6 Common Alternative Fee Arrangement Types

6 Common Alternative Fee Arrangement Types

17th July 2021


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

19th August 2021

Welcome to 21st Century Legal Pricing [NEXL Weekly Digest]

Dive into the latest developments in legal pricing and the effectiveness of alternative fee arrangements (AFAs).

bridge the education gap
27th January 2021



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.