This article is part of our Law Firm Marketing Guide: how clients find lawyers online, what the advertising rules allow, and how to choose the right help. Want to know where your firm's site stands? Get a free 20–30 page website audit within 24 hours.
Lawyers can usually pay for leads, but only within limits. Under the ABA Model Rules, a lawyer may pay a lead generator if it does not recommend the lawyer, the payment does not share legal fees with a nonlawyer, and the generator's messages are not false or misleading. States add their own rules and opinions, and they do not all agree.
Pay-per-lead offers arrive in every firm's inbox. Some are plain advertising. Others look like a referral service, or tie the price to the fee you earn. The difference matters, because the lawyer, not the vendor, answers to the bar.
This guide explains the ABA framework, two state opinions, and a checklist for reviewing a lead program. It is part of our Law Firm Marketing Guide. It is marketing guidance, not legal advice. Confirm your own state's rules with your state bar or ethics counsel.
Key Takeaways
- ABA Model Rule 7.2(b) bars paying anyone for recommending a lawyer, with listed exceptions such as the reasonable cost of advertising.
- Comment 5 to Rule 7.2 allows paying for leads if the generator does not recommend the lawyer and its communications comply with Rule 7.1.
- Payments that share legal fees with a nonlawyer raise problems under Rule 5.4; several state opinions have rejected fee-based or per-matter pricing.
- ABA Formal Opinion 501 shows a lawyer can be responsible for a lead generator's improper live solicitation.
- New York's Ethics Opinion 1131 allowed a fixed-fee lead service under conditions; Ohio's 2016 opinion rejected per-matter marketing fees for unregistered services.
What ABA Model Rule 7.2 says
ABA Model Rule 7.2(b) says a lawyer shall not give anything of value to a person for recommending the lawyer's services. It then lists exceptions. A lawyer may:
- pay the reasonable costs of advertisements or communications permitted by the rule
- pay the usual charges of a legal service plan or a not-for-profit or qualified lawyer referral service
- pay for a law practice under Rule 1.17
- enter a reciprocal referral agreement that is not exclusive, if the client is told about it
- give nominal gifts as thanks that are not a form of compensation
The comments to Rule 7.2 fill in the detail.
What counts as a "recommendation"
Comment 2 says a communication recommends a lawyer if it "endorses or vouches for" the lawyer's credentials, abilities, competence, character or other professional qualities. Directory listings that list lawyers by practice area, "without more," are not recommendations.
What advertising you can pay for
Comment 3 lists permitted costs, including online directory listings, internet-based ads, domain names, group advertising and paying "website designers" and other marketing vendors. So paying an agency for SEO, ads or a website falls under this exception, as long as the content follows the rules.
Paying for leads
Comment 5 is the key text for lead generation. It says a lawyer may pay others for generating client leads, "such as Internet-based client leads," as long as:
- the lead generator does not recommend the lawyer
- any payment is consistent with Rule 1.5(e) on dividing fees and Rule 5.4 on professional independence
- the generator's communications are consistent with Rule 7.1
It adds that a lawyer must not pay a lead generator that states or implies it is recommending the lawyer, is making the referral without payment, or "has analyzed a person's legal problems" when choosing which lawyer gets the lead.
Referral services and reciprocal deals
Comment 6 limits payments to not-for-profit or "qualified" lawyer referral services, meaning ones approved by an appropriate regulatory authority. Comment 8 allows reciprocal referral agreements only if they are not exclusive, the client is informed, and they are reviewed periodically.
The fee-sharing problem
ABA Model Rule 5.4(a) says a lawyer or firm "shall not share legal fees with a nonlawyer," with narrow exceptions. Rule 5.4(c) adds that a person who recommends or pays the lawyer must not direct the lawyer's professional judgment.
That is why pricing structure matters as much as the service. A flat fee per lead looks like an advertising cost. A percentage of the fee from a signed case looks much more like fee sharing.
When a lead generator solicits for you
ABA Formal Opinion 501, issued 13 April 2022 and listed in the ABA's index of formal ethics opinions, deals with solicitation under Model Rule 7.3. One hypothetical involves a firm paying a lead generator a flat monthly fee for mass tort leads. The generator's staff phoned people discussing accidents online and offered representation.
