Legal Marketing
Firm Leverages Billable Hour Animosity to Lure Clients
Posted Dec 18, 2008 11:00 AM CST
By Rachel M. Zahorsky
Screen shot of Valorem site.
Question: How Many Lawyers Does it Take to Screw a Client?
Answer: With billable hours, only one.
The Q&A above is just one of the many punches that self-proclaimed BigLaw refugees at Valorem Law Group, a Chicago business litigation boutique, are throwing against the billing practices of their former firms. Go to the law group’s website and visitors are greeted by a prominent white headline that reads, "the billable hour is dead." Photos of gravestones, and images of attorneys tossing clocks in the garbage and smashing them with sledgehammers drive the point home.
There is no doubt that the billable hour is a constant source of aggravation for many lawyers. It doesn’t seem to foster happy attorney-client relationships, either. And Valorem is taking full advantage, leveraging dissatisfaction with the billable hour as part of an aggressive marketing strategy.
When designing the firm’s website, partner Patrick Lamb says the group wanted to “create a look consistent of who we are: highly skilled, accomplished big-firm lawyers who are extremely irreverent and unhappy with all the things that go along with the billable hour.”
Lamb says Valorem looked to law firm Bartlit, Beck, Herman, Palenchar & Scott in abandoning the billable hour in favor of alternative fee arrangements. It should be noted that Barlit Beck’s non-hourly fee arrangement is listed at the bottom of a secondary Web page detailing information about the firm’s litigation practice—a far cry from the bold anti-dollar-times-hour stance on Valorem’s homepage.
“There are those who are appalled by what we do,” Lamb says. But, “none of the four founding partners here are shrinking violets. Anybody that knows me also knows that I’m pretty out there from a marketing standpoint.”
The hard-line strategy seems to be working. Lamb says the law group has had a profitable year, expanding to seven attorneys since its formation in January.
Previous coverage:
ABA Journal (August 2007): "The Billable Hour Must Die"
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Comments
pb
Dec 18, 2008 11:28 AM CST
None.
A computer can do the crappy work and bill the client as well.
A computer can also have a free power tool accessory for free down time as some %+ of costs.
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B. McLeod
Dec 18, 2008 11:35 AM CST
But, a computer can’t be licensed, and, somebody would have to program it and feed it data.
So, I think the correct answer (with or without “billable hours”) is “only one.”
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JP
Dec 19, 2008 5:29 AM CST
Only one; but the others standing in line behind him/her with sweaty palms holding signs that say “Standing In Line is Dead. We are in an Alternative Queuing Arrangement” may disagree.
That little green muppet was right: clouds the mind, the dark side does.
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Stone
Dec 19, 2008 9:23 AM CST
The billable hour is largely dead. The dying has just begun. Those that adapt and act fast on the front end of this massive industry transition will prosper while others fail.
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Joseph Mansour, CFE, CPA, CEO, CFO
Dec 19, 2008 10:07 AM CST
Mr. Lamb, as a Forensic CPA, Certified fraud examiner, (CFE) and consutants to businesses having examined detailed billing records of disatisfied clients for several attorneys in the Queen CIty of Cincinnati, Ohio, I applaud your actions in shooting the bad guy, the billable hours.
In reviewing client’s complaints it seems the biggest problem is the constant review of the client files between court filings and a second review by the supervisor of that attorney. These reviewes are billed to the client, when in fact they should be given as a no charge. It is not the fault of the client as a great deal of time elapses between Court filings. I call this part a product cost of doing business. The attorneys who listened to me and started showing these cost as ” PRO BONO SERVICE” received a great deal of appreciation from the clients. I discovered this in my practice and adhere to it. My client satisfaction is high and I receive constant referrals. The attorneys who utilized this approach also received good client satisfaction. I also use as you do a flat rate fee for most of my services but I do track my time so I can report back to my clients how much money they saved.THis is important to the client, so I show them their savings.
I wrote a brief blog when Mr. Donald Trump filed a law suit against his attorneys for the very same issue. I am happy to see you as major partner in a law practice is taking the bleeding out of the time billing to satisfy your clients. I hope other law firms take your approach and kill the billable hours in favor of effeciency.
In my practice I offer a service to those attorneys who can charge a flat fee by preparing for them a cost accounting method that fits their firm based on the service rendered. I find most attorneys who continue the billiable hourly practice are so busy they do not take time to evaluate their own firm. This is where I come to the table as this is one of my expertise and can help in making the legal profession a better place for everyone. Let us face it, legal issues will always be a part of our life but we can take the pain out of our client’s life, solve their problem and obtain their referral for a better practice. I can be reached at 513-779-4200 or you can visit my web site at: www.mansourcpa.com. Thank You for your actions.
Yours Truly
Joseph B Mansour, CFE, CPA, CEO, CFO
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Iolanthe
Dec 19, 2008 10:34 AM CST
Good luck to Valorem, they’re fighting the good fight, and I hope they win.
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B. McLeod
Dec 19, 2008 11:53 AM CST
CFE, CPA, CEO, CFO, M.O.U.S.E.
Thanks for the commercial. However, Big Law does not have any replacement for the “billable hour” that will fit their model. Hence, it is certain that consultants who review bills (for those clients who can’t figure out how themselves) will continue to make a good living for years to come.
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