A Hands-On Approach to Attorney Referrals: A Successful Strategy for this Southern California Family Attorney - There’s no better... Speaking from Experience: When it comes to personal injury cases, Sean S. Vahdat speaks eloquently from education,... 19 Secrets That Increase Response to Print Ads: Have you ever purchased a display ad in the newspaper and then not received a single... The Introvert Lawyer’s Guide to Networking: A few years ago, a meme that I found hilarious circulated the internet. It read... Build It or Change? Making Culture Tangible: 30,000 feet. Long-haul travel. I am tired but intrigued about what I am observing. - Not... The Future of Law Firm Business Development Belongs to the Bold: Ultimately, the meek may, indeed, inherit the earth. But history suggests that, in the... The “If-the-Market-Knew-My-Story” Approach to Business Development: There is a basic principle in communication theory—shared experiences form the basis... Community News – September 2018: Carothers DiSante & Freudenberger LLP (CDF), an award-winning employment, labor and... MILITARY TRAINING Brings Peace of Mind to Legal Clients: Court proceedings and legal negotiations are often framed in military terms in which... Is There Gold in Your File Cabinet?: How to really help your clients and make money— where you're not trading your time for...
Executive Presentations-468x60-1

HOW DO LAW FIRMS FIND MORE CAPITAL?

Every law firm understands how important it is not just to market, but to do it well. So, when you look at two law firms that have equally talented staff and equal financial resources, how can one firm dramatically outperform the other? The secret… (Hint: learn from what large corporations have done to put their competitors out of business)
OK, here’s the answer and it’s not as pretty as you think. In fact, there are some who will be downright repulsed by my very mention of the word. Offshoring. I will say it again — OFFSHORING. Are you still with me?

Let’s face it. No one enjoys offshoring. I would rather not deal with it. It involves inconvenient change, can be challenging to manage and has a number of inherent risks. Never mind that, at least in the short term, it puts Americans out of work and creates additional reprofiling pains and outcries of unfairness.
My answer to this: suck it up—this is America and our flexibility and adaptability to change have made us the greatest country in the world. Our standard of living has increased by virtue of China making our clothes and India coding our software. There will be more functions we may have to let go of. One of them will soon be online article writing. I can’t wait.
My point is that the competitive advantages gained in the form of cost-savings and increased legal marketing capital cannot be ignored.
As an example, let’s imagine two identical competing plaintiff’s law firms, each with $2.5 Million in annual revenues, $2.0 Million in expenses, including a marketing budget of $225,000.
Now, envision this: one firm saves $200,000 a year in operating expenses by offshoring redundant legal support functions, as well as some document production and research. They reallocate the entire amount to marketing. This firm now has a $425,000 annual marketing budget.

Normally, the firm would dedicate 20% of the marketing budget to online marketing ($85,000 of the new budget of $425,000).The firm has also offshored part of its online marketing efforts, so instead of spending $85,000, they are now spending $40,000 for the same results. The firm chooses to reinvest the $45,000 in savings and more than double its online marketing investment. The end result is the marketing budget equivalent of $470,000, versus the original $225,000 budget.
That is where the overwhelming competitive advantage in offshoring lies. Mid and large firms that fail to embrace it will not be able compete with ones that do. In fact, the margins on smaller bodily injury cases are already so low that it is not profitable for many firms to handle them. By offshoring redundant tasks, you can now handle these profitably and spend more money on marketing and land larger homerun cases.

John Zissu

John Zissu is the President and Founder of LitigatorEdge Marketing. We specialize in high return on investment strategies. For more information on attorney marketing best practices please visit the LitigatorEdge Web site.

More Posts

Digg This
Reddit This
Stumble Now!
Buzz This
Vote on DZone
Share on Facebook
Bookmark this on Delicious
Kick It on DotNetKicks.com
Shout it
Share on LinkedIn
Bookmark this on Technorati
Post on Twitter
Google Buzz (aka. Google Reader)
PDF Printer    Send article as PDF   

Filed Under: Business ManagementFeatured Stories

About the Author: John Zissu is the President and Founder of LitigatorEdge Marketing. We specialize in high return on investment strategies. For more information on attorney marketing best practices please visit the LitigatorEdge Web site.

RSSComments (0)

Trackback URL

Leave a Reply

  • Polls