24 Legal Practice Tips
Learned from 24 Years in Legal Practice
Regarding Legal Fees:
1) Always collect payment up front. Collect a retainer or flat fee up front before you begin services. Have your retainer letter signed by the client(s) at the same time you collect payment. It’s much harder to try to collect after the fact, and bringing a fee petition takes time and money. You could be chasing empty pockets.
2) Don’t offer free consultations. Abraham Lincoln said, “A lawyer's time and advice are his stock in trade.” If you are not charging for your time and advice (your stock in trade), you are communicating to clients that your advice is not worth paying for. People value only what costs them something. I used to believe that “free” consultations would persuade those on the fence to move forward with estate planning. What I realized is that those who will not pay you now will not pay you later. The adage in selling houses is "open houses don't sell houses." Open houses invite the “tire kickers” and nosy neighbors. Similarly, free legal consultations invite the curious, the insincere and unmotivated. Those who are truly interested in your services will be willing to pay for your time upfront. If you want to offer a promotion to bring in new clients, consider a different strategy. Have them pay for the consultation up front. Advise them that their fee, once paid, will be credited toward a total flat fee, such as for an estate plan.
3) Discounts usually backfire. The potential clients who ask for a discount have already deemed your fees are too high, or that they are special and should receive special treatment from you. [This generalization excludes persons whose culture or heritage employs bargaining in most transactions and is commonplace and customary. I am not discussing or including those who have such customs or traditions.] Most clients or potential clients who request a discount lack appreciation for it as they already believe they are entitled to it. You will likely end up providing more services for a reduced fee and feeling short-changed. Friends and family will feel their special relationship with you affords them special privileges, such as contacting you outside of business hours or discussing their case during social occasions or family gatherings. Boundaries will be blurred. In turn, you will expect that they will have greater appreciation for your time and expertise because of the family/friend relationship. You and the client will both be disappointed, each failing to meet the other’s expectations.
4) You determine your worth as an attorney. Years ago, I attended a seminar on legal marketing. The speaker challenged the audience of attorneys by telling us that we determine our worth as attorneys. Put another way, you teach people how to treat you. Using an analogy of retail, you categorize yourself as one of the following: a dollar store, a department store, or an exclusive boutique. You decide. How you categorize yourself and your fees will determine your target audience for marketing and ultimately your clientele. Naturally, your experience, knowledge, and skills factor into your fees. Remember your fees must comply with the Illinois Supreme Court Rules of Professional Conduct (see Rule 1.5) and not be deemed excessive. For example, in probate matters, an attorney is entitled to reasonable compensation according to certain factors.1 When I raised my rates after many years of experience, I found my clientele went from problematic, troublesome, and complaining to pleasant, appreciative, and rewarding to work with.
Regarding Potential Clients:
5) The Pareto principle applies to your caseload. 20% of your clients will be demanding and unreasonable and take up 80% of your time (while paying the least). Those who complain in the beginning will continue to complain throughout the attorney-client relationship.
6) Don’t fear firing potential clients or clients. The client you decline to represent can be a more significant decision than the client you take on. If you have not declined a potential client within 30 days, consider refining your vetting process. Read, “Toxic Client: Knowing and Avoiding Problem Customers,” by Garrett Sutton (2016). My criteria for a preferred client: complies with requests, our firm’s protocol and policies; referred by a trusted referral source; no pending emergencies or bizarre complications; willing to pay the consultation fee; needs legal services for areas of law in which we practice; pleasant and calm; not overly dramatic, demanding, rude, difficult, or holding us “verbally hostage” on the telephone; does not doubt our advice and is not argumentative; and is trying to get information for DIY legal services; does not treat our firm like a free legal hotline.
7) Don't try to sell yourself to a potential client. Rather, accept that many people do not respect or appreciate lawyers or legal services. Look for them and weed them out (they almost always ruin your day and productivity). Many view lawyers as a commodity or a source of free information for DIY legal services. They often resent having to hire lawyers and have biases about lawyers. They will not see the need for the legal services they require. Early in my career, I used to think I had 30 seconds of air time on the telephone to sell myself and my services. I found these conversations were a waste of time and were fruitless. Even if you convince a resistant potential client to hire you, most likely they will not value your service, will quibble over fees, resist your advice, and blame you for negative outcomes.
8) Don't give free legal advice over the phone. You are not a legal hotline. Be intentional about offering pro bono services when appropriate. And, offer general guidance and direction to those who may not be a good fit for your firm while you refer them elsewhere. But for potential clients, you should provide general legal principles and tell them why they need your services. Don't give a legal opinion or legal advice. Don’t tell them how to practice law, what steps to take, or how to solve their problem. They need a lawyer, not “do-it-yourself” legal instructions. There's potential liability involved if they rely on your advice to their detriment, even if you believe there is no attorney-client relationship yet. If they press you for answers, advise them that you only give advice to paying clients and to schedule an appointment for a consultation. You cannot give proper legal advice without a full assessment of all the facts and supporting documents.
9) Watch out for the “Columbo” potential client. Peter Falk played Lieutenant Columbo in a popular, television show in the 1970s and '80s called “Columbo.” He appeared to be a simpleton, coming across as naive, disheveled, and unsophisticated. His demeanor and appearance masked his shrewd, observant nature and intelligence. His tactic was to pretend the interview was over, taking them off guard with “one last question.” Watch out for the Columbo potential client with “one last question.” I found too many times there are potential clients with "just a quick question" who have kept me answering questions for 30 minutes. Frustratingly, they rarely hire me after that long call. Don't fall for the trap that it's just a “quick question,” or “just one more question.” Those phrases are code for fishing for free information. They’ll promise to hire you but rarely do. Often, they're looking for free advice and have no intention of retaining your services and paying you.
