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.
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 |
|
|
|
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 |
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 |
Wisconsin Lawyer
