It should always be your goal to increase revenue for your law firm because there will always be ways to improve and streamline the ways you generate profit. The beginning of the year is the perfect time to start. You have time to see how effective your strategies are in the next quarters of the year.
My blog posts for January will focus on New Year’s resolutions you can make for your firm. In this post, we’ll focus on the financial changes you should make to boost your firm’s revenue.
For some methods, like creating courses or doing more videos, the positive effect can take time. But, the ones we’ll review below can immediately boost your firm’s revenue as soon as you implement them!
You are likely under-earning, especially if you’re thinking things like:
“I hate these cases.”
“I don’t even get paid enough for this.”
That’s how I was feeling for a long time, and then it hit me: I’m the one who sets my fees. If I’m not getting paid enough, that’s on me!
You’re the one who sets your fees. So, raise your fees, be paid fairly for what you’re doing for your clients.
Get out of hourly rates: use value-based quoting
Get out of hourly billing. Stop thinking in terms of an hourly rate.
To understand how billing by hour can harm a business, let’s think about these questions for a case your firm takes.
- How many hours does it take?
- Are you going to multiply it by $350?
- While you’re doing that, are you and your firm at its most efficient?
If you’re billing by hours, you’re working by hours. You’re limited by the number of hours in the day, even if you could serve more clients in those hours.
For example, a case can be worth 20 hours, but my team and I can finish it in 5 hours because we’re now super-efficient and organized. If my fees are hourly, I’d be penalized for being efficient. That’s an old way of thinking and billing.
Look at your fees from a value standpoint. Think of the value you bring to your clients. Put a price on that and build your profits through that valuation.
You are in business to make profit. That is what it should be.
And you’re not making a profit off someone’s back. You’re doing fantastic work and you’re changing lives. I myself would be willing to pay a premium for someone to handle my concerns as efficiently as I handle them for my clients and my firm. We all are willing to pay for help that lets us get a good night’s sleep.
That doesn’t mean you have to be perfect, but the customer needs to know that things will get handled quickly. Everything gets done immediately. That is something that I really value, and I know the clients do too.
They’re willing to pay more for it, too.
Create Quote Folders
I’ve mentioned quote folders numerous times in my classes and videos. Let’s do a quick recap, though. Here’s what should be in your quote folder:
- an infographic about the specific case that the client has
- the documents needed to get started
- the quote sheet: what the fees include or do not include
- optional: a little gift
I’ve heard this said to me: I don’t like to give my quote folders unless they’re going to hire me because those folders and gifts add up to a considerable expense.
Here’s how I respond: this is your marketing.
Even if they don’t hire you, give them your folder. Even when they don’t qualify, I give them a non-engagement letter and put it in a folder for them.
You are marketing to them, and everyone they know. Give every single person a folder.
You can have all the forms pre-printed and ready in your office drawers for any scenario, engagement or non-engagement, information by case type. You can quickly fill the folder with the right documents and add any notes needed by hand during your consultation.
Then, your folder is out there. You impressed your client with that folder, and other people are seeing it too. That’s marketing.
Pick and set a client pay date
This is really important. It could change your life, like it changed mine!
Set a day or two every month when every client pays. For my firm, it’s the first and fifteenth. We let the clients pick which day they want to pay.
In the previous blog, I mentioned that my husband is my business manager. He works on the first and the fifteenth of every month and spends around 6 hours or more organizing the payments and making payments: bills, payroll, etc.
His schedule wouldn’t be possible if we didn’t have client pay dates.
Having clients all with different pay dates is overwhelming and stressful. With specific pay dates, you know when payments will come in, so you can handle it on those days. It also ensures you’ll have the funds you need for payroll and other operating expenses.
Bill your clients and collect!
Speaking of billing, make sure you are billing your clients and collecting! Hire a business manager and set client pay dates to make this easier.
You must, must, must bill your clients. You must collect on payments that people owe.
It’s absolutely crazy: you send a bill, you get paid. Who knew, right? I certainly didn’t because I wasn’t billing, and I wasn’t collecting.
So, bill your clients. Send that email or paper invoice. And follow up when you must.
I used to feel bad. But not anymore. This shouldn’t make you feel bad. Why should you feel bad in asking clients to pay for an incredible service you’re doing for them?
But if you’d rather not do this yourself, hire a business manager or assistant to do it for you. Delegate.
If you can believe it, I have even more knowledge to share on this topic! If you’d like to learn more about increasing your law firm’s revenue, sign up for my Six-Figure Solo program! Six-Figure Solo now comes in three tiers – Executive, Solopreneur, and CEO. Sign up here!