Value Billing and Random Acts of Humanity

Many attorneys talk about a changing system of remuneration.  Value billing describes a specific concept which varies from the traditional hourly rate/billable hour model.  Going from billable hours to value billing requires the attorney to understand that changing times call for changing methods of billing.  In order to be responsive to our clients, whom without we do not exist as practicing lawyers, we have to understand the value they place on the resolution of their problem, the money they are willing to spend and give to another to assist with the resolution of that problem.  Therein lies the essence of value billing.

However, I would like to create a second definition of value billing, one where we as lawyers show our clients we value them, and in turn they don't mind us billing for our time..... 

This all struck me as I listened to one of my clients updating me on their progress.  They are in their second year and doing beautifully, beautifully defined not just as gross sales above and beyond what they expected, but enjoying their practice, the clients and the adventure of building their practice.

What struck me was how they talked about their clients.  Because they are in their home town, their practice is evolving into a more generalized law firm.  And they are doing a lot of work with older clientele, ones who remember the days of the generalist, whether law or medicine.  Their clients truly love them, too.  One of their clients loves Diet Peach Snapple and whenever he comes to the office they present him with his favorite drink.  $1.49 and he never questions their hourly rate because he feels a special connection. 

Another elderly client was brought to Circuit City by one of the lawyers, who spent a half hour explaining and picking out the technology for Sirius Radio so the client would be able to listen to the only station that plays his favorite music from the 40's. 

One client could not thank them enough for spending 15 minutes on the telephone with a major utility company working out a budget plan for her electric bill.  Were these the expected duties of an attorney. Could the attorneys bill for the time they spent. No, they were acts of kindness provided from one human being to another.  And in valuing the clients as human beings first, their fees remained unquestioned and fully paid.  These are now lifetime clients and referrers of new clients because these attorneys valued their clients above all.

Comments

[Chuck Newton]

I understand the fear of the bill among consumers that might not exist with representing the richer corporations. But, the problem is at least two-fold with value billing. Flat billing and certain types of unit billing results in the client not respecting your time. The theory goes that if they have to pay for your time they will use it more judiciously (pun intended). Also, or related, this type of billing results in you, as the attorney, taking most of the risks. This type of billing almost never results in a windfall for the attorney, but it can more often lead to a loss of uncompensated time for the attorney. This risk leads to you building a volume practice. The volume practice leads to many other unpleasant things, especially among attorneys who what or desire to offer a personal type of client care and attention. As for my practice area, I really do not have a choice. The law does not allow me to get paid unless my client prevails. And, the law also requires me to bill on an hourly basis.