Why “Cost Per Case” models are becoming a liability and how Joint Advertising protects your firm

If you are a Personal Injury attorney, you likely rely on external marketing to keep your case pipeline full. For years, the easiest lever to pull has been the “Lead Vendor”—a third-party company that sends you contact information for a flat fee.

It’s simple, it’s predictable, and regulators are increasingly deciding that it is illegal.

With the enforcement of stricter regulations like California’s SB 37 (Business and Professions Code § 6155) and similar crackdowns by State Bar Associations across the US, the era of “buying leads” is ending. If your firm is still paying a vendor on a “Cost Per Case” basis, you may be unknowingly participating in an unauthorized for-profit referral service.

Here is why your current vendor relationship might be putting your license at risk, and how you can fix it.

The “Referral Service” Trap

The core issue lies in how the money changes hands.

When you pay a vendor $2,000 for a signed retainer, regulatory bodies often view this as a referral fee paid to a non-lawyer. Since non-lawyers cannot ethically share legal fees or be paid for referring clients, this transaction falls into a “gray area” that is rapidly turning black and white.

If your vendor is selling the same lead to multiple firms, or if their pricing model looks like a “bounty” on a head, you are exposed. The Bar views this not as marketing, but as paying for a client recommendation.

Why “Cost Per Case” is Dangerous

The “Cost Per Case” (CPC) model is popular because it minimizes financial risk for the law firm. However, that very minimization is what flags it for regulators.

By pegging your payment to the acquisition of a client rather than the marketing effort, you are essentially paying a commission. In many jurisdictions, this violates the prohibition against sharing fees with non-lawyers. The vendor is incentivized to “steer” cases to the highest bidder, a practice that consumer protection laws (like SB 37) are designed to stop.

The Compliant Solution: Joint Advertising

To stay safe, law firms must shift their mindset from “buying leads” to “buying media.”

This is the foundation of Mohr Marketing’s Joint Advertising Program. Instead of paying for a person (which is risky), you pay for:

1. Media Inventory: The actual cost of the ads, clicks, and impressions.
2. Administrative Labor: The hourly or fixed cost of the intake team processing the data.

This model is transparent. You are the advertiser; Mohr Marketing is simply the strategist executing the buy.

The Dual-Entity Firewall

Mohr Marketing takes compliance a step further by utilizing a Dual-Entity Structure:

• Mohr Marketing, LLC handles the strategy, AI WebTracker® technology, and media buying.
• Legal Support Cases, Inc. handles the administrative grunt work—intake, calls, and document chasing.

By separating the marketing strategy from the administrative labor, we create a clear paper trail. You aren’t paying a “bounty” for a client; you are paying a marketing agency to run ads and a support service to answer phones.

Protect Your Firm Today

Don’t wait for a Bar audit to review your marketing contracts. If you are operating in mass torts or MVA, ensure your partners are “Strategists,” not “Vendors.”

Ready to switch to a compliant model?

Contact Mohr Marketing today to learn how our Joint Advertising program can deliver high-quality Mass Tort and MVA cases without the regulatory risk.

Request Mass Tort Inventory & Pricing

Disclaimer: Mohr Marketing is a technology and marketing services provider. We are not a law firm or a lawyer referral service. All retainers are executed directly between the claimant and the hiring law firm.

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.

Contact Mohr Marketing today for a custom quote

www.mohrmktg.com 

Best Wishes,
Sue Mohr

Summary

Article Name

Is Your Lead Vendor Costing You Your Law License?

Description

If you are still buying leads on a "Cost Per Case" basis, you might be unknowingly participating in an unauthorized referral service.

Author

Susan Mohr

Publisher Name

Mohr Marketing, LLC

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