HeyCounsel Newsletter

In this edition. A member needs help with a client who is looking to purchase a hotel in central CA; a discussion on using AI notetakers in the practice of law; how to explore practical approaches to billing Beyond The Billable Hour, and our new partnership with GC AI.

The Art of Client Selection

If you aren’t part of the “Big Law’ ecosystem, it is critical to develop the skill of client selection.  Smaller firms have less room for error because of thinner margins with regard to capital, time, and logistical support.  It may seem counterintuitive but choosing which clients not to take can have an outsized impact on the bottom line.

Because of the constant financial pressures of running a law practice, many lawyers make the mistake of taking every client that comes in the door.  This mindset of “any client is a good client” is not a winning strategy.  In fact, it is a trap that can lead to burnout and cash flow problems.  Not all clients are created equal.  It is far better to focus on a strategy of quality over quantity.

Within every law firm's portfolio of clients there are those that pay on time and have reasonable expectations.  They do exist!  However, when your practice has a large number of clients who are on the opposite end of the spectrum, not only is it stressful, but these clients are one of the main reasons for burnout and career dissatisfaction.  It is easy to find yourself in a situation where problematic clients are responsible for 80% of a firm's time while only generating 20% of the firm’s revenue.  

Before we dive into specific tactics on client selection, it is important to think strategically with regard to firm positioning.  The marketplace of legal consumers keeps shifting more towards seeking out specialization for legal help.  Prospective clients are becoming more sophisticated and want to hire firms that are niching down to specific problems.  If you can position yourself as an expert in a niche, your leadflow will be more consistent and you will be able to choose which prospects to work with and with which prospects to politely decline.

If, on the other hand, you are more of a generalist then you are more likely to be in feast or famine mode with regards to lead flow.  This results in more financial pressure to take on the problem clients and you may find yourself in a negative loop where you spend the majority of your time putting out fires.

Far better to engage in deliberate client selection where you focus on people who value your services, pay promptly, and allow you to do your best work.  

Rigorous client selection creates long-term stability and enhances your reputation in specific practice areas.  This leads to growth through word-of-mouth and repeat business. Over time, this compounds into a predictable pipeline of ideal cases.  Mastering client selection is a requirement for long-term success for any legal practice.

The Path To Selective Client Acquisition

Self-awareness is critical when building the foundation for effective client selection.  You need to be able to objectively look at your firm and identify who you like working with.  It is also important to be able to identify what values are important to you and your firm culture.  This allows you to create authentic criteria that draws on your strengths, past experiences, and goals.  When you do this, you create a baseline to work off of in your intake process which prioritizes fit over volume.

You can begin this process by defining your ideal client as well as identifying known red flags.  Start by reviewing your best past clients: What industries do they represent? What problems do you excel at solving for them? How much do they pay, and how long do they remain clients?   

Once you have some data in hand, craft a checklist for prospects.  Possible areas to focus on are factors like budget alignment, communication style, and project complexity. This top-of-funnel filter helps you avoid wasting time on mismatches.

Next, implement a simple screening system.  A short intake form with targeted questions is an  excellent way to get information quickly to see if  a prospect aligns with your goals.  If you don’t want to lose that initial personal touchpoint, just make sure you hit your checklist during your first call. If clients don’t meet your predefined requirements, gracefully send them elsewhere to firms who are a better fit.  This will in turn help to strengthen your referral network as well.

Make sure to track metrics like client retention rates and average matter value.  Once you nail down which pipelines are delivering your best leads, double and triple down on them.  Take a look at the strategy as a whole every quarter to make sure that your goals stay in alignment with what you want as your firm evolves.  

You can’t screen out every problem client, but you can create systems that ensure the large majority of your clients are a good fit.  Follow these simple tactics and before long you will have a client portfolio filled with projects that make the practice of law enjoyable.

📆 Upcoming Events

CHECK THEM ALL OUT HERE

1. Free Law Project Demo (1/20/26) - Registration Link - Free Law Project is the leading nonprofit using technology, data, and advocacy to make the legal ecosystem more equitable and competitive.

2. Spellbook <> HC Fireside Chat (1/27/26) - Registration Link

3. Billing Beyond The Billable Hour (1/29/26) - Registration Link - Explore practical approaches to billing beyond the hour — subscriptions, retainers (including evergreen retainers), fixed/project pricing, and hybrid models.

4. GC AI Product Demo and Q&A (2/3/26) - Registration Link

5. LinkedIn Ghostwriting That Works (2/5/26) - Registration Link - See what’s possible in a very short time frame when you turn your content marketing over to the experts.

🌟 /Threads

1. Has anyone responded to subpoenas at scale?

2. The group provides advice to a 2L on how to evaluate big firm summer associate offers.

3. The templates channel has been on fire lately… take a look at this template for a Sample Management Service Agreement

4. Anyone use an AI notetaker? Check out this thread all about evaluating them for your practice.

5. What’s a good legal ticketing tool for regular clients? Fractional GC clients? Check out this interesting thread.

6. Check out our new partnership with GC AI that will allow our members to deliver faster support to the companies they serve.

🚀 New client opportunities this week

Here are a few of our favorite opportunities that have popped up this week. Want the full list? Head to our #03-opportunities channel!

1. An M&A counsel for an approximately $4M value deal.

2. A California attorney to assist a client who is looking to purchase a hotel in Central CA to convert into condos

3. Someone to help spin up an alternative assets fund in $30-50m range.

4. Immigration counsel to advise on options for hiring someone currently in the US on an F-1 visa.

5. A NYC metro co-counsel (commercial litigation) for business partner dispute.

Have a great weekend!

If you enjoyed today's newsletter please forward it to someone who you think would be a great fit for our community.  We can accomplish more together than we can apart!

Till next time,

Brian

HeyCounsel Weekly Pulse