Advice on bringing in client? Forum

[Anonymous User]

I work at a boutique, seven attorney firm and am in the process of bringing in what would be, by the firm's standards, a major client. It is not a done deal, but we're approaching that point.

I'm a fourth year associate and this is uncharted waters for me, so I'm mainly seeking advice on how to address compensation.

It's a niche practice and clients don't exactly walk through the door. There are junior partners here who have never brought in anything, let alone associates. This is to say, this was not expected of me at such an early stage in my career (if at all). My boss, who basically generates all business himself, has already acknowledged this.

Estimated yearly billings for this client would be 75k - 100k. I'd be doing all of the day-to-day work, with my boss overseeing as well as handling the big picture stuff. Frankly, I am already overworked as is, and this client would add significantly to my work load.

When the times comes, and I believe it will come soon, how do I address compensation? Is it ridiculous to request half of whatever the firm bills to the client? One third? (in the plaintiff's personal injury world, generally firms give 1/3 of the fee to the generating associate. We are not a PI but just using this as a frame of reference).

Or am I better off asking for a substantial raise, not tied to the client itself (so if client leaves, I'm still good)? A one time, lump sum bonus (just throwing this out there because I do have a wedding to pay for...)

Another option that has crossed my mind would be recommending an additional junior associate, which frankly the firm could use anyway.

TL;DR: Bringing in major client. Want to make sure I don't regret it by adding 15 hours to my workweek without being fairly compensated.

[AVBucks4239]

If this client is hiring you and not the firm, have you thought of starting your own practice (and would you be confident/comfortable/competent enough to do it)? Because it's probably going to be a long, long time before you're compensated what you deserve for bringing in a client like this.

You could probably just have this client and do appearance work for another $25,000 per year. Then add dumb luck into a couple other clients and you're probably close to $150,000/year being your own boss.

Just thinking outside the box here.

But if you're dead set on staying, I would propose a percentage of receipts, since that poses less risk for the firm. I certainly would recommend against another junior associate if you're just a fourth year.

[Anonymous User]

OP here. To clarify, the client would be hiring the firm, not me. But I did all the legwork, made the introduction, set up the meeting, prepared and delivered the pitch, etc. And, if hired, it would be me doing 80% of the work. It would definitely be my relationship.

I am in no position at the moment to hang my own shingle (but long term, this is effectively the plan).

[UVA2B]

OP here. To clarify, the client would be hiring the firm, not me. But I did all the legwork, made the introduction, set up the meeting, prepared and delivered the pitch, etc. And, if hired, it would be me doing 80% of the work. It would definitely be my relationship.

I am in no position at the moment to hang my own shingle (but long term, this is effectively the plan).

Would the client fire the firm if you weren’t on their work? How important you are to that client seems critical here.

[Anonymous User]

OP here. To clarify, the client would be hiring the firm, not me. But I did all the legwork, made the introduction, set up the meeting, prepared and delivered the pitch, etc. And, if hired, it would be me doing 80% of the work. It would definitely be my relationship.

I am in no position at the moment to hang my own shingle (but long term, this is effectively the plan).

Would the client fire the firm if you weren’t on their work? How important you are to that client seems critical here.

OP here. I honestly do not think client would fire firm in that case.

My rationale is that there must be some incentive for me to do this...otherwise I've just created way more work for myself. If I'm not compensated fairly, I'm not bringing in any more business (and my intuition is this client may snowball into others).

Like I said, it's a small firm and others have been rewarded with junior partnerships for simply showing up every day for 10 years. I have no problem communicating to my boss that I'll be simply opting for that trajectory. My work product is decent enough.

[gaddockteeg]

In biglaw, you generally get 8-15% of the total revenue for the matter you bring in.

I'd aim for 8-15% of this client's billings as a bonus for as long as this client is with your firm.

With that being said, given that the client is hiring the firm, and not you, don't be surprised if the firm gives you your initial 8-15% for the first matter. But then for every matter beyond that, you get nothing because this client belongs to another partner now.

