• Traditional law firms are outdated.
  • Meanwhile, virtual law firms have increased in popularity.
  • Virtual law firms have little to no overhead.
  • With little to no overhead, attorneys can make more money at virtual law firms.
  • Still, there are pros and cons to virtual law firms.
 
Are Virtual Firms

Lately, I have been speaking with lots of partners (1) who have gone to virtual law firms and wanted out, (2) who formerly worked in virtual law firms, and (3) who are considering working in virtual law firms. I also have been speaking with some virtual law firms themselves.
 
A. Harrison Barnes
Harrison Barnes

The “pitch” of most virtual law firms is that the “traditional” law firm model is outdated. Virtual law firms tell their “recruits” that they do not need to come into the office, can keep more of the money they bill, and can still do high-quality work for their clients. In return for bringing everyone under their umbrella—a website, client billing, and (some) “shared technology”—the virtual law firm will take a smaller percentage of the money coming in than a traditional law firm would.

Let’s do the math here. For an attorney with a $1,000,000 book of business, the math can look amazing:
 
  • Virtual law firm:                            $650,000 to $850,000
  • Traditional law firm:                      $300,000 to $650,000