Whether you’re a solo practitioner or an associate at a Big Law firm, you’re probably familiar with–and likely work off of–the billable hours model. For years, billing by the hour has been standard practice for lawyers, and it can reap financial rewards. The more you bill, the more you make. But in recent years, both lawyers and clients are wising up to the fact that the pitfalls of this model may outweigh the benefits.
For clients, the issues are obvious. The financial uncertainty of working on a billable model precludes the majority of people who need counsel from accessing it. In 2018, 77% of people dealing with a legal issue decided not to hire a lawyer because they feared they wouldn’t be able to afford one. But moving away from the billable model has benefits for lawyers, too.
The future of fair legal representation: limited scope
As an alternative to a billable model, many solo practitioners and firms are leaning towards limited scope. Sometimes known as “unbundling,” the American Bar Association defines limited scope as “an alternative to full-service legal representation…like an à la carte menu for legal services, where clients get only the advice and services they need and therefore pay an overall more affordable fee.” [1] There are lots of clear client benefits to working on a limited scope model, but what’s the positive impact for attorneys?
You’ll help more people
In most cases, because limited scope involves representing a client solely for the specific services their case requires, there are fixed, upfront fees associated with each service.This method of representation–and the financial transparency that comes with it–appeals to many clients, especially those who need to carefully budget for legal costs. This makes the limited scope model rewarding for lawyers, too: when you work this way, you’re able to help clients that may have previously considered legal representation out of reach.
Your cases will get more efficient
On a systemic level, limited scope representation also helps the courts. Often, clients that don’t have access to a lawyer choose to go pro se, or represent themselves. Pro se litigants are less knowledgeable on the court system as a whole and can have trouble navigating it, leading to longer, more complicated cases that can contribute to an increase in the court’s backlog. [2]
Systemic efficiency is just one of the far-reaching benefits of limited scope. On an individual level, your cases may run more smoothly as well. One of the biggest pain points for clients when it comes to the billable model is not knowing what their lawyer is working on–or charging them for. When clients aren’t clear on what their lawyer is working on, it can lead to time-consuming conversations about what you’re charging for and why. When they are clear, there’s less confusion, increased client satisfaction and retention–and a higher likelihood of referrals and increased revenue down the road.
Banish burnout
Most lawyers are well-acquainted with long days and late nights, and often, a billable model is the culprit.
At most firms, lawyers are expected to bill enough hours to “not only cover salary and overhead, but also to generate revenue for the firm.” [3] In 2015, the average number of billable hours required was 1,892 for a first-year associate [4]. If we assume a 40-hour workweek, there are 2,080 total work hours in a year. However, not all hours are billable–honest lawyers can only bill for time that’s connected directly to their client’s case (though there are lots of unfortunate instances of bill padding and bill churning in the legal industry, another reason to look to limited scope). And according to a survey of nearly 3,000 legal professionals, lawyers spend 48% of their time on administrative, non-billable tasks. [5]
So, in order to bill 1,892 hours and devote 998 additional hours to necessary administrative tasks, a lawyer would need to work 55-hour work weeks, or 11 hour days, every day of the year, without taking a lunch break or a vacation. It’s no wonder that burnout in the legal profession is on the rise.
In October 2021, the New York State Bar Association surveyed over 3,000 attorneys on well-being in the legal profession. Attorneys reported “financial pressures in the business of law” and “lack of boundaries for down-time” as having the greatest [negative] impact on their mental well-being. The report stated that “the feeling of being on call weighed on individuals across types of practices, years in the profession, and number of lawyers at the respondent’s office.” The bottom line: a blurring of professional boundaries is a pain point for almost all lawyers, and financial pressures from firms pushing their employees to bill as many hours as possible may have a lot to do with it. When you’re not beholden to the pressures of billing as many hours as you possibly can, you can work smarter, not harder–and a lot of that burnout fades away as a result.
Control your schedule
Working on a limited scope basis means you may be able to say goodbye to those late nights and early mornings, if you want to. If you’re someone who thrives on taking on as many cases as possible, you can do that, too. Limited scope gives you the flexibility of taking on as many–or as few–services as you’d like.
Get visibility into your earnings
Limited scope representation typically means charging fixed, upfront fees for each service in a case. At firms like Marble, co-counsels get a percentage of the fee for each service–which means more visibility into their earnings, and can take on more cases at any given time if they want to increase them.
The specifics: how limited scope works at Marble
At Marble, we work with hundreds of co-counsels to support thousands of clients on a limited scope basis. Marble co-counsels get paid a clear price for every service they help a client with. Co-counsels also have full flexibility and autonomy over their schedules–they can take on as many or as few clients as they’d like and they’re able to help a client with one or all of the services their case requires. You can also adjust your caseload with Marble according to how much you’re looking to earn–many attorneys with Marble have reached new revenue goals since they started co-counseling with us.
Less stress and increased efficiency, flexibility and transparency on both sides are just some of the benefits of working this way–and many in the legal industry are calling it the future of legal care. [6] If you’re looking to bid farewell to the billable hours model and lean into limited scope, apply to Marble today.
