Avoid This Practice Model at All Costs

I’ve been analyzing family law practices for a very long time. There are basically four models.

Type 1: The high-end practice—fewer cases, higher fees, greater expertise.

Type 2: The upper-middle-income practice—a good caseload per attorney, personal attention to each case, cases are fairly standardized with some being more complex than others (business valuations/professional practices).

Type 3: The volume practice—low fees, many cases, standardized systems and procedures. These practices tend to advertise heavily and promote their discounted fees.

Type 4: That’s what we’re going to discuss later in this article, and it’s the practice type you really don’t want to build because it leads to unhappy lawyers and unhappy clients.

Types 1, 2, and 3 are viable models that work well for everyone involved. Sure, each model poses threats and challenges, but they’re each viable business models for the practice of family law in today’s environment. One model calls for expertise at being better at the practice of family law. One model calls for expertise at being efficient and effective. The final model calls for being efficient and very cost effective.

Type 4 is the type of practice you want to avoid. It’s the practice that’s hard to explain. It’s the practice without a plan and without a vision.

This type 4 practice defies explanation. It’s difficult to explain because it’s a haphazard mishmash of whatever urge strikes the owner that day.

One day it advertises in a local freebie newspaper. That afternoon it stumbles into a case involving the division of a medical practice because the lawyer’s spouse knows the doctor’s spouse. Of course, the lawyer has no special knowledge or experience related to the division of a radiology practice (which happens to own real estate and millions of dollars worth of equipment).

The next day the practice is in court litigating a small matter for a fixed fee. That afternoon the practice gets involved in a traffic accident case because it involves a former client. Then it’s a discussion of a contingency fee in a property division case.

The practice muddles through, wallowing around in mediocrity.

Is the practice making money? Not really. Money changes hands, but there isn’t much left at the end of the month.

The practice wallows, wallows, and wallows some more in mediocrity because it is adrift without a focus, strategy, or plan.

Type 4 practices have their moments. They get a great case once in a while. The lawyer is thrilled because the fee is good, and the client can pay. The relationship quickly sours because the lawyer doesn’t have time to pay attention to the client.

Type 4 practices can’t sustain excellence. They can’t sustain efficiency. They can’t sustain a pricing model. It’s a mess.

Pick a practice type. Focus. Be disciplined. Don’t go with Type 4. It won’t sustain you. It doesn’t work. Don’t wallow in mediocrity.

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