From Guesswork to Precision: The Anatomy of a Profitable AFA

A profitable AFA is built on more than a fee structure. It starts with a clear understanding of the work, the economics behind it, and the factors that determine whether the matter will deliver the expected return.

Historical billing intelligence can give firms a more precise view of the economics behind their matters, helping them to build AFAs designed for profitability from the outset.

Key Takeaways

• Use historical matter data to inform staffing and pricing decisions
• Recognize the warning signs of an AFA that is likely to erode margin
• Build a more disciplined approach to pricing alternative fee arrangements

The difference between a profitable AFA and a painful one often comes down to what you knew before you priced it.