Description
In this Q&A video, Harrison Barnes discusses the relationship between an attorney's book of business and their expected salary when transitioning to a new firm. He explains that attorneys with $500,000 to $600,000 in business typically receive around 50% to 60% of their book when moving to smaller firms, but much less when joining larger firms. Barnes outlines a general rule for partner compensation: one-third of the revenue goes to the attorney, one-third to partner profits, and one-third to the firm's overhead. He notes that while this structure is common, larger firms typically offer lower percentages due to better support and brand recognition, although the exact percentage can vary depending on the firm.
Question:
Is there a rule of thumb multiplier in terms of book size to salary, or perhaps a divisor? For example, if you bring in a book of business worth $500,000 to $600,000, what would be the accelerated expected range?
Answer:
I work with people all the time who have $500,000 in business, and when they move to smaller firms, they typically receive 50% or 60% of their book of business. However, if you were to join a larger firm, the percentage would be much lower—that’s just how it works. The general rule for partner compensation is as follows: one third goes to you, one third to partner profits, and one third to overhead (which includes the firm's office and other expenses). This is the most common structure across firms of various sizes, though not always. For larger firms, the percentage you receive from your book of business is usually lower, but it depends on the firm. The better the support and the brand, the larger the firm, the lower the percentage of your business you'll likely receive.
