The majority of the public have the perception that most lawyers are sitting around in their plush offices charging $400 to $1,000 per hour living the high life profiting from other people’s problems. While some lawyers charge these exorbitant fees and make a very good living from doing so the majority of working lawyers do not earn nearly as much as you might expect.
It takes years of study and then many years of legal practice for lawyers to receive a good salary in most cases so why are their charge out rates so high.
The legal markets for all areas of law are flooded with lawyers with similar levels of experience and qualification. To stand out from the crowded marketing is a major cost to most law firms. After considering website promotion, Google AdWords rates, and other online promotion through social media the cost starts to escalate quickly and this is the bare minimum and only methods that some smaller firms can afford. This can cost a small firm up to about $100,000 per year.
It is only the bigger firms who can afford television, billboard and radio marketing which can run into the millions per year. That is a lot of work hours for their lawyers to make up before they start making money for themselves.
Most lawyers still work from expensive commercial premises whether they be suburban or inner city. The yearly rent in major cities is massive and this needs to be paid before the lawyer’s income can even pay for salaries and office costs.
Considering the number of letters and emails a lawyers will send out on a daily basis as well as filing Court documents and liaising with other organisations and government bodies every lawyer needs help with support staff. These staff need to have skills to work well for the lawyer and their salaries reflect this. Taking into account that even small firms require a skilled office manager and accounts personnel you can see why the earners need to charge high fees.
Research facilities and extensive libraries that require constant updating to stay relevant for client’s when representing them in Court and advising are always required by solicitors. These are very expensive.
Due to the very litigious nature of lawyers and even their own client’s lawyers need to pay extremely high premiums for professional indemnity insurance. These are further prohibitive costs that need to be paid on a yearly basis.
Many clients require lawyers who have a particular expertise in a narrow area of the law. These lawyers often take decades honing their skills in an area and are able to study to become Specialist solicitors in that field. As these lawyers are highly skilled they often charge accordingly. Are their higher fees worth the extra charge? Well, if they can achieve better outcomes when the stakes are high most clients would believe that it has been money well spent.
Considering the above factors (which are not exhaustive) it is easy to see why lawyers charge so much. In reality, it is only a select percentage of the legal profession who earn very good salaries and these people are generally those who are partners in large law firms who have worked hard for years to get there.
The Law App is new and innovative technology that offers the general public the best and most experienced lawyers at sometimes less than half their normal charge out rates.
The Law App is a web based system that allow clients to set out their legal problem and set out either, what they want to pay a lawyer per hour or, set out a total budget they have to complete the required work on a legal problem.
The relevant lawyers who are already registered and keen to work then respond to the client with their “pitch” and the client gets to choose which lawyer they want to work with and at what rate. This means that- The lawyers are chasing the client rather than the other way around.
Read this article HOW TO GET YOUR LAWYER WORKING FOR YOU FOR MUCH LESS
All lawyers have some down time and experience times throughout the week or month when they could be working and otherwise aren’t.
Another factor to consider is that some experienced lawyers are old school. Many don’t even have a website. These lawyers are finding it harder in the current market to have their reputation alone bring in new clients by referral only.
Some lawyers are willing to forego the expensive office space and work at home offices to service client’s needs at a reduced rate to improve their competitive advantage. With technology such as The Law App and online video conferencing the traditional view that a lawyer needs an office is changing.
A major drawcard for the general public and lawyers alike is that it’s free for clients to search for the right lawyer by registering with The Law App. The lawyer foots the bill as the small fee to use The Law App it is built into the agreed cost of doing the work for the client.
All of this means that the lawyer can (and will) work for new clients at much-reduced rates.
“You get the Lawyer you want for the price you can afford”
“The Law App: Putting all the Law you want on the World Wide Web”