September 08, 2009
NLJ Op-Ed Piece Addresses Lawyer Advertising Rules
OPINION
Archaic rules hobble attorneys
Businesspeople and consumers would laugh at advertising limits on lawyers.
Micah U. Buchdahl
September 7, 2009
As the economy sputters and every morning's inbox is greeted with news of law firm layoffs and "out of business" signs, it highlights an obstacle to the business of law that is unique to this profession — often-stringent state bar rules of professional conduct related to advertising and marketing. For the past 30 years, state bars have taken a roller coaster approach to regulating lawyer advertising. However, the rules continue to block entrepreneurial lawyers and firms from soliciting and acquiring business at a time when "anything (ethical) to survive" should be the mantra.
Consumers and businesspeople alike would probably laugh at the regulations that are in place nationwide. In what essentially amounts to a federalist debate, attempts at national uniformity by entities such as the American Bar Association are met with resistance by the real owners of power, those who regulate all of our law licenses at the state level.
There is a laundry list of requirements in some states that range from preapproval filings of all lawyer ads to clumsy disclaimers. Enforcement arms of the state bars range from near-fanatical oversight to general uninterest. In a multijurisdictional practice world, firms need to monitor changing rules in dozens of states, with the result being that practice capabilities and competitiveness are hampered in a major market because of the need to comply in a small "satellite office" state. For example, a 500-lawyer firm with 495 attorneys in Washington, D.C., three in Florida and two in Connecticut would have to comply with the two latter-named states, even if the practice there was limited to a particular client or practice group. In a world dominated by online communication, this is more troubling than it might appear.
Attempts at heavy-handedness meet with mixed results in states such as Florida, New York, Connecticut, Louisiana, Missouri and New Jersey (to name a few). In recent years, some of the world's largest and most prestigious corporate law firms were forced to either scrap or change the way they sent out informational client alerts, due to the implied need to slap the phrase "ATTORNEY ADVERTISING" on the subject line of an e-mail. Pardon me, but I highly doubt the recipient, perhaps the general counsel of General Electric Co. or Johnson & Johnson, is hornswaggled (a legal term of art) by the trickery of a tax law update from Sullivan & Cromwell. I think the "this is not legal advice" disclaimer on the bottom probably would suffice.
Historically, through a slew of ethics opinions and court challenges, nobody has ever been able to show any data that suggest people have been harmed by lawyer advertising — accurate, misleading or otherwise. The concept that a loud and splashy TV ad for a personal injury firm, a law firm-sponsored "divorce seminar" at the Holiday Inn, or simply a brand-identity print ad in an industry publication involves varying degrees of trickery is simply unsubstantiated. And the underlying anti-advertising critics at many state levels are simply attorneys who just do not like it — and get on a small committee that can do something about it. Such is the way that law firms and the bars that regulate them operate.
Listen — (some) lawyers are smart people. We specialize (a word you better not use in your lawyer advertising…lots of words are violations) in the art of finding loopholes in laws, statutes and cases. The result is that the controls do not work anyway. Those harmed are often the average Joe or Joan Attorney just trying to promote his or her practice. A review of rules and opinions shows that those on the regulating committees are often out of touch and far removed from the realities of business development. Even in traditional advertising circles, trying to make sense of Facebook, Twitter, blogs and search engines can be a challenge. For old-tyme practitioners, it is just ridiculous. The opinions often show a lack of understanding. They are still stuck on Yellow Pages advertising (now that is archaic). The results are often laughable. Marketing methods continue to evolve — these folks are way behind the curve.
What exactly am I advocating here? Let ambulance-chasing lawyers run amok? Isn't that the real image and concern behind these arcane rules? Open the floodgates with distasteful and unprofessional billboards, Web sites and commercials? No — just let law firms market the way nearly every other business does. There are state and federal regulations that address consumer fraud and misleading claims. Let them deal with it. Many lawyers and law firms are trying to survive and prosper. The very people who should be helping them should start thinking about not being obstacles to their ability to earn a living. (Some) people are smart. They know the difference between a commercial and the news. I think they can figure it out.
