Our blog: LAW FIRM INFORMATION LETTER
EDITORIAL: Who earns how much, and why?
The law firm market is all about money – and who earns how much. For the first time we have calculated this for the entire German law firm market – for every size of law firm. In doing so, we also took into account the historical development of the data… and see that only a few types of law firms are sustainably successful. We will soon publish this in our new book: Der Kanzleimarkt in Deutschland (The Law Firm Market in Germany), published by C. H. Beck Verlag. The data will then also be made available in a benchmark app.
The data shows the following:
- The myth of the “individual lawyer” as the most representative type, for example: compared to the type of the salaried lawyer, is refuted; only about 10% of all lawyers are classic individual lawyers in a full-time individual law firm (about 15,000). In contrast, more than 20,000 of all lawyers are employed lawyers, mainly in one of the 150 large or about 1800 medium-sized law firms.
- The lawyers increasingly understand how to run their law firm economically. It is noticeable that the profits per associate are increasingly profitable even in smaller law firms.
- The law firm market is increasingly characterized by the growth of existing law firms, less by the entry of new competitors.