Someone recommended I ask this here. I'm five years into practice, and I own a small firm that is currently expanding. I'm in talks with an experienced attorney (30+ years) with an excellent reputation who will be joining my firm part time (rather than retiring) to be paid a percentage of his top-market billable rate. Can anyone provide any examples of origination incentives for a relationship like this? I thought 15% of originated revenue, on top of billable percentage.

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Idk but best negotiation tactic is to first ask him what he had in mind and work from there

The practice specialty makes a difference. In PI we usually do 1/3 of attorneys fees for cases that are brought in.

Here is a thought. I run a small transactional firm - 3 attorneys. The new partner, P, whatever the percentage you pay - will generate work and subsidize other office help / overhead or even a new associate. Meanwhile you continue to grow your practice. In my area the top referring rate by the bar is 25% and I pay that for new fees actually paid (expenses come off the top). I will honor that arrangement for any referrals to the firm. However, any referral generated by a referred client is mine 100% - say P refers person A. A falls under our arrangement. A later tells his friend X to use the firm - no fee on X. This puts some pressure on P to be out generating work. I also pay P a percentage of the actual hours P works. In my case P largely works at home and doesn’t use many firm resources so the payout is @52%. I don’t offer any other benefits - it’s a strictly “of counsel” relationship. I have one person who works for me in this way and it has been a great relationship for both of us. He does not perform a lot of legal work - but fields calls from old clients, etc., and the fees from the clients he generates have provided me with some more restful evenings as I can hire more staff to support my practice knowing I’m not the only person generating revenue. Also, I have also picked up a few Xs (see above) along the way. I am in the process of negotiating another deal with P2. He seems very attracted to the deal. It’s possible I am being too generous at 25% but, at the same time, I want P to be incentivized. Moreover, I’m not sure the difference between 15% and 25% is hurting - particularly as it has freed me up to hire an associate who can perform some of the lower level work I prefer to review. Happy to discuss off line.

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