Tyson Mutrix (0:02)

This is Maximum Lawyer with your host, Tyson Mutrix. Hey everyone, Tyson Mutrix here. And I'm back with another Saturday episode of the Maximum Lawyer podcast. Today, I'm going to be talking about something that came up in a conversation I had with Josh Evans over at coffee and it made me think about an article that I had read through the Harvard Business Review. It's, it's a couple years old, it's from 2023, but I, I think it is relevant. It's highly relevant to today, especially to the conversation I was having with Josh. Before I get into that though, just want to remind everyone, if you have anything you want me to cover on the podcast, shoot me a text. I would love to hear from you. Or you can go to maximumlawyer.com forward/ask. I'll make sure that that is in the show notes. You can remember it. Also, the number you can text is 314-501-9260. That is also in the show notes. But so I want to get into this and the, the topic is what rainmakers or what today's rainmakers do differently. That's what the article is about. And I feel like the, you know, the word rainmaking rainmaker, that title is such an old term that a lot of people don't use these days. However, the article's only a couple years old, so it's not like it's from the 70s or anything. And I don't, I just think it's interesting that we don't really use that term as much as we used to. But the, the title doesn't really matter when it comes to this conversation. It's about generating business is really what it is. And so the conversation I was having with Josh was though that this attorney had contacted him and was basically, he sounded desperate where he was accused, I wouldn't say was in trouble, but he was out of money, had been practicing for quite a while and was really reaching out to Josh because he wanted some help. Like, hey, like what do I do? And you know, it made me think about this article, Harvard Business Review, the what Today's Rainmakers do Differently. And it was based on a study that they had done and they had, you know, it based on lots of different things, but they had surveyed 1800 C suite level executives and they had, they're really analyzing what makes a good rainmaker a good rainmaker. And they also analyzed the different types of profiles of rainmakers and they, they came up with five different types, which I found really, really interesting. And also it's kind of. They, they was interesting is they, the common wisdom was that you do really good work, you build really strong relationships and clients are just going to keep coming back. And they found that that's not actually true. That is not how it works anymore. It used to, but it's no longer enough. There's a lot more to it. There was so part of the study, they found that five years ago, so that would have been what, 2018. So that's, you know, before all the massive change when it comes to remote work and everything else. Back then, 76% of clients preferred to stick with the law firm that they already worked with in 2023. So by 2023, the number had dropped to 53%. And within the next five years. So, you know, by 2028 that was expected to fall to 37%. And I found that really interesting is because clients are shopping around more than ever. They're looking for better value, they're looking for lower costs, they're looking for people that specialize in certain things. So there is a, definitely a gap between what the common wisdom is and what there is when it comes to reality. So let me get to these, these five business development profiles that they came up with. And only one of the, this is what's crazy about this. Only one of the profiles actually leads to more business. And that is what is just fascinating about it is that they came with the different profiles. There were several different types. There's five different types. But they, they all felt like they were brain makers generating business. But the, the only, only one of these profile types, which I'll give you last, actually leads to more business. So let's get to each of these. So the first one is the. And I, I know, I know these types experts, okay, this is that specialist who, who says, you know what, the clients are going to come. I'm going to get really, really good at my craft and the clients are going to come. I'll give you an example. These are kind of, these made up examples. But think of like a university professor that has turned into a consultant. All right, so you've got someone who's, they've got all the knowledge, maybe they have some experience, but they have all the knowledge for sure because they're a professor. They're really, really well known in their niche. And so maybe occasionally companies might reach out to them, but they're not actively seeking clients. So this is someone that is not going out trying to find clients. They're just good at their craft. Obviously that's good because they're seen as an authority. The only problem is, is that they're only going to get business when companies come to them. Right? They're not going to get business because they're doing any marketing. It's just, it's kind of be kind of willy nilly, it's going to be random, kind of like a slot machine. We talked about that before. It's not an atm, it's, it's more of a slot machine. So they, they're missing out on a lot of growth. So that, that's an example of expert. So one of the major problems though is that they're assuming that clients are going to come to them and that's not the case anymore. And there's a lot of reasons for that. Visibility is what matters really when it comes to driving business. For the most part we get to the second one and we're going to get to the last one and that's going to give you kind of what you should be. So you're probably wondering what you actually need to be doing as opposed to what you shouldn't be doing. We are going to get to that, I promise. But number