Key Takeaways:
- Fractional GC services offer mid-sized law firms a high-margin recurring revenue opportunity, with monthly retainers typically ranging from $2,000 to $15,000+ depending on client complexity and service tier
- Successful pricing requires tiered service structures that balance predictability for clients with profitability for firms, including clear scope boundaries and overage policies
- With the median full-time General Counsel earning $414,000 in total cash compensation, fractional services at $5,000-$10,000 monthly represent significant cost savings for clients while generating substantial recurring revenue for law firms
Picture this: A growing mid-market company walks into your office. They need sophisticated legal counsel for day-to-day operations—contract reviews, compliance guidance, employment matters, vendor negotiations. But they’re not quite ready for a $400,000+ in-house General Counsel. Sound like a familiar conversation?
You’re sitting on a massive opportunity. The fractional General Counsel model is rapidly gaining traction as companies seek flexible, senior-level legal expertise without the full-time commitment. And here’s the kicker: law firms offering these services are building predictable recurring revenue while deepening client relationships in ways that hourly billing simply can’t achieve.
The challenge? Pricing it right. Too high, and you lose to solo practitioners offering bare-bones retainers. Too low, and you leave money on the table while overwhelming your attorneys with work that doesn’t justify the fee. This guide walks you through exactly how to price fractional GC services for maximum profitability and client satisfaction.
The Market Opportunity: Why Fractional GC Services Are Exploding
The numbers tell a compelling story. According to the 2024 ACC Law Department Compensation Report, the median cash compensation for a General Counsel or Chief Legal Officer is $414,000—and that’s before factoring in benefits, bonuses, and long-term incentives. For larger companies, these costs climb even higher.
Meanwhile, small and mid-sized businesses are increasingly recognizing they need more than occasional outside counsel. They want someone who understands their business, anticipates legal issues, and provides proactive guidance—not just reactive problem-solving at $400+ per hour.
This creates a sweet spot for corporate law firms. By offering monthly subscription-based legal services, you can capture the growing demand for strategic legal partnership while building the kind of recurring revenue that smooths out feast-or-famine billing cycles.
Why clients love it:
- Budget predictability: No more surprise legal bills that blow up their quarterly budget
- Lower barrier to consultation: They call before problems escalate, not after
- Deeper relationship: An attorney who truly knows their business
- Cost efficiency: Senior-level guidance at a fraction of in-house costs
Why your firm will love it:
- Predictable revenue: Monthly recurring income that you can count on
- Higher realization: No more written-off hours or collection headaches
- Stronger relationships: Clients who view you as a partner, not a vendor
- Efficiency incentives: You’re rewarded for working smarter, not slower
Understanding the Fractional GC Service Model
Before diving into pricing, let’s clarify what fractional General Counsel services actually include. Unlike traditional outside counsel relationships where you’re called in for specific matters, a fractional GC becomes embedded in the client’s operations. You’re the go-to legal advisor they reach for day-to-day questions—and the strategic partner who helps them navigate complex decisions.
Core Services Typically Included
Routine Contract Review and Negotiation: NDAs, vendor agreements, customer contracts, service agreements, and employment-related documents under a certain complexity threshold.
Day-to-Day Legal Guidance: Phone calls and emails about emerging issues, compliance questions, and business decisions with legal implications.
Compliance Oversight: Monitoring regulatory changes, advising on policy updates, and ensuring the company stays on the right side of applicable laws.
Risk Assessment: Identifying potential legal exposure before it becomes a problem, from employment practices to vendor relationships.
Internal Policy Development: Employee handbooks, data privacy policies, and operational procedures.
Services Typically Excluded (or Priced Separately)
Litigation: Most fractional GC arrangements explicitly exclude court appearances and active litigation, though you may include litigation management and strategy.
Specialty Practice Areas: Patent prosecution, securities law, complex tax matters, and real estate transactions typically require separate arrangements or referrals.
