If you’re billing by the hour and have never considered offering your clients alternative fee agreements (AFAs), here’s some research that might get you thinking.
A recent study by Altman Weil found that: “Firms that are proactive in their pursuit of non-hourly business were more than twice as likely to report higher profitability on non-hourly projects compared to firms that are reactive.” Moreover, 95% of the law firms surveyed use AFAs and “75% of respondents believe there will be more non-hourly billing in the future.”
– From 2011 Law Firms in Transition. Download the full survey here.
Check out these books on AFAs and value pricing:
Winning Alternatives to the Billable Hour: Strategies That Work
Implementing Value Pricing: A Radical Business Model for Professional Firms