two, it's the confidant. And you all probably know these people too. And this is, I think this was the one that gets you kind of close there, but not all the way. But they're that relationship builder who relies on past clients though. So they're, they are a, they, they like the relationship, they want to be friends with their clients. An example of this, and I'm trying to give you non legal examples so that they are, you can look at it a little bit differently. Someone might be like a financial advisor, might be an example of this where you know, they're only working with existing clients and getting referrals from existing clients, but they're not proactively seeking their referrals. Someone like a wealth manager who's got these really deep relationships plays golf with really high net wealth network high net worth clients over the last 20 years or so. And they, they do a really good job and they've built these massive friendships or these really deep friendships but their business just kind of stays what it is. It doesn't really expand. Obviously there's some pros to this where the clients are really feeling, they feel like they're taken care of. They have really strong loyalty until they don't. You're right, they really, and I'm sure many of you all have experienced the ones where you lost out on a client that you thought for sure they were going to come to you because of loyalty and they didn't. That's kind of what's happening. So you know, they're strong loyalty until there isn't. But you know, cons, obviously if a competitor is going to offer them a better deal or some, some better service, they're probably, I wouldn't say probably. They may lose that client and they have no pipeline to replace them. So that's, that's the bigger problem is that it's okay to lose clients. That happens to everybody. But if you have new pipeline to replace them, that's a massive, massive problem. So if clients are no longer loyal, which generally they're not, they're not as loyal as what they used to be for sure then. And if you're not consistently building that pipeline, that's going to lead to a massive, massive issue down the road. So number three is the debater, the challenger. That's the one who pushes clients really hard. This might be, you know, a tech startup founder that is really challenging investors and clients they may be thinking about like a Silicon Valley startup CEO. They believe that their product is the absolute future. They, you know, they're pushing investors, they're pushing customers. You need to come with us be. And they're, you're arguing, um, you know, against skepticism. They're, they're pushing for, for clients to go outside of their comfort zones to join their, their firm. And I think this one mostly has to do with products. But if you have some sort of cutting edge law firm when it comes to legal services, this might be you, the way you try to attract clients. But you know, there are some pros to it. You're, you're forcing clients to kind of think to differently, kind of like the way Apple does. Right. However, Apple's got a very long track record and they're always coming up with new ideas and they've got a whole ecosystem set up for their products. If you are a newer firm, that's a problem. One of the major cons of doing it this way is it's really exhausting. You burn up a lot of resources and not all clients, Clients want to be challenged constantly. That's one of those things where Apple, they may, they may have changed. Like when iPhone came out, that was a massive change for people. But since then it's not like they were making, you know, regular changes all the time. It's a fairly consistent product for those of you that use Apple products. And so the, one of the major problems with this one is that they often debaters often alienate clients, at least a segment of them rather than building relationships, which is a component of it. Which is kind of why I think that many people think that they're probably in the confidant category if they're not. The last I'm going to talk about. So it's not quite there, but so there's that part of it. You definitely have to have the relationship building component of it. Vaders don't really have that. It might work in some industries and for some products, but it's not really a long term strategy. Number four is the realist. And I think a lot of people fall into this category too. And this is that straight shooter who tells clients hard truths. I know that I've fallen into this one sometimes where think about, okay, think like about a home contractor who is giving really just brutally honest cost estimates. Okay? So they go, they sit in the living room and you're going to get your kitchen done and they just give you the brutal, honest. You know what it's going to be when it comes to cost. I know that that sounds fantastic because you're going to want to know what the actual cost is. But the reality is that actually might push many, many people away to the point where you are not going to get the deal and someone else is going to get the deal because they, I'll just say they sugarcoat a little bit. People like this. Obviously there's the part where they're highly trustworthy. Right? You want to be trustworthy. And so clients really appreciate that on steam. The cons however, is that from the client's perspective they come off as pessimistic. Okay. And this is by, by the way, this is what the studies says this is, I'm kind of relaying this information to, but they come off as pessimistic to those clients. Clients may choose that more optimistic buyer as opposed to the pessimist. I'm sorry, this more optimistic seller as opposed to the pessimistic seller as opposed. And that is where that problem comes in is that you're. They're looking for something a little bit different than what you're actually offering them. You're offering that real world, no BS advice, but