I have read with interest the letters in the Gazette about Personal Injury claims and referral fees over the last few weeks following the release of the Insurers’ report (aka the Jackson report). Some have said that banning referral fees will be good as the smaller firms will all have to start advertising to produce their own new client enquiries, whilst others have said that BTE insurers will run all cases in-house, removing the need for the current large law firms that service BTE clients. I certainly agree with this second point to a degree.
However, there will simply not be enough work for all of the large firms currently servicing BTE legal expense insurers. Some of them, currently spending tens of thousands of pounds a month to acquire hundreds of new personal injury cases to feed their fee earners will be left with no sources of new work. Whilst this budget could be spent on new advertising campaigns for them, these would take time, effort, and energy (along with proven marketing skills which perhaps are not in place) to build steam and to produce the sheer volume of leads that they need each month.
In my opinion, it will be much quicker for these firms to simply purchase the claims companies that are already generating the leads that they so desperately need. With a potential ban on referral fees this provides a good solution for both parties.
My real concern is for the smaller firms left behind; the ones that provide an excellent service yet do not have tens of thousands to spend every month on generating new leads. They simply will not be able to compete. I have already seen a marked increase in the number of these firms approaching me for help over the course of the last six months, and it is increasing month by month. All of them comment that they are finding it harder to attract new personal injury clients every month. They simply cannot seem to attract them with their limited marketing budgets.
My real concern is that these changes could mean the end of the High Street law firm for Personal Injury claims and the end of access to justice for many people across the UK.
What do you think? I believe that now is the time for some concerted action for these smaller law firms, to ensure that they can survive post Legal Services Act, post Jackson and post the banning of referral fees (if that can ever be achieved), so please leave your comments below and I will collate them and return to you shortly.
Free Guide – 8 Ways To Win New Client Instructions
Are you using the methods ALL of my consultancy clients use successfully to generate new client instructions every month on auto-pilot? Download my free guide which will tell you:
- The fatal mistakes most solicitors make with their advertising along with a formula to use to correct them
- How to finally find out what is working for you so you can do more of what works and stop doing what is not working
- The best form of marketing for solicitors (and you will be pleased to hear it does not involve spending thousands of pounds)
- How to make more of your ‘free advertising space’ which most solicitors completely overlook
- Website marketing – what are you missing, how can you improve or even what is it?
- Creating your army of salesmen for your services
- The one tip that could instantly increase your profits with NO COST whatsoever
You have nothing to lose and much to gain, so download the guide now and start taking the action that will bring you huge rewards.
Simply enter your details below to instantly receive the free guide please remember your email address is safe with me as I will NEVER pass it on):
A Solicitor already receiving my free marketing guide and advice says:
"My main concerns before signing up for the newsletter were that all marketing companies are the same. They give financially impractical information and advice insensitive to the needs of Solicitors or in the alternative, they tell you only that which we already know – but charge a hefty fee for the pleasure.
Simply put, your newsletter is none of the above. It is obvious from reading your newsletter that the advice is sensible, practical and sensitive to the different market place of Solicitors marketing professional services. Sometimes, your newsletter is a simple kick up the rear to make us do what we know we should be doing, but don’t because "we never have the time".
The three biggest benefits of your newsletter are:
- Practical sound advice
- Easy to implement processes that can at worst have a small positive effect on generating new business and at best do substantially more than that for virtually zero outlay.
- We learn something simple yet new everytime we see your newsletter and try to implement at least one idea each time we get the newsletter. That’s a dozen gently implemented marketing processes each year. All for free.
If you are considering signing up for the newsletter I would genuinely say to you that you would be mad if you dont sign up. The newsletter is free, its a no brainer.
Solicitors are our own worst enemy, we work long hours often illogically, and dont make time for important things like sensible marketing – and then we bleat on about how we are getting squeezed and challenged by Tesco’s etc.
The future of the law is for innovators, get with the programme or be left behind – and being left behind is a slow painful demise in the legal world.
People like you Nick, make us smell the coffee and get to work. "
Shak Inayat, Penn Legal
Author: Nick Jervis