts client attention to revenue. You can use the “teach or be taught” framework to approach partners who have an audience filled with your clients. 

Here are a few examples: 

• Business law firms can reach out to notable or up and coming education providers, including Entrepreneur Magazine, Business Insider, Fortune, Fast Company, or Success magazine. You can offer first and second-tier providers content that helps their audience and drives more traffic to your business. 
• Real estate law firms with deep knowledge or expertise can partner with local clubs, e.g., high net worth, investor clubs, real estate companies, lenders, and real estate agents to provide education. As a real estate professional, you can host events, conduct workshops, run seminars, or give talks that educate and inform prospective clients. 
• Tax law firms can create unicorns in their industries — training their associates so they have their LL.M (master of law degree in taxation), and are designated as Certified Public Accountants (CPAs). They can then use this, along with other factors, to advertise their firm effectively and educate their prospects. 

The teach or be taught framework is helpful because it positions you as the ideal solution for the specific prospects who consume your educational materials. 

2. Give what you have

You can approach publishers and content providers with a deal. You provide their audience with helpful content in exchange for a small mention or micro offer from your business. These offers can include: 

• A weekly or monthly column on a publisher’s website, app, or portal
• Hosting regular Q&As for your publishers and partners
• Creating exclusive content in a variety of formats for your publisher or partner

What’s great about this strategy is it provides you with significant leverage. The content you create for one partner can be reused, repurposed, and republished elsewhere. You can create education pieces that generate results again and again, for years on end that continue to perform, independent of your day-to-day efforts. 

3. Provide relevant solutions

This is what you do for clients. It’s an inherent part of practicing law, but it’s also a component that’s neglected by most attorneys and law firms.

Protecting prospects before they become clients is helpful because it shows clients your primary concern isn’t about money. Instead of appearing needy or desperate to close the sale, you present your firm as the quality firm it is. Model Rule 1.18 is in agreement with this. 

Client-lawyer relationship

“[1]  Prospective clients, like clients, may disclose information to a lawyer, place documents or other property in the lawyer’s custody, or rely on the lawyer’s advice. A lawyer’s consultations with a prospective client usually are limited in time and depth and leave both the prospective client and the lawyer free (and sometimes required) to proceed no further. Hence, prospective clients should receive some but not all of the protection afforded clients.”

It’s important to protect prospects without creating an attorney-client relationship prematurely. Here are a few ways to achieve this:

• Limit direct, one-on-one consultations with prospective clients
• Focus your attention on creating one-to-many interactions in a public, semi-public, or group setting
• Don’t specifically request or invite prospects to submit information about a potential representation without clear and reasonably understandable warnings and cautionary statements that limit the lawyer’s obligations

You provide clients with information in a public setting on a one-to-many basis. This means you can share more general or introductory information. You can do this in a few ways:

• Q&A format
• On forums that focus on high-level topics
• As a guest on the news, television or web show
• In speeches in a public, semi-public or group setting 
• Teach courses in a specific context for an established organization

There’s more you can do to protect prospective clients, but this is generally oriented around a one-to-many relationship.

4. Be a people connector

The thinking behind this framework is simple. You find and connect people to solutions or support they need. You provide ready access to influential people becoming an influencer yourself. Connecting people who can help each other is one of the most useful skills you can cultivate in your law firm, especially if you’re in a B2B practice area. 

The best part, there’s more than one way to do it.

• Introduce people who can provide value to others
• Introduce two influencers to each other
• Introduce two people, but seed the relationship with an idea
• Host an event (e.g., webinar, conference, speech, dinner) but invite influential and complementary partners
• Position yourself as someone who can connect others to the people, resources, and opportunities they need
• Nurture the relationships you spark

This strategy takes a long term approach. Introduce people and organizations that can help each other. Give people what they want, seed the relationships with value, then watch the positive results customers, sales, reviews, pour in.

