Alternative FeesPricing for a Win-Win Relationship

Presented by O A Conversation with Hank Turner

of the

Kinds of Fee Structures Used at Valorem Law Group

Custom fee structures combining:

O Value-Based PricingO Fixed fee for phases

O Goal-oriented bonusesO Holdbacks

Benefits to Client

O Client knows costs of legal matterO Focus on providing value

O Understanding of client’s businessO Focus on efficient solutions

Benefits to Associate

O Greater incentive to be trained more quickly

O No pressure to bill hoursO Ability to focus on skill-buildingO Increased client contactO Learn how to deal with client’s

problems more quicklyO Learn need to act efficiently and map

out a matter’s process

Pricing Process

O Up-front and in-depth client consultation

O Internal analysis of past experiencesO Internal profitability analysis

O Fee proposal to clientO Further discussion about client goals

O Fee Agreement executed

Facts Considered in Pricing Process

O JurisdictionO Size of matterO Client’s goals

O Projected length of caseO Reputation of opposing counsel

O Likelihood of settlement

Benefits of Segmenting Legal Matter

O Pre-plan and streamline tasks and strategy

O More frequent case evaluationO Take note of changed circumstances

O Refining goals intermittently

Benefits to Attorney/Client Relationship

O More client interactionO Client involvement in strategic

thinkingO Increased feeling of partnershipO Greater trust

Fixed Fees for Litigation

O Refined scope of workO Lean project management

O Using change ordersO Comfort with risk

Two Kinds of Law Firm Fees

O Time-Based Pricing

Price of legal services depends

on time spent doing the work

O Solution-based pricing

Price is based on the value of the solution to the

clientvia Jay Shepherd, The Client Revolution