2 Ways To Move Clients from Checks to Online Payments

Can online payments truly make a different to your bottom line?

It’s there in the back of your mind.

The reason why so many attorneys choose to collect larger retainer fees upfront. Doing so relieves a few of their secret and unspoken fears.

Get as much as you can now. There may not be a “get” later on.

It’s common for attorneys to collect as much as they can upfront, as often as they can,  for advance work. Yes, these retainers provide short-term relief but they do little to diminish any long-term cash flow concerns firms may have.

Online payments give your firm stability

With online payments, specifically in the form of credit cards or recurring ACH transfers, you’re able to get paid up to 70% faster than the industry average. Built-in payments processors, like Bill4Time Payments, are easy to use, secure, and compliant. Bill4Time Payments is accessible in your Bill4Time account and easy to activate. There are lots of compelling arguments outlining the benefits of moving clients from checks to online payments.

The real question here is how?

How exactly do you convince a client to make the switch from checks to online payments? Typically, there are pre-existing arrangements in place. Clients paying by check have a specific set of expectations, specific reasons for paying by check.

How do you get them to agree with you?

How do you get clients, who are already set in their ways, to make a significant change?

Strategy #1: Replace your clients one-by-one

What’s the hidden fear lurking behind the scenes here? It’s the fear that you’ll ask (or demand) that your clients will say No to your request.

Even worse, you may lose them.

Push your clients too hard for a commitment and you may even see a dramatic reduction in the amount of business you receive from long-term clients. If these large clients are sending you a large book of business the results to your firm could be catastrophic.

It’s simply not worth the risk.

Here’s a better way to get clients on the same page. You start with yourself. You eliminate your fear of losing the business.

Here’s how it works.

1. You increase your pricing. This enables you to compensate for any bank, transfer or processing fees. If your payment processor takes 3.3% plus $.30 per transaction for example, you’ll want to ensure your client fees are adjusted accordingly.
2. Set your breakeven point. Identify your monthly recurring revenue (MMR) point. This is the amount you’ll need to maintain your operations as-is. You’ll need this amount, in full, before you pitch current clients. This step is the foundation, your strategy won’t work without it.
3. Set your terms and conditions. You want to identify your pricing model, billing strategy and appropriate schedules. Are you offering clients an evergreen (recurring) retainer that’s renewed on a specific schedule or via set criteria? Are you offering subscription billing or a flat monthly fee? You’ll need to finalize these details first before attracting or pitching clients.
4. Bring new clients in, under the new terms. New clients are brought in under the new terms and conditions you’ve laid out in step three. These are reliable clients who have explicitly agreed to your new pricing model. You’re looking for the behavior markers that signal a reliable, long-term client. As far as these clients are concerned, pay by check doesn’t exist.
5. Bring in new clients, replace the old. Your new set of clients should meet the predetermined MMR point you’ve set previously (step two). If your firm needs $650,000 per mo. to operate comfortably use this as your benchmark. Just be sure to exclude current clients. If you’re uncomfortable waiting you can begin pitching clients when you’re 1/3 – 2/3 of the way there. This comes with increased risk.
6. Pitch existing clients with a compelling offer. At this point, you’re able to confidently reach out to existing clients with your offer. If you’re willing to grandfather existing clients in (i.e. they continue to pay by check) you can assume more risk with step four. If you’re unwilling to grandfather existing clients you’ll need less risk.

See the difference?

This strategy eliminates a significant amount of the fear you feel. You’re able to approach existing clients confidently, knowing that you have a secure foundation/safety net in place. You’re producing more revenue with less effort and in less time.

Strategy #2: Give existing clients an incentive

You could use force to gain compliance. This would probably damage the client relationship permanently. It hardly seems worth it, especially when there are more effective strategies you can use to gain buy-in from your clients.

Here are a few you can use:

• Discounts: This strategy is the low hanging fruit firms pursue first. It’s easy to offer clients a significant discount for a set period of time. This strategy should be used with care. It should be unpredictable, difficult to game and focused on delivering value to all parties.
• Bonuses: Enable you to provide clients with a specific set of valuable add-ons. The important detail here is this. Your clients must find these bonuses compelling. If you’re a startup or small business attorney regular calls, webinars, workshops or sit-downs with influential or legendary entrepreneurs, specialists and experts would be an incredibly compelling bonus.
• Urgency: You want to give clients a compelling reason to act now. This could be a complementary service or add-on that’s offered for a specific time frame. “We’re only taking on 15 clients at this time. We’re working with clients on a first come, first serve basis, apply now.”
• Alarm, logic and gain: Show clients what they stand to lose (naturally) by continuing to pay with checks. Provide them with a logical rationale that shows them why they should switch to online payments then, show them what they stand to gain after they understand the consequences.
• Loss aversion is a natural response to loss. It’s better to not lose $5 than to gain $5. This can work in a variety of directions. “I’m currently losing $$ per invoice with clients who pay by check. Making online payments would help us come out ahead. Would you be willing to switch?” or “Our firm is moving from checks to online payments. I’m reaching out to see if you’re willing to make that transition with us?”

This all seems fairly straightforward, doesn’t it?

Many attorneys feel this is all a bit much. “You just have to ask” they say, “and clients will switch.” Experience tells us this isn’t the case. Checks give clients a significant degree of control. Research shows gains received from switching aren’t enough. You’ll need to show clients the (positive and negative) consequences of continuing with the status quo.

Large upfront fees aren’t the answer

They’re comforting in the short term but they create significant disadvantages for small, medium and growing firms. If you’re working with consumers and/or small business owners they may not be able to pay the large upfront fees you’re asking. Online payments give you predictability and your clients flexibility.

Get as much as you can now. There may not be a “get” later on.

This doesn’t have to be your story. With the right strategies and a clear set of tactics, you’ll have the systems you need to provide your firm with financial stability and growth. 

