Referral Marketing for Lawyers

One of the lowest-cost, highest-return methods of marketing for law firms is referrals. It is more useful than paid advertising, social media, pay-per-click, billboards, or direct mail. That’s because consumers trust colleagues and friends to steer them in the right direction when looking for a lawyer to represent them. The legal system is often viewed as intimidating and confusing, so potential clients turn to neighbors, family members, and business professionals for referrals.

Most lawyers are so busy handling cases and showing up in court that they have little time to think about a pipeline of future clients. It feels like there just aren’t enough hours in the day. But the seeds you plant today to develop referrals will result in cashflow tomorrow. Even one or two hours a week spent sending a thank-you note, having lunch with a referral source, or attending a Rotary Club breakfast can pay off in spades when it comes to building a strong referral network.

How Do Referrals Boost My Bottom Line?

A strong referral network has real-life implications for your law firm’s bottom line. It’s not just a good idea — it’s a recipe for revenue growth. Consider these statistics regarding the power of referrals:

• 59% of clients take recommendations from someone they know when looking for a lawyer. (The Referral Navigator)
• 84% of consumers trust the recommendation of others over other forms of marketing. (Nielsen)
• Referrals account for about 65% of new business deals. (ReferReach)
• Referred customers generate 16% more profit than non-referred clients. (Harvard Business Review)
• Consumers are 2-10 times more likely to rely on word-of-mouth referrals than paid advertising. (Boston Consulting Group)
• Referred customers/clients have a 37% higher retention rate. (Deloitte)
• Referral leads convert 30% better than leads from other marketing channels.
• Every referred client makes an average of 2.68 referrals themselves. (ReferReach)
• Referred clients have a lower acquisition cost than do other clients.
• Word-of-mouth can generate more than twice the sales of paid advertising in some industries. (McKinsey & Co.)
• The churn rate of referred customers is 18% lower than customers acquired through other channels. (Wharton)
• Referred clients are often a better fit with your law firm practice areas.
• 92% of consumers trust referrals from people they know. (Nielsen)

How to Build Your Referral Network

Who Can Be an Ally in Referring Clients to Your Law Firm?

Sources for your referral network are probably a lot closer than you think. They’re not necessarily hard to find — you just have to be methodical about identifying and then cultivating sources. Potential people who can refer business to your law firm include:

• Other attorneys
• Accountants
• Bail bondsmen
• Business owners
• Bankers and financial planners
• Doctors and medical professionals
• Members of community organizations like Rotary and Lion’s Club
• Friends, neighbors, and social acquaintances
• Satisfied clients
• Law firm staff.

Generally, most people are happy to provide referrals because they’re helping not only your firm, but also the person who asked them to recommend a lawyer. However, sources sometimes don’t think to refer clients to you unless you ask them to do so. In a lot of ways, referrals are simply a form of relationship building.

Relationships – over other forms of marketing — offer an incredible competitive advantage. That’s because relationships can’t be replaced. SEO trends come and go and practice areas ebb and flow, but relationships typically stay in place and grow:

• Google can’t take relationships away.
• Facebook can’t.
• Competitors can’t easily.

So start to think about who you know and what motivates them to refer potential clients in your direction. Send sources an occasional email; take them to lunch; drop a holiday card in the mail; and consistently stay in touch so that you are top of mind when someone asks them to recommend an attorney.

Ask, Ask, Ask

Referral networks don’t appear out of nowhere. They’re the product of a sustained and consistent word-of-mouth effort to get your name out there and build your law firm brand. There are several ideal times to ask for referrals:

• When you hand a settlement check to a successful client
• At professional legal conferences and workshops
• During neighborhood and community gatherings
• When training your law firm staff
• On weekends when playing golf, tennis, or other recreational activities
• When attending your kids’ school and extracurricular events.

Get the Word Out There!

Don’t be afraid to look for opportunities to get the word out there about the legal services your firm provides, whether that’s accepting an invitation to speak at a conference, serving as a legal source for local media, sponsoring a 5K run for charity, hosting a free workshop or webinar on a relevant and timely legal matter, or a whole host of other opportunities that are at your fingertips. And don’t forget to send out a press release when you win a big case!

Remember that relationships take time and effort. You might not receive a referral next week or next month from a new acquaintance or source, but down the line your phone will ring or you’ll run into a colleague and they’ll let you know that they passed on your name to someone wanting to hire an attorney.

The payoff isn’t instant, but it can be substantial. Building a powerful referral network doesn’t cost you anything except a little time. It’s one of the most inexpensive ways to build your business.

Roughly 80% of your referrals will come from 20% of your sources, so pay attention to which sources are referring most often and what the dollar value is of each referred case. Focus more of your networking efforts on sources who refer frequently. Take them to dinner; send them a periodic email to say hello; invite them to play golf; drop a birthday card in the mail; and congratulate them on family milestones like a wedding or birth of a child. And always write thank-you notes when sources refer a case to you. Referral sources want to feel appreciated because they’re busy, too. They took the time to pass on your name to a potential client.

Think Forward

The time to think about future clients is now. With current upheavals in the legal landscape, rapid growth of artificial intelligence, increased competition, and an often-volatile economy, you can’t afford to miss an opportunity to build a loyal and ever-widening client base through referrals. Take charge of your law firm’s future, rather than being tossed about by the ebb and flow of forces beyond your control. You may not be able to do everything to market your law firm, but you can do something – every week, every month, every year.