I am seeing some law firms agree to “set fee” arrangements for legal services – due I believe in large part to 2009’s wild economic rollercoaster. A new law firm I know of – is positioning itself as a “business friendly firm” with set fee arrangements as its demonstration to its marketing or positioning statement. I think firms will continue to see RFPs(from individuals and companies) asking for set fee arrangements with the conundrum of: Do you “walk” on certain business which gives other firms slivers of business – which may segue into more business or do you agree to “set fees”?

As a recruiter, I work for firms & recruit attorneys – that add value. If an attorney/law firm demonstrates value, then I think that the billing discussion could be successfully steered in favor of the billable hour. Clients are most desireous of results. “Set fees” are less likely to be significant if you add value with results the client can see/evaluate.

However, there are 2 scenarios that may make sense per a “set fee” arrangement. The first is if you are trying to establish a relationship with a new prospect and you use a set fee as a way to separate yourself from other attorneys. (kind of a Unique Selling Proposition if you will). The second could be agreeing to a set fee for a transaction that has few “moving parts” and has limited complication in its execution.

No matter your business, be sure to remind the client of the great results along the way and re-iterate your success when the matter is concluded(before invoicing for your billable hours). Results rank at the top of what matter most to clients. ~ Joshua S. Hill

Joshua Hill’s Biography – As the Managing Partner of Pemberton Whiteman & Hill LLC, Joshua focuses on providing search and placement services on an open referral basis to firms & companies. Having been a direct hire consultant for an Inc. 500 recruiting firm, and having experience in reaching out to the business to business market – his interest in the professional services recruiting industry is long standing and his skills as a recruiter are diverse. His passion is in helping companies and firms – attract the best attorneys, investment & insurance professionals – by breaking thru the candidate’s inertia. He specializes in scouting out talent. Joshua was graduated from American University in Washington DC with a Bachelor of Arts & earned a Master of Arts from the University of Missouri – Kansas City.

This entry was posted on Sunday, May 23rd, 2010 at 8:34 am and is filed under Blog. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.