[tyroneslothrop1]

Most firms have set policies for compensating associates who bring in business, e.g., 10% of billables. You should try and do as much of the work for this client as possible and be the primary contact for the client. That way, the client will think of you as their lawyer, and not the partner overseeing the file.

[r6_philly]

Most firms should have an origination policy, which should determine if you get credit for just the first matter, or perpetual billings. If they don't publicize one, you should ask. If the firm does not provide credit, and you can bring in a client (or more), you should consider another firm who pays for origination. I don't like firms who don't credit associates for bringing clients, because it certainly doesn't value or encourage client generation (or is being unfair). You do not have a future in those kinds of firms.

[run26.2]

If I were in this position, I'd be playing the long game. Given that the client is hiring the firm and you aren't that important to the client now, but at the same time, you're basically the relationship "partner," I'm not sure that you can push as hard as someone who is a partner who is bringing in business for the firm. That said, you have an opportunity here to make yourself both indispensable to this particular client as well as a very valuable member of the firm. Try to do all the work for the client and maintain all communications through you. Later down the road, perhaps other clients have also come in and you then have an argument that you need to be promoted to partner (early) or comp'd more, or you decide to leave. I just think it's hard to make the argument that you deserve a percentage of billings for one client brought in, when the client is gaining the resources of a firm and you've acknowledged they wouldn't fire the firm if you weren't the main attorney. Basically, this seems to me like an awesome, but long-term, opportunity for you.

r6 - good to see you again. Hope all is well.

[RW65]

The firm should have an origination policy, even if it is just for partners. I'd ask the firm to follow that policy for this client. If the firm doesn't have an origination policy I would ask for 20% of all fees paid by this client. The client would not have hired the firm without you, and the firm should acknowledge that.

As another poster said, if your firm won't give you origination credit for this matter, start looking for a shop that does.

[Bllljd115]

If I were in this position, I'd be playing the long game. Given that the client is hiring the firm and you aren't that important to the client now, but at the same time, you're basically the relationship "partner," I'm not sure that you can push as hard as someone who is a partner who is bringing in business for the firm. That said, you have an opportunity here to make yourself both indispensable to this particular client as well as a very valuable member of the firm. Try to do all the work for the client and maintain all communications through you. Later down the road, perhaps other clients have also come in and you then have an argument that you need to be promoted to partner (early) or comp'd more, or you decide to leave. I just think it's hard to make the argument that you deserve a percentage of billings for one client brought in, when the client is gaining the resources of a firm and you've acknowledged they wouldn't fire the firm if you weren't the main attorney. Basically, this seems to me like an awesome, but long-term, opportunity for you.

r6 - good to see you again. Hope all is well.

I think this post is spot on. I'd broach the topic of getting origination credit or extra bonus, but if they don't agree, use that to start having conversations about long-term partnership potential.

With respect to the work, hopefully you can use this to (gently) extract yourself from work you don't want to do and so your hours won't go up. It might take a couple of months to transition work away from you, but you're still coming out ahead because now you are putting a lot of your time into developing a client relationship, not just being shuttled between clients and matters depending on need.

[r6_philly]

If I were in this position, I'd be playing the long game. Given that the client is hiring the firm and you aren't that important to the client now, but at the same time, you're basically the relationship "partner," I'm not sure that you can push as hard as someone who is a partner who is bringing in business for the firm. That said, you have an opportunity here to make yourself both indispensable to this particular client as well as a very valuable member of the firm. Try to do all the work for the client and maintain all communications through you. Later down the road, perhaps other clients have also come in and you then have an argument that you need to be promoted to partner (early) or comp'd more, or you decide to leave. I just think it's hard to make the argument that you deserve a percentage of billings for one client brought in, when the client is gaining the resources of a firm and you've acknowledged they wouldn't fire the firm if you weren't the main attorney. Basically, this seems to me like an awesome, but long-term, opportunity for you.

This is solid and sensible advice. But it is also why I dislike firm structures. If one's long game is to grind it out for a shot at making partner, this is the way to go. Never was and never will be for me .

r6 - good to see you again. Hope all is well.

You are still on here! How have you been? We need to catch up.