5 Benefits To Negotiating Flat Fees

The days of hourly legal fees are behind us.

This is not news to our clients. Nor to the lawyers and accountants we work with on their behalf, who have long understood our belief that flat fees create a win-win scenario.

In fact, we have been hiring lawyers and accountants on a flat fee basis for almost a decade.

Through experience we have learned there are 5 benefits to doing so:

1. Both sides have to take responsibility for defining the scope of work before the agreement is struck

2. The service provider is motivated to get the work done as efficiently as possible.

3. The service provider is motivated to do the work as well as possible so that the can get hired and recommended again

4. The buyer is motivated to support the process they agreed to so they don’t get hit with change of scope fees

5. Both parties learn from the process. About their own methods and each other. This leads either to a better process next time. Or a quick end to a the relationship.

Either side can undermine this structure.

But there is a cost to doing so in the loss of future opportunity to work together.

If that’s not a cost to you, you’re doing business with the wrong people.