Marketing
The Billable Hour Isn’t Going Anywhere. Why Doesn’t Your Website Talk About It?
Plenty of law firm websites talk about “delivering value.” A plain-English fee explanation attracts good clients and weeds out bad fits.
John Reed
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A mechanic pops the hood, takes a look, and says he’ll figure out the price once he’s in there. Maybe he’s honest. Maybe he’s the best in town. The website moved you to contact him, but it didn’t say a word about his rates. Do you sign the blank estimate and hand him the keys?
Plenty of law firm websites talk about “delivering value.” They describe the practice, the team, and a “client-centered approach,” but say nothing about what it actually costs to work with the firm or how the meter runs.
It’s not that they’re necessarily hiding anything, but by not explaining how hourly billing – or any other pricing model – works, they’re missing a marketing opportunity.
The Billable Hour Is Staying Put
Hourly billing keeps outlasting its obituaries. Professional business platform 8am recently released data covering more than 60,000 firms, mostly in the U.S., showing that 48% of small and midsize firms bill entirely by the hour, while only 10% use flat fees exclusively. The other 42% mix both.
Despite calls in the 2010s for the death of the billable hour, alternative fee arrangements (AFAs) didn’t catch fire as expected. The clamor for AFAs was loudest in business and corporate circles, yet 8am found that flat fees made up 10% of business and corporate invoices and nearly 7% of civil litigation invoices. The data comes from 8am’s own users, mostly smaller firms, and it tracks flat fees rather than every kind of AFA, but the direction is hard to miss.
If your firm bills by the hour like most of your competitors, the open question is why you aren’t using your billing structure as a business development tool on your website.
Mentioning It Isn’t Explaining It
Unless your goals are purely altruistic, your firm is justifiably profit-driven. Your attorneys invested a lot in their law degrees, put in the time to develop practice skills, and took the risk to launch a firm and keep the doors open. You deserve to get paid.
But your next best client deserves to know what they’ll pay you and how. Phrases like “flexible fee arrangements,” “competitive billing,” and “contact us to discuss your matter” are hollow come-ons. Language like that is fluff, not an explanation.
One study of U.S. estate planning firms shows how common the dodge is: 63% held pricing until after a consultation, and 457 firms advertised “transparent” or flat-fee pricing without publishing a single price. That’s consumer work, far from your clients’ world. Business clients have their own version of the problem. In-house lawyers told Gartner that matters sent to outside counsel land within the planned budget only one-fifth of the time.
Prospects notice the silence. Even if you’re not hiding anything, a firm that won’t say how it bills makes a client wonder why.
Try it yourself. Open five firm sites in your market or practice area and look for any description of how they bill. Then ask whether a stranger could tell what it would cost to hire them.
The Excuses Are Thin
In my experience, few firms define up front how time is billed, in what increments, what a typical matter might run, how budgets get set, or what contingencies will cause the numbers to change. The reasons?
- “Every matter is different.”
- “We’d rather talk first.”
- “We don’t know what we don’t know before we get into the file.”
- “Talking price at the outset invites negotiation.”
- “Our current clients might think they’re not getting a good deal.”
Each point probably justifies its own blog post. For now, I’ll just say that none of these are barriers to being transparent with prospective clients; your transparency may give you an edge over the rival firm down the street that chooses to be opaque and cagey. Ranges, budgets, and a promise to call before the number moves (more on those below) answer most of these objections.
And any firm that plays the risk-to-current-clients card should know that explaining how you bill doesn’t mean publishing what each client pays. If you bill similar work differently, that will come out eventually anyway. Better to bring your models in line now than get outed and lose business later.
The Engagement Letter Is Too Late
The ethics rules give the habit cover. Under ABA Model Rule 1.5(b), a lawyer must communicate the basis or rate of the fee, preferably in writing, before or within a reasonable time after the representation begins. State versions vary. Plenty of firms read “within a reasonable time after” as permission to hold the details for the engagement letter.
By then, the prospect has decided whether they’ll be your next best client or someone else’s. If they chose you, they did it without knowing how you charge. If they didn’t, maybe the other firm just sounded clearer. And don’t assume sophisticated buyers bring a framework of their own: nearly 60% of legal departments reported having no formal outside counsel guidelines, according to a survey from LegalBillReview.com and In-House Connect. Your explanation may be the only one they get.
Honesty Is a Marketing Message
Explaining your hourly model in plain English tells a prospect three things before the first call.
- You know your own business.
- The question doesn’t scare you.
- You expect to be worth the number.
That reads as client-focused and confident, and it stands out because so few firms try it. Most treat the fee as the thing to avoid. Every firm in your space says it’s different and buries the fee. You need not be that firm.
Putting your billing model out there also serves as a screen. A prospect who bristles at a straight explanation of how you bill, your increments, and how estimates work is telling you something. Negotiating is normal. Bristling at the basics is not. That person will grumble over the first invoice, during the first status call, and the first time the matter grows. In a business that sells hours, a bad-fit consultation is an hour you can’t bill and won’t get back. Let the website do the disqualifying.
What to Put on the Page
Look, I’m not saying you have to put your retainer terms on your website, nor do you need to publish a rate card. You need plain answers to the questions a smart client asks anyway:
- How do you set rates, and who on the team bills time?
- How do you track time, and in what increments do you bill?
- What have matters like mine typically cost, as a range?
- How do estimates and budgets work, and how and when do you contact me before the number moves?
Keep it short and plain. If a CFO can’t read it in two minutes, it’s too long. A few paragraphs and an honest FAQ will do the job (and search engines and AI tools will index it more easily, too). Present ranges as ranges, not quotes. Model Rule 7.1 bars misleading communications, and a number that reads like a promise can cross that line.
Your engagement letter already covers most of this. The only thing wrong with it is timing. Put the good parts where prospects can see them.