The traditional business model of billing by the hour is fading in law firms, with data from 2024 and 2025 suggesting firms are moving towards value-based pricing. The 2024 report indicated hourly billing accounted for 65.5% of revenue, with value-based billing at 30.7%, but rates charged by partners are rising while the hours they are billing have decreased significantly, evidencing a transition in the business model.
For most of the profession’s history, the hourly rate was the only number that mattered. It determined how partners measured productivity, how staff were evaluated, how clients were billed, and how firms benchmarked themselves against peers. That model is...
Subscribe now for $199 and get unlimited access to MYCPE ONE, from CPE credits to insights Magazine
📢MYCPE ONE Insights has a newsletter on LinkedIn as well! If you want the sharpest analysis of all accounting and finance news without the jargon, Insights is the place to be! Click Here to Join
Unlock Annual Access to News & CPE Subscription
You’ve reached the 3 free-content piece limit. Unlock unlimited access to all News & CPE resources. Subscribe Today.
Experience MYCPE ONE at its best! Upgrade your browser for a more interactive, user-friendly interface, and stay ahead in your professional development journey.