Find an alternative billing structure that works for your firm.

1. An Innovate Legal
Clio Virtual Meetup
Selecting the Best Billing
Arrangements for Your Firm

2. General Housekeeping

3. Agenda
● Meet our panel & icebreaker
● The Affordability of Legal Services
● Alternative fee arrangements
● Legal project management
● Q&A with Kim Bennett: How to grow your business
through unique fee structures
● Resources
● Audience Q&A

4. Panel
Nefra MacDonald
Affinity Partnerships
Manager, Clio
Mayur Gadhia
Founder of CloudAct
Kimberly Bennett
Founder of K Bennett Law LLC

5. Let’s Break the Ice!
★ Open the chat box on Zoom
★ Select “Panelists and
Attendees”
★ Type a short answer to the
questions to get to know our
panelists and each other!

6. The latent legal market

7. Affordability isn’t just about price
● Transparency
● Payment terms
● Fixed fees
● Clear scope
*Discounted services
aren’t a good
long-term solution!

8. The 2021 Opportunity
● Compassion for the change in our
economic reality
● Create client-centered pricing and
products that can help serve clients
● Consistently assert the value of your
services

9. Alternative Fee Arrangements

10. Alternative Fee Arrangements (AFAs) - Questions to
review in order to determine appropriate billing
structure.
● Does the client have a specific
deadline for the work?
● Does your client require cost certainty?
● Is there request for a service
guarantee?
● Will they require “unlimited” access to
firm’s lawyers and staff?
● Any special payment terms?
● How do you help achieve your clients
goals/objectives on the matter?
These questions will
give you a better
idea of the value
your client
attributes to each
of the benefits.
In addition, review
past history on
other files with
similar situation/s is
a good benchmark
as well.

11. Pricing Options - Some Common AFAs
Once you have a good idea of the value
you are providing to the client, you can start
considering pricing options. There is no end to
the variety of AFAs.
Commonly arrangements are as follows:
● Fixed Fee - One payment or Installments
● Contingency Fee - fee based on results (i.e.
20% of the recovery)
● Capped Fee - billable hours are capped
● Blended Rate - single blended rate for
each hour worked irrespective of the
timekeeper
Each client has
unique
strategic goals
and unique
situation.
There is no
one-size-fits
all AFA

12. Alternative Fee Arrangements (AFAs) - Documenting
the fee arrangement in the engagement letter
● Ensure AFA are clearly documented in
the engagement letter
● Prior to memorializing, discuss all
parameters with the clients to ensure
alignment between client and law
firms
● Three key elements of AFA in the
engagement letter:
○ Scope of Representation
○ Fees and Expenses
○ Retainers
AFAs are becoming
more prevalent as
these are
customized to fit
the goals and
needs of a client
and matter.
However, getting
the arrangement
documented is
critical prior to the
starting the work.

13. Alternative Fee Arrangements (AFAs) - Sample
language for two common AFA
● Fixed Fee
“We have agreed that we will perform
the work described above for a flat fee
of $XX. In the event, this matter
proceeds beyond scope described
above, we will reach out to discuss
and request approval prior to
performing incremental work.”
● Contingent Fee
“Lawyer will only be compensated for
legal services rendered if a recovery is
obtained for Client. If no recovery is
obtained, Client will be obligated to
pay only for costs and expenses, as
described in Paragraph XX.”
Alignment of client
needs to AFA
structure benefits
both the client and
law firm/lawyer.
Properly structured
and implemented
AFA can nurture a
partnership built on
the creation of
value.

14. Legal Project Management - critical for
success factor in AFAs
1) Scope out the project
2) Set out a project timeline
3) Determine client’s expectations
4) Price out the project
5) Execute the project
6) Evaluate the project
Regardless of
size, your firm still
consider these
steps for
successful AFA
arrangement
Simple, the client,
not the lawyer, is
the final judge of
value.

15. Poll - Would you like to learn more
about CloudAct?
(select all that apply)
a. Yes I would like to learn more about CloudAct
b. No I’m not interested
One person from this list will win a free consult!

16. Q&A with Kim Bennett
How to grow your business through
unique fee structures

17. Helpful Resources

18. CLE Eligible Webinar (Feb 9): Year-End Tax Planning for Law Firms:
How 2020 Impacts Your 2021 Tax Returns
CLE Eligible Webinar (March 9): Everything You Need to Know to
Build the Perfect Virtual Client
Innovate Legal Online February Meetups: Financial Health for Your
Firm
Blog Post: Your Guide to Law Firm Pricing
Guide: Alternative Billing Structure
Disrupt the Billable Hour Workshop: Use code CLIO50
Webinars, blogs, podcasts and more!

19. Clio’s offerings
Clio Manage
Legal practice management software
Our most popular product—the industry’s leading solution
to help manage clients, organize cases, and automate
tedious tasks and month-end billing.
Clio Grow
Client intake and legal CRM software
Standardize the client intake process with online intake
forms, email automation, and e-signatures to build strong
relationships, and get powerful data insights to grow your
firm.
The Clio Suite
Legal practice management, client intake and CRM
software. Get unmatched performance with Clio Suite, the
industry’s only end-to-end software solution for your firms.

21. Poll - Non Clio Customers Only
Would you like to learn more about Clio?
(select all that apply)
a. Yes I would like to learn more about Clio’s Suite
of products
b. No I’m not interested

22. Poll - Clio Customers Only
Would you like to learn more about:
(select all that apply)
a. Adding Clio payments
b. Adding Clio Grow (client intake)
c. No I’m not interested or I already use both

23. Audience Questions

24. Thank you!