Using these strategies can increase law firm profitability 

You promote your partnership, advocacy, education, or support publicly in a way that’s appropriate and respectful of all parties involved in the framework. The more value you’ve created, the more you promote the work, the further word will spread. Doing this generates goodwill in a way that’s difficult to quantify and difficult to dispute. 

In your capable hands, these frameworks can provide you with the peace of mind you need to outperform your competitors. Combine these strategies to increase law firm profitability and propel your firm further than your competitors expect. 

Customer service skills for attorneys should always be a work in progress to improve the client experience. According to Lexis-Nexis’ Age of the Client, “eight out of ten lawyers believe they are delivering ‘Very well’ or ‘Quite well’ on all of the top client priorities.”

However, only 60 percent of clients believe the service they receive from their firm is above average. In my previous post, I shared the four keys of law firm customer service. These keys to customer service are incomplete due to attorney misperceptions surrounding indispensable customer service skills. 

Why attorneys aren’t providing outstanding customer service

Most attorneys believe that their only job is to know the law and close this case for their client, but they should not overlook the power of customer service at each interaction with their clients. Attorneys and legal professionals have the misconception that good attorneys don’t have to focus their energies on anything but the case. As a result, clients do not receive the adequate care, guidance, and protection they need from their firm. 

That’s your advantage. If you can overcome these stigmas, you’ll be able to achieve results other attorneys and firms can only dream off. Here are three customer service skills firms need. 

#1: Selling to clients

Attorneys hate selling. At least, the vast majority of attorneys hate selling. Several pundits create strategies for attorneys who absolutely hate selling. Others, like James Bliwas, write provocative quotes stating that attorneys are incapable of selling. 

“We have 231 lawyers and maybe 15 bring in nearly all of our new work. They’re good at it, but they’d be good selling widgets or mouse traps. Most of us don’t have the personality to ‘sell’ as you note in your essay. Expecting lawyers to sell is like trying to put a square peg in a round hole.”

Is this a case of can’t or don’t want to sell? 

Gallup puts business executives and used car salespeople at the bottom of their honesty/ethics index. The perception here is that clients don’t like salespeople; salespeople don’t like selling. It can feel like they’re pushing services on clients they don’t need or want. 

These behaviors create rejection. When most law firms attempt to “sell,” they make this mistake. They “pitch” unwanted products instead of identifying their client’s needs. It hurts to be on the receiving end of that rejection. That’s not selling. If that’s not selling, what exactly is it? Selling is matchmaking. 

There’s a key distinction that needs to be made here. 

• Poor customer service: Salespeople try to push their products and services on to clients (regardless of need.)
• Outstanding customer service: Professionals match solutions to their client’s problems. 

The difference is the quality of service you provide your clients is taking in account what they need and where your services can help provide a solution that will benefit them. Selling them services they don’t need will feels like a sales conversation and may put them off because you’re not listening to their needs. Clients have problems, you have solutions. Most will need your help indefinitely, provided that you deliver superior value.  Here’s an example of how you can effectively provide solutions to your clients needs that will also retain their business.

Problem: Your client needs to protect their business. 

Solution: Help them incorporate their business. 

Your client now needs: 

• All operating, partnership and employee agreements
• Help and advice to protect their intellectual property  
• To negotiate your lease of office or retail space
• Someone to draft software licensing agreements
• A resident agent

Providing a solution for your clients in one area creates additional opportunities in many other areas. 

# 2: Marketing and business development

The term “business development” is used synonymously with marketing. The trouble with that is the fact that they’re not the same thing. Here’s the difference:

• Marketing is essentially everything you do to raise a decision maker’s awareness of the firm. It involves identifying your firm’s points of differentiation, developing a key message, and creating a strong positioning in your firm’s target markets. Traditional marketing tools and strategies for firms include advertising, sales collateral, website content, media relations, thought leadership materials, and other credentialing activities.
• Business development is all about the individual lawyer creating, fostering, and leveraging partnerships and strategic relationships with existing clients and new prospects to generate business. At its core, business development is leveraging existing clients and referral sources as door-openers to prospective clients, as well as consistently creating new contacts and relationships. This is the attorney’s chance to sell themselves and their points of differentiation.