It’s all worthless. Not your final year of law school, of course, but your GPA

Laszlo Bock, former head of HR at Google had this to say about GPAs and test scores. “GPAs are worthless as a criteria for hiring, and test scores are worthless.“

This isn’t surprising, is it?

Experience seems to validate this over time for law firms as well.

“Google famously used to ask everyone for a transcript and G.P.A.’s and test scores, but we don’t anymore, unless you’re just a few years out of school. We found that they don’t predict anything.”

Law firm expectations have changed as well

Remember the trend I talked about in my previous post? Today, modern clients are obsessed with value. This means successful law firms are focused on value as well.

Is that what we’re seeing?

Absolutely.

Law firm expectations continue to rise. Clients place an exorbitant amount of pressure on firms. As a result, firms expect a tremendous amount of new skills from new graduates/potential associates. Skills associates didn’t need 10 years ago.

Skills most law schools don’t teach.

Most new graduates are unprepared for work in a thriving law firm. This means any firm that hires these new graduates will need to invest a significant amount upfront before seeing a reasonable return.

Something law firms aren’t eager to do.

Law firms used to be different

The practice of law used to be different. Graduates only needed two things, legal acumen and experience. If they were good at their jobs and they serve clients well, they did well.

Not anymore.

New graduates need readiness and real-world skills they can put to work immediately. Your LSAT test scores are still important, but they aren’t as relevant as they used to be. Today employers are looking for demonstrated competency.

They want graduates to show what they know.

Most graduates are completely unprepared to do this. This isn’t their fault. They’re simply expected to demonstrate skillset they haven’t learned yet.  Here are three real-world strategies law students can use to win a coveted spot in a flourishing law firm.

1. Learn your role, expand your role

Most attorneys fit into one of four distinct roles. Finders, binders, minders and grinders.

• Finders a rainmakers. They’re expected to bring new clients and new business to the firm. As far as law firms are concerned, finders are exceptionally rare is also whether so valuable. If you’re looking to eventually make partner the skill is a must.
• Binders are connectors. They’re sophisticated networkers, professionals were capable of building and maintaining relationships with powerful and influential people. A mature binder eventually becomes kingmaker, a professional who is capable of conveying, absorbing and revoking power.
• Minders are managers. They’re bureaucrats who are skilled at managing the never-ending mass of clients, employees, partners and politics in their firm. They thrive on administration.
• Grinders are workhorses. These associates are expected to do one thing and one thing only. Do all of the work that’s set before them, producing high-quality work in a reasonable amount of time.

New associates are typically hard to be grinders. Partners are expected to be a combination of finder, binder and minder.

As far as roles are concerned, grinder is typically imposed while the other three roles are earned.

This is the problem.

Savvy law students will work to develop skills in each of these areas. They’ll…

• Become a student of psychology and marketing, learning to attract new clients on demand
• Learn how to build deep, loyal and lasting connections with tremendously powerful and influential people
• Master easy-to-learn efficiency and productivity skills like Tiny habits, the Pomodoro technique, Ivy Lee method and others.

One year of training, with examples you can demonstrate, will put you ahead of most veteran attorneys.

2. Learn business development

Law students who understand the ins and outs of business development and the fundamentals of good marketing are able to write their own ticket.

Why is that?

Here’s what Joe Ankus, founder of legal recruiting and training firm Ankus Consulting had to say about this trend.

“The era of a new graduate joining a law firm, being an associate and being invited to become a partner over a martini lunch five years later is long gone. There is no question that over time the trend has evolved to this: Lawyers are not only expected to be competent lawyers, but also they are expected to be prolific rainmakers.”

Rainmaking is no longer optional.

If you’d like to maintain a strong negotiating position in your law firm or avoid being pushed out during layoffs or restructuring, rainmaking is a requirement.

Firms are hesitant to kill the golden goose (you).

The better you are at generating new leads and business for your firm (whilst maintaining control over your lead generation mechanism), the more secure your financial and negotiating position will be in your career.

Which brings us to the next strategy.

3. Learn to create, implement and maintain systems

If you’re a grinder, you won’t have a tremendous amount of time to dabble with each of the roles I’ve mentioned. You’ll need to have systems in place – a way to automate and semi-automate the strategies I’ve mentioned.

Educational materials

• The Fifth Discipline by Peter Senge
• The Art of Thinking In Systems by Stephen Schuster
• Learn To Think In Systems by Albert Rutherford

Systems you’ll need in your career

• Systems to build connections rapidly and establish new connections on-demand
• Systems to build authority, credibility and influence (e.g. public speaking, guest posts, interviews, etc.)
• Marketing systems to attract leads, clients and revenue – for your firm or yourself
• A working knowledge of case, document, project, time and practice management software tools
• Experience with a variety of third-party tools and resources e.g. Box, Stripe, PayPal, QuickBooks Microsoft Office, Adobe Acrobat, and others
• Personal time management and automation tools e.g. Calendly, Zapier, IFTTT and others.

Systems thinking is the secret ingredient that produces transformative change.

Remember that? Here’s a quick recap.

• Conventional results. Being great at your job, going above and beyond and performing well in general. If you’re a grinder your work is pristine and above reproach. You’re fast, efficient helpful, productive, etc.
• Transformative results. These are results that make things better for your firm, your career, the industry or customers as a whole. It can be as simple as shared knowledge or as comprehensive as advanced rainmaking or brokering deals on behalf of your firm.

Conventional results build trust. It helps you to keep your job. Transformative results win coveted opportunities in highly competitive environments (e.g. make equity partner).

Change in expectations requires a change in strategy

The pressure is on.

Graduates are expected to hit the ground running. New attorneys need skills they didn’t need 10 years ago.

Skills most law schools don’t teach.

Most new graduates are unprepared for work in a thriving law firm. Firms are hesitant to invest a significant amount of capital before seeing a reasonable return.

They won’t have to.

At least, not with you. Armed with these three real-world preparation strategies, new graduates will have the unfair advantage they need to attract consistent employer attention in the marketplace.

