How Overture Law Is Revolutionizing Referral Fees

Generating new business is never easy. Servicing all of your clients' needs can be even harder.

For independent attorneys and small law firms it can be especially challenging. These lawyers all send referrals to their colleagues, but rarely get anything in return. Referral fees are always welcome, but tending to the strict rules regarding fee splitting can be daunting, especially across jurisdictions.

Overture Law aims to help. The company was co-founded by LegalZoom's Brian Liu, Esq., along with Arya Firoozmand, Esq., and Curt Brown, Esq. The three also co-founded the law firm L&F Brown and legal service provider BizCounsel.

The trio launched the platform in January. The website calls it "the first attorney-to-attorney platform designed for members to refer matters and ethically share in fees."

A recent product demonstration for Above the Law by Firoozmand, Overture's chief executive officer, showed that the platform is simple, easy to use, and replete with time-saving features.

Refer With Confidence

"The world has changed drastically in the last few years," Firoozmand said. "People are not confined to their location anymore, and a lot of business crosses state lines."

A sole practitioner's client may have an employee who is sued in a state where the attorney is not admitted to practice, or a California real estate attorney's client may purchase a portfolio of properties in Florida in a completely different asset class.

Attorneys don't want to refer a client to some name picked off of a list. They want to know their client is in good hands. Overture vets every one of their members before they are invited to join so attorneys on the platform can refer with confidence.

According to Firoozmand, Overture spent about a year building out the technology before launch, inspired by the way attorneys have embraced virtual work relationships over the last few pandemic-altered years. The application's simple, intuitive interface is bound to attract attorneys looking to de-stress their professional lives and find great homes for clients they can't service

The platform has gained more than 200 members in the few months of its operation and is growing all over the country. The network is built on relationships. They must have been in good standing with the bar for at least five years. They must boast good client reviews and have no disciplinary record and no history of malpractice.

"Are you somebody we would recommend to our own family?" Firoozmand said when describing the vetting process. "Are you someone who's embracing new technologies to better your practice?"

There aren't any fees or costs to be a member. Instead, Overture takes a percentage of any successful referral made on the platform. Overture can do this because it's a law firm. The company wants its members to embody responsiveness, integrity, innovation, and collaboration, so the leadership of the company interviews each prospect.

"We're looking for some of the best, most responsive, client-centric attorneys to join the network. We didn't want to charge attorneys a fee to be part of the community we're building," Firoozmand said.

Take the Friction Out of Fee Splitting

Overture is more than a source of quality referrals. It is also a streamlined billing platform designed to take the hassle out of fee splitting. It automatically calculates the correct fee split from invoices generated on the platform. The platform has the ability for members to obtain retainers as well.

Attorneys are notified when funds have been received by Overture and when their referral fee has been deposited in their account.

When attorneys need to refer a matter, they use a simple form to indicate the practice area and subcategory, as well as the jurisdiction. On a subsequent screen, they provide a brief description of the matter and issues. The request for assistance is then sent to appropriate recipients among the thoroughly vetted membership.

Once attorneys with the required expertise -- or in the required jurisdiction, as the case may be -- express an interest, the platform emails the attorney who made the request. The referring attorney can vet the prospective handling attorneys and choose the attorney who is right for his or her client. When a selection is made, the chosen attorney is automatically emailed the client's contact information.

To ensure that fees are split ethically between attorneys, the platform also produces an addendum to be attached to an attorney's own representation agreement.

The addendum ensures the client is properly informed. It breaks down the fee-splitting percentages, includes any state specific disclosures or requirements, and contains the requisite acknowledgment of the attorney-client relationship and a provision governing the depositing and holding of funds.

Every referral on the Overture platform has the exact same fee splits. This is so the focus for the referring attorney is finding the right help for their client, rather than worrying about fee split arrangements. Once the agreement and the addendum are signed, billing can begin. The platform makes online payments easy for the client with a "Pay Now" button at the bottom of all invoices. All concerned parties are copied on every email automatically.

Built on Top of Your Own Systems

While the Overture platform does not fully integrate with case management software (yet), its architects made sure it can communicate with the most common software, particularly Clio.

Attorneys who accept a referral can record their activity as they usually do, and when the time comes for invoicing, they can import their hours into Overture. The fee-splitting magic happens automatically, as does the invoicing, freeing the attorneys and their support staff to concentrate on what is important -- delivering great service to the client.

"Attorneys on the platform refer clients for one of two reasons," Firoozmand said. "Because a matter is not in their area of expertise or it's not in their neck of the woods. What makes our platform successful is, when you refer a matter from Washington to California or New York to Florida, you can be assured the person is cut from the same cloth you are."