Business development is persuasion one-to-one, while marketing is teaching one-to-many. This isn’t an either-or proposition as attorneys and firms need both. As a lawyer, you’re a knowledge worker. This means giving your knowledge freely to your clients, prospects, and peers. If you’re a small business attorney, this could mean: 

• Writing articles for Entrepreneur.com, Fast Company, and Business Insider
• Giving speeches at entrepreneur, startup and small business events
• Hosting meetups or Q&As for business owners
• Creating or appearing on radio shows and podcasts

Sharing your knowledge means you (a) identify your client’s problems (b) explain the consequences of ignoring the problem (c) provide solutions to their problems. All of which leads back to you. 

#3: Providing realistic legal guidance to your clients

Having great customer skills as an attorney means having tough conversations with your clients. It’s important to provide realistic solutions and goals for your clients even if they might disagree. Presenting tough information to your client is all about the delivery. You want to come from a place of understanding, but also firm in your expertise and ensuring the client you’re keeping their best interest in mind.

In some firm cultures, it’s viewed as a serious breach of protocol to tell clients the truth. However, with good customer service training and learning to deliver difficult information with compassion and professionalism, your firm will build a reputation that clients will admire.

Sometimes customer service skills for attorneys require having difficult conversations with clients that will ultimately benefit them in the long run.

The takeaway on customer service skills for attorneys 

Customer service skills for attorneys are vital to maintaining a healthy client-attorney relationship. From going above and beyond to wow your clients to having tough conversations, quality customer service comes goes a long way. Attorney’s should present themselves as understanding and compassionate to their clients, yet firm and confident in their legal guidance. With these 3 tips, you’ll build a loyal following of clients.

Cross-selling for law firms is not only great to build revenue, but it helps retain more clients by becoming their “one-stop shop” for legal services. Sixty percent of firms see retaining clients as a significant challenge. Competition from likeminded firms and industry disruption continues to erode client/law firm relationships.

The solution? Using online payments to cross sell the services at your law firm. This strategy isn’t new, but it is effective. Let’s take a look at a few strategies you can use to increase your firm’s revenues by as much as 17x your current revenues.

Use your client’s (saved) billing profile + tangential problems

The S word tends to conjure up cringe-worthy images of used car salesmen, sleazy infomercials pitchmen and hustlers who refuse to accept the word No. That makes sense; it’s also part of the reason why so many lawyers seem to dislike the idea of selling. 

It’s a perception problem. When we understand the scientific principles behind “selling,” it suddenly becomes easier to attract, convert and retain new clients. I’m talking about our negative bias.

John Cacioppo, Ph.D., discovered that our brains have a negative bias. Our brains are tuned to seek out negative information obsessively. This is present even before birth. We respond more strongly to stimuli we’ve flagged as negative.

What does this have to do with your clients?

Your client’s negative bias means they come to you with specific problems they’d like you to solve. Here’s the good news. Every solution creates a new set of problems clients need you to solve.

Here’s an example.

1. You set up an LLC for your clients.
2. They’re running a consulting firm, so you ask about agreements. They hire you to craft a range of agreements for them.
3. You ask about their estate plans. They’re aware of a new problem that you’re able to solve.
4. You help your client with their commercial real estate lease or purchase — more business.
5. They acquire a significant amount of assets. Those assets need protection. More work for you.

Cross-selling for law firms means you’re offering your existing clients solutions to the additional legal problems they don’t know they have. You’re not manufacturing a problem. It’s the opposite. You’re telling clients about the problems that are waiting to ambush them. Then, you’re solving those problems for a price.

This is the power of our negative bias.

Say nothing to your client and their business and assets remain unprotected. Avoid bringing up their lack of agreements, and you leave their consulting business vulnerable to a lawsuit.
See what I mean.

How do online payments support cross-selling for law firms?

If you have your client’s credit card information on file, the cross-sell is easy and simple. Just ask your clients to say yes, bill the card you have on file and continue to handle the matters they present you with! The easier it is for clients to pay you, the easier it is for you to increase your cross-sells.

But it starts with saving your client’s credit card profile. Built-in payments processors like, Bill4Time Payments, allows your clients to easily pay online and safely stores their information for future payments. This way, you’ll have the reporting and data you need to suggest cross-sells consistently.

Use online payments reporting + origination credits to boost revenue

A recent study via Law.com found clients who were served by three practice groups had revenues that were 5.7 times higher than those served by one. Clients who were served by five practice groups generated fees that were 17.6 times higher than those served by one.

This is a massive increase.

How do you make this happen in your law firm? It’s simple. You create (or revamp) the origination policy in your firm. Remember the billing profile I just mentioned? That’s an indispensable part of this process. You’re going to need that.

Here’s how you use it.

1. Contact existing clients who’ve already submitted a saved billing profile with your firm. Whenever possible, request credit card data from clients in place of checks or wire transfers. For many practice areas, credit/debit card data can be your default payment method. 

2. Reach out to trustworthy attorneys in your firm and offer them generous origination credit if they help you close existing clients on new matters. Finally, use the reporting provided by your online payments provider to keep track of origination credits.

3. Pitch clients on specific attorneys in your firm who can deliver results or help them solve a particular problem. You’re looking for specialists rather than generalists. Rely on trustworthy attorneys to help you close the business.

4.  Repeat these steps, working to generate new business for your colleagues, provided that you receive origination credit for your hard work, referrals and access to your client. You’ll want to ensure that you’re compensated well for your referral. Use the reports provided by your practice management software or payment processor to determine who gets credit for what, how much and why.

Here’s why this simple, almost boring strategy works so well.

A 2012 study by Randall L. Rose et al. found that consumers who use credit cards spend more than double, more than if they had simply paid via cash, check or wire transfer.  A saved billing profile means clients are focused on the potential benefits of your pitch, not the cost.

They just have to say yes.

Why online payments work

A strong origination plan combined with saved billing profiles or credit authorization means it’s easier for clients to bring in a large yet consistent amount of revenue. Sixty percent of firms see retaining clients as a significant challenge. Competition from likeminded firms and industry disruption continues to erode client/law firm relationships.

Law firm marketing may not be top of mind for every attorney, but as more clients flock to the internet to vet their services, it’s imperative to step up your marketing and create a strong value proposition to keep up with an already competitive legal market. Yes you, they’re forming detailed first impressions about your law firm in as little as 50 milliseconds. Here’s why this is so incredible. There’s no thinking involved in this first impression.

Why digital first impressions matter to your law firm

When prospective clients see your website, they’re instantly and automatically categorizing your law firm. Research from Google shows your prospective client’s first impression about your law firm takes place before they’ve had a chance to even think about what they see on your website. These first impressions determine outcomes. 

Negative first impressions can be tremendous deal breakers. The horn effect kicks in once a first impression is made. At that point, clients are looking to confirm their first impressions about your law firm. 

All based on your website. Most of us have a sixth sense about the websites and brands we visit. If our first impression is “yikes this looks sleazy,” we tend to go with it, searching for evidence to confirm that belief, ignoring any evidence that suggests otherwise.

The problem is that most people believe this research is all about looks. In reality, this is actually about presentation, which is completely different. Presentation is a mix of tangible and intangible factors working together.

Tangible	Intangible
Color	Behavior
Formatting	Trust
Layout	Values
Topography	Expectations
Images	Prestige
Clarity	Power

Your clients use tangible details they can see to clarify the intangible things they can’t see. Here’s an example that demonstrates what I mean.  

