What Is Firm Business Development Law?

Developing your firm’s business business development law means exploring strategic opportunities. New relationships are formed, and opportunities for revenue generation and sales are identified. Examples include cross-selling to existing clients and expanding your firm’s practice areas. Perhaps you need to expand geographically or create procedures to follow up with prospects after they have been contacted by your client intake team.

Marketing vs. Law in business development

Marketing is one of my favorite careers because you can create a business seemingly out of nowhere. The results can also be instantaneous depending on the advertising channel, using techniques such as turning on pay-per-click (PPC) ads and other Google ad options. A successful marketer is exactly what John Grisham writes about: he writes about the rainmaker.

It’s still fun to make it rain in lawyer business development, but instead of the sales-driven, one-time transactions of marketing, you build bridges, relationships, and revenue streams that are more sustainable and will serve you for years to come.

Marketing is where your law firm gets in front of clients who need your services and secures retainers. The long game of business development for law firms involves adding revenue and sales streams, expanding practice areas, and building relationships that grow your practice over time.

How does firm business development law impact lawyers?

The law of firm business development is essentially anything you do that aids your firm in expanding its revenue streams in a systematic way. This approach considers revenue growth from a long-term perspective rather than just a one-time decision.

Top 3 strategies for firm business development law

The following are some of the most common strategies lawyers of any size can use to grow new business:

1. Build strong relationships with clients

Existing clients are the most reliable source of new clients. In the 2020 Legal Trends Report, it is revealed that clients seeking a lawyer will trust recommendations from friends and family as well as online reviews on Google, social media, or legal directories.

The most effective way to ensure that previous clients refer new clients is to become client-centered and maintain strong relationships with them, both during and after a case. There are many ways to accomplish this, but it largely boils down to providing an exceptional client experience.

Communication consistently and clearly, answering client inquiries, and being transparent with billing are also ways to ensure your clients feel valued and appreciate your service.

When running a client-centered law firm, focus on the following five elements.

1  Look at things from your client’s perspective
The key to improving your law firm’s client journey and overall client experience is to truly view things from your clients’ perspective. Avoid making assumptions. Stay in touch with your clients and seek opportunities to learn about their experiences.

2 Take care of your clients and consider their needs
Clients don’t just come to you for legal advice. During very stressful times, they turn to you for reassurance, emotional support, advice, and more. Your law firm could stand out a lot if you approach this with empathy.

3 Think client-centrically
Are you considering the impact your decisions, evaluations, or new processes will have on your clients and their experience when you make a decision? The first step towards running a more client-centered practice is to think of your clients first at every stage of the client journey.

4 Communicate clearly and frequently
Client-centered law firms consider communication to be more than just providing updates on clients’ cases. Our goal is to keep our clients informed, and to take the time to make sure that they understand everything that is happening. Our goal is to keep our clients informed and make sure they understand everything that is happening.

5 Continually improve the client experience by asking for feedback
Don’t forget to ask your clients for feedback. The only way to confirm if your client experience meets expectations is to get feedback directly from them. Consider measuring client satisfaction along the way. Measurement leads to better management.

The best way to do this is to measure your Net Promoter Score (NPS®). NPS® measures the likelihood of your customers to provide positive feedback about your service by reviewing it and referring it to others. It is also imperative to manage your online reputation. Responses to negative reviews and requests for feedback from current and former clients are part of this process.

2. Networking

I didn’t become comfortable with networking until many years into my career. As a recent law school graduate, I needed to be able to provide something positive to others rather than acting like a desperate job seeker.

You still need to network with law firms. I would suggest letting go of your hang-ups, forcing yourself to get out there, and just talking to people without having any specific marketing objectives in mind. Create relationships by being yourself. Once you’ve become more comfortable, you can think about how you can maximize your networking. Just showing up is a helpful place to begin. Lastly, if you’re the type to stop attending social events as soon as you get busy at work, it’s a smart idea to use the conversation list strategy for firm business development to maintain your relationships.

Attending bar events isn’t the only way to network. Consider what’s most appropriate for your practice area. Do most of your clients come from other attorneys? What about other professions?

She was active in professional organizations like BNI and in her local bar section and built a lucrative practice through referrals. We worked at a law firm where she brought in more than three times her salary through referrals.

