Skip to main content

Posts

Showing posts with the label hourly rate billing

Client Choice: Flat Fee vs. Hourly Rates

There are many advantages and disadvantages to flat fee representation. The advantages include knowing the total cost in advance (which allows for better planning), understanding the full commitment at the beginning of the representation, and a resulting likely reduction in client stress. Because of these advantages many attorneys are pitching the fixed fee model as a revolution in client billing. The problem with this revolution, though, is that firms that are switching to fixed fee billing are making the same mistake that the traditional hourly billing model makes. These firms are assuming that they know what is best for their clients. I often tell my clients that they set the goals, and my job is to tell them whether I can meet those goals or not. If I think we can meet the goals, then my job is to use my knowledge of the court process and negotiation to try to reach those goals. In the same way that I do not believe that I can set a client's goals for them in a case, I...