Jarrod Upton spends his days teaching financial advisors how to create a consistent stellar client experience so that their customers come back again and again as well as refer them business every chance they get.
We brought him on the podcast today to share with you how this is done so that you can begin implementing this strategy today.
Is your firm struggling with cash? Are you not bringing home enough money?
If the answer is yes, then it’s time to implement the Profit First system (from the book Profit First by Mike Michalowicz).
Owner’s Pay v.s. Profit
Before we get into anything let’s define Owner’s Pay and Profit.
Owner’s Pay is your salary for working.
Profit is what the firm made after all expenses were paid.
What is causing this cash problem?
The root of the problem is human nature.
Mike Michalowicz likes to call what we do “bank balanced accounting” and that is where we naturally look at our bank accounts each morning and one of three things will happen:
Our lives revolve around money and we don’t always make the right decisions about how to handle our money.
There was a time many years ago that I did not handle my money correctly and I went through bankruptcy. All my money was going to child support and religious school tuition (a part of the legalized divorce agreement), so to survive I took out loans. In the end I couldn’t pay them off and I couldn’t get more loans, so I went through bankruptcy.
There was no way I would allow that to happen again. I analyzed my situation and where I went wrong, so I wouldn’t make the same mistake twice. I want to share my knowledge of debt with you, so that you won’t make the same mistakes I did.
What makes debt bad?
Do your taxes pile up to impossible numbers? Are you not taking home the amount of money you should be?
Why is that?
There are a lot of things that contribute to this, for example:
Your Top line Number
Everyone has a top line number they want their firm to achieve. You’ll aim for that number, but that number on its own is irrelevant. You have all your expenses you need to take into consideration.
Revenue v.s. Profit
The difference between these two is that
Revenue = the amount of money you make before any expenses
Profit = the money you take home after all expenses are paid
So, the revenue number (like your top line number) is irrelevant. All it means is that you’re getting clients. If you’re expenses are twice the amount of your revenue, then that’s a problem.
What you need to be looking at is your...
It’s important to understand marketing before you start marketing or getting someone else to market for your firm.
We’re going to get into the very basics and work our way through the different concepts of marketing.
What is marketing?
Marketing is the progression of a prospect on the journey from unaware to a promoter.
These are the steps the prospect will take on their journey:
Are you working tirelessly for hours on end?
Well guess what? You don’t have to.
We interviewed Chris Small, a SUCCESSFUL law firm owner who ONLY works 25 hours a week for his firm.
That can be you because we are going to share his marketing strategy with you right now.
Chris used to use SEO, but that doesn’t work anymore. Now he uses what he calls “Longtail SEO”. Which means he creates a lot of content to put out there. He does a Facebook live video everyday and then turns it into a video, podcast, blog post, and transcript.
Also, when creating the content he tries to do it in answer to a question someone might be typing into Google.
Moshe has a similar strategy as well. When someone reaches out to you, think about what there first question would be. Now answer that question in a blog post and pay for it to be an ad. People are more likely to click on an ad for a piece of content that answers their question than an ad for a law firm.
Who said that, that wasn’t ethical?
I’ve found that many law firm owners shy away from certain business practices, claiming that they are unethical. Now, there may be some nuances that aren’t allowed, but most of the time that is untrue. Most of these business practices are perfectly fine to do.
Ethics are definitely not something to mess with, but there are many things that people think are unethical that are simply just not true. Here are four examples of common misunderstandings when it comes to ethics:
(It could be that some states have laws against these practices or certain aspects of them, so make sure to double check the ethical guidelines, but don’t assume that they’re not allowed)