The infographic below is from Lexis Nexis and is based on a survey of Lawyerist Insider subscribers this past July. The gist: for the majority of solo and small firms, past-due accounts are a big problem that few seem able to solve. But the most interesting part is almost certainly this:
An analysis of the survey data found a correlation between law firms that discount and an increased number of past due client accounts.
If that’s true, it supports something I have long believed about offering discounts: don’t. My theory is that clients who ask for a discount have a tendency to devalue your services. If I am right, it seems reasonable to expect those clients to place a lower importance on paying you when the bill comes due.
Check out the infographic, though. The whole thing is worth a look/read: