---
title: "Ditching Hourly: Alternative Fee Arrangements for the Legal Industry"
description: Digby R. Leigh rejoins Jonathan Stark, Founder of Ditching Hourly, to talk about alternative fee arrangements making inroads in the legal industry.
image: https://www.altfeeco.com/hubfs/DitchingHourlyxAltFee.png
---

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The Pricing Playbook for Modern Law Firms

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# Ditching Hourly: Alternative Fee Arrangements for the Legal Industry

Digby R. Leigh rejoins Jonathan Stark, Founder of Ditching Hourly, to talk about alternative fee arrangements making inroads in the legal industry.

- By AltFee
- February 22, 2022

- [Resources](https://www.altfeeco.com/resources)
- Ditching Hourly: Alternative Fee Arrangements for the Legal Industry

![DitchingHourlyxAltFee](https://www.altfeeco.com/hs-fs/hubfs/DitchingHourlyxAltFee.png?width=787&name=DitchingHourlyxAltFee.png)

Long-time lawyer, second-time guest, and first-time SaaS co-founder Digby R. Leigh joins Jonathan Stark on his podcast [Ditching Hourly](http://podcast.ditchinghourly.com) to talk about alternative fee arrangements making inroads in the legal industry.

**Talking Points**

- Pricing trends in the legal industry
- The three most common non-hourly pricing models for law firms
- The benefits of "agreed upon" up-front fixed fee pricing
- What types of engagements aren't a good fit for fixed fee pricing
- What to expect when clients know they can talk to you for free instead of “on the clock”
- The internal attitude you need to beat back when you first ditch hourly billing
- The importance of being helpful
- The indignity of having to justify how you spend your time
- The magic of The Why Conversation
- The benefits of offering pricing options

 

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#### Pricing a Single Matter

Select a typical matter: Company Incorporation Will Shareholders Agreement Trademark Registration M&A Share Sale Employment Agreement Review Contested Divorce Civil Litigation Commercial Property Sale

##### Without AltFee (Hourly)

Number of hours to complete matter

Average blended hourly rate

$

Average revenue collected

75% is industry average (taking into consideration both billing realization rate & collection rate)

%

##### With AltFee

Expected revenue increase using AltFee

%

Expected collection rate using AltFee

Percentage of your billed fees which are actually collected

%

##### Totals

Amount recorded for the matter

= total number of hours to complete matter x average blended hourly rate

#### $ 1750

Net amount earned by law firm

= amount recorded for the matter x average revenue collected

#### $ 1313

##### AltFee Impacted Totals

Amount billed to client

#### $ 2100(+ $345)

Net amount earned by law firm

#### $ 2058 (+ $745)

#### AltFee Annual Impact

##### Firm-Wide AltFee Impact

Number of billing individuals in firm

Estimated number of AltFee priced matters  
(per individual, annually)

##### Annual revenue increase to firm

#### + $186,375

Note: This calculator is for illustrative purposes only

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