1975, October, Pg. 1929. Economic Survey: Interirn Report.

4 Colo.Law. 1929

Colorado Lawyer

1975.

1975, October, Pg. 1929.

Economic Survey: Interirn Report

1929Vol. 4, No. 10, Pg. 1929Economic Survey: Interirn ReportSince 1949, the Colorado Bar Association has conducted a study of its membership to ascertain the economics of practicing law in the state of Colorado. This study is performed at regular intervals by the Economics of Law Practice Committee and the results are disseminated to the members of the Bar. The last complete economic survey was conducted in 1972 and the next comprehensive survey is scheduled for 1976. However, because of the fluctuating economy and recent developments in national affairs, it was decided to conduct an interim survey, or "mini-survey," to keep the Colorado lawyer abreast of pertinent developments.

The basic survey questions were determined by the members of the Economics of Law Practice Committee of the Colorado Bar Association. The questions were then submitted to two University of Denver law students with undergraduate experience in the field of marketing, who researched the matter and prepared the final form of the questionnaire so the results could be tabulated by a computer and correlated the results after answers to the questions were received. Most of the observations contained in this report are the direct result of their work.

The survey was sent to a random sample of Colorado attorneys with the request that only those attorneys in private practice complete and return the questionnaire. The response rate of 72% is substantially greater than those of past surveys and is a statistically valid data base from which the conclusions contained herein are drawn.

The "Typical" Colorado LawyerThe private practitioner in Colorado still practices in a firm of between three and six lawyers. He is younger today than at any previous time. Four years ago he had been practicing for nine years; now he has been practicing only an average of five years.

In 1971, this "typical" lawyer earned a median income of $20,700. In 1972, his income increased to $22,140 and, then in 1973, to $26,216. During 1974, the median declined to $24,920. (These fluctuations are the result of several factors and do not necessarily reflect "real" income.) His hourly rate has increased. In 1971 he charged $35 per hour for his services; today that has increased to $47 per hour.

The private practitioner paid an average of 37% of his income to overhead, and 42.4% of the respondents had not hired an associate in the last two years. Those firms that did paid the new associate a beginning annual salary of $8,000 to $15,000. The private practitioner paid a median of $625 per month for his secretary, who had an average of four years of experience.

The amount of accounts receivable demonstrated

1930an increase overall but the median range has remained the same ($2,500-$5,000 per month) since 1972. The collection time, however, has increased from a median of less than two months to a median of slightly greater than two months.

Opinions in the area of specialization have not changed significantly. There is still a split of about 52% non-specialist practitioners and 48% specialist practitioners. Intentions as to specialization in the future have changed slightly, however. More lawyers (74.2%) plan to specialize in the future than did four years ago. Of these, nearly one-third indicated a desire to specialize in only one field of law, also up from four years ago.

These are all characteristics of the private practitioner in Colorado today, and are important to examine. Perhaps more important, however, are those underlying factors that brought about these results. These factors are difficult to define but once isolated they can be used as planning tools for the future.

Median IncomeThe median income of lawyers in Colorado increased steadily from 1949 until 1974...