#1. The (3) most important Critical Numbers for your law business to track and manage are: (1) the % Icon Conversion Rate (converting Initial Consults to Clients), (2) % Collections, and (3) Hours Billed by each legal staffer.
The most important critical number is the % Icon Conversion Rate because a 1% increase in it increases profits by much more than 1%, especially when high-end clients with complex cases hires on. A 60% Icon Conversion Rate is attainable. % Collections is the second most important critical number, a 1% increase in % Collections increases profits by 1%. A 99% Collections rate is attainable. Hours Billed is the third most important critical number, a 1% increase in Hours Billed increases profits by 1%. Hours Billed per legal staff can increase dramatically by Incentivizing Staff. An increase in all three critical numbers has a compounding effect.
Each of these Critical Numbers can lag for many reasons and when they do, good management determines why and fixes such problems quickly. In that way, there is no need to track or be concerned with the many other business numbers such as sales, costs, margins, cash, etc.
Knowing this already or learning it now is interesting, but ineffective without More Family Law Profits (MFLP) to calculate, track, and display the data while incentivizing employees to maintain high numbers and automatically react to low published numbers.
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#2. Employees will automatically keep the above critical numbers at high levels, and never retire on the job if properly incentivized with performance based pay and monthly awards that create a competitive environment.
If you are currently using the ‘Nag Method’ to get employees to cooperate, isn’t it high time to let software technology and protocols relieve you of that undesirable and ineffective method while also getting optimum results by Incentivizing Staff?
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#3. 99% Collections is possible with the proper know how, tools, protocols, properly worded Retainer Agreements, and Guarantor Agreements for clients with low credit ratings. Staff incentives, Staff incentives, and Staff incentives. Yes, Staff incentives are key because Staff will then be diligent in keeping % Collections high.
Knowing this already or learning it now is interesting, but ineffective without More Family Law Profits to calculate, track, and display the data while incentivizing employees to maintain high numbers and automatically react to low published numbers.
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#4. If % of Work Hours billed is not calculated, tracked, displayed, and made to affect monthly Awards and Performance Pay changes for each Legal Staffer, much time will be wasted on many things instead of work and billing hours.
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#5. Payroll and Income Taxes can often be saved if you ask your accountant some important questions. Many accountants are not proactive in saving you taxes and can be too conservative, ensuring their own reputations while letting you overpay taxes. You can overcome this by asking the right questions or finding a new accountant. MFLP’s new clients get tax tips upon signing up that could save a bundle over the years.
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#6. Using properly written forms, enforcing them, and following our suggested best practices are all part of the tool chest to increase your profits. Such forms would include Client Intake Forms, Employment Agreements, an Office Manual, Retainer Agreements, Guarantor Agreements, Confession of Judgment Agreements, Staff Billing Guidelines, Staff Training Documents, and more.
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#7. In addition to the initial retainer amount paid by a new client, an additional deposit of $1,000 is usually required. This amount is typically not shown as a credit on the client’s account until his representation ends. Therefore, his balance due doesn’t show it. This out of sight, out of mind method helps clients pay on time and increases % Collections.
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#8. Gold mine. MFLP requires legal staff to enter hours worked each day and the Hours Worked report compares them to hours billed, and publishes the ratio and other data that incentivizes legal staff to work and to bill hours more efficiently. They are then rewarded through the Awards Program and Performance Pay. And the business has happier, higher paid legal staff that makes more money for the business. And this translates into low staff turn-over.
There are many more proprietary More Family Law Profits secrets to increase profits that only Subscribers will get access to and benefit from. Even if we told you all of them now, they would not help you much without MFLP because it takes all the components of this Business Management System to be effective.
While we can’t guarantee you will make more money because of all the variables in business, we can Guarantee that if you use our system and follow our advice, you will make more money than you would have with your current methods and software.