Dear Lawyer,
Let’s set aside your feelings and thoughts about that Tesla guy for the next 500-ish words and talk about the strategy behind Tesla.
When Tesla launched, their approach was deliberate: build an electric vehicle for the few who can afford it. Their early cars, priced at $100,000 or more, appealed to a niche group—people who needed a car, cared about the environment, or wanted the latest technology. The 1% of the 1%.
Why did they start with such an exclusive, high price point? Especially when the average price of a car at the time was $30,000.
Why didn't they of try to sell 10,000 cars at $30,000 each? Why did they sell only 1,000 at $100,000.
By selling fewer cars at a higher price, Tesla could:
- Perfect their production process: With fewer units, they could afford to experiment, make mistakes, and learn.
- Build a premium brand: Starting at the high end created exclusivity, which set the tone for Tesla as a leader in electric vehicles.
- Achieve economies of scale: Once they optimized their supply chain and processes, they launched the Model 3 at a more accessible price.
Tesla didn’t try to make everyone their customer right away. They focused on a niche, high-value market and built their foundation there.
How This Applies to Your Law Firm
Many law firms make the mistake of trying to serve "everyone." They work with clients who can barely afford their services, believing they’ll eventually climb to higher-paying clients over time. But often, they get stuck in a cycle of overwork and underpayment.
Here’s the problem: Starting at the bottom of the pricing ladder can leave you scrambling to work with more clients just to hit your revenue goals.
The math doesn’t lie:
- If you charge $200/hour, you need 1,000 hours to make $200,000.
- But if you charge $500/hour, you only need 400 hours.
By focusing on fewer, higher-paying clients, you can:
- Deliver more value and better service to clients who appreciate and can afford it.
- Reduce the number of clients you need, which means less stress and more time.
- Build a premium reputation for your firm in your niche market.
But how do you find these clients?
This is where Tesla’s approach can inspire your strategy. Tesla didn’t just charge more—they offered something their niche market truly valued: an environmentally friendly, luxury vehicle.
For your law firm, this means focusing on:
- Personalized Client Access: Think about big law firms—can clients directly access the partner? Probably not. They're usually dealing with first- or second-year associates. You can set yourself apart by being available to your clients and offering direct communication, instead of "we'll have the partner call you back."
- Proactive Communication: If you're an estate planning firm, how often are you following up after sending an intake or asset worksheet? If your answer is "I wait for the client to reach out," you get a C. Proactively check in to keep the process moving and show your clients you’re invested in their estate plan.
- Setting Expectations and Delivering Results: Clients don't just want results; they want to know what to expect along the way. Are you clearly outlining timelines, next steps, and what they can anticipate from you? A firm that not only delivers but also communicates every step of the process earns trust and long-term loyalty.
- Speaking Plain English, Not Legal Jargon: Your clients may be doctors, engineers, or other highly educated professionals. They’re not stupid, but they’re not lawyers either. Using legal jargon like fee simple, or estoppel can leave them feeling confused. Translate those terms into plain language that clients can easily understand, like explaining fee simple as "full ownership." Clear communication builds confidence and ensures your clients stay engaged throughout the process.
How I Applied This to My Business
This principle is how I built my own business. I started with high-end, 1:1 consulting, offering personalized solutions for lawyers who wanted to grow their firms. This allowed me to work with fewer clients .
Only after establishing my foundation did I add affordable products, like ebooks and pre-written newsletters for law firms. Why? Because selling 1,000 products at $100 each requires an enormous effort - more than working with a few 1:1 clients.
If you’re not working with the clients that you want to work with, can you see your pricing strategy as a triangle instead of a ladder? Using Tesla’s strategy here, can you -
- Work with less clients, and charge more?
- What service could you offer to clients that can afford your services?
- What clients can you work with who you can charge a premium price for? Remember, you don’t need 1,000 clients. You probably just need as little as 10 really good paying clients.
- Can you get comfortable with 10,000 people saying no, and holding out for the 10 that say yes? (Usually, most lawyers can’t. And that’s when they price their services at $200-$300 an hour).
Email me back, and I'll respond with what I think you should charge going into 2025. (Really!)
To your wild success,
Introducing the Lawyers 2025 Success Bundles
To help you rethink your strategy and build the foundation for your best year yet, I’ve created tools designed to save you time and help you prioritize the right clients.
For Black Friday, I’m offering exclusive bundles with the 2025 Lawyers Annual Planner—a physical planner designed to help you organize, prioritize, and crush your goals in the coming year.
Here’s what’s available:
-
Lawyer Growth Pack ($97) normally $300
- Includes the Planner + 2 ebooks: Tech Tools + Top 35 questions every law firm owner has.
-
Lawyer Marketing Power Pack ($150) normally $450
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-
All-in-One Lawyers Success Bundle ($250) normally $1,750
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This sale is only running for a limited time. Let’s make 2025 the year you stop running on the hamster wheel and start growing your firm intentionally.