They’ll be ready and able to show firms what they know.

Almost all of them are in debt.

The vast majority of law students graduate with an avalanche of debt. U.S. News wanted to answer a simple question. Which law school graduates have the most debt?

The answer is sobering.

In every law school except two, more than half the student population graduated heavily in debt. In some schools like the Southern University Law Center or Florida A&M University, 100 percent of their students graduated with debt ($94,447 and $61,500 respectively).

Debit is a facilitator and Law school is a worthwhile pursuit

This isn’t a tongue-in-cheek claim.

The data shows that most of the time, law school is absolutely worth it for graduates. If graduates are able to land a job with the right firm, their career is off to a fantastic and promising start.

Turns out that’s a big if.

According to Law School Transparency, the resultant debt from the average amount borrowed is $120,000. New graduates at the lowest end of the spectrum make $50,000 annually, those on the highest end make $190,000.

It’s not ideal but a graduate making $50,000 per year can still make headway, build a successful career and pay down their loan.

Certainly not ideal, but it can work.

Here’s the problem.

Law school graduates aren’t winning the jobs and opportunities they need. Don’t take my word for it. Let’s look at the data instead to be sure.

According to Paul L. Caron, Dean Pepperdine University School of Law, demand for legal services is declining. The number of graduates has also decreased.

The ABA Journal released a report showing that less than half of graduates had jobs before graduation. The evidence shows a large segment of the law school population doesn’t fare any better post-graduation.

Perhaps this is good news?

Not so much. The percentage of grads employed in (full time/long term) jobs is up, but the total number of opportunities decreased from 28,029 to 26,923. The Bureau of Labor Statistics confirms this stating:

“Competition for jobs over the next 10 years is expected to be strong because more students graduate from law school each year than there are jobs available.“

There are lots of graduates and but there’s not enough employment opportunities to go around. Here’s what this means for you.

If you’re a law student you need an edge.

You need a mix of both quantitative and qualitative skills to succeed in the highly competitive environment you’re already swimming in. When I use the words quantitative and qualitative here’s what I mean.

Quantitative skills	Qualitative skills
Conscientiousness (high)	Agreeableness (high)
Good written/oral communication	Openness (high)
Analytical and logical reasoning (high)	Neuroticism (low)
Research skills (high)	Organization
Knowledge of substantive law and legal procedure	Teamwork
Time management	Attention to detail

These skills are the basics.

Here’s the problem with this list of skills. They’re useful but they’re also quite generic. If you’re a graduate who’s looking to attract a significant amount of employer attention you’re going to need more help.

Dr. Bradford Smart has the answer.

Dr. Smart is the co-founder of Topgrading, a hiring and interviewing methodology that helps firms to identify A player, top-shelf employees. In his book, Smart lists 60+ core competencies an A player needs to qualify as an “A player.”

Here are the behaviors or core competencies that are required for A players. Some of these competencies are easy to change if you don’t have them. Others are harder change, some are virtually impossible.

See what I mean?

If you’ve read this far you probably have the same questions as other readers. This post is supposed to be about digital competency. Why are we talking about job skills, hireability, and core competencies?

Competencies determine success.

These core competencies are the beginning, the foundation that your digital competency needs to be successful.

Here’s why.

Sharing the strategies needed to build digital competency, win your coveted spot in the right firm and keep your position requires these core competencies.

Advice without context creates resistance.

Digital competency is a proxy for… something else

It’s one of the tools law firms use to evaluate, rate and vet potential graduates/candidates. It’s something most graduates won’t do.

Meaning what exactly?

When it comes to digital competency, law firms are focused on very specific details. Law firms, like their clients, are under a significant amount of pressure to perform. They need new associates (recent graduates), who can hit the ground running. These are the graduates who consistently win excellent positions with well-paying firms.

What do these graduates have that others don’t?

Let’s take a look at the specific details you’ll need to achieve the competency you want.

Step #1: Assess your digital competency

You’re aware of the requirements that come with digital competency and why they’re important. You’re also aware of the consequences, how they impact you and your future firm. Here are a few questions you can ask yourself to assess your level of digital competency.

You…

• Understand the pros and cons of online storage options (g. cloud, hard drive and portable storage)
• Know/can identify the appropriate format to store data as well as when each format should be used (e. client data stored on secure hard drives, contract templates stored on cloud document management portals)
• Understand how search engines like Google store, classify and retrieve information
• Know how the Internet works (i.e. it’s a giant network), how people, private companies and governments use it
• Are aware of the various digital services (g. document assembly/management, timekeeping tools, practice management software, e-discovery software, etc.) the formats available (e.g. On-premise, SaaS, IaaS and PaaS software) and you know how to use them
• Understand the consequences of communicating through various media channels (g. phone, chat, video, text, social media, etc.)
• Understand the consequences of identity contribution (g. discussing a client’s matter or sharing private information on social media)
• Can easily distinguish between personal/public information and sensitive data
• Have a professional understanding of legal frames (g. how the law governs rumors, gossip, spam, intellectual property, private data, threats, accusations, etc.)
• Have a general understanding of security best practices (g. following best practices for creating, storing and retrieving passwords)
• know how to encrypt sensitive data (g. two-factor authentication, encryption, password protection or digital fingerprints)
• Know of/have various methods to identify fishing, malware and social engineering attacks
• Have the capacity to learn and/or manage new software/technology on your own
• Have a methodology or protocols in place to personally stay up-to-date with technology changes
• Can perform an in-depth search of information/footprints about yourself and others
• Have a habit of routinely backing up and restoring relevant digital devices and data
• Can competently make a determination of illegal vs. inappropriate behavior (g. bullying vs. leaking secrets)
• Consistently consider the source and location of the data you receive
• Familiar with the terms and conditions of your digital services (g. Avvo’s terms of use)
• Communicate digitally with the appropriate voice, tone and detail

If you’re feeling brave you can take the quiz.

Can you see how many of these questions communicate the core competencies we identified earlier? These details, things your future employer can see, communicates details about you they can’t see.

