Monthly Subscription Plan

Alternative billing models are a frequent topic of conversation these days, with the focus primarily on a fixed rate or flat fee for a specific deliverable.

San Francisco firm Smithline Jha, though, is putting another option on the table -- the monthly subscription model.

According to Northern California legal newspaper The Recorder, 90% of Smithline Jha's revenues are now generated via monthly subscriptions.

While clients are purely on a month-to-month contract, a projection of overall annual expenditures is prorated to calculate a monthly charge. For new clients, an exploratory month is used to familiarize Smithline Jha with the client in order to help project annual services.

Law.com's profile of Smithline Jha notes that the monthly subscription model seems inherently geared for clients with consistent, measurable work taking place over an expected period, which does seem to fit the firm's focus on IP licensing for software and internet companies.

The value add, though, is that clients are more eager to spend time leveraging Smithline Jha's experience, which fosters a legitimate relationship.

Now clients tend to invite them to the deal table earlier, while terms are still being discussed, rather than bringing them in to review a ready-made contract. "They're not afraid to call anymore," Jha said. "They didn't feel like the meter was running every time they talked to us. The net effect was we got so much closer to our clients."

It's the difference between simply receiving a product and experiencing an actual working relationship.

This allows Smithline Jha to produce invoices which list only deliverables, not hours.

In other words, invoices document collaborative goals achieved, not a divisive accounting of my time versus your money.

And maybe that should be the first consideration of any paradigm shift -- how can we improve the relationship between attorney and client.