it can come off as pessimistic to the client. And that's where the problem comes in. Even, and that's even if the more optimistic seller. So the, the other law firm that's giving them a rosier outlook, even if they're not being completely honest, they're still more likely to get the deal. That's just the unfortunate part of it. And so one of those like real world examples, if you think of Mike Holmes from that HGTV show, Holmes on Homes, he, he tells people, he gives them like the really, like he, you know, rips up the floorboards and tells you how terrible it's going to be and all that. As great as that is for a TV show, I'm not so great. I'm not so sure that that is going to work out well when it comes to getting it, getting a. Getting the deal. Okay, all right, let's keep the one that actually works. Okay. The one that actually works is called the activator. And this is a, it's a proactive networker that really focuses on driving business growth. So this is. And again, I'm trying to give you examples outside, so you got to think of this differently. You may be a venture capitalist. That is, they're actively connecting with founders and investors like they are. It's more of a collaborative approach because collaboration was a big part of this study is they found that collaboration is really big. So they're constantly like a vc. They're constantly introducing themselves to startup founders, to potential investors, to customers and talent, different talent. They're engaging with people on LinkedIn, they're hosting networking events and they're really always looking to create different, different opportunities or new opportunities for people in their network. So they're not just developing these relationships for themselves, but they're actually trying to help other people as well. So it's a very, like I said, it's very collaborative. They're viewing the referral partners as people they can help as opposed to just getting help from the referral partners. So it is one of those things that it's a, it's a sort of like the perfect scenario in a way. Pros of this, obviously, you're creating these endless business opportunities through networking, through connecting, through making sure that you are, you know, you're taking care of them, they're taking care of you. There's that loyalty part of it as well. That's why I think that this one is so similar to confidant. It really is. But this one is focusing on, you're generating the business as well. So you're not just becoming friends with them, but you are also driving business. One of the major drawbacks of this though, that they talk about is it takes continuous effort and engagement. Like, so you are, you're on quite a bit. And that's where the, I think the problem comes in. That's why a lot of People don't do it because you're always on and that can be a problem. It can really wear you out. An example, like in a real world example, I don't know if you know who Mark Andreessen is, but he's, he's someone that he's, he's invest in startups, but he is a relationship builder. He's one of those connectors. I don't know if you ever heard of someone that, you know, call him a connector. He's, he's someone I would say is, it's a, he's a connector. But he's also driving business actively. He's actively doing that. And so here's, here's sort of the playbook that they give when it comes to becoming an activator. And so these are, these are things that you can do as well, so you can apply to your law firms, which is why I'm talking about it. So if you're wanting to increase your firm's revenue, you know, generate new business, you're going to need to shift from being whatever you are, probably know what you are based on what I just told you about them. So you're probably either an expert, a confidant, debater, or a realist. If you're not an activator, maybe you're already an activator. So that's great, fantastic. But here's what you need to do. So what they do is they commit to business development. This is, and there's three major things and I'm like, I'm going to go through each of these. So there's three major behaviors that they, that they have. They commit to business. So what they do is they set aside a big block of time each week for business development. There are some that they found 90% of their week is on business development. Many of them, 50% was based and like that seemed like that was kind of like the floor that 50% of their time was business development, which I'll be honest with you, that was a very tough pill to swallow it because that's a lot of time. As many of you will know, 50% of your time on business development is quite a bit. But they do that, they set aside time. So they dedicate that time on their calendar to that outreach, to lead generation, to networking, to building that network. And they balance that time between existing clients and then also new clients. So there is a balance between that. They're not just focusing on repeat business. They're not just focusing on new business. There is a balance between the two so here is an action step for you. I did include this in here as well. I would push you to, to start by blocking two to three hours per week just for business, business development. And that's if you're not, not starting. If you're not doing that already. If you're already doing that, add two, three more hours on it, to it, onto it. But you're gonna, you're gonna want to, if you're not doing this at all, block out two to three hours per week just for business development. So focus on existing clients, but also new clients. Remember that number two is expand. So you're going to expand and leverage. So expand your network, but also leverage your current network. What they do regularly is they attend events, they engage on LinkedIn, they introduce their clients to other attorneys. Okay, that's, that's something where, if you have a client, so