The Only 7 Reasons a Law Firm Will Make You Partner

Summary

The video script discusses the challenges and reasons behind becoming a partner in a major law firm. It highlights that psychological hurdles and firm economics often prevent promotions. Firms prefer to make partners of those bringing substantial business, connected to influential partners or clients, or possessing unique expertise. Exceptional work ethic can also pave the way to partnership. The script emphasizes that law firms are likely to make someone a partner only when it's advantageous for them, suggesting that becoming a partner signifies a significant contribution to the firm.

Takeaways

• 🚫 Attorneys often quit large law firms just before becoming partners due to psychological hurdles.
• 💼 Law firms are reluctant to make new partners to avoid increased financial burden and to maintain exclusivity.
• 💰 Firms are more likely to make attorneys partners if they bring in significant business or are expected to in the future.
• 🤝 Connections with powerful partners or clients can influence the decision to make someone a partner.
• 🔝 Hard work and high billable hours can lead to partnership if it significantly benefits the firm financially.
• 🏆 Firms may make partners to set an example or retain talent during times of high departures or low morale.
• 📈 The title of partner may be given when it has little meaning, such as in non-equity partnerships, to retain high-performing associates.
• 💡 Unique expertise or special skills that are valuable to the firm can lead to partnership.
• 🔗 Being connected to influential entities or having a notable reputation can make an attorney more likely to become a partner.
• ⚖️ Ultimately, law firms will only make someone a partner if they believe the individual adds more value than the partnership title costs them.

Q & A

Why do many attorneys quit close to becoming a partner in a large law firm?

Attorneys often quit close to becoming a partner due to psychological hurdles. The pressure and long hours can be overwhelming, and they may feel that the rewards do not justify the additional effort required to reach partnership.

Why are law firms generally reluctant to make attorneys partners?

Law firms are reluctant to make attorneys partners because it can be costly, especially in equity partnerships. Partners share in the profits, so adding more partners means dividing the pie among more people.

What is one of the main reasons a law firm might decide to make an attorney a partner?

A law firm might make an attorney a partner if they bring in a significant amount of business, as this can be very profitable for the firm.

How does an attorney's connection to powerful partners or clients influence their chances of becoming a partner?

An attorney's connection to powerful partners or clients can greatly increase their chances of becoming a partner. If these individuals advocate for the attorney, the firm is more likely to consider them for partnership.

What is the significance of an attorney being connected to a powerful client?

An attorney connected to a powerful client can significantly influence their career. If the client is enthusiastic about the attorney's work and brings substantial business to the firm, the firm may make the attorney a partner.

Why might an attorney be made partner due to their work ethic?

An attorney who works incredibly hard, bills a lot of hours, and sets the pace for the firm may be made partner to recognize their contribution and to motivate others.

How can an attorney's expertise or special skill contribute to their chances of becoming a partner?

An attorney with rare expertise or special skills that the law firm needs can be made partner because their unique abilities can bring in significant business or enhance the firm's reputation.

What is the impact of a law firm experiencing departures or morale issues on the decision to make an attorney a partner?

In times of departures or morale issues, a law firm might make an attorney a partner to set an example and retain talent. This can help stabilize the firm and prevent further losses.

Why might a law firm make someone a partner even if the title is meaningless?

A law firm might give someone a partner title without a significant change in income or responsibilities to keep them around for billing hours and generating revenue.

What does the transcript suggest about the true value of becoming a partner in a law firm?

The transcript suggests that becoming a partner is often a sign that the attorney is contributing more to the firm than they are receiving in return, making the partnership a significant value to the firm.

How does the transcript describe the relationship between an attorney's billable hours and their likelihood of becoming a partner?

The transcript indicates that attorneys who bill a lot of hours and are seen as leaders in their work ethic are more likely to be made partners, as they are directly contributing to the firm's profitability.

Outlines

00:00

🚶‍♂️ Quitting Before Becoming Partner

Many attorneys in large law firms quit before becoming partners, often close to the final stages. While sticking it out increases one's chances, the primary hurdles are often psychological. Law firms generally don't want to promote people to equity partners unless necessary, as it costs the firm more money. Partners who leave before reaching this milestone often make current partners feel more privileged and provide the firm with access to more profits. Firms may, however, promote non-equity partners as a way to make money without substantial financial investment.

