Small Law Firms

Should Lawyers Advertise Their Fees?

4 reasons the tradition remains.

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Some clients complained to me about lawyers being secretive when it comes to pricing. Specifically, they ask why they don’t advertise their fees like other professions and businesses do. I think there are several reasons.

First, it’s tradition. Most attorneys today were trained by those who practiced at a time when attorney advertisements were prohibited, and had been for many years. Even though the landmark decision of Bates v. Arizona held that this prohibition was unconstitutional, many attorneys continued to practice without advertising their prices, and have taught other attorneys how to do the same.

Second, attorneys are hesitant to bind themselves to a flat fee before knowing anything about the client. The client seeking a divorce might have no assets and no children. Or they could have multiple assets tied up in offshore companies or in asset protection trusts. And some overly price sensitive clients will just about say or do whatever it takes to qualify for your Groupon special.

Third, litigation and even transactional matters can sometimes be unpredictable. There are factors beyond the lawyer’s control that can prolong the work, especially if there are disagreements between the parties.

Finally, lawyers are concerned that posting prices could lead to a race to the bottom. If one attorney posts their hourly rate on their website, another might post a slightly lower rate. But that doesn’t mean that an attorney will work the same amount of hours on a particular case. This might be good for consumers but this doesn’t pay the lawyer’s student loan bills.

Nowadays does it make sense for lawyers to advertise their prices before meeting the client? Some argue that posting prices like every other business saves everyone time. The potential client can learn whether a particular attorney’s fee is within their price range without having to first hear their sales pitch. And the attorneys won’t be bothered by moochers.

Others suggest that experienced attorneys should not be afraid to post their prices because they should be able to predict how much work they will have to put into a client’s case.

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Right now, I don’t see how it would be advantageous for lawyers to advertise their prices. Buying legal services is not like buying a house or a car. While both houses and cars have prices displayed up front, in many cases, it is not the final price the buyer will pay. Houses have to be appraised, inspected and a loan application may need to be approved before the sale is finalized and any problems could lead to a change in the sales price. Cars are not unique and the price is customarily negotiated down.

It’s also different from other services because of the adversarial element. I’ll use photography as an example. Photographers generally get paid a deposit and the remainder after the pictures are taken. This is because taking photographs is relatively straightforward (I should note that I do acknowledge that very skilled photographers are able to get the best shots from incredible angles.) And with current digital image alteration software like Photoshop, simple touch-ups and alterations can be made through a computer.

When it comes down to it, I don’t think attorneys should advertise their price because they are giving their fee based on little to no information. When that happens, one or both parties might end up feeling misled. I get that the buyer wants a deal and seller wants to maximize profit but the attorney-client relationship is based heavily on trust. If one party cannot be trusted when it comes to money, the distrust can spread to other areas in the relationship. This means less candor in conversations which can have devastating effects later on.

While experienced lawyers are able to understand the issues faster and better predict the outcome, they cannot predict how the judge or opposing counsel will approach the case. Opposing counsel or their client will have a different view of the case and may not want to settle the case quickly. Or they do want to settle quickly but not under the terms your client wants. Of course this is unfair to your client, but unfortunately, this is how the system is set up.

Instead of advertising prices, lawyers should encourage potential clients to send a detailed email about their situation. The lawyer can then respond with a request for a follow-up consultation or quote a fee based on that information. Or the lawyer can advertise their consultation fee and the potential client can choose to pay it or go somewhere else.

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Of course, every lawyer’s situation is unique and if they want to try advertising their fees, nothing is stopping them. It might work or it might not. But advertising fees without getting additional information seems like a recipe for disaster.

Shannon Achimalbe was a former solo practitioner for five years before deciding to sell out and get back on the corporate ladder. Shannon can be reached by email at sachimalbe@excite.com and via Twitter: @ShanonAchimalbe.

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