Valorem Results Fee Explanation
- 1. Valorem’s Road To Your Success How our “results fee” works for our clients. www.valoremlaw.com
- 2. A note about hourly rates Hourly Rate: a number that is just part of an equation. It does not provide you the ultimate total that you will have to pay. It avoids upfront sticker shock, but only delays it until the end. By doing so, it prevents you from making informed business decisions based on the cost of obtaining your result.
- 3. Budgets do not solve the problem created by hourly rates Budget: the fee quoted to get the case in the door
- 4. Budgets are good but certainty is better Hourly rates provide no information about total cost. Budgets are not certain. Fixed fees provided certainty. Knowledge of cost trumps the unknown. Certainty trumps uncertainty. Ask your CFO.
- 5. How do you obtain certainty? Fixed Fee: the precise amount you will pay Budget Uncertainty But won’t you put lower priced, inexperienced lawyers on this Hourly matter? Rate Or stop working when you get Model reach the maximum fee? Hourly Rate Fixed Fee
- 6. Excellent points. Legitimate concerns. How can you be sure you get experienced lawyers who are motivated to get the result you want, no matter what?
- 7. Certainty is good, but certainty and control is better Certainty is great. But unless you like paying the same for a bad result as you do for a good result, you need to be able to exercise control over the fee after you know the result.
- 8. When you have control over the total fee paid based on the result and your satisfaction, you will have experienced lawyers working hard to get you great results!
- 9. So how do we structure a fee that gives me control based on the result achieved, a result that I define?
- 10. Simple. Valorem’s results-based fixed fee lets you decide how much you will pay. After you know the result.
- 11. Here’s how it works We quote you a fixed fee.
- 12. We divide that fee into Added to a piece that is paid to “holdback us and a piece that is bucket” held back and put into a special bucket. We call this latter piece the “holdback Paid to bucket.” Valorem
- 13. The holdback bucket grows over time. **** Month 1 Month 5
- 14. The total amount in the holdback bucket grows every month and really adds up! Each month there is a higher aggregate amount in the bucket Month 1 2 3 4 5 6 …. and so on
- 15. Over the life of a case, that’s a lot of money. What happens to all that money? You decide what happens to it. After you know the result, you decide whether to pay us nothing from the bucket, or some, all or a multiple of the bucket.
- 16. So here’s what it means for you. Valorem’s base fee is less that you would expect to pay under an hourly rate fee. If you do not receive the result you want, Budget your total payment will be less than you Uncertainty would pay under the hourly model. We put our “skin in the game” so that our economic interest is the same as yours. Total fees paid Total base fee under hourly paid to Valorem rate model Hourly Rate Valorem Results Fee
- 17. And you make the decision of how much of the holdback bucket to pay only after you know the result! Budget Uncertainty If Valorem succeeds in achieving a result you deem favorable, you Total fees in the holdback bucket decide how much of the holdback bucket to pay to Valorem. Total fees paid under hourly rate model Valorem’s base fee Hourly Rate Valorem Results Fee
- 18. Can you summarize what this means for me? Sure. It means: 1. You will know precisely what you will be paying. 2. You get successful, experienced lawyers handling your matter, because that’s what it takes to get results. 3. You will know the results before you decide to pay the holdback bucket. 4. You have certainty and control.
- 19. What does this mean for you? It means three things. 1. No law firm has a greater incentive to make sure their client is as pleased as possible with the result obtained or how we got there. 2. We can’t afford to waste time and effort on activity that does not directly help us get the result you want. 3. Our team has to be extraordinarily savvy, experienced, and talented.
- 20. Does this approach interest you? Would it be a good thing to have cost certainty and control, to know your result before you decide how much to pay? If so, let’s talk about it. www.valoremlaw.com
- 21. One last thought … When your lawyer bills you by the hour, the hourly rate includes your lawyer’s profit margin. Even if you get a discount, studies show lawyers just bill more hours so that their revenue (what you pay) is the same. The hourly rate model guarantees the lawyer’s profit regardless of outcome. With our “results fee,” we profit only if you get the result you want. Which approach is going to produce the best result?
- 22. This sounds really interesting. How do I determine how the “results fee” helps my company? Give us a call. We’ll be happy to talk with you about our “results fee.” No charge, of course! Patrick Lamb 312.676.5462 patrick.lamb@valoremlaw.com www.valoremlaw.com
- 23. Thanks for letting us use your time to explain our “results based” fee. Valorem Law Group Results, not hours. www.valoremlaw.com