Not all clients are created equal—and some quietly drain your firm’s time, energy, and profits. In episode 593 of the Lawyerist Podcast, Stephanie Everett talks with Affinity Consulting’s Jeff Krause about the hidden cost of bad clients and how law firms can use data to make better decisions about who they serve.
Jeff breaks down his Moneyball-inspired profit formula to show how client quality impacts leads, conversion rates, revenue, and margins. They explore why discount-seeking clients create compounding damage, how setting clearer expectations can improve client behavior, and when it makes sense to let certain clients walk away. A closer look at the tension between profitability and access to justice, and how intentional business models can support both.
Listen to our previous episodes about Client Experience & Law Firm Profitability:
Episode #384 – Delivering Bad News to Clients, with Marjorie Aaron — Apple | Spotify | LTN
Episode #462: Designing an Empathetic Client Experience, with Kirk Simoneau — Apple | Spotify | LTN
Episode #474: Moneyball for Lawyers, with Jeff Krause — Apple | Spotify | LTN
Episode #560 – Stop Doing Everything Yourself! Unlock Your Law Firm’s True Potential, with Leticia DeSuze — Apple | Spotify | LTN
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Chapters / Timestamps:
00:00 – Introduction
05:12 – Meet Jeff Krause
06:51 – What “Moneyball for Lawyers” Really Means
09:08 – The Profit Formula That Drives Firm Growth
12:46 – How Bad Clients Damage the Numbers
15:30 – The Compounding Cost of Discounts
18:21 – Raising Rates vs. Chasing More Clients
19:45 – Can You Improve Mid-Tier Clients?
21:58 – Profitability vs. Access to Justice
24:19 – Building Intentional Service Models
26:48 – Trusting Your Data—and Your Gut
27:43 – One Step Firms Should Take Right Now
28:23 – Closing Thoughts
