Historically, big, full-service law firms have commanded premium rates because (1) they recruited top-flight lawyers from the best law schools, and (2) they offered nearly every practice area under the sun. (1) + (2) = premium brand, which means more expensive, which implies better. This rationale has led many corporate clients to pay the Gold Standard law firm $250,000 to lose the same case that the Silver Standard law firm would have lost for half the price.
Well, the Great Recession has made us wiser judges of value. As that 3-minute video reveals, the big, Gold Standard law firms lost about 10,000 lawyers between 2008 and 2010, alone. But, those displaced attorneys didn't sulk for long. While some were grabbed by other law firms, many have banded together to form small, highly specialized law firms that I call microboutiques. Those enterprising attorneys now charge hundreds of dollars per hour less than they did at the Gold Standard law firms, and many of their clients have followed them to their new practices. In fact, I recently spoke with a former big-firm partner who launched a microboutique in Silicon Valley. His hourly rate has dropped by $300 per hour, and he's staying busy serving high-end corporate clients.
Make a resolution in 2013 to test-drive different attorneys. Look for the ones with big firm and in-house experience who've opened their own small boutiques. You may be pleasantly surprised by the experience.
Well, the Great Recession has made us wiser judges of value. As that 3-minute video reveals, the big, Gold Standard law firms lost about 10,000 lawyers between 2008 and 2010, alone. But, those displaced attorneys didn't sulk for long. While some were grabbed by other law firms, many have banded together to form small, highly specialized law firms that I call microboutiques. Those enterprising attorneys now charge hundreds of dollars per hour less than they did at the Gold Standard law firms, and many of their clients have followed them to their new practices. In fact, I recently spoke with a former big-firm partner who launched a microboutique in Silicon Valley. His hourly rate has dropped by $300 per hour, and he's staying busy serving high-end corporate clients.
Make a resolution in 2013 to test-drive different attorneys. Look for the ones with big firm and in-house experience who've opened their own small boutiques. You may be pleasantly surprised by the experience.
