Fee Splitting 101: Is Your Marketing Vendor Making You an Accomplice?

In the complex world of legal ethics, few terms carry as much weight as “fee splitting” or “capping.” Most attorneys understand they cannot share legal fees with non-lawyers. Yet, thousands of law firms inadvertently cross this line every day by purchasing leads from vendors who charge a flat fee per signed case.

The Hidden Danger of “Per-Case” Pricing

When you pay a marketing company $2,000 for a “signed retainer,” regulators in strict states (like California under SB 37) may view that transaction as a commission. If the vendor’s payment is contingent on the successful retention of a client, it looks less like a marketing expense and more like an unauthorized referral fee.

The Mohr Marketing Solution: Paying for Inputs, Not Outcomes

To stay compliant, your financial relationship with your vendor must change. At Mohr Marketing, we shifted to a Joint Advertising model.

• Media Spend: You pay for the advertising inventory required to generate interest.
• Administrative Labor: You pay Legal Support Cases, Inc. for the hourly labor and administrative costs of processing those inquiries.

By paying for the effort (advertising and labor) rather than the result (a specific signed client), you effectively bypass the fee-splitting trap. You are funding a campaign, not buying a outcome.

Audit Your Invoices

Moving to a model based on Media & Administrative Allocation isn’t just a technicality—it’s the shield that protects your license.

Let’s discuss your specific needs and how our Compliance Program, AI Lead Generation Technology, digital marketing, signed cases, and verified leads can help you achieve your growth goals.

For more information, Contact Mohr Marketing today for a custom quote.

www.mohrmktg.com 

Best Wishes,
Sue Mohr

Summary

Article Name

Fee Splitting 101: Is Your Marketing Vendor Making You an Accomplice?

Description

Moving to a model based on Media & Administrative Allocation isn't just a technicality—it’s the shield that protects your license.

Author

Susan Mohr

Publisher Name

Mohr Marketing, LLC

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