Despite much ballyhoo and countless articles about them, alternative fee arrangements, or AFAs, have yet to gain widespread traction and the billable hour still reigns supreme for legal billing.
Enter the Leigh brothers, Scott and Digby, and their new legal tech startup, AltFee. The company’s stated goal is encouraging legal professionals to break free of hourly pricing and move to AFAs by using the app to help scope and price legal projects.
The brothers point out that the traditional billable hour pricing model doesn't provide certainty for clients and that AFAs will become more important with increasing use of AI which will likely reduce billable hours. They explain how Altfee offers a solution by providing a foundation for law firms to operate on an alternative fee model. The app helps users scope, price and audit their fees.
Scott and Digby also delve into the concept of 'value billing', explaining that it involves charging fees based on the value of the service provided to the client, rather than strictly on the time spent. They underline the importance of taking both task-based considerations and value-based considerations into account while pricing.
Subscribe to our newsletter to receive the latest news.
Legal Industry Pricing Trends Report 2023
Surveying legal professionals across the world, the report showcases how AFAs are contributing to increased profits for firms, better use of technology, and better work-life balance and working conditions for legal professionals.
