Since launching my new Flat Fee Lawyer concept, I have been inundated with questions. Lawyers want to know how I make money and warn me that I need to be clear with clients about what is and is not included. Potential clients wonder if the quality of work delivered will be as good as it would be if I charged an hourly rate and whetherthe price is fair. Current clients say Thank you and continue to give me business on a regular basis.
Today, and over the next few weeks, I am going to address the questions some of you have and I invite you to join the conversation through Tweets, email, Facebook and Linked In.
Why It Works For My Clients
I spent most of my career as a lawyer, but also a client. I purchased outside legal services and hired in house lawyers. At times, I worked with young law firm lawyers who did not understand the transaction, and as the client, I had to train them and pay them to learn on my time and nickel. At other times I had the privilege of working with lawyers charging $1,200 per hour and I marveled at how quickly they came to a brillant legal and strategic solution....true elegance. The bottom line is, that like all products and services, when purchasing legal services you should get what you pay for and very often you do.
The problem is in the incentives offered by many firms. At most firms, the more hours a lawyer bills, the better. If a young lawyer is being trained, a mentor and the young lawyer may bill time into the file. For young associates, training is imperative and I willingly train young lawyers and interns. I just do not think my clients should pay my hourly rate plus the associate's hourly rate for training. Even when I need to learn new areas which expand my practice, my client should not pay for my time learning, if there are other lawyers who can perform appropriately and are already trained.
Similarly, in order to pay an associate or partner more money, since there really are a limited number of biilable hours in a year (you can laugh now), the hourly rate is increased. This of course makes sense in that the more experienced the lawyer, the greater the skill, the greater the value delivered. But this is where the model breaks down. If the rate goes up and the team of lawyers in the meeting or working on the project expands, I question whether the client receives additional value.
Flat Fee Billings Are Client Centric Instead of Law Firm Centric
When I set a fee, I do not look at the amount of time it takes to do the work, nor the person or team performing the services (I work with independent contractors rather than employees), but rather the value of the work delivered to the client. I always set a fee that the client can budget, without surprises, and I target a fee consistent with the project. It is not hard to set a fee because I know the type of work I handle and I know both what it takes to do the work right, and what it is worth to the client to have the right work delivered. I also pride myself on setting a time for completion of the work and delivering on time every time.
When a new client contacts me, I am very clear about the type of work I do. For instance, I was asked to write an appeal last week. I am not a litigator and I would not take the project. The client was dissappointed, but after 25 years with a preeminent (AV) rating from Martindale-Hubbell, I am not about to venture into unchartered territory. I gladly referred her to another attorney.
To conclude this section, my clients are happy because they do not wonder what the ultimate fee will be and they are confident that this AV lawyer is committed to delivering the highest quality work.
More to come on the questions lawyers ask..... How do I make money.
No comments:
Post a Comment