"50/50” Compensation Schedule
At the request of certain clients, KMK Collections developed an alternative to the usual contingency fee basis and traditional time and billing, that shares the risk and upside on success between the creditor client and KMK. In essence, the creditor and KMK share the risk of collection.
This is done by combining the most popular contingency fee approach with the traditional time and billing method. KMK only bills out 50% of its usual hourly rates for the time, effort, overhead and expertise it expends in pursuing a commercial collection and, if a law suit is necessary, 50% of the usual suit fee is charged. However, In addition, 50% of the usual contingent commission is levied when KMK recovers the subject account.
The creditor client can get “burned” for only half of any time and billing loss, and KMK will earn only 50% of the usual commissions on collections made plus 50% of the usual suit fee in the event legal action was required. This procedure splits the risk of collection between a creditor/client and KMK Collections. Many clients find this “50/50” compensation structure appealing, especially in the placement of larger accounts for collection.
If there are any questions with respect to the “50/50” compensation election, feel free to contact us at KMKsc@KMKlawfirm.com or by telephone at 414-962-5110 to discuss these further.
