The fixed fee (a.k.a. flat fee) billing structure is one that most lawyers find appealing, but are easily able to dismiss because they think it would be too challenging to implement, or wouldn’t work well for their practice area. In this Masterclass, Lee discusses the ins and outs of fixed fees-from how to set them, to structuring associate compensation, to revising accounting procedures.
Sample Client Agreements
For an abbreviated version of our story read How One Firm Switched To Fixed Fees.
IT’S ALL IN THE DETAILS
What about the out of control client? Hourly billing can be used to reel them in. Do you lose all of your leverage when you switch to fixed fees? Read Avoid This Fixed Fee Trap for some suggestions on keeping the client on an even keel.
What about refunds? Are You Alienating Your Clients By Making Them Feel Trapped? advocates for making it easy for clients to switch firms even when they’ve already paid a fixed fee in full.
ONE LAWYER STOOD UP TO THE STATE BAR
In the Rudisill case the lawyer was paid $25,000 in a family law matter. The case settled two days later and the client demanded a refund. The lawyer said the case settled quickly due to his reputation. The State Bar came calling and he defended the matter. He won. Read the pleadings for more.
Rudisill Case Downloads
- Motion For Summary Judgment
- Memorandum Support Summary Judgment
- Summary Judgment
- Plaintiff Appellate Brief
- Defendant Appellate Brief
FIXED FEES CHANGE THE NATURE OF THE WORK
Hourly Billing Kills Your Art explains the freedom you gain, as the attorney, to unleash your creative side when you’re charging a fixed fee. You’re no longer constrained by client judgments based on the cost/benefit analysis. With a flat fee you can do what’s right without regard to typical client-imposed constraints.
More articles on flat and fixed attorney fees are coming up soon. Be sure to subscribe so you’ll get them straight to your inbox. Use your preferred email address.
IT’S NOT ALL SUNSHINE AND RAINBOWS
Flat fees are not, however, without their downside (is anything?). With careful planning you can minimize the risks and increase the rewards.
Fixed Fees And A Long Cold Winter details the need for a different kind of law firm budgeting with a flat fee system. The ups and downs are accentuated, but often predictable.
Changing the pricing model will change the culture of the law firm. That’s one of the things many of us fail to consider when we start toying with how we charge for services. Here’s some of the fallout to anticipate if you decide to make the switch.
Regardless of your approach to billing you’ll sometimes hear prospective clients say “I Can’t Afford You”. That’s the beginning, not the end, of the discussion. That prospective client may well end up working with you and paying your bill in full.
ADVICE IF YOU’RE STICKING WITH HOURLY BILLING
Receivables are the bane of the existence of many lawyers. Here 11 Steps To Stop Losing Sleep Over Receivables. They work and you’ll get right back to sleep.
Do the airlines annoy you with their never ending “extra” charges? Sometimes we do the same things to our clients. Read How A Lawyer Is Like An Airline to avoid that. Don’t Nickel And Dime Your Clients and you’ll have even happier clients.
Some software stands the test of time and stays on the top of the recommended applications list. The Best Time And Billing System details one such product.
Are Your Receivables Out Of Control? No billing system works if you haphazardly extend credit to clients. You should leave the lending to bankers. Read You’re Not A Banker: Don’t Extend Credit. If you do extend credit you’re probably screwed. What should you do? Read Making Clients Pay Their Bills.
SOMETIMES THE PROBLEM IS US, NOT THE BILLING SYSTEM
The answer is often found within us. It’s usually less about the system and more about our beliefs. Have You Lost Your Nerve?