05:02

💼 Business and Client Relationships for Partnership

The first major reason a law firm will promote an attorney to partner is if they bring significant business to the firm. For example, if an attorney brings in $10 million, they may only be paid $2 million, allowing the firm to profit greatly. Firms are inclined to make these high-revenue attorneys partners. Additionally, if an attorney is closely connected to a powerful partner or group with considerable business, their chances of partnership increase. In some cases, if a powerful partner moves to a new firm, they may require the firm to make their colleague a partner as part of the move.

🤝 Client Influence on Partnership

Another route to partnership is through strong client relationships. If an attorney works closely with a major client who is enthusiastic about their work and brings in significant revenue, the law firm may be inclined to make that attorney a partner to maintain the client's business. Building a strong relationship with a powerful client can significantly influence an attorney's career trajectory.

⏳ Hard Work and Billing Hours for Partnership

Attorneys who work extremely hard, billing the most hours and setting a high standard within the firm, often secure partnership. High billing not only generates substantial revenue but also demonstrates that the attorney is highly valued by clients and firm partners. Law firms are likely to promote attorneys who are seen as role models for others, as failing to do so could demotivate other hardworking attorneys. In times of firm instability, such as following partner departures, the firm may also make someone a partner to retain them.

⚖️ Meaning of the 'Partner' Title

In some cases, making someone a partner may not carry much weight, especially if the title is non-equity or income-based. In such instances, the compensation may not significantly change from that of a senior associate, and the title may simply be a means to keep the attorney working and billing more hours. However, there are cases where attorneys with rare skills, valuable expertise, or significant connections are made partners because the firm can't find similar talent elsewhere.

🔑 Special Skills and Contribution to Partnership

Law firms often promote attorneys who possess rare or specialized skills, such as a PhD in a relevant field, or those with government experience that appeals to clients. Attorneys with unique backgrounds, whether due to family connections, industry ties, or expertise in emerging fields like cryptocurrency, may be made partners because their skills are difficult to replicate. Ultimately, a law firm will only make someone a partner when they offer more value to the firm than the firm can offer them in return, signaling their significant contribution.

Keywords

💡Partner

A partner in a law firm is an owner or a shareholder with a significant stake in the firm's success. In the context of the video, becoming a partner is portrayed as a significant milestone that attorneys aspire to reach, often associated with increased income, prestige, and decision-making power within the firm. The script discusses various scenarios and reasons why a law firm might promote an attorney to partner, such as bringing in significant business or having valuable connections.

💡Equity Partnership

Equity partnership refers to a type of partnership where partners have an ownership stake in the firm and share in its profits. The script mentions that law firms are cautious about making people equity partners because it can be costly, as they would then share in the firm's profits. This concept is central to understanding the financial dynamics within a law firm and why certain attorneys might be more desirable as partners.

💡Non-Equity Partners

Non-equity partners are attorneys who hold the title of partner but do not share in the firm's profits or ownership. The script explains that law firms might make non-equity partners to profit from their work without sharing the financial rewards, which is a strategic move to retain talent and billable hours without the financial burden of equity partnership.

💡Business Generation

Business generation is the ability of an attorney to bring in new clients and revenue to the law firm. The script emphasizes that attorneys who can generate significant business, such as bringing in $10 million, are more likely to be made partners because they contribute substantially to the firm's profitability. This concept is crucial for understanding the business-oriented aspect of law firm partnerships.

💡Powerful Partners

Powerful partners are influential individuals within a law firm who have substantial business connections and decision-making power. The script suggests that being connected to powerful partners can increase one's chances of becoming a partner, as these individuals can advocate for someone's promotion. This highlights the importance of networking and relationship-building within the firm.

💡Billable Hours

Billable hours refer to the hours that attorneys charge to clients, which is a key metric for measuring productivity and profitability in law firms. The script mentions that working hard and having high billable hours can lead to partnership, as it demonstrates commitment and contributes to the firm's financial success. This term is central to understanding the performance expectations within a law firm.

💡Departures

Departures in the context of the script refer to attorneys leaving a law firm, which can create instability and affect morale. The script notes that law firms may make someone a partner to prevent departures and maintain stability. This term is important for understanding the human resources challenges that law firms face and the strategies they employ to retain talent.

