Law Firm Marketing: Dispelling the Most Common Myths About Referrals
Attorneys know when it comes to law firm marketing, referrals are the best way of finding new clients, but there are 4 common myths I would like to dispel about referrals: 
Myth 1. Clients are the best source of referrals. This surprises a lot of attorneys when I tell them this is a myth. Clients are simply the most obvious source of referrals, not often the best source.
There are simply too many variables you cannot control when trying to get more referrals from clients:
- Do clients know all the different services your law firm offers?
- Can they accurately explain who your ideal law firm clients are?
- Are they able to give a clear and compelling reason why someone should hire you?
- Will they remember you when they meet someone who needs your services?
- Did they just receive a large bill from you and don’t feel especially “good” about your law firm at this moment?
Myth 2. Most legal referrals come from other attorneys. Actually, studies show that only about 25% of an established legal professional's practice comes from referrals from other attorneys, so logically about 75% of your law firm clients will come from other sources (this may vary greatly by practice area).
A simple marketing tip is to set up an easy tracking system as part of your client intake file and then review on a quarterly basis to identify where those leads came from. There are also some legal software products that can be customized to track that information automatically.
Myth 3. Online legal directories can produce a lot of referrals fast. There is some indication that consumers are starting to use online legal directories as a screening mechanism and they may even view attorneys who are listed in the directory as “more qualified” than attorneys who are not, but this is far from conclusive.
Generally speaking, local and state bar directories are more effective, but most non-bar-affiliated online directories have become the equivalent of online yellow pages and do not offer any more benefits than advertising in a telephone book.
Myth 4. Formal networking is a great way to get more referrals. Over the years of helping thousands of attorneys build million+ dollar practices, we have found that formal networking events (like trade shows and chamber of commerce, etc.) work exceptionally well for a select group of attorneys— and not at all for most legal professionals. Here are a few reasons why:
(1) Attending the wrong kind of group—one filled with peers, not prospects. Unless your target market is another attorney, I can't recommend spending much of your valuable marketing time hanging around other lawyers. Go where your prospects are, especially the decision makers, not the gatekeepers.
(2) Going to a networking event to find new clients is like going to a bar looking for your soul mate. While it may happen, the odds are stacked against you. The best way to look at a formal networking event is to go there for two reasons: first, to build relationships with potential referral sources (people you have identified that have a direct connection with your target market) and second, to find out how you can be a referral source to other professional service providers.
(3) Lack of a follow-up plan. When you find a potential referral source, you have about 48 hours to follow up with them or they will likely forget about you. Have a plan for calling them, emailing them, or both the day after the event for the purpose of determining if they are interested in getting together face to face.
So what is the best source of referrals? Strategic Referral Partners (SRPs) are the best source of new referrals. SRPs are people who already have a relationship with or already do business with the people you want to reach.
How to cultivate those SRPs is something we teach at every Rainmaker Retreat. Not just theories, but actionable strategies so you can start building your SRP network the minute you get home.
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Law Firm Marketing: How to Increase Referrals and Fortify Your Practice
As an attorney today, you know your reputation and your skill as an attorney are highly important to the success of your practice.
However, to build a thriving practice impervious to ebbs in the economy, client referrals are of the utmost importance. They should play a key role in your law firm marketing approach.
Interestingly, many attorneys fall short when it comes to cultivating referral sources as part of their law firm marketing efforts.
Below are six proven steps you can take in your law firm marketing and referral strategy to build a large referral base and to catalyze multiple, repeat referrals from each contact.
All are designed to keep your name and your reputation top of mind with your contacts and to reward and recognize them appropriately to encourage referrals short-term and long-term as part of your overall law firm marketing strategy.
1. Get Contacts Thinking Referral: Don’t assume your contacts are thinking about referrals for you. Let them know your practice relies on referrals and how much you would appreciate them passing your name along.
2. Immediate Appreciation: When a contact does refer you, call or send a message thank you note the very same day you.
3. Reward: Within the next 48 hours, send your referral source a small gift of appreciation such as a business card holder, a gift card to a popular coffee shop or book store.
4. Recognition: Once you’ve successfully scheduled a meeting with the new, potential client, e-mail your referral source to let them know you have scheduled that meeting and that you will update them again.
5. Reward and Recognition 2: When the referral becomes a new client, send a “level 2 gift” to your referral source. A level 2 gift should be substantial and meaningful. Something your referral source will really value. However, be aware of dollar-amount gift limits your referrals are able to accept. Some excellent online resources that specialize in business gifts just right for law firm marketing referral gifts are MyBusinessGifts, Brookstone and eCorporate Gifts.
Also, be sure to include a personal note that tells your referral source the positive outcome of their recommendation.
6. Stay Top of Mind: Even when your referral sources haven’t referred, stay top of mind. Send a note to your contacts 1-2 times per year to your entire contact list thanking them for past and future referrals.
Implement these six simple steps, and you will see a sharp increase in referrals while adding to the positive reputation you strive for in your law firm marketing efforts.