we do personal injury. If someone's calling me about a family law matter, maybe I'll refer them to someone in my network. So, like Steve Bartle. So Steve Bartle is an attorney in St. Louis where we send him a lot of family stuff. That is, that is an example of what you do. I was having a conversation with one of our, guess who was going to be going to law school soon. And I was talking about how it's interesting how some cities, they're very, like St. Louis is a very collegial environment where people are willing to share in other, other towns. I won't pick on the towns that I know they're like this, but they will not, they're not as, they don't like to network as much and share as much business because they're, they're afraid that there's like that scarcity mindset that might steal their clients. I think that's such a, such a crazy thing, especially given the studies that from this or the results from the study that they're going to leave anyways if you're not, if you're not doing all these other things. So you're, you're going to be introducing your clients to other attorneys and you're going to be introducing attorneys to other attorneys. You're going to be really expanding that network. So what's really, really interesting is 73% of activators do this. They are so, and that's kind of crazy compared to all the others, the, all the other four that I talked about, only 29% of activators or non activators do it where they're actually introducing each other. Like they're, they're that connector, right? They're introducing other lawyers, lawyers to other lawyers and your clients to other, other, other lawyers. They're really leveraging the network they're, they're building, right? They're being, they're helping out their clients, they're helping out attorneys by introducing everyone to each other. It's a really interesting thing. So an action step for this one is to set a goal to make three new connections per week. Three per week. And that's whether through network events, LinkedIn or some sort of referral. Okay, that's your, that's your action step for this. And the number three is. This is an interesting. I really like this one. This one might be the easiest one to do potentially, and that's create value before clients even ask for it. But the big part of this is you have to make sure that you are thinking about it from the client's perspective. And that's, that's a big part that you have to understand how the client thinks. So you get out of the way, you view things and think about how the client might view things. So they're regularly sending legal updates, talking to them about different trends in their industry. They are giving strategic advice to their clients before they ask for it. Instead of saying, well, what would you do? You tell them, here's what I would do in this situation. And they do this. So whether, if you bill, I don't know if you're, however you charge your clients, they do this for free. They offer this to them for free. Now, obviously, if it's a strategic thing, like I just said, where you are, you say, hey, here's what's going on with the case, and here's what I would do, you're going to go for that. But if it's generally, let's say that your clients are generally business people, you are give them general business advice, right? If you are represent injury victims, give them general advice when it comes to improving their health, right? That those are the simple things you can do when it comes to not charging for it. Those are some things you can do to add value to your clients without them asking for it. So you're going to also want to stay ahead of your client needs and really position yourself as a trusted advisor. This means that if you're an injury attorney and you know that your clients are going to be without a car for a car crash claim, give them advice on that in advance. Help them out with that in advance so that they're not kind of wondering what they're supposed to be doing. So an Action Step this. Pick five to 10 key clients that you deal with on a regular basis and send them something valuable. So just something just out of, out of nowhere, not expecting it. So you pick five to 10 clients and just send them some sort of valuable that you think that they might need, a checklist, information about a new case that came out, something that you can think of about a business trend, or some sort of legal update that you think they might find interesting. Shoot them that email and see what happens. So in summary, so we'll go these to you really quick again. If you want to create increase your firm's revenue by becoming an activator, you're going to have to shift your mindset, right? But block out that time for business development every week. Expand your network, make introductions to people outside of your current network, and then proactively send value to your clients before they ask. Those are the three things you gotta do. So you're going to want to make sure you make these a part of your routine. And I guarantee you're going to see a massive difference in your client pipeline. Guarantee it and firm revenue. But that's all I have for you. Just as a reminder, hopefully you enjoyed this episode. Let me know if you did shoot me a text 314-501-9260 let me know if you want to hear more about this or if there's other topics that you really want me to cover. Just shoot me a text. I'd love to hear from you. So I always, always want to make sure we're adding value, providing value to you and giving you the things that you want to hear. So you have something you want me to talk about, let me know. That's all I have. Hopefully I'll hear from you and just shoot me that text. Or you can go to Maximilian.com forward/ask and you can submit your questions there. But until next week, just remember that Consistent Action is the blueprint that turns your goals into reality. Take care everybody.