Client Referral Fees that may be Permitted

Most jurisdictions as far as I know prohibit lawyers from paying referral fees (let me know if I’m wrong about this.  I know my jurisdiction does).

As business owners, we love it when clients send us business by word-of-mouth.  Why?  Because word-of-mouth marketing costs us nothing.  More importantly, word-of-mouth referrals come to us pre-sold.  In fact, in my experience, clients who see me who were referred, came to see me to discuss their case and get started; not to determine whether they’ll hire me.

Alternative referral incentive program:

Tell referral sources that you’ll donate $X amount to a charity of the referrer’s choosing.  It can be a set amount or a percentage of the ultimate legal fee.  Institute this for every client they refer to you.

Caution:  check with your governing authority whether this would be permitted.

What if the charity donation referral isn’t permitted?  Then ask if a donation to any legal aid fund would be okay.  If so, just tell referral sources that $X or percentage-of-fees amount will be donated to a legal aid fund for each referral.

If the charity referral donation is also too aggressive for your governing body, be sure to always send a thank you card or letter to your referrals.

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  1. Client Service Tips to Keep your Clients Happy

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