I've been reading a discussion on the Wealth Counsel listserve about someone who got burned after engaging a client, drafting their whole plan and then not getting paid and not having a fee agreement.
One guy responded by saying, "I rarely ask for a retainer. Occasionally I get burned. But not that often. I think client's appreciate just getting one bill, and that we trust them to pay it."
What?!? That's no way to run a business! I'm all for trust, but I want to choose my pro bono work and not have it chosen for me because I can't get my bill paid.
I think the truth is that he doesn't know how to ask for the retainer. And, the guy who didn't get a fee agreement, apparently he never gets fee agreements signed.
Why??
When I wasn't getting fee agreements signed, it was because I didn't know how to do it. And, I got burned too. For several thousand dollars.
Once was enough for me.
You must always get a fee agreement signed in the meeting and some sort of up front payment, even if it's just a few hundred dollars and you put the clients on a payment plan after that.
And never, never, never start work before getting the agreement signed!
The key is knowing how to get the agreement signed and payment collected in the meeting without feeling uncomfortable.
Here's the secret for how I do it:
In my attorney folder that I have prepared for me before every meeting, we have a fee agreement with check off boxes as well as a "method of payment form."
At the end of the meeting, after we've designed the plan, I say:
"Ok, great. That's all the questions I have for you. Now, I'm going to have Susan come in and she'll go over the statements you've brought with you, go through our engagement letter with you as well as make payment arrangements and schedule time for you to come back in about 4 weeks. Do you have any questions for me before I get her?"
I get Susan, she has a script to go through everything, gets the agreement signed and collects the payment.
It's all about setting expectations and having confidence in your process. If you don't have a Client Services Director, you can even do this yourself - the key is a scripted process you feel good about that you can follow every time.
I happen to have a system for the whole Initial Consultation meeting (actually from the time a prospect calls your office) that gives you all the forms and scripts you need to collect the payment in 97.5% of your meetings. Learn about it here: http://www.clientengagementsystem.com
© 2007 Alexis Martin Neely
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