When I first started my own law practice over six years ago, several attorneys were instrumental in helping me launch my law firm. Some lawyers gave me valuable advice in the early months of launching the firm, and other lawyers referred work to me that helped generate revenue in my first years of self-employment. Over the past several years, I have also assisted numerous lawyers launching their own practices with referrals or advice. Helping other lawyers launch their own practices is not only the right thing to do, but it can also yield a multitude of benefits to the lawyer assisting another in launching their own practice.
Referrals
Most lawyers rely on referrals from other lawyers for a substantial amount of work they perform for clients. I once spoke to a lawyer who described referrals as a pyramid. The best work is taken by people on the top, and less-desirable work keeps getting referred down the pyramid until someone finds the work worthwhile. When a lawyer starts their own practice, they are usually on the bottom of the pyramid and are more likely to accept work rather than refer work to other lawyers.
However, as a practice matures, it is possible that a lawyer who began their own practice will move up the pyramid such that they are in a position to refer work. Indeed, there have been times in my career when people to whom I referred work later referred work to me. Moreover, lawyers often specialize in a given practice area and find themselves needing to refer work outside this practice area to others. Accordingly, there are numerous ways lawyers can be a valuable referral source for other attorneys, and assisting lawyers in launching their own firms can be an invaluable way to be part of the referral process.
Reputation
Helping lawyers launch their own practices is a great way to build a positive reputation in a legal community. Lawyers who receive such help are likely to be appreciative for the assistance, and they might tell other people about the help that a lawyer is providing. Although the legal profession might seem huge, it is actually quite small. In many of the matters I encounter in my practice, I either know lawyers for other stakeholders to a deal or I know people who know these attorneys. Knowing other lawyers, and having a good reputation, can be important when it comes time to ask for courtesies or even when a lawyer evaluates whether they want to try to resolve a case rather than litigate it to a disposition. Few acts of a lawyer have a more positive impact than helping lawyers begin their own practices.
Client Retention
Many lawyers do not like to refer matters to other lawyers since they might be afraid to lose clients. Indeed, if a client gets good service from another lawyer, they might wonder whether they should use this attorney for other legal needs faced by the client even though the referring lawyer is competent to handle such matters. However, it is less likely that a lawyer starting their own practice poses such a risk to a lawyer’s business. A client might understand that this other lawyer is just starting out, so they should stick with their typical attorney for other matters. Moreover, a lawyer just starting a practice might be so grateful for the referral that they do not want to jeopardize their relationship with the referring attorney by hogging additional work. As a result, referring work to lawyers starting practices can be self-interested.
All told, lawyers need to consider a number of factors when deciding to whom to refer a client. For a variety of reasons, lawyers should consider assisting lawyers starting their own practices and potentially refer work to these attorneys.
Jordan Rothman is a partner of The Rothman Law Firm, a full-service New York and New Jersey law firm. He is also the founder of Student Debt Diaries, a website discussing how he paid off his student loans. You can reach Jordan through email at jordan@rothman.law.
The post Lawyers Should Help Other Lawyers Start Their Own Practices appeared first on Above the Law.
When I first started my own law practice over six years ago, several attorneys were instrumental in helping me launch my law firm. Some lawyers gave me valuable advice in the early months of launching the firm, and other lawyers referred work to me that helped generate revenue in my first years of self-employment. Over the past several years, I have also assisted numerous lawyers launching their own practices with referrals or advice. Helping other lawyers launch their own practices is not only the right thing to do, but it can also yield a multitude of benefits to the lawyer assisting another in launching their own practice.
Referrals
Most lawyers rely on referrals from other lawyers for a substantial amount of work they perform for clients. I once spoke to a lawyer who described referrals as a pyramid. The best work is taken by people on the top, and less-desirable work keeps getting referred down the pyramid until someone finds the work worthwhile. When a lawyer starts their own practice, they are usually on the bottom of the pyramid and are more likely to accept work rather than refer work to other lawyers.
However, as a practice matures, it is possible that a lawyer who began their own practice will move up the pyramid such that they are in a position to refer work. Indeed, there have been times in my career when people to whom I referred work later referred work to me. Moreover, lawyers often specialize in a given practice area and find themselves needing to refer work outside this practice area to others. Accordingly, there are numerous ways lawyers can be a valuable referral source for other attorneys, and assisting lawyers in launching their own firms can be an invaluable way to be part of the referral process.
Reputation
Helping lawyers launch their own practices is a great way to build a positive reputation in a legal community. Lawyers who receive such help are likely to be appreciative for the assistance, and they might tell other people about the help that a lawyer is providing. Although the legal profession might seem huge, it is actually quite small. In many of the matters I encounter in my practice, I either know lawyers for other stakeholders to a deal or I know people who know these attorneys. Knowing other lawyers, and having a good reputation, can be important when it comes time to ask for courtesies or even when a lawyer evaluates whether they want to try to resolve a case rather than litigate it to a disposition. Few acts of a lawyer have a more positive impact than helping lawyers begin their own practices.
Client Retention
Many lawyers do not like to refer matters to other lawyers since they might be afraid to lose clients. Indeed, if a client gets good service from another lawyer, they might wonder whether they should use this attorney for other legal needs faced by the client even though the referring lawyer is competent to handle such matters. However, it is less likely that a lawyer starting their own practice poses such a risk to a lawyer’s business. A client might understand that this other lawyer is just starting out, so they should stick with their typical attorney for other matters. Moreover, a lawyer just starting a practice might be so grateful for the referral that they do not want to jeopardize their relationship with the referring attorney by hogging additional work. As a result, referring work to lawyers starting practices can be self-interested.
All told, lawyers need to consider a number of factors when deciding to whom to refer a client. For a variety of reasons, lawyers should consider assisting lawyers starting their own practices and potentially refer work to these attorneys.
Jordan Rothman is a partner of The Rothman Law Firm, a full-service New York and New Jersey law firm. He is also the founder of Student Debt Diaries, a website discussing how he paid off his student loans. You can reach Jordan through email at jordan@rothman.law.