Micah U. Buchdahl would like to say that he is an attorney who specializes in law firm marketing and business development, with particular expertise in advertising ethics. However, the words specialize and expertise would be a violation of lawyer advertising regulations. He is chairman of the American Bar Association's Section of Law Practice Management. He can be reached at micah@htmlawyers.com.
Posted by Micah at 11:35 PM
August 15, 2009
ABA Law Marketing Conference "Early Bird Rate" Expires August 31
The ABA Law Firm Marketing Strategies Conference takes place November 12-13, 2009 at the Four Seasons Hotel in Philadelphia, PA. If you want to attend the nation's leading "by lawyers, for lawyers" marketing and business development conference, the expiration for the $595 early bird registration expires August 31.
Compare the program, faculty, venue and cost to any law marketing program...including two breakfasts, two lunches, networking reception, and two elite keynote speakers.
Topics covered include:
PR and Media Relations
Social Networking
Women Rainmakers
Advertising Ethics Issues
Rankings and Ratings
Technology Tools
Branding
Client Satisfaction Interviews
Niche Marketing
Community Involvement
Associate Development
Seminars
Due to space restrictions, the conference is limited to 200 participants.
Posted by Micah at 05:16 PM
July 09, 2009
Facing Facebook and Tweeting with Twitter
GCs Come Up Against Social Networking Sites, Like It or Not
The following article appeared in the June issue of GC Mid-Atlantic.
What are you doing? In 140 characters or less: "I am writing an article on the impact of social networking sites, such as Twitter and Facebook, on in-house counsel for GC Mid-Atlantic."
That "tweet" uses just short of the maximum 140 characters (136 to be exact) for a Twitter post. It avoids TMI ("too much information" for the non-texting crowd). And knowing what it is and how it works is imperative.
Recently, the chair of a law firm's professional responsibility committee ordered me to "go print out LinkedIn." Besides being short of time, paper and toner, he showed his hand. He had no idea what LinkedIn is or how it works. Yet, he wanted to create firm policy regarding its usage.
As the protector and advocate of a company, you simply cannot afford to be naïve. The continuing advent of social networking creates both issues and possibilities for in-house counsel.
The Need to Know
As someone who speaks and advises law firms on ethics issues related to online efforts, including lots of focus on social networking in the last year, I did not want this column to be about ethics. As lawyers, we all know the hot-button issues. Unlike attorneys at law firms, where there is a business development or advertising goal (be it direct or underlying), the in-house audience is not soliciting.
Whether you are "poking" a friend on Facebook or "tweeting" on Twitter, the social networking phenomenon is everywhere -- including the offices of top executives at some of the world's largest corporations. For in-house counsel responsible for protecting a company in areas ranging from intellectual property to employment law, from advertising regulation to communications, the need to have a working knowledge of these online entities is critical.
The "need to know," however, expands well beyond the responsibilities of protecting your company. Some in-house counsel have utilized these networks in the selection and vetting of outside counsel. In some cases, it is simply reading what is out there in regard to a specific attorney or firm. However, others have proactively used the tools to find counsel. This might involve simply checking your own social network for people that practice in an area or jurisdiction where you require assistance.
On Twitter or Facebook, for example, you might search your network or the vast entity itself for a "Tennessee immigration law firm." You might contact someone based on the expertise they show through their online portfolio, or perhaps "bingo," there is an old law school classmate that you can reach out to. On LinkedIn, you may do the same type of searches, but can also check your network to see if you have any direct or indirect connections to the expertise you require.
Drawing the Line
"I use LinkedIn for my business-related social networking. I use Facebook for my non-business social networking. I use Twitter for news-feed types of updates, for the most part, and I also read tweets from my friends," said Todd A. Borow, senior corporate counsel at Johnson Matthey and current president of DELVACCA. "I would not be interested in receiving business-related tweets on Twitter. I occasionally get requests on Facebook from business contacts, but I do not approve [them]. I instead direct my contacts to request me as a connection on LinkedIn."
