Engagement Party: Your Fee Agreement Is More than a Recitation of the Cost of Legal Services

Many attorneys will try to rush through the drafting and explanation of a fee agreement.  The job, as they see it, is to get the fee out there, and to define the scope of legal services, as quickly as possible – so that the client will sign off, and so that the lawyer can go back to what they really want to do, which is to practice substantive law. 

 

But, there’s so much more that you can do with your engagement agreements, to make them truly engaging (see what I did there), and to set the tone for a more useful attorney-client relationship. 



Here are three potential additions you could consider to your standard fee agreement, that will truly turn it into an engagement agreement: 

 

-Add a Technology Clause.  In part to better govern client communications (more on that in a second), you should relay to your clients the technology you use in the firm.  This will also allow you to get their sign-off on using that technology stack, and allow them the opportunity to object to what your propose.  In most cases, clients will just use the tech you want them to; and, in the end, you can even have them initial this section of the fee agreement to affirm their assent.  This also has the potential to make you look like a tech-forward law firm, focused on efficiency, which many clients will appreciate. 

 

-Add a Client Communications Clause.  Tired of getting texts from clients in the middle of the night?  (Don’t answer those – at least right away, by the way.)  Then, set expectations ahead of time.  You can use a technology clause to lay the groundwork for this, before talking to your clients about the technology tools you prefer they use to communicate with you.  You can also set times for when you will not be available, as well as creating an expectation for when a response will arrive, eg – in 24 to 48 hours, via email. 

 

-Add a Document Disposition Clause.  This is really helpful in terms of managing law firm logistics, because it’s a forcing function for generating a document management policy in a law firm, which would include a document destruction policy.  This also creates a future marketing opportunity, if you decide to provide your clients with a file when their case closes.  Perhaps you do that via an encrypted thumbdrive with your branding in place? 

 

. . . 

 
Want to tighten up your fee agreements?  We can help! 

Through a unique partnership between the Maine Board of Overseers of the Bar and Jared Correia’s Red Cave Law Firm Consulting, Maine attorneys have access to experienced law practice management consultants at a special discounted rate. 

To get started, visit Red Cave’s landing page for Maine attorneys, and start running your law practice like a business.

Comments

Post a Comment

Popular posts from this blog

Perfect Timing: New Calendaring Tools Make It Easy to Connect with Leads and Clients

Image
Lawyers tend to be inefficient, and have difficulty engaging both leads and clients.  These hurdles are apparent when it comes to the scheduling process.  Attorneys and staff onboard leads for meetings, and schedule appointments with existing clients, via strings of emails -- and, delayed response s only extend the conversation, and the time frame.  And, while this is detrimental for client s (who demand speed and convenience), it’s even worse for leads, who may never convert, if they’re not onboarded simply, and easily.   The good news is that modern technology tools allow for scheduling without the intervention of humans, including you and your staff.  That means that you can say goodbye to all those extra emails, and wasted time.  Programs like Calendly and Acuity allow clients to book appointments directly onto a law firm or lawyer’s calendar, and include buffers and controls, so users aren’t overwhelmed.  LawTap offers a similar tool focu...
Read more

Get That Bag: How to Build a Collection Process for Your Law Firm

Image
Law firm account s receivable can be gnarly, sometimes extending into the six figures .     Now, there are a couple of responses to that .  The preferred option is to eliminate accounts receivable altogether, which can be done using epayment options, and potentially evergreen retainers combined with stop work order s .   Of course, you may not ever get to 100% collection rates – that’s a tall order – and, you may have some accounts receivable to deal with already .  And so, you’ll need to establish a collection process – and, that should flow from your engagement agreement.     The components relating to money that you need in your engagement agreement, aside from your rate(s) and/or basis of your rates, would be: An escalating series of penalties for non-payment .  An arbitration clause, potentially including access to a state bar’s fee arbitration board .  That stop work order .  This will allow you to put pressure on non-pay...
Read more

Pay It Forward: How to Incentivize Attorneys and Staff Beyond Salary

Image
Many law firm owners are comfortable just paying out a salary .  And, that can work, for sure .  But, if you want to drive revenue within your law firm, it makes sense to look at bonusing attorneys and staff in ways that will incentivize your employees to generate or close more cases for the firm, which will lead to additional revenue. Obviously, this is a bit easier for attorney staff, since lawyers can share fees with each other, which makes it easier to create a direct incentive plan .  But, for staff , you can bonus them without sharing fees, including for converting clients from leads, for example, by doing things like offering a $50 bonus for each lead closed, potentially in a certain time frame .   This is the same method that lead generation services use to get paid by law firms, without sharing fees.     But, the place that law firm owners can really make money here is by using origination fees to bonus their attorney staff .  Law firms ...
Read more