Legal Question in Business Law in Arizona

Charging consulting fees as a percent of increased business

I am a Management consultant and a potential client cannot afford my standard fee. As such I have offered to charge based--name removed--taking a percentage--name removed--the increased gross revenue realized by my client as a result--name removed--my services. This fee is capped at a level that is higher than my standard fee but still a reasonable amount. A business acquaintence has suggested that this practice is against the law.

Is this practice against the law?


Asked on 5/30/02, 10:01 pm

1 Answer from Attorneys
Charles Aspinwall Charles S. Aspinwall, J.D., LLC

Re: Charging consulting fees as a percent of increased business

It is not unlawful to charge a fee based upon the results of your services so long as the fee is reasonable and bears a reasonable relationship to the services provided. Similar arrangements providing for a fee based upon a percent of savings are also common.

Read more
Answered on 5/31/02, 5:15 am


Related Questions & Answers

More Business Law questions and answers in Arizona