Step #2: Become acquainted with the software

Your (future) firm needs new associates, graduates who can hit the ground running (you). This means you’ll need a clear idea of the software tools and resources your firm uses to serve its clients.

Isn’t this a bad idea?

Let’s say you learn to use a particular piece of software. You’re hired on at a fantastic law firm but you find the software they use is different. Wouldn’t that mean it’s all for nothing?

Absolutely not.

When it comes to software, there’s a significant amount of overlap. The specific software tool you use isn’t as important as you familiarizing yourself with them. If you’re familiar with the details of one software vendor you’ll have an easier time learning (or re-learning) the details of another tool.

Okay, which software tools do you need?

Practice management

Practice management software actually refers to a suite of tools firms can use to manage their operations. Most attorneys spend 6 to 8 hours a day on nonbillable work. They’re essentially paid for one to three hours of work per day.

Not good.

Practice management software includes some or all of the specific functions listed below. Practice management software is important for a few distinct reasons.

1. The software and forces firm-wide standards. When attorneys track their time, the entire firm relies on a unified measurement of time. This eliminates the everyman for him/herself scenarios that are so common in firms today.
2. Practice management software boost revenue by 50% or more. Most firms bill for their time. Attorneys who wait one week to fill out their timesheets lose 50% of their revenue. Attorneys in many firms typically fill out their timesheets at the end of the month. Yikes.
3. Security and disaster recovery are built-in. Cybercriminals target law firms because they’re data-rich sources with deep pockets. Law firms are prime targets for ransomware, malware and phishing schemes. Cloud-based practice management software reduces these threats dramatically, limiting the amount of data available to cybercriminals.

Productivity/project management

Productivity software enables firms to manage who’s responsible for what and when. Firms are able to manage deadlines and the distribution of work automatically. These productivity and project management tools give firms the ability to measure performance at a glance.

You’ll be able to identify the attorneys, paralegals and support teams caring their weight and those who are not. Law students will want to become acquainted with these standalone tools. How they work, the permissions required, who uses them, how they are used and when.

PDF conversion software

Many firms want to be paperless. PDF conversion is still important as law firm still receive physical documents on a regular basis. PDF conversion software allows you to scan and convert physical documents into digital copies. Adobe Acrobat is still the gold standard so it’s important to become acquainted with these tools, including how they work, what they’re used for, and when.

Document assembly/management

Document automation eliminates or reduces a firm’s dependence on mail merge. Document automation enables firms to customize pre-existing legal docs, enabling attorneys to insert boilerplate clauses and non-generic content into documents that require customization.

This is important because, as we’ve covered previously, clients are less willing to pay for routine or generic work.

They’re looking for value.

Document assembly maximizes your time (as an attorney) on high value, high-risk matters. It also simultaneously reduces the time spent on routine or mundane matters, which is exactly what your clients want.

What about document management?

70 percent of IT managers surveyed “know or believe that users (employees) have business (client) data in their own personal file-sharing accounts.” This basically means attorneys and other firms are storing sensitive client data in their personal Dropbox accounts.

A serious red flag and a major liability for offending firms.

Document management software provides firms with the user rights/permissions and security they need. Office managers won’t have access to sensitive client data they don’t need. When documents are difficult to find, law firms recreate them. When they need mobile access but that access isn’t available, they ask someone else to recreate them.

This creates unpleasant questions:

“Which document version is required for your client’s matter? Who has the right version? Is it you? Are you sure this is the right version? Do you have access to the right version?”

Law students should be fully acquainted with document management and storage software. You should understand how this software handles version control, search and user rights/permissions.

Time tracking, billing and accounting

Time tracking software isn’t created equal. If you’re going to work with time tracking, billing and accounting software, you’ll need to make sure the software you study follows a specific set of criteria:

1. A convenient timekeeping method. The best automated or semi-automated. They provide attorneys with a convenient way to track their time as-it-happens. This eliminates billable leaks and ensures attorneys are focused on tracking their time. Time tracking is important even firms rely on alternative fee arrangements.
2. Provide invoicing directly in the program. Attorneys should be able to create an invoice directly from their time tracking program. It’s ideal if the software works with UTBMS and LEDES billing codes.
3. Allows for trust accounting reconciliation and IOLTA administration and management, ensuring compliance and proper management of client trust accounts.
4. Provides robust reporting covering a variety of details including firm realization, accounting activity, client details, time and expense entries, user activity projects/matters productivity over time, etc.

Law students should spend a significant amount of time working with time tracking, billing and accounting software from an industry leader.

Case management

Case management software typically includes contact management (with a global search for conflict checks), calendar management, email archives, time tracking, billing and accounting. You want to learn to use these tools with appropriate details.

Learn how to schedule events, track emails (and conflicts), manage contacts and work with archives.

Internal communication

Slack, Apple’s Facetime, Microsoft Skype and Google Hangouts have been touted as helpful tools for lawyers to use in their practice. Here’s the problem: Facetime and Hangouts stores your content on their servers indefinitely. Skype stores content from calls with more than two participants.

Your conversations as a firm employee aren’t necessarily private.

They’re easily accessible via legal (subpoenas) and illegal (hacks, phishing) methods which means this is an enormous disaster waiting to happen. There are also a few significant downsides. These options don’t record meetings, chats and files. They also don’t integrate with the tools and resources your firm is already using.

Your firm needs (and may already own) secure software that allows you to communicate with your future team privately and securely. You’ll need to know how to use secure communication tools that provide you and your (future) clients with the privacy, control and security they need.

This is what you need to achieve digital competency

What if you’re way off?

What if you missed the mark completely focusing on insignificant details from software that isn’t a fit. There’s an easy way to avoid the situation.

First, determine where you’d like to work. If you’re interested in BigLaw, reach out to employees at other firms and ask for their help. Small to medium-sized firms? Do the same thing.

