Page 57 - Professional Services Networks
P. 57
The Handbook: Law Firm Networks
Paid speakers are rare in networks because of the number of experts who have an interest in getting in front
of the network members. They may be management consultants, vendors, management from other networks,
etc. Some will cover their own costs; others expect reimbursement. It is important that any reimbursement be
specified in the engagement letter so there is no confusion.
Large networks can leverage the relationships their members may have in other networks. Meetings of
professional associations like the American Bar Association, AICPA, IFA, and many others occur
throughout the year. The networks can host events at these other meetings where network members will
already be in attendance.266 Large networks have members attending many other events throughout the year.
Many of those professionals do not know one another because they practice in the offices of different
members. A network can tie an event to the other meeting. In this way, professionals have the opportunity to
meet other professionals who are in the network.
Network meetings are financed in many different ways. Financing will depend on the type of meeting, the
type of network, and its membership. The three primary types of revenue are registration fees, member
sponsorship fees, and third-party sponsorship fees.
The network must decide the level of the event. There are networks that host strictly five-star events, which
are very costly. A registration fee will be quite high. In addition to the registration fee, the network will have
to take into consideration hotel, meals, and airfare.
The registration fee can be set to cover all costs. However, many networks rely on their members in the
location where the event will take place to sponsor the event. The rationale is that the sponsor will be able to
showcase its firm to hundreds of member professionals who will spend hundreds of thousands of dollars to
attend the meeting.
The third is outside vendors. The ability of the network to attract outside vendors is dependent on several
factors. The number of attendees is important, as is the demographic of the attendees, e.g., if they are
worldwide or from a concentrated practice area. In order to attract these vendors, the organization will have
to design a description of the cost and benefits of advertising.267
Director and executive committee meetings are different but related to both the annual and regional
meetings. Every organization will be unique. However, in the planning of the board and executive committee
meetings, it is important to factor in the other events. The presence of board and executive committee
members at regional or practice group meetings reinforces that everyone is a member of a network.
Referrals – How They Work and Do Not Work: Type 1, 2, 3, and 4
The referral concept is inherent in the DNA of the network. Unlike many other aspects of networks that are
related to the level of the network, referral possibilities are limited only by the imagination of the members
and staff. However, as Friedheim indicated in Exhibit 4268 found earlier in this chapter, referrals are a
function of the level of member activities. The value of a network rests primarily in the members’ hands
because they control the level of activity. There are four referral types ranging from contacting a member
firm for information to a full-scale joint venture.
266 See supra TERRALEX, note 240.
267 Sponsors, LEX MUNDI, www.lexmundi.com/lexmundi/sponsors.asp (last visited Feb. 4, 2016).
268 See supra Chapter 4, Organizing a Traditional Law Firm Network – Exhibit 4.
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Paid speakers are rare in networks because of the number of experts who have an interest in getting in front
of the network members. They may be management consultants, vendors, management from other networks,
etc. Some will cover their own costs; others expect reimbursement. It is important that any reimbursement be
specified in the engagement letter so there is no confusion.
Large networks can leverage the relationships their members may have in other networks. Meetings of
professional associations like the American Bar Association, AICPA, IFA, and many others occur
throughout the year. The networks can host events at these other meetings where network members will
already be in attendance.266 Large networks have members attending many other events throughout the year.
Many of those professionals do not know one another because they practice in the offices of different
members. A network can tie an event to the other meeting. In this way, professionals have the opportunity to
meet other professionals who are in the network.
Network meetings are financed in many different ways. Financing will depend on the type of meeting, the
type of network, and its membership. The three primary types of revenue are registration fees, member
sponsorship fees, and third-party sponsorship fees.
The network must decide the level of the event. There are networks that host strictly five-star events, which
are very costly. A registration fee will be quite high. In addition to the registration fee, the network will have
to take into consideration hotel, meals, and airfare.
The registration fee can be set to cover all costs. However, many networks rely on their members in the
location where the event will take place to sponsor the event. The rationale is that the sponsor will be able to
showcase its firm to hundreds of member professionals who will spend hundreds of thousands of dollars to
attend the meeting.
The third is outside vendors. The ability of the network to attract outside vendors is dependent on several
factors. The number of attendees is important, as is the demographic of the attendees, e.g., if they are
worldwide or from a concentrated practice area. In order to attract these vendors, the organization will have
to design a description of the cost and benefits of advertising.267
Director and executive committee meetings are different but related to both the annual and regional
meetings. Every organization will be unique. However, in the planning of the board and executive committee
meetings, it is important to factor in the other events. The presence of board and executive committee
members at regional or practice group meetings reinforces that everyone is a member of a network.
Referrals – How They Work and Do Not Work: Type 1, 2, 3, and 4
The referral concept is inherent in the DNA of the network. Unlike many other aspects of networks that are
related to the level of the network, referral possibilities are limited only by the imagination of the members
and staff. However, as Friedheim indicated in Exhibit 4268 found earlier in this chapter, referrals are a
function of the level of member activities. The value of a network rests primarily in the members’ hands
because they control the level of activity. There are four referral types ranging from contacting a member
firm for information to a full-scale joint venture.
266 See supra TERRALEX, note 240.
267 Sponsors, LEX MUNDI, www.lexmundi.com/lexmundi/sponsors.asp (last visited Feb. 4, 2016).
268 See supra Chapter 4, Organizing a Traditional Law Firm Network – Exhibit 4.
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