Red Flags in Referral Partnerships, And How to Handle Them Professionally

In this episode, Delisi Friday discusses how small law firm attorneys can identify and address problems in referral relationships. She explains the key warning signs of a troubled referral partnership, how to set expectations upfront, and strategies to protect client trust and professional reputations.

What are some early warning signs that a referral relationship may not be working?

Delisi Friday highlights several red flags, including poor communication, one-sided referrals where only one attorney is sending cases, differences in case handling styles, and unethical practices. She emphasizes that attorneys should pay close attention to these signals early to avoid long-term problems.

Why is communication so important in referral partnerships?

According to Delisi Friday, communication sets the tone for the entire referral relationship. Without consistent updates, misunderstandings and frustrations can build, leading to distrust. Clear, proactive communication helps ensure both attorneys are aligned and that the client experience remains positive.

What is the risk of one-sided referrals in law firm partnerships?

One-sided referrals—where one attorney consistently sends cases but never receives any in return—can create imbalance and resentment. Delisi explains that while not every referral will be equal, long-term partnerships thrive when both sides provide value and feel invested in the relationship.

How can attorneys protect themselves from unethical behavior in referral relationships?

Delisi Friday advises attorneys to thoroughly vet referral partners before entering into an arrangement. Asking about their practice style, ethics, and communication habits can help attorneys avoid working with individuals who may mishandle cases or damage client trust.

What are the four key questions attorneys should ask before entering a referral partnership?

Delisi recommends attorneys clarify:

1. How does the partner communicate with clients?

2. What is their preferred style of case handling?

3. How quickly do they respond to clients and other attorneys?

4. What expectations do they have for the partnership?

Asking these upfront ensures alignment and minimizes risk.

How should attorneys handle a struggling referral relationship without harming the client?

Delisi emphasizes prioritizing the client above all else. If a referral relationship isn’t working, attorneys should have a professional, honest conversation with their partner. The goal should be to resolve issues respectfully while ensuring the client continues to receive high-quality legal representation.

Why is it okay if some referral partnerships don’t work out?

Not every referral relationship is the right fit. Delisi explains that differences in values, communication styles, or practice approaches may make certain partnerships unsustainable. Attorneys should not feel pressured to force relationships that don’t serve the client or the firm’s long-term growth.

What strategies can attorneys use to approach difficult conversations with referral partners?

Delisi suggests attorneys frame conversations around professionalism and client care. Rather than placing blame, they should focus on finding solutions or mutually agreeing to step back. This approach maintains reputations, preserves professional networks, and protects clients.

What is the overall takeaway from this episode?

The key message from Delisi Friday is that referral relationships are powerful growth tools for small law firms—but only when managed with trust, communication, and shared values. By spotting red flags early, asking the right questions, and handling tough conversations with professionalism, attorneys can build referral partnerships that benefit both their practice and their clients.