Here are five basic tips for hourly billing attorneys to help maximize your cash flow and realize a profit.
Are you uncomfortable discussing fees with your clients? If so, you may be prone to setting lower hourly fees, be too willing to negotiate discounted retainers, and be unmotivated to pursue the money you are owed. Unfortunately, a whole host of issues may arise from your lack of comfort in setting and collecting fees.
Our suggestion: if you cannot go through your fee agreement and articulate your arrangements in a clear and concise way, delegate it. Have an office manager or other trusted, responsible person go over the agreement with prospective clients. Others are often less attached and better suited to have these discussions without self-doubt issues clouding the conversation.
Are you sending out invoices on a monthly basis? This is incredibly basic, but a problem we constantly encounter in our coaching practice. If you let long periods lapse before billing clients, you are cheating yourself. The chances of being paid in full lessen over time. Psychologically speaking, clients value your work when their problem is most pressing and less so after it’s resolved. If you don’t send out bills in a... Read More