A South Carolina ethics opinion on attorney fee-sharing should give lawyers considering fixed-fee legal referral programs like Avvo's Legal Services pause. Avvo launched ALS this January, as a sort of Uber for legal services. The service allows customers to pay for legal work by task, rather than by billable hour, with Avvo setting the prices. Reviewing a prenup costs $150, for example, incorporating an LLC costs $595. Customers purchase the service through ALS, who then pays the attorneys that actually do the work.
Avvo, of course, takes its own cut, as a marketing fee. And those fees, along with the pay-for-referral nature of the service, have just been called unethical by the South Carolina Bar's Ethics Advisory Committee.