Nobody likes the billable hour.

Clients find it hard to believe that anyone’s time can cost $500, $1,200, or $1,800 per hour (looking at you, Big Law - that’s $30 per minute, $1 every 2 seconds!).

Tracking time in six-minute increments flattens lawyers into clock-punching paperwork machines with little freedom to think about adding value. And that’s what it’s all about, right? Adding value?

Consider:

- We introduce a client to a future co-founder. Time spent? 6 minutes (0.10). 
- We draft a document and send to the client for signature. Time spent? 1 hour (1.0).
- We research a client’s strategic idea but the client never implements it. Time spent? 10 hours (10.0).

How much should we bill? 11.1 hours?

Also consider:

- Sometimes an attorney is energized and in flow state. Sometimes an attorney is less focused. How should this be factored, if at all?
- Sometimes an attorney can handle an urgent matter immediately, sometimes it takes two days. Should the rate change?
- Some attorneys are far more productive per hour than others. Is a $900/hour attorney actually 10% less expensive than a $1,000/hour attorney? It depends. How fast do they think? What tools do they use? What processes have they automated?

It’s easy to see that some hours add tremendous value and some hours add little value at all. So should we all agree that $500, or $1,200, or $1,800 per hour is a reasonable estimate of the average value per hour? That’s the standard answer.

We are not totally convinced.

We take a different approach.

First, we focus on value: Excellent service, quick turnarounds, and adding non-legal value wherever possible. (We love introducing clients to future investors, partners, and team members.) Our model allows us to be very responsive and focused.

Second, we are much more efficient than Big Law. We can say this with certainty because we have lawyered at, with, and against Big Law.

Third, we do not itemize — we send one-line invoices each month. Itemizing by default is a hassle and is costly for us (time) or the client (money), or both. (Note: Upon request, we are happy to review work for the month and provide detailed itemization at no expense. Clients sometimes ask us to do this, but rarely, and usually only once!)

If #1-2 are true, then #3 is no cause for concern; clients view our invoices as “more than fair” and often even “a pleasant surprise.” And we happily spend less brainpower tracking time and more on the most important thing: Adding value.

Is it working? Yes. Client churn is close to zero, referrals are common, and we have collected >100% of invoices sent (clients have “tipped” more than they’ve “dipped”).

We thank you!