Second, ask them about the software programs they use. If they ask why tell the truth. Tell them you’re looking to improve your chances of winning a BigLaw position and you’re looking to become digitally competent. Let them know that you’re looking for ways to learn more about the tools and resources you’ll need to be great at your job.

Take notes.

Third, reach out to these companies and ask for their help. Tell them the truth as well then ask for what you want. A free copy or student license of the software so you can learn. Tell them you’d like to share their software with your classmates (only if it’s true).

Rinse and repeat.

When you get a free copy or license get to work. Take the time to get to know their software, tools and resources. Create a sample project or matter you can work on.

Finally, update your resume. List the software, tools and resources you studied on your resume.

Digital competency isn’t optional

It’s a requirement if you want to win.

Law schools are shaking up their curriculum, prioritizing digital competency ensuring graduates are better prepared for life after the bar. Change is slow.

Law school students can improve their postgraduate prospects by focusing on their core competencies. The skills and technology needed in their practice area/firm.

As far as critical thinking goes, lawyers are exceptional.

Law firms aren’t resisting technology, they’re embracing it, albeit slowly. Firms all around the country are adapting to meet the high-pressure demands of today’s modern client.

Adapt now and you’ll win.

Use this guide to digital competency, and you’ll have the tools and resources you need to show firms you’re the better candidate.

When it comes to technology, lawyers are risk-averse.

At least, that’s the stereotype trotted out by legal technologists. But is this actually true? Are lawyers this resistant to technology, innovation and growth?

Not at all.

The evidence shows lawyers and law firms are innovating. Slowly but surely, law firms all around the country are adapting to meet the demands of today’s modern client.

Here’s the problem.

Law schools aren’t moving in lockstep with firms

Today, clients are obsessed with value.

Law firms are expected to produce tangible results and outcomes for their clients. What’s worse, clients are no longer willing to pay for research costs, expenses and/or first-year/junior associates.

Firms are expected to do more with less.

A Mattern & Associates study found “firms only see a return of a quarter of all costs associated with work done on a particular matter.”

What does this mean?

1. Clients themselves are under intense pressure to produce results
2. Clients pressure law firms to produce results, focusing exclusively on value.
3. Both clients and law firms expect more immediate value from junior associates

A reasonable expectation, right?

This isn’t what’s happening.

Law schools: A safe haven for Luddites

When it comes to technology, the majority of law school students are sophisticated users of social media and texting.

And that’s about it.

Dig a little deeper you begin to realize this is a complete disaster. The average (majority) of students leave law school with $100,000 to $200,000 of student loan debt. Law school is a whopping 5.82 times more expensive than it was in 1985. You can view the debt rankings by school here.

Well it’s not so bad because many first-year associates are paid well, right? Sure, the lucky ones who are hired are sometimes paid well. Are most of these students getting jobs?

Not so much.

The ABA Journal released a report showing that less than half of graduates had jobs before graduation. The evidence shows a large segment of the law school population doesn’t fare any better post-graduation.

This is why law school students need digital competency

Law firms, like their clients, are under a significant amount of pressure to perform. They need new associates, law school graduates, who can hit the ground running. These are the graduates who consistently win excellent positions with well-paying firms.

Law schools are struggling to deliver.

New graduates are clueless about the kind of technology they’ll use in a firm.

They’re unfamiliar with word processing, working with PDFs and manipulating spreadsheets. They’re also unfamiliar with the ins and outs of practice management software, automated document assembly, legal project management document and knowledge management.

Most new graduates are unaware of the tools they’ll need to function in their day-to-day life as a lawyer. Most graduates are lost – but it also isn’t their fault.

The good news? Change is coming – law school student digital competency is on the horizon

Law schools are shaking up their curriculum, prioritizing digital competency ensuring graduates are better prepared for life after the bar.

Change is slow.

Law school students can improve their postgraduate prospects by focusing on their core competencies. The skills and technology needed in their practice area/firm.

Are lawyers risk-averse?

Absolutely. As far as critical thinking goes, lawyers are exceptional. Law firms aren’t resisting technology, they’re embracing it, albeit slowly. Firms all around the country are adapting to meet the high-pressure demands of today’s modern client.

Law school students don’t have to wait to become digitally competent.

An emphasis on value in law schools means graduates are prepared to produce said value. The law school environment is competitive. Today’s graduates are fighting for a seat at the table. With the right education and an emphasis on digital competency, every graduate can win.

 

It’s a big problem. State bar referrals are a huge opportunity for your firm, and yet many, many attorneys struggle with business development.

Which is really a vague way of saying most attorneys aren’t attracting the volume or type of clients they need.

One possible solution?

Your state and local bar associations. That’s right, your bar associations could be a profitable avenue of business development. A way to attract a consistent and steady stream of new, eager clients.

But how?

The first step to take to earn state bar referrals? Talk to LRIS

If you’re in a participating state, you probably already know that your bar association has a pre-existing network of attorneys they refer. The Lawyer Referral Information Service (LRIS) includes a list of “approved attorneys.” These attorneys meet a predetermined set of qualifications.

This isn’t new.

Bar associations in 44 states (and the District of Columbia) have a state bar referral service. In fact, there are approximately 70 ABA-approved LRIS programs in the country.

It could be a valuable resource.

But it could also be a complete waste of your time. You’ll have to do some upfront digging to identify whether your local LRIS is worthy of your time and investment.

Here’s how you do it.

Step #1: Contact your state/local bar associations

You’ll want to gather the contact information for state and local bar associations. Ideally, you’re looking for a specific point of contact you can speak with via email or phone.

You have questions.

These questions will help you to assess whether (a.) your local LRIS is actually worth your time and (b.) the type of client, practice area or level of client they refer and (c.) the sort of volume can you expect if this referral service is worth your time.

1. Find your (state/local) bar association in the list
2. Identify a key point of contact
3. Ask them your questions, gently press them for direct answers
4. Decide whether LRIS is right for you (or not)

Why go through this process?

