The Road Trip Question: Does Your Firm Demand More Than Referral Business?
Does all or most of your law firm's revenue come from referrals?
That's the case for a lot of firms.
Often to the extent where founders and managing attorneys don't have the knowledge, skills, or capabilities to bring in new business any other way.
I don’t know how you feel about that approach... but I've been in business a long time and it’s always been a terrifying concept to me.
Not because of “uncertain income” like some might say...
It’s more about lack of personal power and capacity to achieve what I want and when.
You see…
It doesn’t matter how strong your referral network might be:
Out in the business world...
If that’s your only source of revenue, you’re not the one in control of your career and future.
Ironically, for founders... it’s a lot like being an employee again...
Where no matter how big the company is or how skilled you are, you have very limited influence over your outcomes.
There’s nothing “wrong” with that, of course... but it’s not for everyone.
Regardless of how you may feel about the whole "power and capacity" issue though... if you're running a solo or small law firm, referrals may or may not be enough to achieve your business goals in the end.
Which is an important thing to know, right?
Especially if that's your only source of new business at the moment.
To figure this out for yourself... you can ask what I call:
"The Road Trip Question"
First, take a moment... and imagine that your law firm is a car.
You’re taking a long road trip with your best referral partners.
And when you get to the destination you will have achieved your ultimate goals.
Now pause, and ask yourself:
“Can this car get to the destination, get there fast enough, and without me losing my health and sanity... if I only ride shotgun and rely on my friends to do the driving? Or will I need to do some driving myself?”
It might sound weird, but think about it…
Personally, I’ve taken road trips all around the U.S. and on certain trips, like from Miami to Orlando (Disney), my friend might drive the entire 4hr trip without a problem.
I ride shotgun, we arrive... we see the Magic Kingdom... have some fun and come on home.
No sweat, right?
But the story changes when we change the trip and circumstances.
Like another trip my friend and I took, from Philadelphia to Memphis (Graceland) and back the following day... with no breaks except for food, bathrooms, and more “5hr Energy” than I’d advise anyone drink.
I had to take on 10hrs+ of driving, just for us to make it safely and still be functional human beings who could enjoy the place when we arrived.
My choice was to put in the work... or else I probably end up stuck on the side of some highway in the middle of the night, at the total mercy of my friend’s mood, focus, and stamina... wondering when / if she would be ready and willing to keep going.
Now imagine if I didn't know how to drive at all.
You see what I’m saying here?
The amount you can rely on other people to reach your destination... depends on what the destination is and when you want get there.
If you have low six figure goals, with flexible deadlines… referral sources may be enough.
If you have seven or eight figure goals, and want to move fast… you will need to know how to attract clients and generate opportunities from multiple sources - among other things.
In business, one truth you can always bank on is:
For each new level of a company's growth... more is demanded of its leader.
So, let me ask you this…
What does your destination demand of you?
And how do you feel about that?
Be great,
—M
P.S. On April 19th, we will be releasing a Free Training Series for law firm founders and managing attorneys who want to learn how to break through revenue barriers and scale up to $1m+ per year. We'll be covering some powerful strategies and principles to do that successfully.
Seats are limited, so if those are results you're looking to achieve, click link below to register before we reach capacity.