No law firm becomes well-known or prosperous without referrals. However, for new firms, attracting referral business can be challenging as they have yet to build up a client base. To overcome this issue, many firms seek out partnerships with businesses in related industries, or even established law firms with a busy caseload. Insights has compiled four tips to help you to effectively grow your firm through referral partnerships, so you can sooner establish your reputation and a steady client flow.
- Specialise by area of practice and client type
As a new firm, it may be tempting to take any client that walks through the proverbial door. Rent is rarely cheap, and bills don’t pay themselves. However, unless you are the only law firm serving your local area or a regional community, it is vital to specialise as early as possible.
There are two ways you can specialise: by area of law and by the type of clients or industries you serve. It may be easier to identify the industries you wish to specialise in first, as this can refine the areas of law you offer.
For Jessica Kerr of Sinclair + May, providing legal advice to wellness and hospitality businesses proved to match her passions to her professional work.
“For close to five years I have shared photos of the food I cook, yoga retreats I go to and organic products I use on my Instagram account,” Jessica told Thomson Reuters. “When I launched Sinclair + May, a number of my clients were followers of @thelawyerslunchbox who happened to need legal advice.”
An added benefit for Jessica? Clients in similar industry often encountered similar legal issues, some of which were highly specific in nature. This established her reputation as the go-to lawyer for wellness and hospitality businesses, as she possessed expertise and experience in areas of law few other lawyers could match.
- Find industries that align with your areas of practice
Your core areas of practice may suggest some obvious candidates for referral partnerships. For example, a wills and estates lawyer may benefit from partnerships with financial planners, personal accountants, insurance agents or even retirement homes. A conveyancer or property lawyer would find natural partners in mortgage brokers and realtors, providing a reliable pipeline of ongoing work.
A simple way to identify related industries is to type in search terms for your area of law, without including the word ‘law’ – for example, ‘real estate’, ‘wills’ or ‘divorce’ – or with other variations. This may unearth industries you had not considered, such as family counsellors for family lawyers.
- Offer before your ask
Once you have identified the areas of law and industries you intend to target, think about how to ask for referrals. Consider what would compel you to say yes if you were asked by someone you didn’t know.
Think of anything you could offer that might help your prospective referral partner’s business. Perhaps you know a person or business in need of their services. Perhaps you have a media contact that could be useful to them. Perhaps you could offer to pay for a coffee and meet at a location convenient to them to discuss a potential referral relationship. Wherever possible, offer before you ask for referrals.
- Do a great job
Often overlooked but equally important is doing a great job with any client referred to you. After all, you are not merely building your own reputation but affirming the credibility of the partner who referred the client. Ensuring the client leaves happy – even if the outcome of the matter did not go as they had hoped – gives your partners confidence that future referrals will be managed equally well.
As you work to build your fledgling law firm, finding good referral partners can be a crucial way to quickly consolidate your business. Following these four tips should help you do so strategically and effectively, so you can focus more on the law.
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