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hermes-skills/skills/devops/debt-recovery-workflow/references/dre-fee-structure.md
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DRE Fee Structure — Proposed for Tony

Standard Fee Schedule

Claim Amount DRE Fee Client Receives
$1,000 $5,000 25% (min $250) 75%
$5,000 $15,000 22% 78%
$15,000+ 20% 80%

Includes: email demand, Stripe ACH payment link, 14-day response window

Tier 2 — Formal Demand (certified mail via LetterStream)

  • Flat 30% across all claim amounts
  • Client receives 70%

Includes: Tier 1 + certified letter, 15-day demand notice, proof of delivery

Tier 2.5 — Lien Threat (construction claims only)

  • 30% if pre-lien notice resolves it (DRE-led)
  • 30% + attorney filing fee if actual lien filed

Tier 3 — Escalation (final notice + intensive contact)

  • Flat 33% across all claim amounts
  • Client receives 67%

Includes: Tier 1-2 + final demand, skip tracing, enhanced debtor research

DRE referral fee Law firm litigation fee Client receives
10% 25% 65%

DRE handles: case file prep, document transfer, client communication Law firm handles: filing, court appearances, judgment enforcement

Example — $15,000 Claim

Scenario DRE Fee Client Gets Timeline
Tier 1 (email) $3,300 (22%) $11,700 2-14 days
Tier 2 (certified) $4,500 (30%) $10,500 15-30 days
Tier 3 (final notice) $4,950 (33%) $10,050 30-60 days
Tier 4 (litigation) $1,500 (10%) + $3,750 (firm) $9,750 60-180 days

Out-of-Pocket Costs (passed to debtor or deducted from proceeds)

Cost Amount When
Online notarization (LPOA) ~$25-35 Per claim
Identity verification ~$4 Per signer
Certified mail ~$8.34 Per letter
Court filing fees ~$250-400 Tier 4 only

Questions for discussion with Tony

  1. Flat 30% across all tiers vs tiered rates?
  2. Minimum fee floor ($250)?
  3. Volume discounts for repeat clients?
  4. Payment processing fees passed to debtor?