Once your estate planning clients sign the documents, do you ever see them again? If not, you’re missing a valuable business opportunity. Many estate planners have started using client maintenance plans or free service packages to continue their relationship with clients and generate income.
Client Maintenance Plans: Guaranteed Income (and Guaranteed Responsibilities)
Essentially, maintenance plan proponents say they are paid-for peace of mind for clients. They often include
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asset tracking,
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members-only events and resources,
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free title transfers,
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a free annual review, and
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a set price for estate administration.
For example, trust clients who sign up for the plan after initial funding is completed can rest easy knowing your office will periodically review their assets and update their values.
The biggest pro of a maintenance plan program is that you’re guaranteeing a stream of income from participants. However, keep ethics in mind. “[S]ince a CMP is for future services and assures future availability, the fee deposit should be characterized as nonrefundable as long as your state’s ethics rules permit,” says Robert C. Anderson, CELA, CAP (“Client Maintenance Programs: How They Work and Why You Need One,” NAELA News February/March 2013). He cautions lawyers to “consult with your state bar’s ethics hotline [and] disclose your [plan program] to your malpractice carrier to obtain its blessing.”
The flip side of maintenance plans, of course, is that you need to still earn that income by delivering value to your clients. If your clients feel like they are not getting what they paid for, you may risk your good reputation. Without the proper systems in place to truly serve plan clients, you could actually lose more business than you get.
Free Service Plans: Less Commitment (but Less Guaranteed Income)
For those of you who worry about the demands and potential pitfalls of a maintenance plan, consider a free service package. A free service package guarantees you’ll stay in touch with clients, and, more importantly, you’ll avoid losing their business if they sour on the annual maintenance plan fee. Philip J. Kavesh uses a free service package to keep tabs on clientsthat includes
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free phone calls,
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free periodic notices and seminars as laws and estate planning technology change,
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a free newsletter, and
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(most importantly) a free client “checkup” meeting every three years.
Clients pay for any additional work needed after the free checkup meeting. Kavesh likens the free service package approach to a patient’s getting a health checkup and then paying for follow-up work. His approach has resulted in happy clients—and more revenue to the tune of $1 million every year. “[E]ven though fewer clients may engage you to do periodic work than may have entered a Client Maintenance Plan, your total revenue will be higher—and you and your staff will do a lot less work (because you’re meeting with and servicing clients only once in three years, not every year)!”
More Client Contact = More Business
Ultimately, it all comes down to communication. The more client touchpoints you have, the more business you’ll generate—regardless of whether you do it using a client maintenance plan or a free service package. The more you stay on your clients’ radar, the more likely they’ll be to call you the next time they could use your services.