This was an actual webpage. Kevin Nations, the consultant in the screenshot, didn’t include navigation. He didn’t provide you with his about page; there is no bio, no list of services, just his name, photo and a small contact link to the left. You can see the tangible.

When you look at the tangible, what intangible details jump out at you? 

• Power
• Prestige
• Confidence
• Mystery
• High-Value
• Experience
• Directness

The tangible details clients see on your website communicates the intangible things they can’t see. 

Website marketing mistakes and what they cost

Let’s take a look at an extreme (and unrelated) example. 

This e-commerce website sells gadgets; hundreds of sites list this company as a prime example of what not to do. It’s described as a “bad website.” The color, formatting, layout and design – all of it, it’s a mess. These are the tangible presentation factors, the details you can see. And it costs them revenue.

This isn’t the devastating cost I’ve referenced in the headline. These tangible factors are simple to fix. It’s the damage to this company’s intangible presentation factors that’s devastating. Here are the words people have used to describe this website across the internet: 

• Ugly
• Bad
• Horrible
• Complex
• Untrustworthy
• Scammy
• Disturbing
• Overwhelming

As mentioned earlier, your clients use the tangible presentation factors they can see to make assumptions about the intangible things they can’t see. These intangible details remain.

This is the devastating cost. 

These website mistakes could create a negative perception that can affect a company’s: 

• Ability to attract all-star employees
• Sales and revenue 
• Ability to attract investors
• Their employer brand
• Ability to attract financial support
• Market share
• Ability to attract profitable customers

Your website shapes public perception. The quality of your brand, the way your firm is perceived in the marketplace, the employees they’re able to retain; it all depends on your firm’s identity. That identity is shaped by the tangible and intangible presentation factors you’ve created. 

Use law firm marketing to make a great first impression

Your next client is searching for you right now and as we’ve seen, your clients form detailed first impressions about your law firm in as little as 50 milliseconds. Research shows, “it takes 500 milliseconds or half a second for sensory information to be incorporated into our conscious experience.”

First impressions matter and you can use your law firm marketing tactics to build a website that leaves a lasting impression. This perception shapes the outcomes; these outcomes determine the success or failure of your law firm in the long-term. Most of us have a sixth sense about the businesses we see. Your clients are no different.

Delegating work as an attorney can be difficult. Attorneys take pride in their work and want to make sure it’s done right every time. This is especially true if they don’t have reliable systems to help support their team and keep their tasks organized. For instance, the Supreme Court of New Jersey admonished Andrew Rosenbloom because he missed discovery deadlines in four of the matters he handled. This isn’t the whole story. 

Rosenbloom states that his employer “set him up to fail.” How does he know that? His employer assigned him to more than 100 cases, all at once. He represented The Great Atlantic and Pacific Tea Company (A&P), a regional supermarket operator. 

Was this attorney set up to fail? 

It certainly seems that way. To make matters worse, Rosenbloom was required to represent his client in approximately 75 matters in New Jersey and 41 in Pennsylvania. He struggled mightily to meet the demand but eventually fell short on four matters out of 116 matters. 

That he was forced to juggle all at once, what’s more baffling is the fact that, according to the news story, “It wasn’t until almost a year later that the firm gave him a part-time assistant to help him.” As a result, Rosenbloom started taking anti-depressant/anxiety medication in March 2014 and experienced “marital difficulties,” the board said. This was clearly unsustainable. 

Rosenbloom elaborated, explaining why he felt he was set up to fail. 

• All A&P cases originated in the New York office. New York filed the answers before Rosbenbloom was involved;
• Seth Rubine, the New York managing partner and Rosenbloom’s supervisor, was listed as trial counsel in all A&P matters;
• All mail went directly to the New York office, which calendared all events and deadlines, and then re-routed all notices to Rosenbloom; and
• Rubine sent matters to Rosenbloom after discovery deadlines had expired and told him to “fix it.”

If this is true, it seems he really was set up to fail. This story is an example of poor delegation. It would be simple and naive to assume the worst about any of the attorneys or firm in this story. We don’t know the full details of what happened. 