Another attorney handled QDROs. The majority of his new clients came from referrals from divorce attorneys, so being active in the local bar and being accessible enabled him to stay top-of-mind. He experienced a doubling of revenue every other year thanks to this kind of networking. He was bringing in over half a million dollars as a solo artist.

Most marketing professionals would cringe at the design of both attorneys’ websites. The two do not know what SEO stands for nor do they run pay-per-click ads. They just go with what they know. Therefore, both earn a living these days by networking and developing business.

Business development and marketing work hand in hand for law firms. Networking can take years to pay dividends, but marketing can “turn the faucet on instantly.” Doing both simultaneously is the best approach for maximum effectiveness. Read more about getting legal clients.

3. Getting referrals

A lot of attorneys are afraid to ask for anything, including free marketing. What about client reviews? No way. Recommendations? These people aren’t begging for work.

What you do know is that your office can provide superior services to anyone who is referred to it. Requesting referrals isn’t begging. It’s giving people a chance to help. How can you help them better than you?

The concept of attorney referral agreements and services is an intriguing one, but must be treated with caution. During my time as a regular divorce attorney, most of the divorce attorneys I knew also served on QDROs. In every divorce case, once the settlement or trial is completed and the judgment is in hand, the QDRO attorney will handle everything related to the division of retirement accounts.

According to the ABA Model Rules, is that permissible? Maybe. There are some points to consider:

⦁ Referrals are not paid (except for token gifts).
⦁ No exclusive reciprocal referral agreements (all referral agreements must be disclosed to the client).
⦁ Referral services and lead generation services are allowed, but they cannot vouch for the quality of the lawyer. Also, the services advertised cannot be misleading.

If we return to the QDRO example, such a practice is allowed as long as the QDRO attorney does not receive compensation for the referrals. It cannot be exclusive if the referrals are reciprocal, and the client must remain informed.

How to create a firm business development law plan

You may think that your law firm is all set up with a law firm business plan, budget, and marketing plan. Yes, but it is imperative to consider your legal practice as a business. Business development and marketing usually work hand in hand, which is why the most successful companies focus on both.

What are the steps to creating a lawyer business development plan? Four basic steps summarize the process:

1 Set goals: Begin by listing your business goals for the year. How about forming a new practice area? How about becoming the go-to person?

2 Strategize: After you have decided what your new business and marketing goals are, brainstorm a list of strategies that will help you reach them.

3 Make a plan: After coming up with your list, prioritize the strategies and write down the top two or three. This will depend on how much time and money you have available. Describe how you will accomplish it. Do you plan to attend networking events? How will your firm approach cross-selling?

4 Revisions: Update this plan every quarter or when your business drastically changes. As an example, you may move locations, grow your firm, or take on a brand-new practice area. Take a critical look at what’s working and what’s not.

It is important to remember that, unlike marketing, business development is a long-term process. Rather than focusing on immediate results, consider metrics that indicate long-term success. Even if you haven’t received a referral from the criminal defense lawyer you met at last month’s bar event, it’s possible to get one in the near future. This is because you continue to establish a connection.

6 business development law ideas for firms

You may want to include the following strategies in the business development law plan of your firm. See this list of tips from Big Law rainmakers for more ideas.

1. Make a commitment to attend a certain number of networking events each year

Concrete goals make it easier to accomplish them. Especially if you’re a new business, aim for at least two events a month. When you attend those events, ask others about themselves without a preconceived agenda. Make new friends and have some fun.

2. Demonstrate authority in your area of practice through your writing or speaking

What is your area of expertise? You can prove your expertise by committing to write several articles this year or by speaking at a bar conference or other legal conference, such as the Clio Cloud Conference. There are also conferences outside of the legal industry that might be relevant and lead to more referrals from non-lawyers.

3. Increase the caseload by hiring more associates

Are you actually supposed to turn down cases if you are fortunate enough to be able to? Certainly not if your goal is to grow your business. Take a look back at the cases you’ve turned down recently, and if the salary is close to that of an associate, consider hiring another employee.

4. Existing clients are cross-sold other law firm services

Here is an example: A divorcee with a new estate plan. As a planning client, she may be interested in additional services such as a pet trust or gun trust. Her situation may change three years from now and she may be required to file for bankruptcy. That would be great if you practice bankruptcy law. Is there a fee split you can offer the client, or can you offer the client free representation to build a relationship with the co-counsel?

