58% of corporate counsel say that law firms are too profitable


More than half of corporate counsel surveyed (58%) say they believe law firms are too profitable, according to the LexisNexis State of the Legal Industry Survey. This means clients feel they were ripped off, or overpaid for what they got from law firms. And clients are sending law firms a message: change or die.

This eye-opening statistic sums up the why there is high tension between law firms and clients, why the ACC Value Challenge is being pursued, and why firms must update their law firm marketing. It also means that the way law firms conduct commerce with their clients will change forever, starting right now, and that the change will be permanent.

Pricing is the No. 1 issue facing the legal profession today. Of course law firms respond that they have already cut salaries, laid off staff and lawyers, offered alternative fees, implemented hiring freezes, deferred start dates for new associates and use technology to be more efficient. But it's not good enough.

It's no good when corporate counsel read in the AmLaw 100 that 19 firms had annual profits per partner of $2 million or more, or that four law firms have lawyers charging $1000 per hour or more.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Larry Bodine, The National Trial Lawyers Association | Attorney Advertising

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