The opinion concluded the calls were prohibited live solicitation made on the lawyer's behalf. Because the lawyer learned how the leads were obtained and kept accepting them, the opinion found violations of Rules 7.3(b), 8.4(a) and 5.3. It also said failing to train the lead generator on solicitation limits violated Rule 5.3(b).
The lesson: ask how the vendor gets its leads, and write limits into the contract.
State examples
State rules and opinions control, and they differ. Two examples:
New York: Ethics Opinion 1131 (2017)
The New York State Bar Association's Ethics Opinion 1131 said a lawyer may pay a for-profit service for leads from a website where people agree to be contacted. Its conditions included:
- the lawyer is chosen by "transparent and mechanical methods" not based on analyzing the legal problem or the lawyer's qualifications
- the service does not explicitly or implicitly recommend any lawyer
- the lawyer pays "a fixed sum to participate, unrelated to the lawyer's retention"
- the service's website complies with New York's Rule 7.1
The opinion overruled an earlier New York opinion, N.Y. State 902 (2012), as to payment of a marketing fee.
Ohio: Advisory Opinion 2016-3
The Supreme Court of Ohio's news service reported on Advisory Opinion 2016-3, approved by the Board of Professional Conduct on 3 June 2016. It said participating in an online, nonlawyer-owned referral service that charges a marketing fee for each legal service completed "is unethical." It said fees tied to individual representations or a percentage of a fee are not permissible unless the service is registered with the Supreme Court.
These two opinions show why you cannot generalize. Check whether your state has its own opinion, and whether it has been updated, as of October 2026.
How common lead sources compare
| Source | How you pay | Main ethics question |
|---|---|---|
| Your own website and SEO | Agency fee for work | Content must meet Rule 7.1 |
| Google Ads | Per click | Ad content and any state filing duty |
| Google Local Services Ads | Per lead, per Google's LSA page | Badge and profile wording |
| Directory listing | Flat listing fee | Does the listing "recommend" you? |
| Pay-per-lead network | Per lead | Recommendation, selection method, shared leads |
| Lawyer referral service | Usual charges | Is it not-for-profit or qualified? |
| Pricing as share of fees | Percentage of fee | Fee sharing under Rule 5.4 |
Leads from your own site avoid most of these questions, which is one reason firms invest in it. See law firm SEO vs PPC and our guide to Google Local Services Ads for lawyers.
Checklist before you sign a lead program
- How does the vendor find people? Any live calls or messages to people known to need help?
- Does any page, ad or script say or imply it recommends or vets you?
- How is the lawyer chosen for each lead? Is it mechanical and disclosed?
- How many firms get the same lead?
- Is the price fixed per lead or period, or tied to signed cases or fees?
- Does the vendor claim to be a "referral service"? If so, is it qualified or registered where you practice?
- Can you review and approve all copy that names your firm?
- Can you audit call recordings and scripts?
If any answer is unclear, get it in writing, then check it against your state's rules.
Next step
Leads you generate through your own website and profiles are the simplest to keep inside the rules. See how we build that for firms on our law firm marketing services page, or schedule a discovery call to review your current lead sources with us.
Frequently asked questions
Can lawyers pay for leads under the ABA Model Rules?
Yes, within limits. Comment 5 to Rule 7.2 allows paying for leads if the generator does not recommend the lawyer, the payment is consistent with Rules 1.5(e) and 5.4, and its communications comply with Rule 7.1. Your state's version of the rules controls.
Is a per-lead fee the same as a referral fee?
Not necessarily. A fixed per-lead fee to a service that does not recommend lawyers may be treated as an advertising cost, as in New York Opinion 1131. A fee tied to signed cases or a share of fees has been rejected in some states, such as Ohio in 2016.
Am I responsible for what a lead generator says?
You can be. ABA Formal Opinion 501 found a lawyer responsible for a lead generator's prohibited phone solicitation once the lawyer knew how leads were obtained and kept accepting them.
Are directory listings a "recommendation"?
Comment 2 to Rule 7.2 says directory listings that list lawyers by practice area, without more, are not recommendations. Listings that vouch for a lawyer's quality may be treated differently.
Where can I get a definitive answer for my state?
Your state bar's ethics hotline or published opinions, or ethics counsel. Opinions differ by state and can change, so check the current version.
