Legal Talk Network - Law News and Legal Topics Rethinking Legal Fees for a Modern, Value-Based Practice
May 9, 2025
Scott Leigh, co-founder and CEO of AltFee, discusses the evolution of legal billing practices. He explores the shift from traditional hourly rates to flat and alternative fees, emphasizing transparency and client engagement. The conversation highlights how technology is revolutionizing fee structures, making them more efficient and profitable. Leigh also shares insights on the growing importance of understanding client needs and adapting to modern pricing models in a competitive legal landscape.
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AI Challenges Hourly Billing Model
- AI-driven efficiencies reduce billable hours for many legal tasks, challenging the hourly billing model.
- Firms must realign pricing with value rather than time spent to stay competitive and profitable.
Alt-Fee Roots in COVID Response
- Alt-Fee's origin stems from a firm's manual transition away from hourly billing during early COVID.
- The pandemic accelerated technology adoption, inspiring Alt-Fee's automated alternative fee pricing platform.
Alternative Fees Enhance Cost Certainty
- Define alternative fees as any pricing outside the traditional hourly model that gives clients cost certainty.
- Use flat fees, stage-based pricing, subscriptions, or value-based pricing to better meet client needs and firm goals.