How Can You Lay the Foundation for an Engagement Agreement?
Set a Price on the Work
An engagement requires setting a price on the work. A prospective client will want to know how much will be needed to achieve the desired result. Every lawyer must consider three issues to address this question. First, will you be able to achieve the goals of the client? Second, will you be able to improve the client's condition? In other words, will the client see the value of the service? These two elements are within the lawyer's control.
Can the Client Afford the Engagement?
The third issue requires an evaluation of whether the client can and wants to afford the engagement. Some will say that there is always money available if we can demonstrate the value to the client. Use of money is a matter of priority only. That leaves the issue of engagement in our control. If we can only demonstrate sufficient improvement (value) to the client, we will be engaged.
Get a Signed Fee Agreement
However, do not leave this to chance. Due diligence on the client's willingness and ability to pay should be documented in the initial engagement agreement. Due diligence investigation is a step that too many lawyers neglect, and can be as simple as requesting a credit report from one of the consumer credit agencies or from a business credit reporter like Dun & Bradstreet. Or, we can ask for a financial statement from the client, or some other evidence of ability to pay. Once it is clear that prospective clients can pay, a signed engagement stating the terms and responsibilities for payment attests their initial assertion that they will pay. Clients who cannot or will not sign a fee agreement or pay a retainer, or who want to start now and pay later, should all be suspect.
Find Your Target Audience
Ability to pay is not the only factor, however, for a good engagement. Lawyers should properly define and identify the people who can best understand and use their service. The way to do so is to focus on the demographics, occupation, location, financials and other characteristics of clients who will give you the work that you want. You thus define what your practice really is (or should be) and who best can use your services. Learn where to find your target market and let prospects know that you can provide what they need. Use approaches consistent with your comfort zone, your creativity, your availability and your budget.
The Basics for a Successful Engagement
If you can put yourself in front of the people who need you the most, who have the money to improve their condition and are ready to sign the engagement agreement, you will have laid a foundation that increases your personal satisfaction and your revenue dramatically by focusing your efforts on clients who will pay you appropriately for the value you provide.
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