What is your hourly rate? Wrong question.

When talking to new clients, one of the first questions asked is often “What is your hourly rate?”

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There is and always will be pressure on rates. It makes sense. As a business person, you need to budget appropriately. And one of the things I hate most is wasting clients’ money.

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But rates are driven by agreements with clients as well as the market factors established by our professional rules and law.

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The better question and diagnostic for outside counsel fee burn is not the rate card—but the trial team’s ability to estimate their time and budget during phases of the case.

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This requires experience to assess the complexity and possible permutations of the claims, strategy to develop an action list to suit, and an understanding of the team’s skill set to estimate the hours it will all take.

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This is no small feat. And there is no one-size-fits-all approach.

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But failure to approach budgets with a sharp pencil and thoughtful analysis on the front end will inevitably lead to ballooning costs for what clients consider routine work.

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This is why, when a case comes in, I initially give a budget to summary judgment. Because that is what we are working towards to resolve or substantially narrow the case.

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Thereafter, I give incremental budgets based on what is going on in the case. And I keep my clients informed as we go. They know what my team is doing and why (at all times).

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Not only does this enable clients to get a better handle on legal costs but it gives them more control over strategy and decision-making.

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And for you attorneys out there, doing this will benefit you too (making it a win-win for both sides).

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My clients are never surprised by their bills. Which means they’re almost always paid in full. If you’re tired of writing time down, this is the #1 way I’ve found to stop that.