Acquisition Cost

I was talking to an attorney the other day. He does a really good job running his practice.

He was telling me about acquisition cost. It's kind of a self descriptive term. But I asked for clarification anyway.

Acquisition cost is what he he pays, on average, to purchase leads that end up as cases for his firm.

That was somewhat mind blowing. I guess we have some acquisition cost because we sponsor the walkathon at my son's school. But other than that, it's just about zero.

Why does this matter to clients? I think it matters or should matter because a firm with no acquisition cost is able to spend a lot more money on its staff than a firm that's buying leads.

Almost 100% of our cases come from referral. That frees up a lot more money for us to hire the best team possible and make sure that everyone on the team is happy with their comp. When you have a team like that, they spend their time doing A+ work on cases rather than looking for other employment.

And that makes makes a big difference in terms of both gross recovery and how much clients end up netting from their personal injury cases.