CREATED BY ALTFEE
Learn more about what is an alternative fee arrangement and the different types (pricing models) available for law firms to implement.
AltFee’s Alternative Fee Arrangement (AFA) Definition:
Any type of fee arrangement between a law firm and client other than the hourly pricing of legal services, with a common characteristic of providing the client with price certainty upfront.
There are seemingly endless varieties of AFAs, only limited by your imagination. With that said, below is a list of some of the more commonly used AFA types.
Fixed Fee (a.k.a. Flat Fee)
A fixed amount for a particular project.
Portfolio Fixed Fee
A fee for a number of projects, all grouped together under one fixed fee amount.
An amount paid to the law firm upon receiving a particular result, where the method to calculate the amount is predetermined.
A fee for services based on a particular period of time, such as monthly, quarterly or annually.
Phased Fee (a.k.a. Staged Fee)
A fee which is based upon completing different phases or stages of a project, where each phase or stage has a predetermined amount associated with it.
A percentage fee paid to the law firm upon a successful result of the project.