Delegating work as an attorney starts with the right person

It begins with “what.” You’ll need to know what needs to be done, what needs to be sent where, what you need from your clients, etc. Identifying the what is clearly the first step. 

Many believe it’s the only step which is exactly why they neglect the “who.” Successful delegating work as an attorney requires that you, the delegator, identify the right associate for the job. Ask delegators if they have the right person for the job and you’re likely to get silence. It’s much easier to fob off work on any associate and demand that they get it done. 

Most of the time, this works. Until you assign your task to the wrong who to your project, case or matter and things go horribly wrong; complicating things further, the right who isn’t singular, it’s often plural. You need the right people, at multiple levels, to get a project, case or matter finished. 

What the right who looks like

The right who can navigate a complex series of obstacles including: 

• Organizational obstacles, i.e., who is ultimately responsible for quality? Who is accountable to the client? Who is responsible for communicating with the client? 
• Managerial obstacles. Can delegators let go of the work once they delegate, or will they insist on micromanaging the work into dysfunction? It makes sense why many would-be delegators feel they can do a better job.
• Situational obstacles, e.g., clients demanding or expecting their matter to be handled exclusively by partners (i.e., don’t delegate my matter to a junior associate). Client expectations, along with other issues, create a complex web of problems. 

The right whos (plural) consist of: 

• Delegators, those assigning tasks
• Delegatees, those to whom tasks are assigned
• Managers those who manage delegation 
• Troubleshooters, those who identify and fix any issues with delegation

Sometimes these roles are spread between two people; sometimes, it’s spread between a small group of professionals. The task, your firm’s culture and financial constraints dictate the whos. 

Asking questions identifies the right whos.  

• Have delegators clearly and carefully outlined what needs to be done? 
• Do delegatees have the training, experience, materials and support to perform? 
• If delegatees don’t have what they need, can you get them what they need? 
• Do managers know how to manage delegation? 
• Do troubleshooters know how to fix delegation issues?  

This is how you determine who you delegate work to in your law firm. These simple questions solve a variety of delegation issues. Simple is difficult when you don’t know that you should ask these questions. 

Successful delegation is the key to growth

Attorneys are overworked. Most are only paid for 30 percent of their day. The issue? Most attorneys spend their days dealing with busywork, administrative tasks, business development and document management challenges.

Attorneys need to delegate. 

As we’ve seen, most attorneys aren’t taught how. Many are set up to fail from the very beginning. It’s no surprise then that many make serious mistakes that harm their careers and future earning potential. 

These mistakes are unnecessary. 

Successful delegation starts with what but it ends with who. Ask the right questions, find the right who and you’ll find delegation is simple, efficient and successful.

Online payments are a great way to boost law firm revenue. Especially, when we’re in a time where waiting around for paper checks and bank deposits just won’t cut it.

Data from the 2019 State of the Legal Market shows client demand has been stagnant for the last 10 years, since the Great Recession. Firms are fighting to bring in more revenue as demand continues to decrease.  The outcome could have been much worse. It hasn’t been, thanks to the ingenuity of attorneys and law firms. It’s still incredibly difficult for attorneys and small firms to build the thriving practice they want. 

Law firms are struggling to bring in business

Small firms face a variety of problems. There’s the struggle to attract and retain clients, minimize expenses and run your firm. The State of Small Law Firms outlined the problem best. 

“Chief, among these challenges are problems acquiring new client business. Every small law firm segment surveyed, regardless of the number of lawyers, identified this as their primary “significant challenge.” Whether a solo attorney or the managing partner of a 25-lawyer firm, worries about where your next client will come from likely causes some consternation.”

“Competition Is More Fierce than Ever.” In a market characterized by sluggish demand growth, the only way for one firm to improve its market position is by taking existing market share. That, in turn, drives increased competition.”

