Profits emerge from the murky waters of alternative fees. To the surprise of many, but not all, 31% of law firm leadership partners report making more money when using AFAs. Fully half of these are from AmLaw 100 firms. These larger firms are changing the value equation to their benefit while making more money.
Naturally, these partners are AFA evangelists. Each discusses AFAs with virtually all of their major clients and prospects. And, they understand the benefits gained from the AFA discussion – even if the client opts to stick with an hourly rate.
Corporate counsel manage 20% of their outside counsel spending through AFAs; the same amount as the prior 2 years. 80% of corporate counsel are now using alternative fee arrangements and 56% of corporate counsel plan to use more alternative fee arrangements moving forward.
Corporate counsel perceive AFAs as innovative, forward-thinking and creative. More good news for the 31% of partners reporting higher AFA profits. Even better considering Innovation just joined “Superior Value” and “Skill in Anticipating Client Needs” as one of the fastest avenues to open doors with new clients.
You can get all the details in the just-released report: BTI’s Facts About Alternative Fees by clicking here.