Early in their legal careers, Andy and Trish took on virtually any new client they could get. After all, money was tight and there were bills to pay. Trish handled the litigation for the firm, Andy had business interests.
Anxious to start generating income, Trish often took on cases before receiving the full retainer. One case called for $1,500 up front billed against $150 per hour. Yet, the client only had $500 at that moment. Trish agreed to handle the case for $500 up front, so long as the client gave her the $1,000 balance at the first court appearance. Another case called for $2,500 up front. This client only had $1250, so Trish made her the same deal.
The first case was more work than Trish had expected. Between legal briefs, discovery and depositions, she had 15 hours of preparation time in on the case prior to the first court date. No problem, she reasoned, the client will pay me when we get to court. She even sent a letter to the client detailing the hours she had already invested expecting that would give him the chance to make the necessary arrangements.
On court day, the client showed up looking very concerned. He ran over to Trish and started rambling on and on about his case and how unfairly he was being treated, and how much stress the case was putting on him. This isn’t a good time to discuss money, Trish thought, I’ll wait till after we see the judge.
After Trish argued her client’s case, the judge rendered a decision mostly in the client’s favor. The fines would be minimal, with some small court costs. Once the legal fees were paid, the client would get through the experience virtually unscathed. The client shook Trish’s hand, thanked her profusely and started to leave the courthouse. “Wait!” Trish said, “what about the money you owe me?”
“Oh, I’ll send you a check when I can. Thanks again for your help.”
A week later, no check; two weeks later, still nothing. Not even a returned phone call. After a month, Trish got angry and decided to sue the client for the money she was rightfully owed.
In the meantime, something similar happened with the second client. The installment plan was not honored and she stopped returning Trish’s calls as well. She decided to sue the second client as well.
During the first 6 months of her practice, ten clients failed to pay Trish as agreed. In fact, she had as many non-paying clients as paying clients. “The heck with it.” she said, “I’ll just sue all of them at once!”
Andy had his problems too. And so it went. In about a year’s time, Trish and Andy were left standing in a pile of ashes. The trail of carnage left in their wake was staggering, and they were left wondering how anyone can survive in this dog eat dog world of business.
It doesn’t have to be this way. Remember: Business is not about the deals, it’s about the relationships.
Turn the Tables – Add Value First
One of my good friends, best selling author of the book “Conversations With Millionaires”, Mike Litman teaches a powerful technique that can greatly improve your success and add hundreds of thousands of dollars to your income over time. It’s simply this: in every business conversation that you have, ask the other party this question, “What can I do to help you?” It’s a simple question with profound impact.
Let me explain. The first time I spoke with Mike, he had called me to review several tax strategies that he could implement himself. His book had just become a best seller and his income had jumped significantly. “I’ve got a problem and I need your help”, he said. “I just made a lot of money from my book.” “So, what’s the problem?” I asked. (It didn’t sound like a problem to me). “My accountant told me I am going to get killed with taxes,” he sighed. I said, “Let’s talk about a few things that should be helpful.” and we spent the next fifteen minutes discussing three strategies that saved him tens of thousands of dollars.
Mike was very appreciative and before we hung up with each other, he asked me about some of the projects I was working on. I told him about an important one involving internet marketing and his next question changed our relationship forever. He asked, “How can I help you with that?” Surprised, I replied, “I don’t know…. Do you know anyone who is an expert in internet marketing?” “Yes”, he said. “Would you like me to call him and introduce the two of you?” “Wow! I’d really appreciate that.” My project took a leap forward and a new friendship was born.
Since that time, virtually every time we speak, Mike asks me if there is anything he can do to help me. And now I do the same. We have become good friends and valuable resources to one another.