A few weeks ago, I was chatting with an equity partner from a renowned US law firm. Unsurprisingly, our conversation turned to what many consider a science: how law firms split their profits.
This isn’t just a side note in the business of law—it’s a fundamental element, often more impactful than the legal work itself. Entire books and strategies are dedicated to profit-sharing, and many lawyers make career moves based on this factor alone.
Each firm has its own methodology, but generally, it boils down to two main factors: the revenue each partner generates and his/her contribution to the firm’s overall expenses, like staffing, business development, and office costs. Common profit-splitting models include:
- Lockstep (pure or diluted) – everyone at a similar level earns the same, with gradual increases over time.
- Eat-what-you-kill – focused heavily on personal revenue contributions.
- Hybrid models – blending revenue contribution with seniority or role-based factors.
As we were discussing the topic, the partner explained his firm’s unique approach: compensation isn’t based on what you earned in the past year but on what you project you’ll bring in next year. Of course, this model is reserved for partners with a robust client portfolio, a strong track record, and significant trust from their peers— plus it’s layered with nuances (you know.. lawyers..)— but it’s a fascinating approach nonetheless.
The current scenario is similar to this one: usually, if I generate $2 million in 2024 (don’t raise your eyebrows. Sums like this are usual in US Big Law), my 2025 compensation will be based on these revenues. Assuming a non-lockstep model, a portion of that revenue—typically around a third, but it’s highly (very highly) variable—forms my profits. With this scenario, if I predict $3 million for 2025, my compensation isn’t tied to actual 2024 revenue but to my forecast for 2025.
At first, this approach made me uneasy. What if the year doesn’t go as planned? What if I lose major clients and only bring in $1 million after forecasting $3 million? The pressure to meet these projections felt overwhelming, with the constant risk of falling short.
But then I reconsidered. What if this approach could foster freedom rather than anxiety? Instead of constantly proving our worth based on past performance, it invites us to focus on a vision for the future. This model could create positive momentum, propelling us forward toward long-term goals rather than reactive demands.
The idea of projecting future revenue as if it’s already in reach isn’t only relevant to profit-sharing; it also challenges us to rethink our approach to personal goals. What if, instead of focusing on what we hope to achieve, we acted as though we’d already achieved it? By adopting this “future self” mindset, we might find ourselves more motivated and empowered to reach our goals.
Consider this mindset in different areas of life:
- In sports: If you’re an athlete training for a major competition, what if you trained as though you’d already won the trophy? This shift in mindset could boost your confidence and sharpen your focus.
- In relationships: If you’re looking for a life partner, what if you acted as though you’d already found that person? This inner confidence and contentment might attract the outcome you’re hoping for.
- In health: Imagine you want to lose 20 pounds. If you start acting like you’ve already reached that goal, healthier choices may come naturally, as if success were already part of you.
This approach is like “reverse engineering” success. Instead of fixating on gaps and shortcomings, we adopt the mindset of someone who has already reached the target. It’s about harnessing future confidence and creating a sense of ease and empowerment on the journey.
It’s not easy, of course, because it requires a leap of faith. Yet, the SMART element (specific, measurable, achievable, relevant, time-bound) is still there—only now, it’s shifted from SMART goals to SMART achievements.
With my love for prototyping, I’m applying this mindset by setting November and December goals as if they’ve already been achieved. For 2025, rather than a list of goals, I’ll start with a vision of accomplishments already realized (in a SMART way, of course). After 2025, I’ll make my evaluations.
This isn’t about “wishful thinking”; it’s about internalizing the habits, discipline, and mindset of someone who’s already succeeded. By embodying this future self, the journey feels less like a struggle and more like a natural progression.
I have a hunch this shift could lead to surprising results. And who knows? By reversing the narrative, we may just discover that the key to achieving our goals lies not in striving but in believing we’re already there
