Profits per Partner

A high profits per partner rank sends an important message to clients: “we’ve got margin to burn.”  A publicly-released high profits per partner ranking is a honeypot for like-minded rainmakers: a platform with an (arguably) low run rate and a brand name to be leveraged.  From the partnership’s short term operating perspective, this is good.  High profits = happy partners (owners), and an attractive carrot for associates and prospective laterals.  However, the last time we checked, partners, associates and prospective laterals don’t pay the monthly fee statements.

The clients do.

Public profitability statements may attract better partners, but clients see this as an opening for a discussion on lowering fees. We have no gripe with success — but tailor your publicity with your (paying) customers in mind.

 

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