Follow Us

Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Law Firm Management

Marketing's Role in the Legal Industry's Pricing Revolution

It's hard to imagine a more perfect opportunity for legal marketing professionals to earn a seat at the leadership table than the pricing revolution happening today in our industry.

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

It’s hard to imagine a more perfect opportunity for legal marketing professionals to earn a seat at the leadership table than the pricing revolution happening today in our industry. No longer a necessity of the latest recessionary period, alternative fee arrangements, or AFAs, are becoming increasingly more routine for businesses seeking to better manage their outside legal spend. The most progressive firms are developing sophisticated tools to help price AFAs, investing in legal project management training for lawyers, and analyzing the profitability of matters managed outside of the traditional billable hour.

While most firms take a collaborative approach in their strategic AFA development process by including members of finance, accounting, IT, and practice and office leadership, let us not forget that price is one of the “four P’s of marketing.”

As law firms large and small develop AFA strategies, implement and measure results, it’s imperative that the marketing department be an integral part of the process at all stages of the cycle. Done right, AFAs can be both highly profitable as well as a powerful competitive differentiator to the legal buyer. Below are a few areas where marketing can add significant value in the AFA process.

Educating Lawyers on AFA Structures, Terms and Formulas

Despite the fact that AFAs are expected to comprise 13.4% of all fees billed in 2012, according to a Citi Private Bank managing partner survey, many lawyers are still standing at the starting line when it comes to understanding these new pricing structures. Much of this confusion is due to the seemingly endless number of ways certain types of work can be managed, and how the shifting of risk can create value in the eyes of clients.

Marketing can alleviate this paralysis by helping define and aggregate details on common types of AFAs, and sharing this information at the outset of preparing a tailored fee agreement. These kinds of details might include:

This premium content is locked for Marketing the Law Firm subscribers only

Continue reading by getting
started with a subscription.

ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN LAW FIRM MARKETING AND BUSINESS DEVELOPMENT.
  • Stay current on the latest information, and trends
  • Includes practical must-have information on marketing strategies, implementing AI, business development, and more
  • Tap into expert guidance from top law firm marketers and experts

SUBSCRIBE NOW

Subscribe Now For Unlimited Access

Read These Next

  • How AI Has Affected PR

    By Vivian Hood, Jaffe

    When we consider how the use of AI affects legal PR and communications, we have to look at it as an industrywide global phenomenon. A recent online conference provided an overview of the latest AI trends in public relations, and specifically, the impact of AI on communications. Here are some of the key points and takeaways from several of the speakers, who provided current best practices, tips, concerns and case studies.

    Read More ›

  • Strategic Planning for 2024: New Considerations for Legal Industry Leaders

    By Yuliya LaRoe

    The business landscape over the last few years has been changing at an ever-increasing speed, and 2024 promises to be no different. To effectively navigate the challenges and opportunities that present themselves, leaders need to adopt a fresh approach to strategic planning.

    Read More ›

  • Workplace Experience and Preparing for the Future of Work

    By Anthony Davies

    As the world ushers in a new era post-pandemic of hybrid operations, it’s really no surprise that workplace experience is a top, strategic lever law firm leaders are driving in conjunction with re-envisioning the space their professionals are occupying.

    Read More ›

  • Are Your Business Development Resolutions Already Falling Flat? Re-Engage by Prioritizing Your Internal Network

    By Shannon Duffy Lombardo

    As we mark the close of the first full month of 2024 and you sheepishly think back to those idle business development resolutions, I challenge you to look back at your goals and identify tactics in utilizing your internal firm network and resources to propel your business development priorities forward.

    Read More ›