Fee sharing law firms are a key part of the legal market. With growth in recent years, they are definitely here to stay.
Reports vary of the exact growth of these law firms; predictions are as high as one third of lawyers will be consultants by 2026 to one quarter of lawyers by 2025.
This month: Have you ever wondered if the grass is greener on the consultant side?
It is a very different way of working. You work with your own clients, handling their work and maintaining relationships directly. The ordinary arrangement is that once you are over 5 years PQE this can be a viable option for you.
As a consultant, how you work, or perhaps more importantly when you work, is controlled by you. So, you gain flexibility in terms of hours and work arrangements. Autonomy is definitely yours.
What could you earn?
The figures add up quickly, you can fee share which allows you to keep between 50-80% of what you bill according to the arrangement. Most firms are more, at the 70-80% banding. 50% is often when you really need your hand holding, in terms of the set up.
Some examples
On 50% of billing therefore you could bill £150,000 and earn £75,000.
On 80% of billing you could bill £150,000 and earn £120,000
Make that billings of £200,000 and you can take home between £100,000 (50%) and £160,000 (80%).
In the regions, not many salaries go up that high, and some partners might not even earn that amount! You get paid in direct relation to the money that you bring in. No discretionary bonuses or decisions from others that can affect your earnings or progression. If you want to take your foot off the gas for a week or a month that is fine! Your income will drop but no one will be watching your clock or your targets other than you!
The practicalities
There is, of course, a risk associated with the setup of such an arrangement as this is somewhat like running your own business (but with the safety net of a firm behind you showing you the ropes). You will need to get the work in, billed and paid to get up and running. So, you need an awareness that there could be a gap before your income begins. However, if you are confident in your client base then that risk is hugely mitigated. A good idea is to get some part time locum or project work to top up your income in the initial months, depending on your area of law this can work well.
How do I maintain a client base?
You do need a good client base or the ability to build one. But those business development skills can be learnt and most set ups have a marketing department and in house knowledge to support you.
What about networking?
You will lose the direct in-office interaction with colleagues, that might be seen as a blessing or a curse! But again, most firms operating in the field have well established systems in place to ensure that colleagues do have the chance to interact and communicate about work as well as the occasional social meet up too! You gain a solid network of other experts (your colleagues) who you can refer work too, which normally entails a referral fee of a lesser percentage that comes directly back to you. So, there is both the ability and the motivation to refer work on.
How do I start? It’s an area that has seen real growth and we know a whole range of law firms who operate in this way, so if you are interested to find out more, or even if you’d like to talk about how transferable your area of law is to the consultant framework then do get in touch.
As always if you’d like to discuss your career, your salary, your progression or promotion then just drop me a line.
Always happy to fix a time in the diary to talk.
