I couldn't really get my head around the story about the firm of solicitors asking hairdressers to refer clients to it for a £75 referral fee. My initial view was that it seemed like a pretty good idea, but then the press got hold of it, making the suggestion that confidences were going to be breached and now the scheme has been withdrawn. It serves as an interesting reminder that there is no easy way to acquiring new clients, and the days of the old high-street practice serving everyones needs are long gone.
Attracting new clients to law firms is challenging. Trethowans, a firm in Southampton, decided that it would be a good idea to advertise its family law department in local businesses.
According to the firm's marketing director Bryn Hughes
Businessess (estate agents, nail bars, hair salons, chiropractors and physiotherapists) were approached to obtain permission to display freephone cards on their premises. It was entirely at the discretion of the business owner, whether they put them on general display or chose to give a card directly to a client, if they felt it was appropriate. The decision then lay entirely with the individual, whether or not to telephone Trethowans (using the frephone number on the card) to arrange a free initial interview to discuss their personal circumstances.
So far so good. Except that it all went wrong when the media got hold of the story and started quoting some of these business owners who felt they were being asked to divulge confidential information and Trethowans were forced into retreat. The beleaguered Mr Hughes again (on the firm's website):
Our family law referral scheme has received media attention over the past week.
Regrettably, the scheme has been completely misunderstood by some businesses, who it appears believed that we were asking them to divulge confidential information about their clients to Trethowans, and also to pass on their contact details, in order that we could telephone their clients directly to sell them family law advice. This of course was never the intention of the scheme and neither was it designed to operate in this way.
Everyone at Trethowans has been horrified by the misrepresentation of the scheme in the media. In light of the response this has generated, we have decided not to proceed with the scheme. No potential clients have used the freephone cards to contact us and no referral payments have been made.
Hunting around for more information about this I came across a comment from Alastair Moyes of Marketlaw.co.uk who made the point:
The coverage raises the awareness of marketing and promotions as an essential part of the business of running a solicitors firm. Referrals are acknowledged as the most common way solicitors receive new instructions and any way of encouraging those referrers will help develop new business.
We don't do family law here at LloydLaw, so I can't see us following Trethowans' tack, although we did receive a letter the other day from another firm offering us a referral fee for any family law work we passed on. Solicitors are no different to any other business. They need new clients all the time and paying for referrals will become increasingly standard.
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