5. Expand into a new geographic market

According to a survey by Lawyer Marketing, 75% of consumers will not travel more than 30 miles to see an attorney. It makes sense to consider opening a satellite office in a nearby town with such a statistic.

The geographical distance may need to be even shorter if you are in an area with high traffic or long commute times. The fact that many consumers won’t travel outside of their own borough is not surprising in many large cities, such as New York.

6. Create new referral sources

Consider offering a discount to a local union or church congregation to find new referral sources. Make friends with lawyers who practice in complementary areas. For example, a family law lawyer might need referrals for a criminal defense lawyer, a QDRO lawyer, or an estate planning lawyer.

Referrals from clients are the best kind

I have found that acquiring client reviews has been the best move I’ve ever made. Before sending out a final bill, I ask for a review of each case, and I make sure to follow up if they forget.

The New York office has been updated with reviews from some old clients I still communicate with since I moved here from California. There are reviews everywhere. I am still establishing my new practice, but I receive approximately a dozen calls each week from Google Maps reviews.

I plan to do the following this year:
⦁ Opening offices in New York and New Jersey.
⦁ Learning about my local bar association (I am a newcomer).
⦁ The expansion of the company into underserved markets, such as Iowa, Missouri, Kansas, and North Dakota, by year’s end.
⦁ Speaking at several bar conferences (so far, three).
⦁ Publishing at least one article about Qualified Domestic Relations Orders;

The following are four tools to help with firm business development

1. Calendar and email

Keeping this in mind: Many law firms, lawyers, and bar associations are operating in the dark ages. Newsletters and listserves are often used to announce local bar conferences or calls for articles. Local bars or community organizations will also maintain online calendars of upcoming events, which is a lot easier than checking your inbox every day.

2. CRM that works well

CRM stands for customer relationship management. It is basically the modern Rolodex, with communication logs. For Clio Manage users, Clio Grow is a natural choice since the two integrate seamlessly. As a stand-alone product, Clio Grow is also very effective.

Keep in touch with contacts automatically using email and workflow automation. By tracking the source of leads and referrals, you can reinforce the value of business development in generating new clients.

Lawmatics is another great CRM that I use personally. It is integrated with Clio Manage.

3. Status of the case

It might be worth investigating Case Status in order to get client reviews. It automatically sends status updates to clients and asks them to review the case once it is completed.

The client downloads the app at the beginning of the case. The lawyer then stages the case according to their needs. These are determined by your law firm and practice area. A push notification is sent to the user each time the stage changes.

It can help a long way towards addressing the top complaint clients have about lawyers, namely, poor communication. Requesting reviews can also become less painful.

4. Email drip services (such as Mailchimp)
The creation of marketing newsletters can be time-consuming for lawyers. I don’t know of any firms that do them well. My recommendation is to avoid sending a potentially boring newsletter filled with tidbits about the new hires of your firm and sales pitches.

Drip campaigns use inbox space more effectively by sending a series of nurturing emails (like drops of water) to a specific type of contact. Consider sending a few drip emails to a potential new client about estate planning explaining why they should plan, the benefits of working with you, and the costs involved. It is also possible to do this using Clio Grow’s email automation feature.

(You are right if you think this is marketing. Implementing this at your company is business development.)

Develop your firm’s business

Firm business development law and marketing are easy to overlook as you get caught up in your legal work. Remember that your law practice is a business. In business, you have to keep an eye on your bottom line unless you are independently wealthy and don’t need to make a living.

The following is an article about what has worked for me in the past. It may not work for everyone. Try a few different strategies before settling on one, as there is no “one size fits all” solution. One of my QDRO colleagues, who I mentioned before, has an entirely referral-based practice that she has built by networking, speaking at conferences, and writing articles over the years. Her business and bar associations, handshakes, and cocktail parties were the means by which my fellow estate planning colleague built her clientele.

Making a business development plan for your law firm is the key. Outline your objectives. Think of strategies to achieve your goals. In order to optimize for repeat business, cross-sales, reviews, and referrals, you must network, demonstrate your authority, and enhance existing client relationships.

It is important to keep in mind that there is no “one size fits all” approach to company development. Try a few different approaches. Trust and relationships are key in business development. Your actions today may have a lasting effect.