💡Special Skills

Special skills are unique expertise or qualifications that an attorney might possess, such as a PhD in a specialized field or experience with cutting-edge technologies like Bitcoin. The script suggests that having such skills can make an attorney more valuable to a law firm, increasing their chances of becoming a partner. This concept underscores the importance of差异化技能在法律行业中的价值.

💡Incentive

Incentive in this context refers to the motivation provided to attorneys to perform at a high level, such as the prospect of becoming a partner. The script discusses how the title of partner can serve as an incentive for attorneys to work harder and bring in more business. This term is relevant to understanding the motivational strategies used by law firms to drive performance.

💡Morale

Morale refers to the general mental and emotional state of attorneys within a law firm, which can be affected by factors such as promotions, departures, and work conditions. The script mentions that law firms may make someone a partner to boost morale and prevent further departures. This term is significant for understanding the impact of firm culture and management on attorney satisfaction and retention.

💡Role Model

A role model in the context of the script is an attorney who exemplifies the qualities and achievements that others in the firm aspire to. The script notes that attorneys who work hard and bill a lot of hours can become role models, which can influence the firm's decision to make them partners. This term is important for understanding the influence of individual performance on firm culture and the potential for leadership within the firm.

Highlights

Attorneys often quit close to becoming a partner due to psychological hurdles.

Law firms are reluctant to make new partners to avoid increased financial burden.

Becoming a partner is more likely if an attorney brings significant business to the firm.

Growth in business can also lead to partnership despite starting with small amounts.

Connections to powerful partners can influence the decision to make someone a partner.

Association with powerful clients can be a pathway to partnership.

Hard work and long hours can lead to partnership if it significantly benefits the firm.

Law firms may make partners to prevent departures and maintain morale.

Partnership may be offered when the title has little meaning and is used to retain associates.

Special skills or expertise that are hard to find can lead to partnership.

Rare skills or unique experiences can make an attorney valuable for partnership.

Law firms are more likely to make someone a partner if they offer more value than they receive.

Partnership is often a sign of significant contribution to the law firm's success.

The decision to make a partner is driven by the firm's need for the individual's contributions.

Partnership is not just about the title but about the value an attorney brings to the firm.

Law firms may use the partnership title as a retention strategy for high-performing associates.

Transcripts

Attorneys don't want to be partners in large law firms will typically quit too soon, a

lot of times they'll quit very close to the finish line within months or even days becoming

a partner. Most people, they stick with it have a chance of making it, but most people

don't. And the main hurdles to becoming a partner in a major law firm or most often

psychological. Well, in general, law firms don't want to make people partner because

if they make people partner, especially in situations where it's equity partnership,

it's going to cost a lot for more money when someone's close and gives up before making

partner that gives the existing partners kind of a reason to feel special. And it also gives

them access to more money. So Jordan, generally law firms will only make you a partner if

they have to. There's some exceptions to that when making contract partners and non Equity

Partners and so forth because law firms can make a lot of money off non Equity Partners

in many cases, but in general, a law firm does not want to make the apple partner. The

first reason a law firm will make you partner is if you have a lot of business or if you

look like you're going to have a lot of business in the future. If you have a lot of business

and say you're bringing in $10 million in the law firm, the law firm may only have to

pay you 2 million,

they may pay a little bit more and a little bit less. But think of all the money that

you're generating for that law firm. So a lot from can pay you a fraction of what you're

generating, become very profitable as a consequence of that, and will generally want to make your

partner there's very few reasons why someone would millions of dollars for the business,

they wouldn't want to make partner, someone who looks like they're going to have a lot

of business in the future. If you're bringing in small amounts of business, but the amount

of business you're bringing is continually increasing, and you're on an upward trend,

they can see that you're someone that's capable of doing that. So they will often make people

partner like that. The second reason that a law firm will make you partner is because

you may be connected to a powerful partner, or group of powerful partners with a lot of

business and if that's the case, a note that person wants you to be partner, then they

will make you partner. It's very important for associates, you know, counsel and other

people to get as close as you can to powerful partners with a lot of business. Because those

are the people that are really supporting the firm and keeping things going. So if those

