The varied pricing models of e-billing vendors

Matter management systems that run on a company’s own servers usually charge an upfront license fee and thereafter an annual maintenance fee, usually in the range of 10 to 20 percent of the base license fee. Relatively straightforward.

Far from straightforward are the pricing models of e-billing systems. The possibilities include a charge per open matter – and variations depending on how active the matter is or whether outside counsel bills are collected in it, a percentage of the invoices reviewed, the number of users who have access to the system, and any number of fixed-fee arrangements. Absolutely Byzantine.

With a self-hosted MMS, you can calculate precisely the three-year cost of the system. With e-billing, you grope for a plausible range of amounts you might have to pay over that period.