I have no problem with that arrangement IF it is agreed to before the work is done.  We had one client that sent us several orders a couple of years ago.  When they got behind, I called them and they said that those files never closed.  I explained that we did the work and we still expected to be paid.  They said that before us they used an attorney and he didn't charge them if the order didn't close.  Of course, he was charging about twice our rate.  I offered to eat the ones that didn't close for twice our fee on the ones that did, but they didn't like that idea.  They paid their bill and we severed our relationship.

If there is some additional compensation for taking the risk, and its acceptable to the abstractor, I don't think there is anything wrong with it.  The problem more often seems to be that the client decides not to pay for canceled orders after the work has been done and the abstractor never agreed to such an arrangement. 

Best,
Robert A. Franco
SOURCE OF TITLE