The legal landscape is changing, and the traditional law firm structure is no longer the only way to work. For many lawyers, the traditional way isn’t an ideal fit. Instead, they see platform law firms like Setfords as a more flexible and rewarding alternative.
We understand the desire for more autonomy in your career, and we believe that our model empowers lawyers to build a thriving caseload with the support of a pioneering firm. But, with this freedom also comes the responsibility of setting your own fees.
So, if you are a consultant lawyer or are considering becoming one, understanding your worth is crucial. It can help you set fair fees, attract your ideal clients, and achieve the fulfilling career you’re looking for. This article contains some helpful advice on how to determine and communicate your worth, to the benefit of your clients and your work.
Why Knowing Your Worth Matters
Understanding your worth as a consultant lawyer is vital for several reasons:
- Fee Setting, ensuring that you are being fairly compensated for your unique skills and experience.
- Client Attraction, helping you to attract the right kind of clients who value your expertise and the quality of your work.
- Professional Confidence, as knowing your value can boost your self-esteem when interacting and negotiating with clients and others.
- Work-Life Balance, enabling you to manage your workload and avoid burnout whilst maximising your earning potential.
Key factors to consider
As a consultant lawyer, your value proposition goes beyond just your legal expertise. Consultants are typically more cost-effective and flexible compared to working with traditional firms, which are factors that clients value highly.
Here are some key aspects that you can assess when thinking about your value and worth as a lawyer:
Expertise and practice area
You have unique knowledge and expertise in your area of law. And, as a consultant, you will already have significant past experience, which you can leverage with your clients to help them see the benefits of working with a consultant lawyer. Furthermore, if you have a particularly niche practice area (for example, here at Setfords we have experts in Cifas marker removal and stress at work, to name just a couple), you may be able to command higher fees due to the specialist knowledge that clients require from you.
Efficiency
Consultants are typically able to streamline processes and deliver tailored legal solutions without the ‘red tape’ that often exists in more traditional law firms. This can save clients time and money, whilst ensuring that you’re still charging your worth as a lawyer.
Flexibility
One of the core benefits of consultancy is flexibility, for both lawyers and clients. As a consultant, you can more easily adapt your services to meet your clients’ needs, giving them the legal advice they need at different stages of their journey.
Client Focus
Consultants usually have more time to spend on each client, as they’re not tied down by heavy billing targets. So, you can build strong, personal relationships to promote trust, something that is worth a lot in most clients’ eyes.
Market rates
Knowing your worth as a consultant is important, but it’s also vital to know about the state of the market and what clients are expecting to pay for legal services. This will help you to set fees that are competitive enough to attract the clients you want, yet still be profitable for you as a business owner.
Operational costs
As a consultant lawyer, you have far lower operational costs than you would if you ran your own firm. However, you should still bear some costs in mind. Costs to factor include the equipment you use, travel to clients, the fee split with the firm you work with, and office space (if you have it). It’s vital to factor these expenses into your fees to ensure that everything is covered and your business is sustainable in the long term.
Your and your clients’ location
Finally, fees can vary depending on location. For example, conveyancing fees tend to be higher in London than they would be in the North. Consider your location, as well as that of your ideal clients, when deciding on your fees.
How should consultant lawyers determine their fees?
As a consultant lawyer, charging fees that reflect the value you bring to clients is an important consideration if you want to grow your business. Here are some practical steps you can follow to assist in setting the right fees.
1. Benchmarking
You may want to start by comparing your fees with others who have a similar level of expertise in your area. This helps to ensure you’re charging a fee that reflects your value but is also acceptable to your ideal client. Talk to other consultants or use resources like the Law Society’s Financial Benchmarking Surveys.
2. Tiered Pricing
Few consultants charge a set price for all of the work they do. Instead, a tiered pricing system can offer clients more flexibility, catering to different budgets whilst also reflecting the value you bring and the varying complexity of each matter you’re dealing with.
3. Value-Based Pricing
Rather than charging by the hour, you may want to look into the concept of value-based pricing. This is becoming an increasingly popular fee option. It aligns your fees with the true value you’re bringing to your clients, which can result in a higher level of compensation, especially for work that has a bigger impact on your clients’ lives or businesses.
4. Transparent Communication
Transparency builds trust with your clients and helps them to see the value of your pricing. Consider providing detailed breakdowns and be clear about the benefits of working with you. Try to avoid extra or “hidden” fees where possible.
Overall, knowing your worth as a consultant lawyer is empowering, not to mention helpful when building your business. It enables you to set fees that are fair, competitive, and attract the kind of clients you really want to work with.
At Setfords, we provide our consultants with a whole host of support to help them achieve their goals. We’re here to help you leverage your unique skills and experience to build a rewarding career outside of the constraints of traditional law. For more information about how we can support you in your consultancy journey, please get in touch for a confidential conversation.