partners want you to be a partner, and the law firm can do it, then they're going to

make your partner they put themselves behind you. A lot of times what happens too, is if

you're close to a powerful partner and the powerful partner leaves is a condition of

joining the new firm, they may actually demand that they make your partner. The third reason

that a law firm make you partner is if you're connected to a powerful client, or group of

clients that give a lot of business to the law firm, then the law firm like you making

partner, a lot of times when associate may be tasked working directly with a powerful

big major client. And if that client is very enthusiastic about that person, and is giving

the Law Firm A lot of money, then the law firm may want to make them partner as part

of that. Getting close to a client and doing really good work for the client. It's just

a really smart thing you can do if it's a very large client, because that client can

really influence your career. One of the fourth reasons, one of the more common reasons people

are a partner in a lot of large law firms is they just work incredibly hard. If you're

the hardest worker in building the most hours, and kind of setting the pace and making the

law firm, an incredible amount of money, then it's going to be very difficult for the law

firm not to make you partner. Because if they don't, that's going to D motivate all these

other people that are working hard around you. I can remember when I was in a law firm,

and I said to a partner, I can't believe that this person didn't make partner and they said,

well, that person only build 20 hundred hours and the person that didn't make partner build

3400. And I thought that was interesting because they were basically saying, you know, you

have to be the leader in terms of the number of hours you build and so forth. The other

thing too, about building a lot of hours is it's not just the fact that you're building

the hours. It's the fact that people are giving you the work at the law firms not having to

write off your hours and clients are enthusiastic enough about Your work to give you the work

and the law firms enthusiastic and enough about your work to give you the work. So if

you're obviously in the office and building a lot of hours, you're going to be a role

model for other attorneys and they don't make your partner it's going to make the law firm

look really bad. Another reason that law firm makes someone partner is that law firm may

be literally shaken to the core by departures and so forth. And they need to set an example

to keep people around for the law firm. So if people are made partner into those kind

of conditions, they may have already been considering leaving so they make the partner

to prevent them from leaving. And it's important to remember that when a law firm suffers from

departures or other morale issues, that stuff will generally go away. And so you'll be left

being a partner in a major firm without those issues. Well, the six reason people will make

your partner is because they'll make your partner but the title is kind of meaningless

for a lot of law firms and when a substantial portion of law firms they're making income

partners and so forth or non Equity Partners. They're getting pages as much as a senior

associate. So there's no real change in the income, you're getting the title, but you

may actually feel less secure in your job. So depending on how it works at the law firm,

the title may not actually mean anything, it may just be a way to keep you around billing

a lot of hours so they can make money off you. Well, a lot of times people will be a

partner because they have some sort of expertise or special skill or other types of connections

that the law firm needs that there's just no way they can find elsewhere. So if you

have that type of experience, may law firm may want to make you partner. I mean, that

could be something as simple as being like having a PhD in electrical engineering. And

being an IP litigator at a firm where that sort of credential would mean a lot for them

to bring in IP litigation cases. You may also have special skills. A lot of times law firms

will hire people that may have worked in the government, on a special role in the government.

That's very impressive to clients or You could be from an important family, a connection

to the law firm the government industry, or you could be well known for some reason or

another and not necessarily had business and a law firm can exploit kind of your name.

So those are some of the the main reasons but having a special skill is one of them.

A lot of times there's attorneys just have very rare skills and something that they need.

I saw someone be hired as a partner in a major law firm that was coming from a law firm that

had experience with Bitcoin and digital currencies when that was very hot a couple years ago,

and they were brought in and it was very surprising because it was a major law firm. The important

thing though, to understand kind of as a final thought about all this is, the law firm is

not going to make someone a partner unless they have to. So if you're made a partner,

the idea is you're actually giving more to the firm or you that you offer more to the

firm than the firm can probably offer you a lot of tennis with being a partner. So anytime

your contribution exceeds the reward you're getting, and it does so dramatically. The

law firm will make up So, making partner is just a sign that you know you're throwing

all this extra money and you're making this huge contribution and a law firm wants to

make you feel good with the title. But if you're making partner you're probably making

a lot of money. We have a lot of skill and you're really giving something of major value

to law firm that really available on the market.