M&A Transactions: Major transactions warrant project-based or hourly billing due to their complexity and resource requirements.
Crisis Response: Major incidents requiring intensive, time-sensitive work may trigger overage provisions.
Your Fractional GC Pricing Framework
Now let’s get into the specifics. The most successful fractional GC programs use a tiered subscription model that scales with client complexity and legal needs. Here’s a framework you can adapt to your firm’s market position and practice areas.
Tier 1: Essentials ($2,000 – $4,000/month)
Target Client: Early-stage companies, small businesses with limited but regular legal needs, pre-revenue startups establishing their legal foundation.
Included Services:
- 2-5 hours of attorney time monthly
- Email response within 48 hours
- Up to 5 simple contract reviews monthly (NDAs, standard vendor agreements)
- Quarterly check-in call
- Access to template library
Overage Rate: $350-$450/hour (discounted from standard rate)
Effective Hourly Rate Target: $400-$800/hour (depending on actual utilization—remember that many subscription clients use less than their allotment)
Tier 2: Professional ($5,000 – $8,000/month)
Target Client: Growing businesses, Series A-C startups, companies with 25-100 employees, businesses with regular contract flow and compliance needs.
Included Services:
- 8-15 hours of attorney time monthly
- Priority email response within 24 hours
- Unlimited simple contract reviews
- Up to 3 complex contract negotiations monthly
- Monthly strategy call
- Employment law support (offer letters, terminations, policy questions)
- Compliance monitoring and alerts
Overage Rate: $300-$400/hour
Effective Hourly Rate Target: $350-$650/hour
Tier 3: Executive ($10,000 – $15,000+/month)
Target Client: Established mid-market companies, Series D+ startups, businesses with 100+ employees, companies preparing for significant transactions or IPO.
Included Services:
- 20-30+ hours of attorney time monthly
- Same-day response commitment
- Unlimited contract review and negotiation
- Board meeting attendance (quarterly)
- Executive team access for strategic decisions
- Comprehensive employment law support
- Vendor management and procurement support
- Risk management program oversight
Overage Rate: $275-$350/hour
Effective Hourly Rate Target: $300-$500/hour (with volume, you’re aiming for efficiency)
The Value-Based Pricing Conversation
Here’s where many firms go wrong: they anchor the fractional GC conversation to hourly rates. Instead, frame your pricing around the value delivered and the cost savings compared to alternatives.
The comparison framework:
Full-time General Counsel: $350,000-$500,000+ in total compensation, plus benefits, overhead, and management time. That’s $30,000-$45,000 monthly before they’ve reviewed a single contract.
Traditional Outside Counsel: At $400-$600/hour, a company with moderate legal needs might spend $8,000-$15,000 monthly anyway—with no predictability and an incentive to avoid calling their lawyer until problems escalate.
Fractional GC (Your Service): $5,000-$10,000 monthly for proactive, embedded legal support that catches problems before they become expensive crises.
When you position fractional GC services this way, the $7,500/month retainer isn’t an expense—it’s a strategic investment that saves the client money while reducing risk.
Scoping That Protects Profitability
The biggest threat to your fractional GC profitability isn’t pricing too low—it’s scope creep. Without clear boundaries, a $6,000 monthly retainer can quickly become unprofitable when a client treats it as an all-you-can-eat legal buffet.
Define Your Scope Precisely
Your engagement letter should explicitly address:
Contract Complexity Thresholds: “Simple contracts” under 10 pages are included; complex agreements require separate scoping.
Response Time Commitments: Standard response within 48 hours; rush requests may incur additional fees.
Meeting Attendance: Monthly strategy call included; additional meetings at hourly or included in higher tiers.
Transaction Exclusions: M&A, financing, litigation, and specialty matters are explicitly excluded.
Volume Triggers: If contract volume exceeds 20 in a month, overage rates apply to additional work.
