This article was originally published in The Big Smoke.
Clients of law firms would surely be forgiven if sometimes they perceive that they’re simply charged two or three times the cost of their lawyer’s salary plus expenses, without reference to the actual value provided.
There are many instances of Australian SMEs forgoing the legal representation they desperately need because they fear a frenzy of billable hours could consume their budgets.
With limited provision for legal expenses, clients live in fear of copping substantial extra legal costs charged at a rate that they simply cannot afford. Clients are often left with no alternative but to rely on the power of prayer (AKA Google) to minimise their legal expenses, because divine intervention, or a Quora response, is their only hope of a fast resolution to their matters.
While the legal profession is incredibly adept at guiding clients through legal complexities, it is much less diligent at guiding them through the intricacies of their own payment terms.
Legal firms are prone to give clients the impression that the last thing on their mind is a closer relationship, especially when it comes to agreeing terms of business between them.
On the other hand, organisations of all sizes perceive considerable benefit in a more open and trusting relationship with their law firm.
That was one of the key drivers behind Stanislav Roth’s decision to open Source Legal in 2011. He designed it as a disruptive law firm with a primary focus on an entirely new level of client orientation.
Source Legal charges clients a pre-agreed project fee or monthly retainer, under which they provide unlimited legal support. Hours are never a factor. Their clients don’t suffer from bill shock because they know exactly what to expect.
Under the retainer model, Source Legal effectively becomes their clients’ legal department and they provide exceptionally fast and practical support on all day-to-day legal needs, such as contracts and employment law.
Stanislav’s vision has proved an unqualified success. Source Legal has achieved a continuous record of growth since its opening because clients have responded very positively to its collaborative and pragmatic approach as well as the value-based pricing model.
Stanislav particularly values the close partnerships with clients, where Source Legal is considered a true business partner, and not just a supplier of services. This, in turn, has led to a consistent flow of new client referrals from existing clients.
The Source Legal model is particularly appropriate for small and medium businesses because it brings to them a level of legal support that could otherwise be beyond their budgets. The style of client partnership it creates is particularly appropriate for guiding SMEs though the increasing turmoil of today’s business operations.
Stanislav’s firm has taken the lead in creating an innovative partner-style relationship between a legal firm and its clients, which has brought increased strength, security and confidence to client business operations.
And while that may be a priceless contribution, clients still appreciate knowing in advance exactly what it’s going to cost.
If your business could benefit from an entirely different approach, Stanislav Roth would be delighted to talk to you.