Reading:
6 Common Alternative Fee Arrangement Types

6 Common Alternative Fee Arrangement Types

17th July 2021

CREATED BY ALTFEE

Learn more about what is an alternative fee arrangement and the different types (pricing models) available for law firms to implement.

AltFee’s Alternative Fee Arrangement (AFA) Definition:

Any type of fee arrangement between a law firm and client other than the hourly pricing of legal services, with a common characteristic of providing the client with price certainty upfront.

There are seemingly endless varieties of AFAs, only limited by your imagination. With that said, below is a list of some of the more commonly used AFA types.

Fixed Fee (a.k.a. Flat Fee)

A fixed amount for a particular project.

Portfolio Fixed Fee

A fee for a number of projects, all grouped together under one fixed fee amount.

Success Fee

An amount paid to the law firm upon receiving a particular result, where the method to calculate the amount is predetermined.

Periodic Fee

A fee for services based on a particular period of time, such as monthly, quarterly or annually.

Phased Fee (a.k.a. Staged Fee)

A fee which is based upon completing different phases or stages of a project, where each phase or stage has a predetermined amount associated with it.

Contingency Fee

A percentage fee paid to the law firm upon a successful result of the project.

Related Stories

24th March 2021

Automatización en el desarrollo de negocios: ¿está preparada tu firma?

Los abogados necesitan actualizar sus métodos de desarrollo de negocio y aprovechar las nuevas tecnologías para establecer relaciones exitosas en un mundo post-Covid.

19th March 2021

Automation In Business Development: Is Your Law Firm Ready?

Lawyers need to update their business development routines and leverage new technologies to succeed at relationship-building in a post-Covid world.

14th April 2021

Remaining in Touch: CRM Tips For Law Firms

Philipp Thurner spoke with BD Roundtable about the importance of keeping in touch with your prospects and clients.

Arrow-up

Do you need a hand in the right direction?

You are in the right place.

Be one of the first to get a copy of the 2021 Global Legal Business Development Report

Get your hands on this exclusive intel, benchmark your efforts against the industry and pick up a few ideas and strategies from the experts. 

small_c_popup 1

Let's have a chat

See how you can increase Cross-selling and Client retention at your firm