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My firms partner payment formula is hilariously bad for me
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Date: November 20th, 2023 11:09 PM Author: Supple brindle sandwich church building I work at a smaller ID firm that has a wills and trusts practice as well. We calculate partner % of distributions annually based on a 2 year running average of 4 buckets-shares, supervised revenue, individual revenue, and new client revenue. Every year, each bucket is totalled up and then your precent of the whole for each category is multiplied by .25 then added together with the other 3 categories to equal what your percentage of each distribution will be. Mine is around 10% now.
First 3 makes sense, but new client is most valuable and benefits the wills and trusts guys big time. A “new client” is one the firm had not had before and any revenue received over the first 2 years the client is new counts as new client revenue. For us ID guys, getting a new client is fairly rare as there are only so many insurers to represent. For wills guys, it’s like 100% of their individual and supervised revenue bc how many times do you need a will.
We have a guy who oversaw 275k in business last year and billed 350k ( some of his work was for other partners clients) whose about to end the year making 260k. Meanwhile, I oversaw 600k and billed 450k and have more shares than him and I’m about to make 210k lol.
Told guy I wanted to recalculate the formula and he says he was underpaid as associate and since that wasn’t fair it’s only right he get paid more now despite the fact that our associate pay is based on collections in large part, which he didn’t have.
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Date: November 20th, 2023 11:25 PM Author: Clear Stage Persian So you'll make $210k and that's before Uncle Sam slides its big dick in you for its cut? (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47080911) |
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Date: November 21st, 2023 9:01 AM Author: Supple brindle sandwich church building Basically. I’m on track to make 260k next year based on my increase in new client and individual billing’s from this year (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47081523) |
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Date: November 21st, 2023 9:38 AM Author: Appetizing magenta trump supporter indian lodge stupid shit like this you need to just set a total comp number and back into it using bullshit metrics to justify. you end up with half the ppl making out like hyenas and half pissed and looking to quit if you don't. it would be easier to just pay everyone a salary. (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47081601) |
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Date: November 21st, 2023 2:25 PM Author: maize national security agency Who cares whether the clients are new or not? Money is money. (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47082786) |
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Date: November 21st, 2023 8:40 PM Author: Supple brindle sandwich church building Exactly the argument we’ve been having. Basically it incentivizes you to take lower paid work for new client revenue since it’s the easiest way to boost your income as it’s only compared against other new client revenue. It will always benefit wills guys because 100% of their revenue is always new client. (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47084335) |
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Date: November 21st, 2023 9:02 PM Author: Crystalline laughsome psychic puppy I think it is easier to charge new clients more. (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47084408) |
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Date: November 21st, 2023 9:06 PM Author: Supple brindle sandwich church building I’ve done the math, I personally make more by getting in clients that bill $100 per hour new than I would getting clients paying 800 per hour old. (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47084428) |
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Date: November 21st, 2023 9:12 PM Author: Crystalline laughsome psychic puppy Take that example to your partners and that should force them to agree to a change. (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47084454) |
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Date: November 21st, 2023 9:17 PM Author: Supple brindle sandwich church building Have done so. One will guy protects other will guy. The main partner on my side makes enough that he doesn’t give a shit and just wants us to resolve it. Secondary will guy sees this as his reward for being underpaid for last 14 years. It literally only benefits him. Will prob get some concession to alter it this year but dude is pissed like you wouldn’t believe. The concession that he has agreed to will cost him $50k next year (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47084488) |
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Date: November 21st, 2023 9:19 PM Author: Crystalline laughsome psychic puppy My partnership formula is pretty 180 for new partners. Half of the profit is an even split between partners and the other half is divided based on revenue over the last 5 years with the most recent years weighted the most. (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47084499) |
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Date: November 21st, 2023 9:31 PM Author: maize national security agency Then that shows up in collections, etc. (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47084536) |
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Date: November 21st, 2023 9:34 PM Author: Crystalline laughsome psychic puppy I always get big retainers from new clients. (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47084546) |
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Date: November 21st, 2023 9:36 PM Author: maize national security agency Which would be accounted for in your billings and collections. (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47084558) |
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Date: November 21st, 2023 9:37 PM Author: Crystalline laughsome psychic puppy I thought you were saying something else. Nevermind. (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47084567) |
Date: November 20th, 2023 11:22 PM Author: Light mood How many partners? (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47080905) |
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Date: November 21st, 2023 9:01 AM Author: Supple brindle sandwich church building 6. One partners comp is around $800k, but he’s responsible for $4m in billings (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47081522) |
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Date: November 21st, 2023 9:44 PM Author: Light mood What's your hourly rate? (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47084637) |
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Date: November 20th, 2023 11:25 PM Author: cobalt deer antler sounds like retards scuffling performing jew math (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47080912) |
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Date: November 21st, 2023 2:23 PM Author: snowy philosopher-king gaping mfcr (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47082771) |
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Date: November 21st, 2023 3:01 PM Author: House-broken Dog Poop Office (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47082981) |
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Date: November 20th, 2023 11:26 PM Author: concupiscible vermilion milk tanning salon sounds like the perfect storm for the firm to split up (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47080915) |
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Date: November 20th, 2023 11:26 PM Author: Khaki House Queen Of The Night that’s actually offensive. op, i don’t want to come off as combative because i don’t know who you are. it seems you recognize there’s a problem and are hopefully taking the initial steps to solve it. but, as an intellectual exercise, i simply cannot imagine being represented by an attorney—a role that requires understanding all of the relevant facts of a given situation and using insight/positioning/leverage/creativity/etc. to achieve the optimal outcome therefrom—if this is the best he can do for himself. |
