nazar wrote:Congratulations, I hope it will work out for you.
I had a similar problem when I started PI in Chicago. The quality of clients, comparing to corporate clients, suck. Only now, I feel more or less OK dealing with them. That's the only dark side of this business that I hate, too.
On the other hand, earning potential is way higher when you work for yourself. Most of the lawyers that I know (in PI) with 5 years of experience bring home about 200,000. Better ones, make considerably more $.
I dont know too much about Texas, but it is easy to start your own business in Chicago. You may make a good living even without your own clients. Most Russian lawyers in Chicago don't know how to litigate. Thus, they refer away every case that they cannot settle. They like to refer those cases to lawyers who speak Russian because client will stop bothering them. In Chicago, only one Russian lawyer does litigation without obvious malpractice. I am not a lawyer yet, but I bring on average 3-5 cases a month to my firm.
If you think about moving from Texas, put Chicago on your map. Don’t forget, Cook County has the best juriors in the country. Most class actions, toxic and mass torts are filed here.
Good luck again. First year is the worst. If you like it now, you will love it later.
Dear Nazar,
Unfortunately, in TX you can not longer charge attorney referral fees (TX Bar just issued an ethics opinion on the subject a few months ago) so it's a big no-no and can get you in trouble with the Bar. I know you can still do it in other states and in TX, up until recently this was common practice as well
Overall, I do like my clients and on average they tend to be middle to upper middle class w/at least some college education. It's just that a single mother making $50K a year as a school teacher has a hard time paying e.g. even $3-4K all at once.
For example, a client hires me to represent them in a divorce/child custody matter. I tell them that my rate is $250/hr and I require $2,500 (10hour) retainer but, more often than not, due to their finanacial limitation, I end up agreeing to a reduced rate of $150/hr and reduce the retainer to $1500 up front.
If the divorce ends up being simple/uncontested that works out just fine. However, if it gets nasty, the time I have to spend on it add up very quickly and even though I only end up billing for about half of it (I let a lot of things slide) , anpther $2-3K (not including court and process service fees) runs up very fast (within a month or two.)
I never had anyone complian about the amount or allege that I overbilled them,--in fact so far the clients seem to like me and keep coming back. however, very frequently they apologize and tell me that they cannot pay on the due date and/or can only pay off in small installments, etc. it's better than nothing and would probably not present much of a problem once i get more established. however, since i'm now faced with substantial start-up bills myself (twice in the last few months since my junior partner flaked on me causing me to have to have to pay for things like business stationary, name change and all the other things associated with changing from a partnership to a solo all over again
) and already used up all my savings, i have to worry about collecting enough to pay my own bills on time
but it will even out down the line, i hope.