The most expensive part of owning and operating your law practice, bar none, is the investment you make in getting new clients. Period.
Whether you are investing in your marketing by running ads, buying leads, sending direct mail or investing by getting out there and speaking in your local community, attending expos or networking, it’s an investment.
Whether you are in bankruptcy, immigration, personal injury (you guys REALLY invest a lot), estate planning, business planning, divorce, worker’s comp, appellate, or any other area of practice, you need to invest time, energy and money in creating new client relationships.
Most lawyers, stop there and, as a result, are leaving a LOT of money (and fulfillment) on the table.
Last week, I showed you a video from Derek Halpern, about his $310 haircut. And I showed you how everything the hair stylist is doing in his “practice” applies to what you are doing in your law practice.
The thing Derek didn’t talk about that will REALLY impact your profits, though, is probably the most important lesson for you, by far.
If you watch the $310 haircut video again, you’ll hear Derek say that the stylist gives everyone a free two-week clean-up. This is genius! Absolutely genius.
Why would the stylist who charges $310 for a haircut give a free cleanup just two weeks later? Because he knows that if he can get Derek back in the chair on a regular basis that’s where he makes his money. If Derek only comes in once and never comes in again, that’s a losing proposition for Mr. Expensive Haircut Man.
But, if he can get Derek back in that chair 2 weeks later, he’s quite likely to get the next appointment made for the next PAID haircut, and suddenly, he’s got a client for life. Consider the lifetime value of a client who comes in every month to get his haircut with free cleanups in between.
That’s over $3,600/year v. the one-time $310 haircut. What would be really smart is if the stylist offered a membership program that included a haircut and cleanup each month for one low monthly rate with some bonuses thrown in, like the special brush!
Wouldn’t it be worth it for the stylist to throw in the brush to lock in a client and guaranteed income for a year?
So, how does this apply to your law practice? You tell me. In the comments. 🙂
One more thing though, before I go… Creating an ongoing relationship with your clients, rather than just a one-off transaction, is only one way to create profit in your law practice rather than being on a cash flow roller coaster that never ends.
The other way to create profits in your law practice and stop the constant up and down income is to provide additional services to your existing clients.
So, if you help clients through a divorce or through a bankruptcy or through a criminal matter or an immigration matter, what else do they need? What else could you do for them that would be exceedingly helpful, that they would want you to do, if they knew you could do it well?
Hint, hint: just about every single client who you have served in the past, needs and wants to make sure their loved one’s will have an easy time of things when something happens to them. Everyone wants that. So, you can create significant additional profits in your practice by knowing how to provide that, easily.