While the Facebooks and Twitters of the world are largely built around a more informal, casual online relationship, LinkedIn is in many ways the opposite. It is built around your business and professional world. Both entities work. Consider it the difference between hiring someone you clicked with at a cocktail party versus making a selection based on reading an article or attending a CLE program.
As is the case with almost any area of business today, there are plenty of similar online networking tools geared toward your specific industry. It might be pharmaceuticals, automobiles or physicians. In the case of those focusing on the "legal" industry, sites such as Martindale-Hubbell Connected and Legal OnRamp are considered networking tools specific to lawyers and targeting in-house counsel.
For Martindale, the Connected network is an appropriate extension of its age-old directory. In the pre-Internet world, few would dispute that Martindale was the key resource for in-house counsel "looking up" attorneys based on practice and geography. However, that tool has lost its significance in this generation. This is a wise effort by Lexis-Nexis to rebuild the brand for today's market.
On the flip side, Legal OnRamp is a product of the Web world -- designed to provide a community for lawyers to interact and, in some cases, seek counsel, business and employment opportunities.
"I do note that many companies, like mine, block Web sites that are considered to be social networking sites and not business networking sites," said Borow. "At my own company, Facebook and MySpace are blocked, which further emphasizes my point that these, as well as Twitter, are not the appropriate Web sites for lawyers to use for their marketing efforts," he continued.
For that reason, Borow maintains that the legal-specific networking sites are more effective if the goal is to market legal services to his audience.
Yet these sites are coming into play every day on the practice side of things. These create potential issues for attorneys, their employers and their businesses.
Unavoidable Issues
Lawyers are struggling with issues of monitoring site usage and dictating company policy. While Borow mentions some sites being blocked in the workplace, these same sites are often heavily used for marketing and recruiting in some places. All of the content is discoverable and can and will be used against you in a court of law.
In June, nearly every in-house counsel and intellectual property lawyer had to stay on top of potential trademark issues dealing with Facebook domain names. The power of Facebook and the potential dilution or missue of corporate trademarks necessitated registration action. Failure to understand the site and the impact would be a serious misstep.
Your company's marketers are likely crafting sophisticated social media programs that have complicated strategic objectives and metrics. They are used to provide value, and they involve two-way interaction between the audience and the company or product. While the Internet itself has created numerous difficulties in maintaining control over your intellectual property, a key element to remember is that in the world of social networking, you simply do not maintain control over your message.
It is not just the marketers -- your communications department is involved in moving traditional PR efforts to these networks. Internally, your company may be using a Facebook page as a communications tool as well.
Remember that all of these networks have terms of service guidelines (which may change with little notice). There are numerous social media monitoring tools to stay aware of the conversations that might be affecting your brand. Make sure the company messages are consistent from one social site to the next.
Besides company usage policies, you need to address certain considerations when communicating through these sites with clients, need to identify possible issues including confidentiality, communications with counsel and the need to be truthful and accurate with statements.
Another important area affecting your job is in monitoring the company's use of such tools for recruiting and hiring. It is yet another area that requires rules and policies.
"Savvy employers will make use of these networking tools," said Margaret M. DiBianca, an associate in the employment law group at Young Conaway Stargatt & Taylor in Wilmington, Del., and editor of the Delaware Employment Law Blog.
"Employers should proceed with caution when looking for potential job applicants. Anyone can create content and post it online, which means you could hire someone based on false information. And if you decide not to hire the applicant, the information you found on the Internet could be used against your organization to support a discrimination claim."
DiBianca also warns that there are limits to how far you can go in keeping tabs of an employee's blogs, instant messages and social networking sites.
Conclusion
There is no end in sight to the impact of the Twitters and Facebooks on the profession. Recently, a judge in North Carolina was reprimanded for "friending" a lawyer that was involved in a case before him. Issues involving twittering jurors (in the middle of a trial) have led to numerous cases heading for appeal. Last April, as Pennsylvania Sen. Vincent Fumo's trial finally headed to a verdict, a juror's Facebook musings were enough to have Fumo's legal team seek a new trial.