Your state or local bar association may not feel it’s worth their time to advertise, market or promote their state bar referral service. Their referral service may simply be a time waster (for you) and a revenue generator (for them).

Your time is valuable.

What if state bar referrals aren’t worth your time?

No problem!

Simply divert your attention towards creating content for your bar association, using the opportunity as a stepping stone to bigger opportunities. For the time being, we’re going to assume that state bar associations are worth your time.

What’s the next step?

Step #2: Get straight answers to your questions

Use this list of questions to get a clear sense of the time you’re investing in this process. If it isn’t a fit for your firm or you individually simply walk away.

Okay here are the questions.

1. How many referrals were offered to attorneys in the last fiscal year? A rough, back-of-the-envelope calculation is fine if your point of contact is offended by your request. 
2. How many referrals in [practice area(s)] were offered to attorneys in the last fiscal year?
3. How many of these referrals are won (e.g. become clients)? Most bar associations won’t have the answer to this question. This isn’t great news but it’s also not a deal breaker if they don’t know.
4. Does the bar association have a specific number of leads they prefer to generate?
5. Does the bar association have a specific number of potential clients they’d like to attract? “As many as possible” is typically the easy answer. Press for a more specific estimate.
6. Historically, which practice areas receive the most referrals?
7. Which firms received the most referrals in the last fiscal year?
8. What does the bar association do to attract/generate interest with potential clients? (g. advertising, SEO, PR, etc.)
9. In round numbers, would you say that the bar association spends more than $25,000 to $50,000 on advertising (to prospective clients for LRIS) or less? Even if they know, most bar associations won’t give you a precise figure. An estimate is fine.
10. How is the bar association compensated for these referrals?

These questions require charm.

Asking these questions cold may ruffle a few feathers. Make this pill an easy swallow. If possible, take your point of contact to lunch. They’ll be more amenable to your questions. If a particular point of contact doesn’t pan out, ask someone else.

Why ask these questions?

• If they can’t (or won’t) give you a rough estimate there’s a good chance they aren’t offering much in the way of referrals. Any membership fees or dues could simply be a way to generate revenue.
• If they don’t advertise or market to potential clients, you’re less likely to receive referrals yourself.
• Referral by practice area tells you (a.) where the bar association makes most of its money (b.) it shows you how they prioritize your practice area.
• If your bar association is willing to share, get data on the firms that receive the most referrals.
• If your bar association services 91,000 attorneys statewide, but they only spend $1,000 a month on advertising, you know there won’t be enough referrals to go around.
• The number of preferred leads your bar association wants tells you (1.) where their focus is (e.g. serving attorneys vs. boosting membership fees) (2.) the volume of referrals that passes through their hands on a weekly, monthly or quarterly basis.

If the numbers don’t add up it’s probably best to pivot your attention elsewhere. One idea could be to consistently creating content for the state bar. Then, once you’re established, parlay that into bigger more lucrative opportunities that generate more business for your firm.

If you’re satisfied with their answers proceed to…

Step #3: Applying for LRIS

Most states have a specific set of requirements (i.e. rules of panel membership) they’ll need you to meet.  You’ll also want to make sure you’re aware of the ABA’s guidelines on LRIS.

Use the list I mentioned earlier.

Then, once you’re ready, fill out the registration form, pay any applicable fees and go from there.

This still isn’t a guarantee.

In fact, there’s absolutely no guarantee you’ll receive a steady supply of leads for your firm. Unpleasant news but completely true. Here’s a simple way to dramatically increase your odds of success.

Become their favorite.

How exactly do you do that? You serve your state bar. State bar associations are hungry for content. There’s a significant amount of pressure on them to provide value to their members and non-members.

So provide value.

Doing that keeps you on their radar. The more valuable you are to your state bar association the more likely you are to receive the steady supply of referrals you crave. Remember the steps I shared earlier?

1. Identify the content needs of your state bar (e.g. take a marketing coordinator, gatekeeper or decision maker to lunch and ask questions).
2. Create a pitch, offering to provide your state bar with a regular stream of content
3. Go above and beyond, creating content in a variety of formats (e.g. ebooks, blog posts, videos, speeches, etc.) to serve both members and non-members.
4. Provide helpful hooks, lead magnets, downloads, consults and services for tangential attorneys. These are attorneys who serve the same clients you do in a different, yet complementary way (e.g. corporate attorney + IP attorney + tax attorney, etc.). Use direct contact and/or LRIS where appropriate.
5. Parlay this experience into bigger publications and venues. If you’re a corporate attorney, you could use this as a springboard to speak at an entrepreneurial conference.

See what I mean?

Business development and earning state bar referrals can be easy, if you provide value first

Many attorneys struggle with business development. They aren’t attracting the type or volume of clients they need.

Your bar association could be the answer.

Give your bar associations what they need and you cultivate a steady and consistent supply of new clients. It’s a strategy many attorneys haven’t even considered.

You? You’re in-the-know.

Ask the right questions, nurture the relationships you need and you’ll find your bar association produces the value, state bar referrals and fees you’ve always wanted.

They’re not just about discipline. State Bar associations administer exams and regulate CLE credits. They handle attorney discipline citing attorneys for ethical, compliance and other violations.

They do so much more.

Attorneys who misunderstand this point do a disservice to their career. That’s because bar associations, when used appropriately, become an attorney’s greatest benefactor.

State bar associations can work for or against you

We’ve all heard the stories.

A public reprimand of this attorney, disciplinary proceedings against that attorney. Bar associations, seem to have a stern reputation, the kind that more prone to delivering bad news.

What if they delivered new business?

What if your bar association worked for you rather than against you? What if your state and local bar associations became your greatest ally? The kind of ally that boosts your career, attract new prospects and convert new clients? What if your bar association helped you to become an influencer in your own right?

The kind of influencer that attracts bigger fees and sizable contracts?

It’s definitely possible.

But is it something you can accomplish for yourself and your firm?

Absolutely.

If… you know where to start.

