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The only thing worse than having no clients? Having the wrong ones.
Every attorney wants a thriving practice, but taking on bad clients can lead to stress, unpaid bills, and professional headaches. Managing client relationships effectively—from intake to final billing—requires strategy, boundaries, and clear communication.
A well-run practice isn’t just about legal expertise. It’s about selecting the right clients, setting clear expectations, maintaining strong communication, and ensuring you get paid for your work. When done right, you avoid many of the pitfalls that make practicing law unnecessarily frustrating.
Here are six strategies for managing clients successfully—from the first consultation to staying on their radar long after the case is closed.
Decide when to say no
Early in your career, it’s tempting to take any client who walks through the door. But not every potential client is a good fit. In fact, some will make your life miserable. Bad clients don’t just take up your time—they dispute bills, refuse to listen, and can damage your reputation.
So how do you spot a bad client? There are warning signs you should never ignore. If a potential client says any of the following, proceed with caution:
• “I fired my last two lawyers.” This usually means they’re difficult, unrealistic, or both.
• “You’re more expensive than everyone else I talked to.” If they don’t see the value in your services, they’ll argue over every invoice.
• “Do you really need a retainer? I’m good for it.” If they resist paying upfront, chances are they’ll resist paying later.
• “I can pay you as soon as I start my new job.” A client who doesn’t have the money now isn’t suddenly going to have it later.
• “My friend is a lawyer, and he says my case is a slam-dunk.” They’re going to second-guess your judgment and push unrealistic expectations.
Set boundaries
Think like a landlord. Set boundaries early: Successful landlords don’t rent out apartments without a lease, a security deposit, and clear expectations. Your legal practice should be no different.
• Use engagement letters. Treat them like a lease. Define the relationship and set expectations.
• Get a retainer. Think of it as a security deposit to ensure payment.
• Keep your clients informed. Regular communication prevents problems before they arise.
A strong engagement letter protects both you and the client. It should include the identity of the client (is it the company, or an individual?); the scope of work and what is not included; fee structure and payment terms; expense policies; retainer amount and renewal policies; litigation hold and document retention policies; and personal guaranty (if applicable).
One of the most common mistakes attorneys make is assuming a handshake agreement is enough. It’s not. Make sure your client signs the engagement letter before you begin work.
Manage expectations
Think like a client. Clients hire you because they need help—but that doesn’t mean they understand the legal process. In fact, most don’t. Their biggest concerns are speed and cost, not the intricacies of the law.
Clients often want their case to be fast, cheap, and good, but that’s not possible. You must manage expectations from day one.
Fast and cheap? It won’t be good. Fast and good? It won’t be cheap. Good and cheap? It won’t be fast.
To clients, speed often matters more than victory. Many clients aren’t looking for a dramatic courtroom victory. They just want the problem to go away. If you understand this, you can serve them better and avoid unnecessary conflict.
Get paid
Every lawyer has a story about a client who refused to pay. The best way to avoid this is to set clear expectations and stick to a consistent billing process. To get paid on time:
• Send bills early and often. Clients prioritize paying those who bill them consistently.
• Make it easy to pay. Accept credit cards, online payments, or automatic billing.
• Follow up immediately on late payments. The longer you wait, the harder it is to collect.
If a client doesn’t pay, instead of demanding payment aggressively, start with a simple email: “Bob, my bookkeeper tells me your bill is about a week past due. Is everything okay?”
Know when to exit
Sometimes, the best decision is to walk away. If a client’s invoice is 60 days past due, chances are they’ll never catch up.
If they’re trying to get free work and keep dodging payments, they may never intend to pay. If the relationship has soured, become disrespectful, or unreasonably demanding, it’s time to move on.
You can withdraw ethically:
• Follow professional conduct rules. In Indiana litigation, you must give 10 days’ written notice before moving for leave to withdraw. Check your local rules for potential additional requirements.
• Inform the client clearly. Outline the status of their case and potential consequences of withdrawal
• Prepare to transfer the file. You can’t hold a file hostage for unpaid fees.
Stay on clients’ radar
Happy clients are your best referral source. But if you don’t stay in touch, they’ll forget you. Stay connected with simple touches throughout the year. Send birthday and holiday messages — a simple email or card keeps relationships warm. Engage on LinkedIn and social media.
Congratulating clients on promotions or milestones helps maintain connections. Calendar in quarterly check-ins. A short “Hope all is well” email keeps you on their radar. Past clients can become future clients—or refer you to someone who needs legal help.•
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Tony Paganelli is the managing attorney at Paganelli Law Group.
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