It is no longer about whether you want to try this stuff out; you had better know how to tweet. •
Micah U. Buchdahl, a former in-house counsel, is president of HTMLawyers Inc., a law marketing consultancy based in Moorestown, N.J. He is chair-elect of the American Bar Association's law practice management section. Buchdahl can be reached by e-mail at micah@htmlawyers.com or by phone at 856-234-4334.
Posted by Micah at 09:17 AM
May 11, 2009
Midsize is the new BIG. The Ultimate Law Firm Recruiting Video
Partner Steve Johnson is finding that life at BIG LAW in the BIG CITY is no longer all he had hoped for. After finally getting a "sit down" with the Managing Partner, he comes to the realization that his career needs a change...maybe a midsize firm will be more to his liking.
This video was originally created for a midsize law firm's recruiting campaign. However, the sit-com format proved a little too hot to handle. Maybe you recognize Steve's plight...
Posted by Micah at 10:42 PM
February 19, 2009
Top Docs Battle over Rankings; Are Lawyers Next?
Who would have thought the docs would beat the lawyers to the courtroom? Well, in Camden County Superior Court in New Jersey, two hospital behemoths – Virtua Health and Cooper Health System – are battling over the use of local rankings and ratings in advertising and promotion.
The argument goes to the heart of many similar debates in the law world over rankings and ratings, methodologies and research. In this case (which happens to be in my backyard…and I have no idea if my doctors are on any of these lists and could care less). Just the “local” versions include four magazines that have taken advantage of the popularity of publishing lists and generating advertising.
Read the article and ask yourself if these arguments sound familiar?
Posted by Micah at 01:47 PM
December 02, 2008
Podcast-Micah's Take on the State of Law Firm Marketing
With today's economic pressures, law firms are finding it harder to figure out how to effectively spend and strategize in regard to a marketing plan and budget. Micah's 35-minute interview by Cole Silver from earlier this summer is now available as a free podcast online...
Posted by Micah at 11:42 AM
March 22, 2008
In-House Counsel Seek Value From Law Firm Marketing Dollars
It has been a long time since an article I authored garnered as many e-mails and phone calls as this recent one, which appeared in the new column for GCs in the Philadelphia-based The Legal Intelligencer.
In-House Counsel Seek Value From Law Firm Marketing Dollars
by Micah Buchdahl
Published by The Legal Intelligencer, 02-27-2008
Clarence Darrow is dead and the rest of you are fungible," said David Machlowitz, senior vice president, general counsel and secretary for Medco Health Solutions Inc., in Franklin Lakes, N.J. He provided this reminder while addressing lawyers and marketers in one of the seemingly thousands "what are in-house counsel looking for" seminars that take place each year.
I, too, have served as speaker and attendee at some of these sessions and rarely leave with any tidbits of information that anyone couldn't garner in a "common sense 101" class. As a former in-house attorney, I can tell you that the expectations for outside counsel are generally relatively simple: (1) be attentive and responsive; (2) keep an eye on costs; (3) whenever possible, provide me with a positive outcome.
The "fungible" label, while it may be insulting to some, is generally reality. The ability to provide sound counsel and added-value components is always nice and sometimes necessary. However, there are dozens, if not hundreds or even thousands of attorneys capable of delivering the legal services required.
As law firms continue to shift toward traditional corporate business principles, more money is being directed at marketing, advertising, business development and sales. According to statistics published by ALM Media, the largest 100 law firms in the United States spend an estimated $9 million annually on marketing; and the second 100 spend approximately $3 million a year.
The question is: Are many throwing good money after bad?
This past November, the American Bar Association held its inaugural national marketing conference in Washington, D.C. The event, which I chaired in my role as vice chair of the ABA's law practice management section, will be held twice yearly.
One of the central themes of the conference - wasted time and wasted spending by the large national law firms - met with resistance from local chief marketing officers and marketing directors in Washington. Yet, as I often find in conducting marketing audits for many of these firms, dollars and time are misspent in budgeting, staffing and strategic business development decisions.
In writing this article, I spoke with 10 general counsel from a variety of backgrounds and companies. While most preferred to answer anonymously, a couple were willing to go on record. All were emphatic and their comments were relatively consistent.