Seek first to understand, then be understood

Remember the saying from Franklin Covey? When you’re working with bar associations this is the basic template for success.

This tired quote?!

This is the key to extracting value from your state and local bar associations? I get it, this sounds ridiculous. It actually isn’t, here’s why. Most attorneys are only focused on extracting value. A vanishingly small number of attorneys are focused on contributing value.

Here’s why that’s important.

Most people are focused on being understood. They want those around them to listen to their story, to empathize with their situation or circumstance.  They want others to provide them with the help and support they need. When it comes to helping their bar association though, they’re not at all interested.

It’s an unwillingness to understand.

This unwillingness to understand exposes their giving profile. Takers seek to extract, they rarely contribute. Matchers scratch your back if you’ll scratch theirs. Givers, on the other hand, give without thought or expectation of return. As it turns out, givers are also commonly focused on understanding and serving the needs of those around them.

What does this have to do with your state bar association?

Just this.

What you get out is what you put in.

In a previous post, I mentioned Peter Thiel’s value formula. It’s worth repeating so I’ll briefly recap that formula here.

1. Create X dollars of value for your state bar association
2. Capture Y percent of X.

This formula is a distillation of the axiom above. If you’re longtime reader you remember. This succinct equation describes the way the world works. This formula applies to relationships, groups, businesses and yes, even bar associations.

Here’s how you use it.

Step #1: Ask yourself “what’s in it for me?”

It’s a quick and easy win.

Thirty-two states require membership in the state bar to practice law. But requirement doesn’t equal engagement. This is why it’s common for many attorneys to treat their membership (mandatory or not) as an afterthought.

You’ll want to be selfish.

Ask yourself the question “what’s in it for me?” Go through your bar association’s website and/or marketing materials. Read their pamphlets, brochures and data sheets outlining the benefits available to you as a member. List everything, whether you currently use it or not.

Here’s an example.

Explicit benefits typically include:

• Education in the form of a law library, educational resources, CLE presentations, etc. education typically comes in the form of books, video, audio, courses and other trainings.
• Many bar associations provide members with licensed copies of legal software (e.g. legal research, document management or legal case management) at reduced/no cost.
• Hotel, lifestyle, office, technology and travel discounts are common. Other bar associations also provide discounts on other much-needed products and services. These provide additional financial incentives attorneys/firms can use to offset their expenses.
• Payment processing. Access to online payment processing via reputable third-party providers.
• Meeting facilities. A large room for presentations, meeting rooms for depositions. It’s common for bar associations to provide attorneys with a meeting space they can reserve for bar or individual related purposes.
• Your bar association may provide you with options and additional savings on your insurance plans including health, dental, life, professional liability, accidental death, property and casualty, crime, auto and home insurance.
• Prescription drug benefits. Some bar associations may negotiate special pricing on prescription drugs via an established third-party provider
• Practice management software. Many state bar members are eligible for steep discounts on web-based, practice management software.
• Marketing services. Sophisticated associations may also provide discounted advertising, access to mailing lists, web development and production services.
• Assistance programs. Many bar associations provide attorneys with free and confidential help to deal with personal issues like burnout, stress, marriage and addiction problems, career concerns and more.

Like I said these benefits are explicit. What about the implicit benefits bar associations offer?

Implicit benefits typically include:

• Client referrals via the lawyer referral information service and informal one-to-one and one-to-many direct tangential attorney/client relationships.
• Business development and marketing support in the form of additional marketing opportunities. Most attorneys choose the expensive route of going it alone. Working with your bar association gives you access to a massive captive audience. Sophisticated and motivated clients who are part of your bar association’s social media and email lists.
• Authority building. Creating and publishing content on behalf of your bar association establishes you, over time, as an influencer and authority figure in your own right.
• Advanced networking. Used properly, your bar association provides you with access to other skilled influencers, thought leaders and legal professionals.
• Intelligence in the form of unknown unknowns comes as a result of the networks and relationships you build via your membership and engagement with your bar association. The kind of valuable information every firm wants but very few receive.
• Used appropriately, your bar association will enable you to attract attention from employers who aren’t hiring and firms with no open positions or opportunities.
• Your bar association is more than willing to provide you with a steady supply of clients and revenue. You just need to do the right things for them in return.

As the name implies, these implicit benefits aren’t advertised.

Step #2: Next, outline “what’s in it for them?”

Your bar association needs help.

Bar associations are under a tremendous amount of pressure to provide value to their members (states with required membership less so). What specifically does this mean for your law firm?

Bar associations need content.

Creating content for your bar association provides you with the implicit benefits mentioned above. Depending on your bar association, it may also give you more leverage to negotiate more favorable terms on any explicit benefits offered.

Here’s what that looks like.

Here’s where this gets interesting.

The attorney speaking is Emil Ovbiagele of OVB Law & Consulting S.C. he’s a young attorney, only five years in, but is already providing the bar with the client-friendly content they need. When he provides the bar with the content they need his firm benefits.

Can you do more?

It all depends on your effort, doesn’t it? Here’s how you can provide your bar association with value.

• Take a marketing coordinator, gatekeeper or decision maker to lunch and ask questions. Look for areas and opportunities (e.g. frustration/problem spots) where you can add value (e.g. content, connections, knowledge, expertise, time or resources).
• Pitch decision makers. Outline the problem they face then present them with a low risk or no/low cost solution.
• Then go above and beyond, creating a solution that over delivers on your promises. If you’re creating content for the bar, provide them with a variety of formats (e.g. ebooks, blog posts, videos, speeches, etc.).
• Capture a percentage of the value you’ve provided. If you’ve created content for the bar, lead referring attorneys or prospective clients back to your site with a valuable download. Look for an appropriate opportunity to capture a percentage of the value you’ve created.
• Once you’ve provided a valuable solution, immediately work to solve yet another problem. Work to consistently over deliver, exceeding your bar association’s expectations. If your idea is rejected, pitch another (better) idea. If your idea is accepted, pitch again after you’ve delivered results. Keep pitching until you’re explicitly told to stop.
• Parlay your work with the state bar into bigger publications and venues, increasing their status, prestige and revenue as they go. Here’s an example of a simple guest post Bruce Stachenfeld wrote for Above the Law. Remember, these publications have a big problem – they’re starving for content.

