● What is Value-based pricing?

Value-based Pricing (“VBP”) shifts billing from the traditional hourly fee model to
a new value-based approach, where the fees are based on the value provided,
not the time spent.

● Why is VBP better than hourly billing?

Value-based Pricing (“VBP”) is better for both the client and the attorney. VBP
gives clients the peace-of-mind of not getting an unexpectedly large bill at the
end of the month. It gives attorneys the ability to be compensated for value as
opposed to a sometimes arbitrary amount of time it takes to complete the project.
We believe the hourly billing model is antiquated because incentivizes slowness
and doesn’t allow clients to budget as they start or grow their business.

● Will the cost of the project ever exceed the price I was quoted?

VBP is determined by weighing a variety of factors such as project complexity,

length, resources required, and value provided to the client. Because every
project is unique, there may be projects that require additional time or services
outside the scope of the original engagement. In these situations, an additional
fee may be due. But don’t worry, unlike the traditional (and out-dated) hourly
billing model, we always discuss the additional work required with you before we
charge you any more for your project.

● But will I have to pay more than on a standard hourly engagement relationship?

As you probably know, the future is very hard to predict. Lawyers stuck in the
hourly-billing model don’t really care about the future, because they are just
focusing on doing the work and billing the client for the time they spend on a
matter. Did a lawyer zone out for 10 minutes while working on your matter? We
are human, so we would be lying if we said we are always 100% laser focused
and impervious to distractions. Nonetheless, you will never know, but you will
probably pay for the time spent re-focusing and picking up where that lawyer left
off.

With fixed-fee and value-based pricing, we have agreed on a price ahead of time
and the future is fairly certain (subject to certain issues that we uncover that may
be outside the initial engagement). That means, if we get distracted or zone out,
 you don’t pay for that, we do. It means we are now incentivized to be efficient
and make sure we deliver on what is promised.

Might you end up paying more with fixed fees, possibly, but you have to weigh
the advantage of predictability and aligned incentives versus being billed for a
matter where the end cost could be 5x what you budgeted.

● What does it mean when something is “outside the original scope of the
engagment?”

If something is “outside of the scope” of our original engagement, it means that

the project we agreed to work on when you first engaged did not include or cover
the issue that we are discussing that is outside the scope. For example, if we are
engaged to structure your corporation and you did not inform us of a few
agreements you had negotiated with other parties, such matters could throw a
wrench in the structuring and require considerable more time on our part.

We strive to be as transparent as possible with our clients. However, issues arise

with deals that create an additional level of complexity. When this happens, we
do have to charge for the additional services required to address such issues.