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This is part one of four of "How to Move a Law Firm from Hourly to Fixed Fee."

Way back in  2016 we white-knuckled our way through a significant business model transition.  Today,  our fixed fee practice has grown into a major success.  We are a 100% fixed fee firm with 26 family law attorneys spread out over two states and serving almost 3,000 clients a year. 

In this first episode, I explore how and why we made the move to Fixed Fee.

It starts with understanding the arguments for Hourly Billing:
1. Lawyer Preference: hourly has the support from law firm partners who prefer the traditional billing method.
2. Massive Inertia for Hourly: The deep-rooted prevalence of hourly billing in the legal industry.
3. Predictability for Forecasting: Hourly billing provides a more predictable revenue stream from a business perspective.
4. Protection Against Time-Draining Clients: Lawyers can safeguard themselves from clients who demand constant attention and communication.
5. Unpredictable Nature of Cases: Hourly billing accounts for the uncertainty that comes with dealing with various elements in legal cases.

Arguments for Fixed Fee Billing:
1. Client Preference: The vast majority of clients prefer the transparency and certainty of fixed fee billing.
2. Aligned Incentives: Both lawyers and clients have aligned interests, fostering a more productive and fruitful relationship.
3. Enhanced Communication: Fixed fee billing encourages open and effective communication between lawyers and clients.
4. Efficiency Incentive: Lawyers are rewarded for efficiency and results rather than just billing hours.
5. Value-Centric Approach: Fixed fee billing emphasizes delivering tangible results, not just counting billable hours.
6. Division of Labor Opportunities: Lawyers can optimize their teams and resources to deliver higher value services.
7. Ease of Tracking and Collections: Fixed fee billing simplifies time tracking and makes collections smoother.
8. Opportunity to Create More Value: Fixed fee opens the door for lawyers to make more by rewarding them for creating more value for the client.  

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Go to: www.JSterlingHughes.com for tons of Family Law Practice resources.

My purpose is to Empower Family Law Attorneys so they can build a beautiful family law practice and have the practice of their dreams.

I share my family law firm’s secrets, tactics, and strategies of how we have grown from 0 to 25 attorneys and over $15m in revenue in our first ten years.

When I am not podcasting, I am the CEO and Co-Founder of SterlingLawyers.com.

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