Part of working “On The Business” is analyzing your annual revenue streams. Now, the smart attorney not only has multiple revenue streams, but is also constantly looking for ways to add to those streams and build what we call “Continuity Revenue.”
To do this, you’ll need to first consider where your existing revenue comes from. So, let’s start with the obvious:
Existing clients generate a good portion of your revenue and you can anticipate a certain percentage coming from ancillary business and new clients each year as well.
In addition, you most likely receive a decent amount of revenue from trust administration.
Now, if you’ve followed the strategies we mentioned in the Lifetime Communication System (link to system #5 post), then you can probably also count on that trust administration income continuing from generation to generation. This is one of the benefits of creating a multi-generational relationship – you don’t have to worry about losing your clients to another firm when the assets pass from one generation to another.
So far, so good. But you could have more…
Perhaps the most overlooked opportunity for building a continuity revenue stream is creating annual programs that generate reliable annual fees.
A “Wealthcare Maintenance Program” or “Client Care Program” for example, would provide clients with a certain package of services for a fee, in the range of $300 to $500 per year.
If you have 1000 clients, that could generate $300,000 to $500,000 every year on January 1st. Wouldn’t that be a wonderful way to start out your year?
This “package” could provide them with free amendments throughout the year, free updates on law changes and a Docubank card that gives them the ability to electronically retrieve medical records and other important documents when they need them.
You could also include several educational seminars on topics of interest, such as funeral planning and identity theft, topics that ideally relate to new services your firm offers. In addition, seminars on non-estate planning issues put on by local experts provide your clients and prospects with valuable information while giving you an opportunity to stay in front of your public.
What kind of non-estate planning seminars could you do? How about a class on getting organized, creating a family history scrapbook or even a cooking school demonstration? The list is virtually endless.
The whole idea is to provide value. Do that, and you’ll give your clients a reason to love the relationship they have with your firm.
Building continuity revenue gives you a semi-passive income that continues from year to year, increasing your bottom line and fostering quality relationships with your clients in the process, two key components to building a successful law firm.
Sanford M. Fisch
CEO & Co-Founder
American Academy of Estate Planning Attorneys, Inc.