Referrals aren’t favors. They aren’t throwaway leads. They’re legal transactions with real consequences – financial, ethical, and reputational.
But most law firms still treat them like, “Hey, I know a guy.” They pass them off casually, forget to track them, and then act surprised when something goes sideways.
If you’re doing that, you’re not “old school.” You’re just vulnerable.
Here’s what to do – and what not to do – if you actually want to build a referral system that pays, protects, and works long-term.
DO:
Put every referral in writing.
Doesn’t matter if it’s your best friend from law school or someone you’ve sent 100 cases to – every referral agreement must be documented, signed, and disclosed. If the client doesn’t know who’s getting what, or if your bar audit comes up empty, you’re on the hook.
Give the client a proper handoff.
This isn’t a warm body drop. You tell them what’s happening, why you’re referring, and who they’re going to. You make the intro. You get it in writing. You explain the split. You show your work.
Track the case. Like it’s yours.
Because guess what? If your name is still attached, your malpractice might be too. If your referral partner blows a statute and you never followed up, you’re not just out of the fee – you’re in the complaint.
Build systems.
Referrals are a business function, not a side note. You need SOPs, internal checklists, follow-up reminders, and assigned responsibilities. If you don’t have a system, you’re just hoping someone flings a bag of money back through your window.
DON’T:
Don’t do handshake deals. Ever.
Nothing will tank a friendship or business relationship faster than a fee dispute on a case you both “thought” you had an understanding on. If it’s not signed, it doesn’t exist.
Don’t assume the other firm is doing their job.
Most referral breakdowns happen because someone assumed something. “I assumed they’d contact the client.” “I assumed they’d update me.” “I assumed they knew the deadline.”
No. You assume nothing. You confirm everything.
Don’t delegate referrals blindly.
Your paralegal isn’t your referral coordinator unless they’ve been trained to handle disclosure, documentation, partner vetting, and follow-ups. This isn’t email triage. It’s money and malpractice risk.
Don’t treat referrals like offloading garbage.
If your system for non-practice-area leads is “just send them somewhere,” you’re not building revenue – you’re creating liability. If you wouldn’t handle your own client that way, don’t handle a referral that way.
Referrals can be mailbox money – but only if you treat them like the legal transactions they are.
You wouldn’t file a case without documentation, deadlines, and oversight.
Treat it like anything else that puts your money and license on the line – seriously, intentionally, and with a little goddamn structure.