Many attorneys don’t like to talk about their fees and billing practices, and it’s easy to understand why. But it’s obviously important, and avoiding the subject can lead to misunderstandings, unhappy clients, billing disputes, and worse.
So, discuss it you must.
Here’s a good rule of thumb: don’t wait for the client to ask; tell them everything up front.
Explain in detail about hourly fees, retainers, and costs, and, and why you do it the way you do. Talk about the pros and cons of hourly rates versus flat fees. Explain how contingency fees work, how they benefit the client, and (if applicable) why you don’t charge the same percentage as other attorneys do.
If your fees are higher than what other attorneys in your field charge, explain why. Tell them why you ask for a retainer for fees and also for costs, and why you require clients to replenish these when they fall below a certain threshold.
In other words, tell them everything they need to know.
Not just because you are ethically required to do so or to avoid clients later claiming you didn’t explain something or misled them. Tell them everything because it’s the right thing to do and because clients will appreciate your candor and clarity.
In fact, you should also provide a (less detailed) version of this information in your marketing materials, presentations, and social media posts. Educate your market about the subject. It might become the very thing that differentiates you from other attorneys and firms.
