Rather than basing fees on the number of hours worked,
examples of alternative fee arrangements include fixed fees, negotiated fees for a group of assignments, or success - based fees.
Not exact matches
In Argo's case, I address the slippage in AUM in the past couple
of years by: i) haircutting my valuation
of the asset management business to 3.75 %
of AUM (if AUM were increasing steadily & incentive
fees being earned, a valuation
of 7.5 % or even 10 %
of AUM wdn't be unreasonable, considering Argo's
fee structure, and ii) calling for more resources to be devoted to fund - raising, and other
alternative revenue /
fee sources (for
example, like white - label & sub-advisory contracts) to be explored — see here: https://wexboy.wordpress.com/2012/11/16/argo-escape-from-an-evil-state/
Arnott et al seek to create
alternative indices that as efficient «as the usual capitalization - weighted market indexes, while retaining the many benefits
of capitalization - weighting for the passive investor,» which include, for
example, lower trading costs and
fees than active management.
On the customer front, two
examples: Half
of The American Lawyer's 20 A-List firms are on record this year as starting
alternative fee arrangements with important clients such as Pfizer and Citibank.
We are always willing to consider
alternative methods
of charging, for
example capped
fees for distinct parcels
of work.
Alternative fee arrangements are an
example of a KAP gap in the legal market.
For
example, Member States take varied positions on the availability
of third party litigation funding and
alternative fee arrangements (such as contingency
fees); and some have opt - in systems, opt - out regimes, or both.
As a one
example, we have begun a kind
of massive download
of PACER information and there are insights in PACER that will allow law firms to do all kinds
of stuff, from pricing
fee agreements, and
alternative legal
fee arrangements, to predicting when their clients are going to have problems before they do, to treat things as a matter
of kind
of risk mitigation instead
of litigation after the fact.
You may, for
example, be among a new wave
of pricing specialists who have joined law firms to help steer them through the challenges
of shifting from the billable hour to
alternative fee structures.
For
example, in 2014, 45 %
of CounselLink customers were billed under an
alternative fee arrangement for Corporate, General, Tax matters compared to 39 % in 2013.
Crane discussed a number
of alternative fee arrangements including discounted and volume discounts (e.g. 15 per cent on the standard hourly rate, for
example, when
fees billed exceed $ 100,000 a year), and blended hourly rates (such as $ 400 / hr blended rate for all lawyers on a file or $ 300 / hr for associates and $ 500 / hr for partners), as well as fixed and capped
fees.
McCarthy Tetrault's use
of law firm analytics to re-engineer and improve M&A due diligence procedures, for
example, «has allowed us to reduce costs to our clients up to 75 per cent, while charging them using predictable
alternative fee arrangements such as fixed - rate billing,» said Peters.
For
example, I have seen this accomplished with the help
of the LexisNexis Juris billing, accounting and financial management software which enabled the firm to produce timely and informative reports based on clients» billing and collection performance, and then using those metrics to determine where the firm can offer more competitive
alternative fee, or non-hourly, arrangements.