A Few Not So-Obvious Benefits of Alternative Fee Arrangements (AFAs)

A Few Not So-Obvious Benefits of Alternative Fee Arrangements (AFAs)

10th August 2021


Find out more about the hidden benefits of utilising alternative fee arrangements (AFAs) in your law firm.

Improved Collections

By having the law firm and client agree to a fee in advance of starting a project, not only is the law firm decreasing the likelihood of fee reductions at the end of the projects, but they are also increasing their likelihood of collecting that agreed upon fee amount. Further, they are also significantly reducing the amount of accounts receivable related administrative work required.

Noteworthy stat: 88% of the hours worked are collected, or in other words – 12% of the time working directly on client’s projects are never collected (according to Clio Trends Report – trends/2020-report/read-online/)

Reduce Burnout

Through the use of AFAs, reduce the number of difficult and stressful cost conversations with clients after a project is completed; and move away from the grinder mentality instilled in the industry, where you have to be present and spend long hours working in order to be considered successful.

Increase Accessibility

Accessibility to legal services is a significant issue in the industry, and one factor around people’s reluctance to seek legal assistance is the uncertainty around cost – this factor can be solved with the use of AFAs.

Noteworthy stat: A 2017/2018 study shows that approximately 77% of people facing legal problems in the United States do not turn to an authority or third party to help them resolve the problem, and that percentage is 83% in Canada (source: iles/documents/WJP_Access- Justice_February_2018_LowResolution.pdf)

Related Stories

30th June 2022

Avvoka: 5 Growing Trends for 2022

Review some of the trends and developments that are already disrupting the legal sector and Avvoka's expectations for 2022.

15th July 2021

How Innovative Is Your Law Firm?

This week, we are exploring the exciting topic of Legal Innovation and featuring Nita Sanger, CEO of Idea Innovate Consulting.​

4th September 2022

CryptoCurrency: The New Legal Tender for Law Firms?

We hear a lot about CryptoCurrency. Some of us have even bought it. But, how does it fit into the legal industry?


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.