Few saw significant value in the marketing efforts of the law firms they use. And most shared similar opinions - that for outside counsel, there are better ways to spend business development dollars - and similar concerns - that much like skyrocketing associate salaries, spending on marketing has a trickle-down effect on the cost of legal services and a bottom line impact on in-house budgets.
"The end-results of these efforts are a huge amount of wasted expenditure," Machlowitz said. "I am looking for greater value at less cost. I cannot recall a single law firm marketing or advertising campaign that I would deem effective, with efforts ranging from expensive and pointless, to arrogant and unproductive."
Some general counsel noted the trend toward naming clients in firm marketing efforts and expressed the opinion that being referred to at all in their outside counsel's marketing was inappropriate. For the most part, companies are not interested in highlighting the need for legal counsel to the public at large. And outside of an offer of compensation in exchange for appearing in an advertisement (a GC-celebrity spokesman), there is no bona fide benefit to the corporate client.
Others pointed out that a lack of proper targeting sometimes has a negative impact. "The key to effective law firm marketing is targeting. If I do not feel like it is meant for me or my needs, I'm not going to pay attention to it," said Jeffrey A. Feirick, general counsel for the Clemens Family Corporation, in Hatfield, Pa.
"We use a large Philadelphia law firm for some matters. I must have received three or four promotional mailings touting their involvement in a separation of church and state case. I am part of a relatively conservative organization that does not necessarily agree with the stance they took. We are a business client and do not want to see a firm we use touting issues that are contrary to ours. Instead of having a positive effect, it leaves us asking, 'Do we want to continue to use them?'"
A number of other GCs cited law firm involvement in community and pro bono efforts that were equally counterproductive. "You always like to see charitable and pro bono participation, but, to be honest, I feel like those are just efforts that we as clients are subsidizing," said Machlowitz. "For what we pay, they should be doing a whole lot more."
One vice president and general counsel at a financial institution based in Philadelphia said nothing law firms did from a marketing perspective played any role in doling out millions in annual legal spending.
"Most of us practiced enough that our own network will supply 95 percent or more of our outside counsel," he said. "You use people you know and people that they know. I'm not going to put the company or my job at risk by using people that had nice ads or invited me to a Webinar. Do you really think I got to where I am by not knowing where to go and what to spend?"
Important Marketing Tools or 'Colossal Waste'?
Many of the endeavors directed at GCs fall on deaf ears, or simply fail. The GCs interviewed had comments on the various marketing efforts of firms.
Publications
GCs read GC-targeted publications, not magazines targeted to lawyers in general. Machlowitz pointed out that publications such as The American Lawyer (an ALM publication) highlight profits-per-partner and other reminders of how much money outside counsel is earning.
Industry Associations.
"I had a situation that called for a particular representation need. I called the respective industry association in New York, who referred me to a law firm that was a member of the organization," said Feirick. Many GCs cited the value in being an active or involved member of an industry organization, rather than a peripheral sponsor or advertiser.
Newsletters
GCs expressed no consistent preference for the method of receiving newsletters or client alerts through e-mail or hardcopy. Some prefer the ability to take the hard copy home with them. Others mentioned the value in forwarding the electronic version to other interested parties in the company. Many GCs did note, however, that only the first newsletter or client alert in the door on a particular topic likely would get read, regardless of the form.
Being Best, Super, Top, Great, Influential, Powerful or under 40
Being a Super Lawyer (or related accolade) means little. Feirick noted he is unsure of the nomination process, and Machlowitz's thoughts echoed my own. These lists generally contain some good lawyers and some lawyers that are good at self-promotion.
Martindale-Hubbell listings
Rumors of the demise of the gold standard in law firm listings are somewhat exaggerated but only somewhat. GCs interviewed admitted that Martindale-Hubbell still has some relevancy. "If I'm looking for the largest law firm in Bozeman, Mont. to handle a matter, I might turn to Martindale," said Machlowitz. In addition, with constant name changes and mergers in major markets, many well-known law firms can get overlooked.
Online listings
Few GCs use Google to find lawyers. None use Findlaw. Yet many use Law.com (a Web site operated by ALM) as a resource. And while a law firm's Web site is a biographical resource, few GCs use other components of Web sites, no matter how dynamic. None of the GCs had the time or inclination to visit a blog. "You've got to be kidding," one GC said. "I'm busy."
Branding
Across the board, those GCs interviewed could not identify a single law firm "brand" that stood out in their minds.
Media/Public Relations
While being quoted in the media can be beneficial, most GCs say they feel the quotes generally lack insight and are more likely placements by the firm's PR agencies.
Annual Reports
"This is a colossal misjudgment," said Machlowitz. "I would tell these firms to scrap their reports and instead spend time reading ours, our competitors' and key business partners.'"
Client Surveys
In the interest of full disclosure, I conduct these for a number of well-known U.S. law firms. Overall, general counsel saw client surveys as a positive step for both the client and the law firm. The corporate client is able to give feedback off the clock or the time sheet. And for firms, client surveys can provide more quantifiable results - both tangible (potential new business) and intangible (invaluable face time with a client) - than most other marketing efforts.
Some GCs noted that if the relationship partner does not take the time to do the survey, then it's essentially a waste of time. All agreed that having nonlawyers conduct the survey — regardless of their backgrounds in the legal profession - is a failed route.
Law Firm Functions
"While some seminars provide excellent content, too many are there to sell, or are 'teasers' to get the meter running on a new matter," said Machlowitz. "Do not invite me to a cocktail party," he added. "I'm busy, and if I'm going to take the time for a drink and canapé, I would like to do it with my family."
In contrast, a properly run continuing legal education seminar is a win-win situation for all involved. Feirick pointed out that no-cost, on-point CLEs on issues of interest to his company have significant value, and many firms routinely invite in-house counsel - clients, firm alumni and prospects - to their in-firm CLEs in some of the fanciest meeting rooms you'll find in any business setting.
Advertising is an Important element of any Business
All the in-house counsel interviewed agreed the ability to advertise is still an important element of law firm business development, and should be properly tailored to be effective.
"I understand the challenges and needs for firms to find new clients. You need to be able to market your services," said Feirick, who cites Wolf Block Schorr & Solis-Cohen and Pepper Hamilton among the firms on his short list of about a dozen firms. The list includes a specialized boutique for environmental law, a more focused farming and agriculture law practice out of Lancaster, Pa., a sole practitioner for landlord/tenant issues and the expertise and depth of a larger law firm for corporate work.
"I think most marketing departments fail to recognize the sophistication of the audience," said a New York-based GC in the entertainment industry. "There is a disconnect. The people that need to sell me are the people that not only have JDs, but have personal practice experience."
Show You Can Provide Value — and Mind the Clock
One GC made her thoughts quite clear. "Be cost-effective. Be responsive. Don't bill me for a two-minute conversation. Know my business."
"We look for diversity," said Machlowitz. "Show me minority partners and women partners. I'm not interested in how many offices you have or that you are nationwide. That just means you likely have less quality control and more conflicts. A lot of that overhead is getting passed on to me. We hire individual lawyers, not law firms. We use about 30 firms annually. We use some small firms for local matters, but we use all types. It might be a solo or a partner at Sullivan & Cromwell.
"The key is to tailor marketing to my specific needs," he added. "We are a Fortune 50 company. It is amazing how often we've changed up firms and the firm losing business never asks why. Instead, focus on providing some relevant and substantive legal information, like a checklist for conducting an environmental audit - that would be valuable."
A tool like a checklist for particular practice areas and issues gives a firm the opportunity to hand a client something that has substantive value at no cost to the company. While it might eliminate some smaller opportunities for the firm to consult or offer billable advice to the client, when the checklist identifies potential problems, the firm may have the opportunity to handle those new matters for the client. Another win-win situation for the client and the firm.
MICAH BUCHDAHL a former in-house counsel, is president of HTMLawyers, Inc., a law marketing consulting company, based in Moorestown, N.J. Contact him at (856) 234-4334 or micah@htmlawyers.com
Posted by Micah at 12:25 PM