Build in Flexibility
Real businesses have unpredictable legal needs. Build mechanisms that accommodate spikes while protecting your margins:
Rollover Hours: Allow unused hours to roll over (with a cap). This reduces “use it or lose it” behavior while creating a buffer for busy months.
Quarterly True-Ups: Review utilization quarterly and adjust tier levels as needed—up or down.
Project Add-Ons: Offer fixed-fee project pricing for work that falls outside the retainer scope.
Implementing Your Fractional GC Practice
Phase 1: Foundation (Weeks 1-4)
Develop Your Service Tiers: Using the framework above, customize tiers for your market. Research competitor pricing in your region and practice areas.
Create Template Engagement Letters: Draft clear scope definitions, exclusions, and overage provisions. Have your malpractice carrier review them.
Set Up Billing Infrastructure: Your billing software needs to handle recurring subscriptions, track hours against retainers, and flag when clients approach their limits. Solutions like LeanLaw are designed to handle these alternative fee arrangements natively.
Establish Tracking Systems: Even with fixed fees, track your time. This data is essential for pricing refinement and profitability analysis.
Phase 2: Pilot Program (Months 2-4)
Select Pilot Clients: Choose 3-5 existing clients who fit the fractional GC profile. Ideally, these are clients who already call you regularly and would benefit from predictable pricing.
Offer Transition Incentives: Consider a 10-15% discount for the first quarter as clients adjust to the new model.
Gather Feedback: Meet monthly with pilot clients to understand what’s working and what needs adjustment.
Track Profitability: Calculate your effective hourly rate on each engagement. Are you hitting your targets?
Phase 3: Scale (Months 5+)
Refine Pricing: Based on pilot data, adjust tier pricing and scope definitions.
Market the Service: Develop case studies from successful pilot engagements. Create content that positions your firm as fractional GC specialists.
Build Capacity: Determine how many fractional GC relationships each attorney can effectively manage (typically 8-12, depending on tier mix).
Systematize Delivery: Create templates, checklists, and workflows that allow efficient service delivery without sacrificing quality.
Technology That Makes It Work
Fractional GC services require different technology than traditional hourly billing. Your systems need to:
Handle Recurring Billing: Automatically generate and collect monthly retainer fees without manual intervention.
Track Time Against Retainers: Even though you’re billing flat fees, you need to know how much time you’re actually spending. This data drives pricing decisions and identifies scope creep before it damages profitability. LeanLaw’s time and expense tracking makes this seamless even for fixed-fee work.
Alert on Thresholds: Get notified when clients approach their included hours or contract limits so you can have proactive conversations about scope.
Calculate Effective Rates: Automatically compute your effective hourly rate by matter and client to ensure profitability. Advanced reporting tools are essential here.
Manage Trust Accounting: If you collect retainers as advance fees, ensure compliant trust account management with proper three-way reconciliation.
Modern legal billing software designed for alternative fee arrangements can handle all of these requirements while integrating seamlessly with your accounting systems like QuickBooks.
Common Pitfalls (and How to Avoid Them)
Underpricing to Win Business
It’s tempting to offer aggressive pricing to land that first fractional GC client. Resist. Underpriced engagements create resentment (on your side), attract price-sensitive clients who’ll never pay more, and establish market expectations that are hard to undo.
Solution: Start at sustainable pricing. Offer limited-time introductory discounts rather than permanently low rates.
Unclear Scope Boundaries
Vague engagement letters lead to scope disputes. “General legal support” means different things to different people.
Solution: Be specific. List what’s included. List what’s excluded. Define “simple” vs. “complex” contracts. Specify response times.
Failing to Track Time
“We don’t bill hourly, so we don’t need to track time.” This is a recipe for disaster. Without time data, you can’t assess profitability, identify scope creep, or refine your pricing.
Solution: Track time on every fractional GC engagement. It’s internal data, not client billing, but it’s essential for business management.
Overcommitting Capacity
Ten fractional GC clients at $5,000 each sounds great—until you realize you’ve promised same-day response to all of them during the same crisis week.