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Date: November 21st, 2023 9:02 AM Author: slate plaza Wow man that only leaves a shitload of money for you, I'll say a prayer. Amazing you were butthurt enough to write that whole screed about it (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47081525) |
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Date: November 21st, 2023 9:02 AM Author: indecent telephone $210k is laughable
Enjoy poverty |
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Date: November 21st, 2023 2:19 PM Author: Supple brindle sandwich church building I live in are country. My house cost $465k and I pay $2k in property tax a year. (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47082748) |
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Date: November 21st, 2023 2:19 PM Author: Appetizing magenta trump supporter indian lodge those taxes are abnormally low or you way overpaid for your house (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47082750) |
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Date: November 21st, 2023 2:21 PM Author: Supple brindle sandwich church building we have a 180 credit system for primary residences. Vacation state where second homes are taxed to death. (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47082761) |
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Date: November 21st, 2023 2:24 PM Author: maize national security agency What's your rate? (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47082778) |
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Date: November 21st, 2023 2:24 PM Author: Fuchsia stock car jap that's a horrible way to do things. fuck that. (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47082779) |
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Date: November 21st, 2023 2:24 PM Author: Chartreuse useless brakes My firm's formula, if it exists, is a secret (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47082782) |
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Date: November 21st, 2023 2:26 PM Author: maize national security agency Are you a partner? (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47082790) |
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Date: November 21st, 2023 2:53 PM Author: Jet-lagged burgundy crackhouse genital piercing I get calls all the time from lawyers, accountants, doctors, whoever. " Okay. And how is your compensation calculated?" *Pause* " I have no idea" (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47082919) |
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Date: November 21st, 2023 2:57 PM Author: Chartreuse useless brakes Well, I know how it's calculated. The remuneration committee exercises its infinite wisdom and writes down a number on a piece of paper. (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47082945) |
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Date: November 21st, 2023 3:02 PM Author: maize national security agency Is the idea that people don't respond to economic incentives, so why bother trying? (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47082985) |
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Date: November 21st, 2023 3:04 PM Author: Chartreuse useless brakes I think the idea is that those in charge would prefer to take a "holistic approach" (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47082999) |
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Date: November 21st, 2023 3:15 PM Author: maize national security agency Read: They like blowjobs. (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47083095) |
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Date: November 21st, 2023 8:55 PM Author: Big-titted boyish regret corn cake WTF.
Assuming you paid off of your billings alone and billed 1,500 hours -- that's only $140 / hour.
How is that possible? |
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Date: November 21st, 2023 8:56 PM Author: Big-titted boyish regret corn cake Why would you not just go solo, WFH and make 2x as much working 1/2 as much? (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47084386) |
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Date: November 21st, 2023 9:35 PM Author: maize national security agency (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47084552) |
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Date: November 21st, 2023 9:05 PM Author: Supple brindle sandwich church building There is no planet in which you’re paid 100% of your billables. Get real bro (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47084424) |
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Date: November 21st, 2023 9:35 PM Author: Big-titted boyish regret corn cake I said "assuming..." (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47084548) |
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Date: November 21st, 2023 8:58 PM Author: Crystalline laughsome psychic puppy The wills guys are more valuable because if your carrier leaves, you don't have anything. The will guys can get through good times and bad times.
Why can't you get non-ID clients? I started on almost 100 percent ID now I barely do any. |
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Date: November 21st, 2023 9:03 PM Author: Supple brindle sandwich church building I say ID, we’re about 30% ID, 60% SIRs and 10% wills. There is no scenario where wills guys could support the firm. They’re literally getting paid 60% of their collections as is. Probably generate 3/24 distributions per year. (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47084418) |
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Date: November 21st, 2023 9:12 PM Author: Crystalline laughsome psychic puppy What is SIRs? (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47084449) |
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Date: November 21st, 2023 9:13 PM Author: sickened aqua nursing home antidepressant drug Self insured retention (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47084457) |
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Date: November 21st, 2023 9:42 PM Author: maize national security agency How is that different from insurance defense? Do they hire one firm until they hit the SIR and then pass it off to the insurer's chosen firm?
Whenever I've been involved in a case with a SIR, the insured cuts a check to the insurance defense firm or the insurer up front, and it proceeds like any other insurance defense case. |
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Date: November 21st, 2023 9:13 PM Author: Supple brindle sandwich church building Self insured retentions where company controls counsel selection. Better rates, more diversity of client base, less ID bs. (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47084459) |
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Date: November 21st, 2023 9:43 PM Author: maize national security agency What sort of policies? (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47084626) |
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Date: November 21st, 2023 9:57 PM Author: elite arousing ape stead How do you get ID clients (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47084694) |
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Date: November 21st, 2023 9:37 PM Author: elite arousing ape stead How did you get ID clients (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47084572) |
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Date: November 21st, 2023 9:40 PM Author: Crystalline laughsome psychic puppy I have barely ever got any. (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47084603) |
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Date: November 21st, 2023 9:20 PM Author: Galvanic smoky digit ratio Thought this said baby formula all day (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47084502) |
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Date: November 21st, 2023 9:55 PM Author: Angry Vibrant Circlehead Are you gen x lol (http://www.autoadmit.com/thread.php?thread_id=5447693&forum_id=2#47084688) |