How Entrepreneurial Law Firms Accept and Manage Money With Dan Lear of Gravity Legal

Dan Lear is the General Counsel at Off The Record. He is also the host of the “Financially Legal Podcast”. Dan sees the problem that entrepreneurial law firms have and decided that he would launch his own podcast to help them understand how to accept and manage money. Dan joins host Molly McGrath to share his tips on how to run an entrepreneurial law firm.

 

Listen Now!

 

Quote of the Show:

10:27 “At a high level firm, one of the pieces of pushback that I often get is the cost of payment processing. I get that 3% of revenue feels like a lot, but what’s crazy is lawyers often fail to collect anywhere from 20 to 40 to 50% of what they bill out. So they’re super worried about that 3%, but more than happy to let half of their revenue walk out the door.”

 

Takeaways:

  • You shouldn’t have to go to your practice management system to manage your clients and practice and then have a separate one for payment. You want to get paid in as few systems as possible. 
  • There’s technology out there that allows you to transfer money from your operating account to another account without having to write a papercheck.
  • Writing out a papercheck and going to the bank to make a deposit is a waste of energy and time for you.
  • There is a pushback on the cost of payment processing because it takes up to 3% of revenue, but attorneys often fail to collect on 20 – 40% of what they bill out.
  • Consumers are increasingly used to using apps and not using cards or checks to pay, so you need to be able to take all forms of payment.
  • It’s harder to scale your company if you are having a person send out invoices rather than having a link to the invoice so someone can pay online.
  • To reduce barriers and make it easier for clients, try to have their payment information mesmerized in a system so they don’t have to type out the card information all the time.

 

Ways to Tune In:

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