#9 - How to Move a Law Firm from Hourly to Fixed Fee, the Pros and Cons (Part 1 of 4)

Send us Fan MailThis is part one of four of "How to Move a Law Firm from Hourly to Fixed Fee."Way back in  2016 we white-knuckled our way through a significant business model transition.  Today,  our fixed fee practice has grown into a major success.  We are a 100% fixed fee firm with 26 family law attorneys spread out over two states and serving almost 3,000 clients a year. In this first episode, I explore how and why we made the move to Fixed Fee.It starts with understanding the arguments for Hourly Billing:1. Lawyer Preference: hourly has the support from law firm partners who prefer the traditional billing method.2. Massive Inertia for Hourly: The deep-rooted prevalence of hourly billing in the legal industry.3. Predictability for Forecasting: Hourly billing provides a more predictable revenue stream from a business perspective.4. Protection Against Time-Draining Clients: Lawyers can safeguard themselves from clients who demand constant attention and communication.5. Unpredictable Nature of Cases: Hourly billing accounts for the uncertainty that comes with dealing with various elements in legal cases.Arguments for Fixed Fee Billing:1. Client Preference: The vast majority of clients prefer the transparency and certainty of fixed fee billing.2. Aligned Incentives: Both lawyers and clients have aligned interests, fostering a more productive and fruitful relationship.3. Enhanced Communication: Fixed fee billing encourages open and effective communication between lawyers and clients.4. Efficiency Incentive: Lawyers are rewarded for efficiency and results rather than just billing hours.5. Value-Centric Approach: Fixed fee billing emphasizes delivering tangible results, not just counting billable hours.6. Division of Labor Opportunities: Lawyers can optimize their teams and resources to deliver higher value services.7. Ease of Tracking and Collections: Fixed fee billing simplifies time tracking and makes collections smoother.8. Opportunity to Create More Value: Fixed fee opens the door for lawyers to make more by rewarding them for creating more value for the client.  ----------------------Ready to find the accountability partner you need to build your dream family law firm the same way we grew Sterling Lawyers? Follow these steps:  1. SUBSCRIBE TO JEFF'S NEWSLETTER: https://jsterlinghughes.com/  2. BOOK A FREE 30-MINUTE AUDIT WITH US: https://rocketclicks.com/schedule-a-family-law-quick-audit/  3. CONNECT WITH US: LinkedIn: Jeff Hughes, Tyler Dolph, & Anthony Karls, Facebook: Jeff Hughes, Tyler Dolph, & Anthony Karls, Instagram: Jeff Hughes, Tyler Dolph, & Anthony Karls4. TELL US WHAT YOU WANT:  Tell us in the comments if you liked this episode and what other kinds of episodes you would like to see.