As in, stealing or luring clients away from your firm. It’s frustrating, but it’s also not a secret. Sluggish demand growth only adds to the competition. Ask knowledgeable attorneys how to increase firm revenues and they’ll outline some variation or combination of these solutions. 

• Attract more clients to increase cash flow
• Increase realization rates 
• Limit billing disputes and nonpayment
• Decrease expenses and non-billable work
• Increase productivity and work/life balance
• Fix gaps in your firm’s utilization 

These are all essential and valuable ideas. But there’s one idea that’s not receiving the attention it deserves. 

Using online payments to boost law firm revenue 

With the right strategies and payment processor, you can use online payments to boost law firm revenue. Many of these ideas are simple to implement but provide consistent (and compounding) value over time.  Here are three tips you can use to increase your revenue. 

1. Ask your clients to pay via credit or debit cards 

A recent study by Promothesh Chatterjee and Randall L. Rose found credit/debit cards change your client’s perceptions. Client focus shifts from cost to benefits. 

Purchasers were far more focused on the benefits of the products or services they received than they were on the overall cost. This reinforces previous studies showing participants are willing to spend twice as much as those who paid by cash or check. 

What does this mean for law firms? It’s a clear indication that law firms should recommend or set clients up with scheduled payments. The importance here can’t be overstated. This is just as important as the agreement. 

2. Get clients familiar with your billing options

Most attorneys/law firms focus their attention on pursuing and collecting from delinquent clients, which makes sense. 

What if they weren’t delinquent?  What if your fee arrangement was the problem? What if your clients aren’t able to swing a $33,000 lump sum payment, but they were able to swing a $2,750 per mo payment? Instead of sending your delinquent client to collections, you could move them from an hourly AFA to a subscription AFA. 

It’s a straightforward way to keep your clients. But it depends on your ability to save and retain your client’s credit card profile. 

3. Combine online payments with alternative fee arrangements 

When it comes to AFAs, there are only two ways to approach the problem. Proactively or reactively.

Proactive firms initiate the AFA conversation with their clients, discussing pricing, budgets and expectations. Reactive firms, on the other hand, wait for clients to initiate the conversation. 

An Altman Weil survey compared these two approaches. Here’s what they found:

“When asked to compare the profitability of non-hourly work and hourly work, 84% of proactive firms find their non-hourly projects to be at least as profitable as their hourly projects. This is the case in only 51% of reactive firms. Narrowing the focus, 40% of proactive firms report their non-hourly projects are more profitable than their hourly projects, compared to only 10% of reactive firms. The lesson is that firms that make a rigorous effort to understand and manage a new or evolving market tactic like alternative fees generally succeed in doing so, and enjoy increasing benefits over time.”

Here’s why this is significant. Let’s say your client hires you to help them with a matter. You estimate that they’ll need to spend approximately $17,000. Your client may bristle at that price. With an alternative fee arrangement, you can charge the same (or more), but you can break it up into monthly payments, (say $3,100 per month or $37,200 annually).

How can you justify charging more? 

Risk. A month-to-month arrangement increases the amount of risk you’re required to take on. That risk is mitigated thanks to the saved billing profile you have on hand. This strategy is also an effective way to deal with discounts, write-offs and write-downs. It’s a straightforward way to generate more income in less time and with less effort.  

This is why combining a saved billing profile and an alternative fee arrangement enables you to generate more revenue in less time and with less effort. See the difference? 

Online payments can boost your law firm revenue

Small firms face a variety of problems. Attorneys are struggling to keep their piece of the pie. Law firms are stealing or luring clients away from each other. There’s the struggle to attract and retain clients, minimize expenses and run your firm.  

It feels like an uphill battle. Using online payments and a variety of other factors, you can attract, convert and retain the profitable, high-quality clients your firm needs most. Adopting a built-in payments processor, like Bill4Time Payments, is an easy way to start offering online payments and creating a payments experience both you and your clients will benefit from. Take a look inside Bill4Payments below before booking your custom demo.