The most successful private client lawyers are the entrepreneurs. They combine a strong marketing orientation and more innovative compensation structures to garner greater personal wealth. They are followed in success by rainmakers, who tend to rely on traditional compensation approaches such as “time plus expenses” billing, but are successful mainly because of their ability to bring in new affluent clients.

“Experimenters” might use new compensation structures that get them greater revenues per client. But they are not very proficient at tapping the wealthy for legal services. Technicians, meanwhile, might be extremely competent—even brilliant—but rarely have strong relationships with the wealthy.

Advisors, then, should probably focus their efforts on entrepreneurs and rainmakers. The other two types could conceivably refer clients, but tend not to have very many wealthy ones and often have limited influence with them.

Street-Smart Networking
Advisors who use street-smart networking can turn entrepreneurs and rainmakers into advocates, people who will regularly refer their affluent clients and actively lobby—for one advisor as opposed to a list of them. But knowing how to network means having an in-depth understanding of each private client lawyer. Among the questions you should ask are these:

• How much money does the private client lawyer earn?
• How much does he or she want to earn?
• What keeps the private client lawyer up at night?
• How is he or she sourcing new wealthy clients?
• What are the compensation arrangements being used with his or her wealthy clients?
• What is the private client lawyer’s vision for his or her practice?
• Aside from technical proficiencies, what strengths does the private client lawyer have that can translate into greater success?
• How influential is the private client lawyer with his or her affluent clients?
• What are his or her previous experiences referring wealthy clients to other advisors?
• How “hungry” is the private client lawyer?

The answers to these questions can help advisors develop insight into the lawyers they want to work with. Relatively quickly, they can ascertain what the lawyer’s type is and whether they want to build a relationship.

The nature of the legal business means it’s improper to create an economic relationship with a private client lawyer using referral or introduction fees or by sharing revenues. Nor is trading affluent clients a viable option.



However, there are indirect financial incentives.

One is to offer the lawyer insights into the world of the affluent—for example, by explaining the nature, advantages and drawbacks of family offices. You can also help lawyers with their own practices—perhaps by showing them how to convert billable hours into more profitable value-based project and retainer fees. Such business development aid is effective in motivating them to refer their affluent clients to you. Also, you can include private client lawyers in the events you produce for clients or develop joint thought leadership projects.

But again, critical to this process is effectively profiling the private client lawyers you are dealing with and giving indirect financial incentives to motivate them to provide you with high-quality client referrals.


Russ Alan Prince is president of R.A. Prince & Associates.
Brett Van Bortel is director of consulting services for Invesco Consulting.
 

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