Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Accounting and Financial Planning for Law FirmsLJN NewslettersNewsSections

Hang Together, or Be Hung Separately: The Collective Compensation Dynamic

By Ed Poll
January 30, 2008

Law firms, in many ways, mirror their clients/customers. To the extent that law firms provide the service their clients need, at the price clients are willing to pay, they will grow. Otherwise, they will be challenged to stay in business. Every law firm, like every other business, has three common functions that must be done to ensure success: Get the Work (sales); Do the Work (production); and Get Paid (finance). Lawyers need to understand the interaction between what law firms charge clients for their services, how effectively they collect their fees from clients, and how lawyers themselves are compensated for the work that they bill. The goal of that understanding should be creating an integrated approach to the entire issue of fees, collection, and compensation.

Many lawyers, unfortunately, seem to lack an understanding of this integration concept and refuse to look beyond the immediate impact of their own hourly rates. The broader implications of how fees, collections, and compensation interact tend to diminish and be depreciated. Yet nothing is more important to the future of a law firm's financial success than removing the fees issue from the individual context alone and placing it at the heart of the firm's financial life.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
New York's Latest Cybersecurity Commitment Image

On Aug. 9, 2023, Gov. Kathy Hochul introduced New York's inaugural comprehensive cybersecurity strategy. In sum, the plan aims to update government networks, bolster county-level digital defenses, and regulate critical infrastructure.

The Bankruptcy Hotline Image

Recent cases of importance to your practice.

The DOJ's Corporate Enforcement Policy: One Year Later Image

The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.

How AI Has Affected PR Image

When we consider how the use of AI affects legal PR and communications, we have to look at it as an industrywide global phenomenon. A recent online conference provided an overview of the latest AI trends in public relations, and specifically, the impact of AI on communications. Here are some of the key points and takeaways from several of the speakers, who provided current best practices, tips, concerns and case studies.

CLE Shouldn't Be the Only Mandatory Training for Attorneys Image

Each stage of an attorney's career offers opportunities for a curriculum that addresses both the individual's and the firm's need to drive success.