I’m considering starting up on my own. I’m a 3rd yr associate- large PI firm. I understand I’m expected to generate fees well over my income but I can’t help but feel like I’m getting a raw deal. I’m making the firm about 8x my salary. No performance incentives, only an annual bonus. My “bonus” last yr was less than 1/2 of 1% of my fees. This year I’ll make the firm >$800k in fees, will be paid <$90k.
Am I getting shafted?
Am I crazy for thinking I can jump off at 3yrs experience?

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Yes, I say that doesn’t sound like you’re getting fair bonuses. We do a salary plus 5% of fees each month.
If you think you can bring in the clients than I’d go for it and go out on your own. Just remember it takes some time for that first case to settle so make sure you’ve got a cushion to float you until you can resolve some cases.

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I made my firm over one mil in my last year at a big pi firm. I started my own. I made about 270 k last year but spend 264. So it kind of evens out. Running a firm is expensive and hard af but also rewarding in a way working for someone else can never be.

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Am on the defense side — very different economics — but, in frankness, not sure you are citing the right metrics. Originations and Collections matter, yes. But rather than looking at the gross totals, think the question is whether you would have obtained and maintained those clients and collected what you did WITHOUT the current firm, which is what you will have to do if you leave. Being paid unfairly does not necessarily equate to likelihood of success post-departure.

Am a big fan of DIY. Will not practice any other way. But you will need to get your head too around the proposition that (even with great professional and admin support) it will all be on you. All the time.

Good luck!

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