Bankruptcy lawyers looking to get new clients often face the question of whether to give free consultations and, if so, under what terms. The major concern, particularly for people who are new to consumer bankruptcy practice, is that they will be giving away the milk for free and so nobody is going to want to buy the cow.
Some bankruptcy lawyers swear by the paid consultation, and others by the free one. For my part, I have always tended towards the freebie. At first I did so because I believed that it was the only way for me to get clients. Now, after doing it for some time, I am know it’s the best way for me to get and keep the good client.
The purpose of a consultation is to not only assess the client’s wants, but also to educate the prospect about the goals of bankruptcy and how it will help him or her. That education may well reveal that the prospect is not a good fit with bankruptcy, in which case many lawyers will claim that their time has been wasted.
Not so.
Image courtesy of Thomas Hawk.
I use free consultations to help get potential clients in the door. Once I get them in and talk with them, if bankruptcy is the answer, they almost always hire me. If they do not need bankruptcy right then, I may see them later. Free consultations has also created goodwill and word of mouth advertising in the community. At least for me, in my locale, the free consultation pays benefits in excess of the time-value lost in those consultation that do not directly and immediately result in a new client.
I couldn't agree more. I am active in the small business community in Seattle, and there is a strong movement in that group *not* to give away your time. Charge what you're worth, value your time, etc. Giving away time, in many industries, can lead to people *expecting* your time to be free, and/or valuing it too little because of the freebie.
Lawyers, however, face challenges that others do not. My clients are small business owners who work hard for their dollars. Many have negative opinions of lawyers, colored by bad experiences, having heard a horror story, or one lawyer joke too many. Regardless, the result is that people are intimidated (scared, even) of lawyers. As a profession, we must, if we want our business to survive, overcome the stereotypes of the inaccessible paper pushers who live to bill out at the end of each month.
The free consultation, in my practice, is a tool for the client to interview me, and vice versa. It's as much about personality and rapport as it is about qualifications and the details of the case. Many clients who came into a consultation *wanting* to NOT need a lawyer have left me with a signed fee agreement and check in hand. "You're not at all what I expected" is a something I hear a lot.
The bottom line is you have to do what works for your business. In my business, because *I* am my brand, it makes sense to give potential clients some access to me, so they can see what they're buying into. If you can structure free (or even reduced fee) consultations so your conversion rate is high, you won't ever feel like you're giving your time away or getting ripped off.
Thanks for the article, Jay! I love all the thought-provoking discussion that's going on around the business of practicing law these days!
I couldn’t agree more. I am active in the small business community in Seattle, and there is a strong movement in that group *not* to give away your time. Charge what you’re worth, value your time, etc. Giving away time, in many industries, can lead to people *expecting* your time to be free, and/or valuing it too little because of the freebie.
Lawyers, however, face challenges that others do not. My clients are small business owners who work hard for their dollars. Many have negative opinions of lawyers, colored by bad experiences, having heard a horror story, or one lawyer joke too many. Regardless, the result is that people are intimidated (scared, even) of lawyers. As a profession, we must, if we want our business to survive, overcome the stereotypes of the inaccessible paper pushers who live to bill out at the end of each month.
The free consultation, in my practice, is a tool for the client to interview me, and vice versa. It’s as much about personality and rapport as it is about qualifications and the details of the case. Many clients who came into a consultation *wanting* to NOT need a lawyer have left me with a signed fee agreement and check in hand. “You’re not at all what I expected” is a something I hear a lot.
The bottom line is you have to do what works for your business. In my business, because *I* am my brand, it makes sense to give potential clients some access to me, so they can see what they’re buying into. If you can structure free (or even reduced fee) consultations so your conversion rate is high, you won’t ever feel like you’re giving your time away or getting ripped off.
Thanks for the article, Jay! I love all the thought-provoking discussion that’s going on around the business of practicing law these days!
I have a different view for family law cases but I did not charge a consultation fee when I did consumer bankruptcy work. I had a potential client who went to another firm because they did not charge a consultation fee. As I recall the conversation, she thought she was saving money but in my view the firm had to compensate for that free consultation elsewhere in the fee arrangement. I should probably mention that I screen my clients first on the telephone or e-mail. I only charge those who decide they want to meet me and who I think have a good case.
I have a different view for family law cases but I did not charge a consultation fee when I did consumer bankruptcy work. I had a potential client who went to another firm because they did not charge a consultation fee. As I recall the conversation, she thought she was saving money but in my view the firm had to compensate for that free consultation elsewhere in the fee arrangement. I should probably mention that I screen my clients first on the telephone or e-mail. I only charge those who decide they want to meet me and who I think have a good case.