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Vol. 74, No. 12, December 2001
|
The Economics
of Practicing Law: A 2001 Snapshot
See
how the business side of your practice compares to that of your peers in
several key areas: billing methods, hourly rates, overhead costs, personal
income, and more.
 Return
to main article
Figure
1
2000 Attorney Net Income by
Principal Position,
Full-time Attorneys Only
| Principal
Position |
N*
|
Mean
|
Median
|
| Sole
Practitioner |
151
|
$80,341
|
$61,000
|
| Sole
Practitioner with Associates |
25
|
107,600
|
96,000
|
| Sole
Practitioner Sharing Space |
12
|
76,417
|
46,000
|
| Partner
in Firm with 2-7 Partners |
156
|
121,352
|
100,000
|
| Partner
in Firm with 8+ Partners |
54
|
184,823
|
143,750
|
| Associate
in Firm with 2-7 Partners |
58
|
58,474
|
52,250
|
| Associate
in Firm with 8+ Partners |
43
|
93,105
|
85,000
|
| Arbitrators/Mediators/ALJ |
6
|
75,367
|
79,500
|
| City/State/County
Government |
146
|
72,864
|
75,000
|
| Federal
Government |
9
|
77,422
|
78,000
|
| In-House
Counsel |
69
|
89,196
|
80,000
|
| Legal
Aid/Legal Services |
9
|
53,556
|
45,000
|
| Law
Clerk |
5
|
31,800
|
34,000
|
| Other
Classifications |
13
|
66,153
|
60,000
|
| All
Attorneys |
758
|
$94,501
|
$79,000
|
| *N
= Number Responding |
|
|
|
Figure
2
2000 Annual Net
Income by Years in Practice,
Full-time Attorneys Only
| Years
in Practice |
N*
|
Mean
|
Median
|
| 1-2 |
42
|
$50,781
|
$42,650
|
| 3-5 |
72
|
57,546
|
49,500
|
| 6-10 |
117
|
71,796
|
65,000
|
| 11-15 |
111
|
90,716
|
78,500
|
| 16-25 |
240
|
106,902
|
85,000
|
| 26
or more |
170
|
122,761
|
95,105
|
| All
Attorneys |
758
|
$94,501
|
$79,000
|
| *N
= Number Responding |
|
|
|
Figure
3
Figure
4
Figure
5
Distribution of 2001 Attorney Hourly Billing Rates
by Region and City Population
| Office
Location |
|
|
|
| by
Region |
N*
|
Mean
|
Median
|
| Northwest |
85
|
$120
|
$120
|
| Northeast |
94
|
134
|
130
|
| Central/East |
100
|
146
|
125
|
| Southwest |
103
|
145
|
140
|
| Southeast |
72
|
154
|
150
|
| Milwaukee
County |
85
|
176
|
175
|
|
|
|
|
|
|
|
|
| Office
Location |
|
|
|
| by
City Population |
N*
|
Mean
|
Median
|
| Less
than 5,000 |
108
|
$117
|
$120
|
| 5,000-24,999 |
101
|
133
|
135
|
| 25,000-39,999 |
33
|
185
|
150
|
| 40,000-99,999 |
129
|
136
|
130
|
| 100,000
or more |
174
|
170
|
168
|
| All |
545
|
146
|
135
|
| *N
= Number Responding |
|
|
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Figure 6
2001 Typical Flat Fees Charged for Legal Services
|
%
Who Charge
|
Mean
|
Median
|
| Service |
a
Flat Fee
|
Fee
|
Fee
|
| Simple
Will |
87%
|
$134
|
$110
|
| Deed
Preparation |
83
|
82
|
75
|
| Power
of Attorney |
83
|
69
|
60
|
| Directives
to Physicians |
79
|
51
|
50
|
| Traffic
Tickets |
64
|
364
|
250
|
| Articles
of Incorporation/ |
|
|
|
| Association |
62
|
431
|
400
|
| Purchase
or Sale of |
|
|
|
| Real
Property |
49
|
426
|
400
|
| Sale
of Personal |
|
|
|
| Property/Bill
of Sale |
49
|
155
|
63
|
| Note
Preparation |
47
|
87
|
50
|
| Probating
a Will with |
|
|
|
| Independent
Executor |
31
|
1,725
|
1,700
|
| Patents/Trademarks |
29
|
3,069
|
2,750
|
| Other |
|
4,287
|
650
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Figure 7
2001 Use of Marketing Device by Firm Size
| |
|
1-10
|
11-25
|
>25
|
| Marketing
Device |
All
Firms
|
Attys
|
Attys
|
Attys
|
| Yellow
Pages Block Display |
60%
|
56%
|
69%
|
39%
|
| Firm
Brochure and Resume |
32
|
9
|
34
|
78
|
| Newspaper/Periodical
Articles |
20
|
12
|
21
|
31
|
| Employment
of PR Firm |
4
|
1
|
3
|
15
|
| Newspaper
Advertising |
18
|
16
|
18
|
19
|
| Marketing
Plan |
15
|
5
|
10
|
49
|
| Radio/TV
Ads |
13
|
8
|
18
|
14
|
| Seminars |
25
|
10
|
24
|
61
|
| Client
Newsletters |
20
|
3
|
17
|
62
|
| Web
Page |
32
|
12
|
32
|
76
|
| Listing
in Legal Directory |
48
|
31
|
52
|
74
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|