10) The clients who balk at your fees and pay the least will be the most problematic. Don't fall for a potential client challenging your fee by comparing it to a less expensive attorney. There will always be someone who charges less than you. Invite the potential client to hire that attorney. Look for the red flags of the complaining potential client early in the initial conversation, and pass them on to another attorney. Remember the Pareto principal at #5. Consider the opportunity cost you sacrifice with the problematic client. Get rid of the problematic potential client to free up your schedule for the good client who will eventually come along.
11) Be wary of the client who just wants to “keep things simple.” It sounds innocuous and even understandable when a client says they “just want to keep things simple” in a legal matter. It’s uncanny, however, that the clients who want to keep things simple are the clients with the most complex legal issues. I tell clients that there's no simple solution for complex legal problems. I recently talked with a potential client who had a net worth of $12 million. He wanted me to “terminate his trusts” he and his wife established 20 years earlier. He said he didn't care about Illinois estate tax because it would not be levied until after the death of he and his wife. I advised that he should hire another attorney if this was his intent. I apprised him of the many other purposes and benefits of trusts besides estate tax avoidance. And I advised him that I would not want his son asking me after their deaths why he had to pay more than 1 million dollars in Illinois estate tax when this could have been prevented. When a client says they want to keep things simple, they are really saying they don’t want to take the time or money to do things right.
Regarding Running Your Practice:
12) Loss leading legal services generally don't bring in more legal work. For years, we hoped charging lower fees for residential real estate deals would be a loss leader for other areas of legal practice, such as business, estate planning, and probate. There is a very low turnover rate, and it generally is not productive. More importantly, loss leaders sacrifice opportunity cost. When I applied my time toward more rewarding and higher-paying legal services, I worked fewer hours, had fewer complaints and deadlines, and generated more clients and more revenue. Loss leaders are just a loss.
13) Proofread everything. No exceptions. Prior to becoming an attorney, I was a licensed social worker. My first job was working for a child services organization. After a fundraising event, we drafted a thank you letter to our sponsors. One prominent sponsor supplied hot dogs with buns. A draft letter said, “Thank you for providing the hot gods with buns.” Thankfully that letter was revised before mailing!
14) Successful people delegate. Don’t try to do it all. Delegate to your support staff. Vigilantly protect your schedule and time so you may dedicate it to performing work that can only be done by an attorney.
15) Always use an engagement letter. Set the expectation. Review the letter with the client. When things go awry, you can point out that you already advised them previously and they agreed when they signed the letter.
16) Get organized. Disorganization allows important things to fall through the cracks. Disorganized attorneys are ineffective and a target for malpractice. Create handouts for your clients. If you find yourself saying the same thing over and over and over, say it once in a handout for your client to take home. Create checklists. These are to-do lists which list each step in the process of a matter. It avoids you having to reinvent the wheel. It is also an instant status report every time you check the file—you will know what needs to be done next. It also prevents forgetting or overlooking routine steps.
17) Never tolerate abuse from clients. Set boundaries, give warnings, and be ready to terminate the attorney-client relationship as needed. Toxic clients wreak havoc into your life and that of your staff—both professionally and personally. Work with clients you inherently like, and where there is mutual appreciation.
18) Use three main steps with every client: A) Give your client sufficient information regarding the matter and legal concepts they need to know and understand. B) Then, tell them their options, and the potential legal consequences of their choices. C) Make a recommendation and let them make a decision. If they go against your advice, document it and have them sign acknowledging they went against your advice. If it violates the professional rules of conduct, then withdraw and terminate the attorney-client representation.
19) If you are not competent, don't dabble in an area of law because you assume it’s simple. No area of law is simple. You do a disservice to the client and your colleagues when you provide legal services without having the necessary knowledge and skill set to practice in that area of law. You also potentially violate the Illinois Supreme Court Rules of Professional Conduct regarding competency (see Rule 1.1). Be a consummate professional who is ethically above board, not merely conforming to a Code of Professional Responsibility.
20) Don't feel pressured to give answers you don’t have. Instead, tell the client you need to look into that and get back to them. Take 5 minutes to review the file or spend time researching before giving a quick, inaccurate answer you may regret.
Regarding Your Career:
21) Mentor someone. You’ll learn while you teach, and find it is very rewarding. You’ll also build into the professional life and career of a new attorney.
22) Never stop learning. I love learning and growing my skills. I enjoy challenging myself to learn beyond that which I believe I’m capable of learning. Ironically, the more I learn, the more I realize how much there is to learn.
23) Value your fellow attorneys. Not only can your fellow attorneys help you learn more about the law and the practice of law, but they can also be a wonderful source of client referrals.
24) Word of mouth referrals and genuine networking relationships are the best referral sources. Build your networking relationships, treat your clients well, give exceptional legal services, and you’ll get the referrals.
Colleen L. Sahlas is the current Chair of the ISBA Trusts & Estates Section Council and is the managing partner of The Law Offices of Hoy & Sahlas, LLC, in Oak Brook. For 24 years, she has focused her legal practice in estate planning, business, real estate, and decedents’ estates.
1. See In re Estate of Halas, 159 Ill. App. 3d 818, 512 N.E.2d 1276, 1284-85 (1st Dist. 1987).