Step #3: Go all in

If you decide to move forward go all in. Half measures take a considerable toll in the form of missed opportunities and lost revenue. Don’t let that happen to you.

Remember the axiom:

What you get out is what you put in.

You can’t afford to put in more time. If you’re like most attorneys, you’re struggling to perform as it is. Research shows most attorneys lose 6 to 8 hours of work to nonbillable work. It’s common for attorneys to work nights and weekends just to stay current.

Now I’m suggesting that you “go all in?” How exactly do you make that happen? Here are four simple strategies most attorneys aren’t using.

1. Tiny habits
2. Virtual assistants
3. Dead time
4. Automation

1. Tiny habits: Make high performance automatic

Motivation is garbage. This isn’t just me saying it, it’s Mel Robbins, a former criminal defense attorney and CNN legal analyst turned motivational speaker.

Take a look.

Tiny Habits circumvents motivation entirely.

BJ Fogg Ph.D., Director of the Behavior Design Lab at Stanford University created Tiny Habits. He created it after discovering that only three things will change behavior in the long term.

Option A.  Have an epiphany
Option B.  Change your environment (what surrounds you)
Option C.  Take baby steps

Tiny Habits uses options B and C to create real lasting change. A tiny habit is the smallest component of a habit you’d like to create. If you’d like to floss your teeth after every meal you don’t set that as a goal.

You just floss one tooth.

That’s it. If you do that, you’re automatically a winner. And you know what he found? Doing that means most people do more.

Instead of pitching your bar association you just add an email to your message in the “To:” field. Instead of coming up with 16 different ways to add value, you come up with one. Then the next one.

See what I mean?

2. Virtual assistants

In The Art of Delegating Legal Work, Norman Clark shares what he calls the delegation matrix. Here, let me show you what that looks like.

Pretty self explanatory, right?

Note: Read this post for a full breakdown of the details shared in this section.

This matrix shows you what to delegate, when to delegate it and why. Use this matrix to focus on the to-do items that matter most.

Next, you’ll need to build a virtual bench.

Most attorneys attempt to build a virtual bench when they need it. This primes firms for failure. Think about that for a second. If you have a pressing deadline or a matter that needs to be taken care of quickly, you’re desperate.

That desperation clouds your judgment.

Instead of looking for the best legal professional desperation compels you to look for an adequate legal professional.

You need A players.

Here’s how you go about finding those A players.

1. You place an ad. You outline the specifics of what you’re looking for in your job description. Share requirements, expectations and qualifications needed. You use a tool like JobScore or Recruiterbox to share your ad across multiple platforms instantly.
2. Filter candidates with applicant tracking systems and software. There are free options like Qandidate and paid options like Recruiterbox. You’re looking to filter out irrelevant candidates, spammers and You want to minimize the amount of time you spend with non-potentials.
3. Create a list of potentials.These are candidates you feel may be a good fit as a virtual assistant for your firm. You can use additional tools like HarQen to automate and semi-automate video and phone interviews.
4. You spend a bit By now, you should have a short list of potentials. Let these candidates know you’re willing to spend 10 to 30 percent more on the best professional.
5. Ask potentials to arrange an interview. This is a phone interview with the previous client, manager or partner. It should be with someone they’ve worked with, at the organizations they’ve listed on their resume. A players will jump at the chance to show they’re amazing, C players will slink away.

Use this to build your list of professionals.

Do your best to outsource or delegate as much of your non-billable work as possible.

3. Dead time: Become a rainmaker in your spare time

Here’s a strategy elite attorneys use to get an enormous amount of work done in a very short period of time.

Dead time.

Dead time is occupied time. The time where you’re doing something tedious, repetitive or mindless (mostly). Eating lunch at your desk, your daily commute to and from work, working out, etc. Here’s how you use dead time to become a rainmaker.

1. Get a topic from your state bar (see steps 1 and 2 in the previous list).
2. Write one question on that topic on your note cards (use as many cards as you need).
3. Take one note card and a voice recorder with you in the car on your way to work.
4. Answer the questions thoroughly, in great detail. Treat each question like a chapter in a book.
5. When you’re done, get this content transcribed and edited via a freelance provider.
6. Compile it into a blog post, video, speech or book.
7. Send the finished product to your state bar for review.

This is a simple strategy you can use to add value to your bar association, fellow attorneys and yourself. But it’s also an untapped resource few attorneys are using.

4. Automation: Save 6 to 8 hours per day

With the right approach and a small amount of automation, you can win a significant amount of your productive time, back. It requires some upfront work but it’s all front loaded. Once you’ve set things up this system just works. Here are some things you can automate.

• Scheduling meetings and appointments
• Tasks and deadlines
• Automated time tracking to simplify billing and invoicing
• Client intake and follow up
• Automate document assembly
• Bookkeeping
• Client support
• Review management

You shouldn’t be spending your time on these. If you’re a grinder, minder or finder you should focus your attention on the details that matter most.

Here’s a detailed breakdown, showing you how to automate these details in your firm/for yourself.

Can you see it?

The secret ingredient needed to maximize the benefits you receive from your bar association membership?

It’s you.

State Bar associations work for or against you

They’re not just about rules and regulations.

The state bar is a wonderful opportunity in disguise. It’s a chance to give and receive value. Want overwhelming value from your membership (mandatory or not)?

What you get out is what you put in.

Attorneys who understand this give their legal career a huge shot of forward momentum. That’s because state bar associations, when used appropriately, become your greatest benefactor.

You can do this.

Use giving and receiving to maximize the benefits your state bar association receives. Serve your peers, add value and you’ll convert your bar association into your biggest ally, no reprimand required.