Clients love flat fees; lawyers worry about them. Driven by client demand, hourly billing is on its last legs and flat fees are fast becoming the norm in legal billing. It's becoming crucial that firms acquaint themselves with the practical and ethical issues that are associated with flat fee billing.
Join Lee Rosen (lawyer, blogger, and expert on the modern practice) of Divorce Discourse and Clio's own Joshua Lenon in this live webinar as they discuss how forward-thinking lawyers are utilizing flat fees in their firms' billing structure.
In this free Clio Webinar, we'll cover:
- What is a flat-fee pricing model? Can your firm profit?
- What ethical issues are involved in charging clients a flat fee?
- How do you calculate a fair flat fee?
Wurz Financial - Wealth Counsel to Law Firm Owners Services Guide.pdf
Flat Fees for Fun and Profit with Lee Rosen
1. Flat Fees for Fun and Profit
Lee Rosen – Divorce Discourse
Joshua Lenon – Clio
Text
2. Agenda
• Flat Fees with Lee Rosen (40 minutes)
– Covering the rules, ethics, and customer
perception behind flat fees
• Riverview Law Case Study (10 minutes)
– How one firm has excelled with flat fees
• Questions (10 minutes)
3. Instructors
Joshua Lenon
• Lawyer, admitted in
New York
• Lawyer-in-Residence
for Clio
Lee Rosen
• Founder of Rosen Law
Firm
• Triathlete
• Blogger at Divorce
Discourse
4. Flat fees
f o r f u n a n d p r o f i t
Lee rosen
presents:
13. u p s i d e f o r l a w y e r s
• LAWYERS CAN FOCUS ON PREMIUM WORK
• DRIVES AWAY UNPROFITABLE BUSINESS
• CLIENTS FULLY INFORM LAWYERS WHEN NOT WORRIED ABOUT
BILLING
• ELIMINATES COLLECTIONS
• ELIMINATES RECEIVABLES
15. u p s i d e f o r C l i e n t s
• REDUCED ANXIETY
• ABILITY TO MAKE INFORMED COST/BENEFIT DECISIONS
• BETTER REPRESENTATION WHEN THEY TRUST THEIR
LAWYER
19. D o w n s i d e s
• FIRMS TAKE ON MORE RISK
• UPFRONT COSTS CAN DETER SOME CLIENTS
• REQUIRES REVIEW AND TWEAKING TO GET PRICE RIGHT
• MAY IMPACT AVAILABLE LINES OF CREDIT
• REFUNDS REQUIRE SETTING ASIDE FUNDS IN ADVANCE
20.
21. u p s i d e s
• YOU GET PAID
• ONLY WORKING WHEN YOU GET PAID
• YOU AVOID LENDING YOUR TIME AND HOPING ITS REPAID IN
FEES
23. S t a t e b a r s
• KNOW THE RULES FOR FLAT FEES AND REFUNDS
• RESEARCH ETHICS OPINIONS
• CONSULT ETHICS HOTLINES
• BE BOLD WITHIN THAT INFORMATION
24.
25. S e t t i n g y o u r f l a t f e e s
• START FROM HISTORIC DATA
• COMPARE APPLES TO APPLES
• FIND MINIMUM AND AVERAGE COSTS PER TYPES OF MATTERS
• ADD A PREMIUM TO THOSE AVERAGE COSTS
28. E x p l a i n i n g f l a t f e e s
• TAKES SALESMANSHIP
• EXPLAIN HOW IT WORKS
• EXPLAIN HOW IT REDUCES UNCERTAINTY
• EXPLAIN WHY YOU DO IT
• PUT IT IN WRITING
30. E x p l a i n i n g f l a t f e e s
• SET FEES AFTER CONSULT, ACCOUNTING FOR VARIABLES
• STAGE THE FEES – BEGINNING, MIDDLE, END
• KEEP RECORDING TIME
• ACCEPT THAT SOME REFUNDS WILL HAPPEN
• KEEP RECALCULATING FLAT FEES AS YOU GET MORE DATA
37. Success
• 20-30% Cheaper than Traditional Law Firms
• Unbundled Services with Fixed Costs
• Frequent Reporting
• Only 45% of Staff are Lawyers
• Doubling of Employees since 2012