Ready to charge what you’re worth? The author of “How to Get Paid Your True Worth Ethically, Without Selling Your Soul” shares five steps and her “Magic Triangle” framework for getting paid your true worth.
Why Lawyers Undercharge: The Real Problem With Billing
The challenge for many attorneys is a lack of confidence in negotiating fees because they fear losing the work or the client. Hundreds or even thousands of dollars can be won or lost in a single phone call, simply because of how confidently and effectively you handle the fee conversation with a prospect or client.
Fear is often what causes lawyers to undercharge, underestimate the value of their work, discount, overservice, delay billing, do extra work for free and ultimately not get paid.
Did I leave anything out?
Oh, yes: Lack of confidence also leads to working with the clients who are the most demanding and who don’t want to pay properly.
The problem is not a lack of processes or systems, although these can always be improved upon. More often, it’s about self-worth, because that is what drives behaviors, and attorneys are no different from anyone else.
It’s not rational; it’s emotional.
Charging What You’re Worth Is About Mindset, Not Just Pricing
This is much less about the mechanics of pricing structures and much more about the psychology behind charging what you are worth: mindset, confidence, self-worth, and understanding and communicating value.
AI makes this an increasingly important conversation. It is changing how law firms work, putting pressure on traditional hourly billing. Lawyers need to strengthen their confidence and self-worth and become much more comfortable talking about the value they provide and negotiating new fee structures, rather than focusing primarily on the time it takes to deliver the work.
Otherwise, there is a real risk of working harder, charging less and running yourself into the ground.
5 Steps to Charge What You’re Worth as a Lawyer
Step 1. Stop Running on Fear and Rethink How You Work)
Are you running on fear? Constantly busy, busy, busy, keeping your clients happy and not really thinking about the business, let alone your poor self, who is run ragged?
No wonder the legal profession has such poor mental health. Most of you have been brainwashed into looking after the client at all costs, which has meant that common sense has often gone out the window. I have heard some horrific stories from lawyers about how they have mistreated themselves, just to ensure that the client gets what they want.
I know this kind of behavior is considered normal, but let’s be clear. It’s not normal, and it’s not healthy.
Step 2. Set a Fair Fee Based on the Value You Deliver
Ask yourself:
- “Have I spent enough time on the scope of work?”
- “Is what I am going to charge the client a fair price for the complexity of the work and the value I am delivering?”
- “Have I communicated this clearly to the client so they understand what they’re getting, what is being charged and when they will need to pay?”
Step 3. Communicate Scope and Fee Changes With Clients
Sometimes it’s disorganization and overwhelm — but more often, fear keeps lawyers from communicating with clients. Ask:
- “Am I keeping the client updated on any changes to the scope, timescale or what I am delivering?”
- “And if those changes affect the fee, am I having that conversation with the client rather than absorbing the additional work?”
Step 4. Bill on Time, Without Hesitation
Are there bills sitting on your desk or system because you feel uncomfortable sending them? Ask:
- “Am I billing on time?”
- “Am I waiting until the work is finished before billing, even when I could and should have billed earlier?”
- “If I am delaying the bill, what am I actually afraid of?”
Step 5. Follow Up on Unpaid Invoices and Get Paid
It sounds ridiculously obvious, but doing the work and sending the bill is not the same as getting paid. Ask:
- “Have I been paid?”
- “Am I following up on outstanding invoices promptly, or am I avoiding the conversation because I don’t want to feel awkward?”
- “Am I making it easy for clients to understand what they owe, when it is due and why?”
How to Recognize the Value You Bring to Clients
When was the last time you thought about the value you bring to your clients? Not the number of hours you have worked or how busy you are. And not what you think they will be willing to pay—the value you actually bring.
One coaching client, a private client solicitor and department head with 25 years’ experience, had never considered the question until recently. Like many lawyers, she had spent her entire working life, head down and grinding. She’s not an outlier.
The Magic Triangle: Fair to Your Client, Your Firm and You
Three powerful balancing principles can transform the way you think about your work and how you bill for it. I call it my “Magic Triangle”:
Create maximum value for your clients. Create maximum value for the business. And create the finest life for yourself.
Remember, there are three parties in any piece of work: the client, the business and you. None of these is more important than the other. So, before every conversation with a client, consider whether you are being fair to all three rather than just the client at the expense of your business and you.
Because getting paid your true worth isn’t just about charging more. It’s about recognizing the value you bring, having the confidence to communicate it and making sure the way you work supports the client, the business and you.
Learn more about Vanessa’s work and “How to Get Paid Your True Worth Ethically, Without Selling Your Soul,” at vanessaugatti.com.
Image © iStockPhoto.com.
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