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.

Success Fee

An amount paid to the law firm upon receiving a particular result, where the method to calculate the amount is predetermined.

Periodic Fee

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.

Contingency Fee

A percentage fee paid to the law firm upon a successful result of the project.