Your Law Firm's Bill as a Marketing Tool

Every aspect of your practice can attract -- or repel -- clients. Sometimes, the only correspondence your client has with you in a month is your bill. How can you create a bill that satisfies your clients? What billing strategies should be considered in tough economic times? How can you maintain and even increase profits when competitors are losing?
 

Your Law Firm's Bill as a Marketing Tool

By Terry Graham, M.A.
Legal Marketing Consultant

Today's shaky economy means that lawyers must view their billing policies, procedures, and the bill itself as key marketing tools that can attract and retain clients, or push them out the door to more savvy competitors.

Consider replacing traditional billing with fixed and/or capped rates on well defined services (or shaving contingency percentages) to attract new clients while keeping your current clients satisfied. Sharing risks and rewards based upon final outcome assures
clients you are committed to their cause. Accepting alternative forms of compensation (equity, stock, services, etc.) is another option. Clients will brag of the sweet (albeit astute) deals you offer, attracting new prospects. If you publicize innovative billing
policies, be sure to follow State Bar procedures by keeping copies of promotional materials and dates issued.

As clients seek better deals, they'll be keeping an eye on what they perceive to be your firm's lavish, avoidable and wasteful expenditures, including billing line items. Still, the law firm that sent out a bill charging a major client for coffee and air conditioning
during a meeting, spent many non-billable hours salvaging the relationship. Make sure your firm's bills reflect a tight -- not stingy -- ship, with necessary overhead items built into your fees. Avoid collection problems by offering incentives for prompt payment.

While innovative billing strategies may actually increase your income, cutting expenses without compromising on service quality can compensate for stagnant or declining revenues. One small firm evaluated every dollar spent and quickly cut overhead costs by
30 percent. Renegotiating your office lease, renting extra space to strategic allies, or moving to less expensive quarters can offset income lost in tough economic times. Don't lay off truly productive team workers to appease rainmakers who complain about "carrying" dead weight. Instead, analyze work teams (attorneys/paralegals/secretaries), rewarding winning profit centers and fixing or axing loss leaders. Take advantage of hungry, unemployed lawyers and other professionals by creating win-win "eat-what-you-kill: opportunities that limit your financial exposure while maximizing revenues.

---

Terry Graham, M.A., is a legal marketing and public relations consultant. She can be reached at 415/686-8442 or tg@terry-graham.com. Check out her website at www.terry-graham.com

© 2009 Terry Graham. This article may be copied and distributed as is with no changes, and with proper attribution to the author, including copyright and contact information.