Solo In Chicago…Grow Your Practice!

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My initial word association with a “Third Way” would be Tony Blair’s centre-left Labour Party government in Great Britain and his attempt to meld a different sort of political alternative to the extremes on the both the left and right. Although that’s not a wholly inaccurate description of my political leanings this ain’t the Politico so lets talk growing your law practice and specifically initial client meetings.

How to handle initial meetings with potential client prospects is VERY IMPORTANT to your practice but I don’t think there’s a real clear black/white answer on how to handle these and specifically, to charge or not to charge. Here was a previous post and an earlier evolution of my thinking on this matter. Generally the debates I hear and have had within my own mind are should you offer free initial consultations or should you charge for all meetings. A brief summary of my thinking (see link above) being that in the early days of your practice you’ve got plenty of time and should offer free initial consultations to more recent times as the practice fills-up you’ve got to charge for every minute of your time.

However, is there a third and better way? These are 3 questions guiding our current Initial Prospect Meeting Policy:

1.  What’s the source of the prospect and/or how did the prospect find you? The underlying thought here is to treat your best referral sources well indirectly though their referrals. Meaning, I’m much more liberal about offering a free initial client meeting to the person who got my name from that great referral source who sends me a new prospect every month versus the new prospect making a cold call and having no previous relationship to the Firm.

2.  What’s the case potential and/or why does the prospect want to meet? Simply, might your 1 hour meeting turn into thousands of dollars of profit in the future or is the prospect looking for your expertise limited to that initial hour meeting with no potential for future payoff. Now you might say that there’s potential future payoff just from a prospect meeting with you (just getting to know you) but personally that’s too indefinite and unlikely for my taste.

3.  What’s the Trade-off? Here I’m talking Opportunity Cost:  What’s the value of the next-best choice available when you obviously have several options of how to spend your time.  This question is why I think this whole subject-matter tends to change and evolve because your law practice like any business is a sort of living thing that constantly changes and evolves. So say six months after opening my doors if I’m balancing between organizing my office, creating legal forms, or taking a free initial prospect meeting I’d say the free meeting would be the best available cost. However, these days there’s a better chance that I’m choosing between actual billable legal work versus a new prospect meeting and trading $200 for that hour versus $0 isn’t usually a tough call.

Is there a 4th Way??

**Update** GAL re-posted here some ideas from Ed Poll:

The issue: whether to charge a prospective client a fee for an initial consultation, the meeting before being engaged. The wisdom of charging in this situation has long been debated, and it comes down to three fundamental choices:

1. Free initial consultation
2. Paid initial consultation at the lawyer’s regular rate, exclusive of any subsequent engagement
3. Paid initial consultation at the lawyer’s regular rate, with the payment applied to the total bill if the consultation results in an engagement.

Some occasional, insightful nuggets from around the BLAWGSPHERE…

Representing Family Members and Other Horrible Life Decisions (Nutmeg Lawyer). Nutmeg includes a nice listing of factors to consider when looking at friends & family representation. He includes a jarring story where a lawyer represented a very close friend in a divorce and the lawyer’s emotions ended up getting the best of her. Personally I’ve had some excellent family/friend representation within boundaries. I’ve for the most part represented friends/family in real estate transactions and estate planning plus a couple of sort of easily settled lawsuits. Bottomline, who do ya know better than friends and family and those I respect and know will be professional and pay my fees and are great clients. In my experience most of my friends/relatives expect to pay market value fees and are adamant about doing that.

The Most Expensive Mistakes a Lawyer Can Make (Chuck Newton). A very useful list indeed. At a recent ISBA Webinar that I moderated along with a couple of colleagues the unanimous answer to the question, “What was your worst decision you’ve made since starting your law practice” was under-billing or as Chuck lists inadequate pricing. That along with wasting $$ on office space i.e. borrowing/spending too much on Chuck’s list were my answers.

The Chicken or the Egg? Changing Practice Areas in Challenging Times (GAL).  A great & relevant point for us all no? I’ve probably been keeping my power a bit too dry in this area. GAL’s experience:

I would make several observations from my own experience.  First, the internet makes expertise available.  With a little hard work in your spare time, there’s almost no area of law you can’t gain base experience in.  Further, your chance of getting a case within a practice you’re interested in is no more than random luck, unless you go out and develop an expertise and start talking up that expertise on the web and on the street.

Wanna be a lawyer? Well, get thee to a courtroom (Ernie the Attorney). That’s a great tip all the time. If you can stumble on a few interesting cases in a courtroom while waiting for your matter to be called you’re very lucky. This is very worthwhile and easily done both for the substantive law you may learn & for more “perception issues.” I experienced some perception issues first hand recently when I served for the first time as a Cook County Arbitrator. The arbitration rooms are small so I’d closely observe the plaintiff’s and defendant’s lawyers. And the way the lawyers act from the moment they step into the room surely impacts likability and likely in some subtle way a court’s ruling.

Take a read of Tom Kane’s post entitled,

Are You Too Timid to Ask Clients for Legal Work?