Solution: Model capacity carefully. Account for the inevitable clustering of client needs. Build buffer time into your calculations.
The Bottom Line
Fractional General Counsel services represent one of the most attractive opportunities for mid-sized corporate law firms today. The model aligns your interests with your clients’, creates predictable revenue, and builds the kind of deep relationships that drive referrals and retention.
But success requires thoughtful pricing that reflects the value you deliver while maintaining profitability. Start with a tiered structure, scope your services precisely, invest in the right technology, and iterate based on real data.
The firms that master fractional GC pricing today will have a significant competitive advantage tomorrow. The question isn’t whether to offer these services—it’s how quickly you can build a profitable practice.
Ready to modernize your firm’s billing approach? Schedule a demo with LeanLaw to see how our platform can help you manage the complexity of subscription-based pricing while maintaining complete visibility into profitability.
Frequently Asked Questions
Q: How do we handle clients who consistently exceed their retainer hours?
A: First, track and communicate proactively. Alert clients when they’re approaching their limit. If overages become consistent, it’s a sign they need a higher tier. Position the upgrade conversation as ensuring they get the responsiveness they need, not as a punishment for using the service.
Q: What if a major legal issue arises that’s clearly outside the retainer scope?
A: Your engagement letter should address this. Major matters like litigation, transactions, or specialty work are typically handled on a separate fee basis. The fractional GC relationship means you understand the client’s business well enough to handle these matters efficiently—that’s a benefit to the client, even at additional cost.
Q: Should we offer annual payment discounts?
A: Yes, but cautiously. A 5-10% discount for annual prepayment improves your cash flow and locks in client commitment. However, don’t offer discounts so steep that they attract clients who aren’t confident about the relationship—those often become problem clients.
Q: How do we price fractional GC services for highly regulated industries?
A: Regulated industries typically require higher-tier pricing to account for the complexity and specialized knowledge required. A healthcare company or financial services firm may need your Executive tier even if their employee count suggests Professional. Price for the expertise required, not just the volume of work.
Q: Can we offer fractional GC services alongside traditional hourly billing?
A: Absolutely. Most firms run hybrid models where some clients are on retainer and others pay hourly or project-based fees. The key is having billing systems that handle both efficiently. Many firms find that fractional GC relationships lead to additional project work that’s billed separately.
Q: What’s the right attorney-to-client ratio for fractional GC work?
A: It depends on the tier mix. An attorney focused on Essentials-tier clients might handle 10-15 relationships. Executive-tier clients require more bandwidth—an attorney might manage only 4-6 effectively. Build your capacity model based on actual time data from pilot engagements.
Q: How do we transition existing hourly clients to a fractional GC model?
A: Start by analyzing their billing history. What do they typically spend monthly? What types of matters do they bring? Use this data to recommend an appropriate tier, emphasizing budget predictability and improved access as benefits. Offer a 90-day trial period to reduce their perceived risk.
Q: Should we require minimum commitment periods?
A: A 90-day initial commitment is reasonable and allows both parties to assess fit. After that, month-to-month arrangements with 30-day cancellation notice work well for most relationships. Longer commitments in exchange for discounts can work for established relationships.
Sources
- ACC Law Department Compensation Report, 2024
- Priori Legal, “The Growing Shift Toward Fractional General Counsel,” 2025
- Thomson Reuters Institute, “Law Firm Rates in 2024”
- Scale LLP, “Is There a Growing Need for the Fractional GC?” 2025
- Juro, “What is a Fractional General Counsel?”
- BarkerGilmore, “2024 In-House Counsel Compensation Survey”
- ABA Journal, “One Size Does Not Fit All: Law Firm Subscription Plans”
- Rally Legal, “Economics of Offering Legal Subscription Plans for Law Firms”
- Litera 2024 Survey, via SRA Risk Outlook Report
- LawPay, “15 Alternative Fee Arrangements for Law Firms,” 2024 Legal Industry Report
