Lawyer Goes from Billable Bankruptcy to Success on a Flat-Fee Scale
Photo courtesy
Kevin Houchin
Kevin E. Houchin has a story to share—one that took him from bankruptcy to success on a flat fee.
Houchin, 41, a former marketing consultant who spent more than a decade in the ad industry, entered law school at age 33 with the intent to help creative entrepreneurs break free of corporate America and launch their own small businesses. But as clients avoided costly 12-minute phone calls and Houchin disregarded time sheets that took more time to produce than the actual client work, Houchin found his practice (and the value provided to clients) sinking under the weight of the billable hour.
As a result, Houchin filed for bankruptcy within five years of his graduation from the University of Iowa College of Law.
The problem was that his billing method jeopardized the relationship he sought to build with photographers, designers and other creative professionals who were lucky to collect $75 an hour for their own services and generally eschewed having to ask for help.
Seven months after his bankruptcy was discharged, Houchin once again struggled to keep his practice afloat. And in May 2009, a desperate Houchin told himself that when the next client walked in the door, things had to drastically change.
“I said, ‘I’m going to take a risk on you, and we’re going to look at a one-year deal for only $250 a month.” Houchin quickly locked in six additional clients under a new fee structure that ranged from $250 to $3,000 a month for specific projects and granted unlimited, as-needed phone calls to clients. Within a two-week span, he had covered his entire office overhead for the year.
With a projectable income, Houchin has been able to add an associate attorney and an administrative assistant to his growing practice.
“In the entrepreneurial niche, my clients have more important things to do than create busywork for me,” he explains. “So, they do only call as needed, but they also really pick up the phone when they need me.”
Houchin is now sharing what he learned through a virtual educational initiative for entrepreneurs, lawyers and investors called The Space Between Center. Participants in the organization’s Lawyer Mastermind Program range from recent law graduates to seasoned attorneys who want to explore options outside the standard billing model.
