eLawyering for Competitive Advantage: Legal Profession : Turning Points Richard S. Granat, J.D. Co-Chair, eLawyering Task Force, ABA and President, DirectLaw, Inc. September 20, 2011 © Copyright, 2011, Richard S. Granat WHAT DO CLIENTS WANT? © Copyright, 2011, Richard S. Granat CLIENTS WANT FIXED PRICES © Copyright, 2011, Richard S. Granat CLIENTS WANT TRANSPARENCY © Copyright, 2011, Richard S. Granat CLIENTS WANT BETTER TECHNOLOGY © Copyright, 2011, Richard S. Granat CLIENTS WANT CONVENIENCE © Copyright, 2011, Richard S. Granat CLIENTS WANT Legal Services Ala CarteUnbundled Legal Services © Copyright, 2011, Richard S. Granat The CONSUMER Problem © Copyright, 2011, Richard S. Granat THE WEB GENERATION • Digital DNA © Copyright, 2011, Richard S. Granat The Millennials . are here. 1978-97 • 75 million clients © Copyright, 2011, Richard S. Granat THE SIZE OF THE “LATENT” MARKET • $45 billion latent market © Copyright, 2011, Richard S. Granat Latent Market for Legal Services 50% of middle income households in the US have at least one legal problem per year •Only 20% seek legal assistance from attorneys •Increasing percentage of consumers seek alternatives to lawyers such as self-help. New Kinds of Clients © Copyright, 2011, Richard S. Granat 13 The U.S Legal Services Market The United States represents, by far, the largest market for legal services in the world, amounting to $145.5 billion in 2006, according to the U.S. Census Bureau The market segment that we are targeting may be more precisely defined as the market for self-help law online and is a sub-set of what is known as the personal legal services market According to varying estimates by the U.S. Bureau of Economic Analysis and the U.S. Bureau of Labor Statistics, American consumers spend approximately $43 billion to $56 billion annually on personal legal services Our estimate for the latent legal services market adds another $45 billion to the potential market Size of the market for legal services What consumers spend now $43 billion Estimated value of under-served consumers or latent market $45 billion Total market $88 billion Market Metrics 78% of Americans do not have a will or updated will. 50% of all marriages end in divorce. Bankruptcy filings have almost doubled since 1990. More than 10 million American are victims of Identity Theft each year. Nearly 9 our 10 employees experienced at least one legal concern during the past year. Competition •Legal Zoom – 1,000,000 wills •Thousands of trademark and copyrights applications •Nolo •More than a Thousand Legal Form Web Sites •Independent Paralegals •Tax Preparers CONSUMERS OR CLIENTS © Copyright, 2011, Richard S. Granat Market Definition and Types of Offerings Self-help Reference /Self-Help Books/CD : Nolo Legal Forms: e.g, SmartLegalForms, US LegalForms, LegacyWriter, Nolo, Quicken Willmaker Document Preparation, e.g. LegalZoom Find-a-Lawyer, Legal Referral Sites, e.g, AVVO. Total Attorneys. Ask a Lawyer, e.g, LawGuru, LegalRiver, Law Pivot, JustAnswer.com. LegalZoom Trademarks LegalZoom Copyright Service I. Introduction: The Basics What is a “virtual law firm”? What is “eLawyering”? What a “virtual law firm” isn’t Examples of On-Line Legal Services. What is driving the interest in this concept? 19 Legal Profession is Lagging Only 52.1% of Solos Have a Web Site. ONLNE LEGAL SERVICE © Copyright, 2011, Richard S. Granat Most Law firms here Ever yone else here Web 2.0 Web 4.0 Web 3.0 Web 1.0 Hello world ‘Brochureware’ sites Flat forms Reduced benefit alone User generated content Web applications Try for free Collaboration ©NakedEyes http://www.flickr.com/photos/55456073@N00/301678287/ What is a Virtual Law Office? a “virtual law firm” is characterized by access by the firm’s clients to a password protected and secure web space where both the attorney and client may interact and legal services consumed by the client. More specifically it can be defined as having a secure client portal that is accessible from the law firm’s web site. 22 Virtual Lawyering Is Not: • No physical office • Having a Web site • Email communication © Copyright, 2010, Richard S. Granat Example of a Client Portal What are Online Legal Services? ONLNE LEGAL SERVICE © Copyright, 2011, Richard S. Granat On-Line Legal Services A “virtual law firm” enables clients to: Assemble legal documents over the web; Purchase legal advice online by telephone or email; Store their legal documents online; Collaborate with their attorneys online through threaded discussions which are archived. Access legal information, web advisors, and intelligent calculators. DOCUMENT AUTOMATION © Copyright, 2011, Richard S. Granat 3030 Documents that Assemble Themselves Ready for Lawyer Review Excepteur sint occaecat cupidatat non proident, sunt in ipsum dolor sitmollit amet, consectetur adipisicing elit, sed culpaLorem qui officia deserunt anim id est laborum. Excepteur sint occaecat cupidatat non in incididunt ut labore et dolore magna do proident, eiusmod sunt tempor culpa qui officia deserunt mollit animaliqua. id est laborum. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Lorem ipsumDuis doloraute sit amet, consectetur adipisicingin elit, sed velit esse irure dolor in reprehenderit voluptate do eiusmod tempor incididunt ut labore dolore magna cillum dolore eu fugiat nullaetpariatur. Excepteur sint aliqua. Ut enim ad minim veniam,non quis nostrudsunt exercitation occaecat cupidatat proident, in culpa qui officia ullamco laboris nisi ut mollit aliquipanim ex eaid commodo consequat. deserunt est laborum. Excepteur sint occaecatDuis cupidatat non dolor proident, sunt in aute irure in reprehenderit in voluptate velit esse culpa qui officia deserunt mollitdolore animeu id est laborum. cillum fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Last Will & Testament ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore euadipisicing fugiat nullaelit, pariatur. Lorem ipsum dolor sit amet, consectetur sed Excepteur sint occaecat cupidatat nonmagna proident, sunt in culpa qui officia do eiusmod tempor incididunt ut labore et dolore deseruntquis mollit anim idexercitation est laborum. aliqua. Ut enim ad minim veniam, nostrud ullamco laboris nisi ut aliquip ex ea commodo consequat. cupidatat non proident, sunt in Duis aute irure dolor in reprehenderit inExcepteur voluptate sint velitoccaecat esse culpa qui sint officia deserunt mollit anim id est laborum. cillum dolore eu fugiat nulla pariatur. Excepteur occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna Excepteur sint occaecat cupidatat non proident, suntaliqua. in Ut enim ad minim veniam, quis nostrud exercitation culpa qui officia deserunt mollit anim id est laborum.ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed occaecat cupidatat non proident, sunt in culpa qui officia do eiusmod tempor incididunt ut labore et dolore magna deserunt mollit anim id est laborum. aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed Duis aute irure dolor in reprehenderit indovoluptate esseincididunt ut labore et dolore magna eiusmodvelit tempor cillum dolore eu fugiat nulla pariatur. aliqua. Ut enim ad minim veniam, quis nostrud exercitation Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed ullamco laboris nisi ut aliquip ex ea commodo consequat. do eiusmod tempor incididunt ut labore et dolore magna Duis aute irure dolor in reprehenderit in voluptate velit esse aliqua. cillum dolore eu fugiat nulla pariatur. Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed sint occaecat cupidatat non proident, sunt in do eiusmod tempor incididunt ut laboreExcepteur et dolore magna quiexercitation officia deserunt mollit anim id est laborum. aliqua. Ut enim ad minim veniam, quis culpa nostrud ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation Excepteur sint occaecat cupidatat non proident, sunt in ullamco laboris nisi ut aliquip ex ea commodo consequat. quidolor officiasitdeserunt mollit animadipisicing id est laborum. Loremculpa ipsum amet, consectetur elit, sed Duis aute irure dolor in reprehenderit in voluptate velit esse do eiusmod tempor incididunt ut labore et dolore magna cillum dolore eu fugiat nulla pariatur. aliqua. Ut enim ad minim veniam, quis nostrud exercitation Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed ullamco laboris nisi ut aliquip ex ea commodo consequat. do eiusmod tempor incididunt ut labore et dolore magna Duis aute irure dolor in reprehenderit in voluptate velit esse aliqua. cillum dolore eu fugiat nulla pariatur. Excepteur sintUt enim ad minim veniam, quis nostrud exercitation ullamco laboris occaecat cupidatat non proident, sunt in culpa qui officia nisi ut aliquip ex ea commodo consequat. Lorem ipsum dolorirure sit amet, adipisicing elit, sed Duis aute dolor consectetur in reprehenderit in voluptate velit esse deserunt mollit anim id est laborum. do eiusmod labore et dolore magna cillumtempor doloreincididunt eu fugiat ut nulla pariatur. aliqua. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Next question Next question Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed aute irure dolor in reprehenderit in voluptate velit esse do eiusmod tempor incididunt ut labore etDuis dolore magna cillumexercitation dolore eu fugiat nulla pariatur. aliqua. Ut enim ad minim veniam, quis nostrud ullamco laboris nisi ut aliquip ex ea commodo consequat. Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna Excepteur sint occaecat cupidatat non proident, suntaliqua. in Ut enim ad minim veniam, quis nostrud exercitation nisi ut aliquipadipisicing ex ea commodo culpa qui officia deserunt mollit anim idLorem est laborum. ipsumullamco dolor sitlaboris amet, consectetur elit, sedconsequat. Duis irure dolor in reprehenderit in voluptate velit esse do eiusmod temporaute incididunt ut labore et dolore magna cillum doloreveniam, eu fugiatquis nulla pariatur. aliqua. Ut enim ad minim nostrud exercitation Next question Start Complete? Finish You don't just ‘fill out’ an automated document – you create it. The answers you enter create a custom legal document, built from a library of state-specific and relevant legal text, that is tailored to client’s specific facts. http://www.kentlaw.edu/cajt/A2JAuthor.html Benefits of a Virtual Law Firm Capture new clients who are part of the “latent market for legal services” who don’t use lawyers; Deliver “limited legal services” on-line. Capture web-savvy clients who are members of the “connected generation” who expect to relate to their lawyers “online.” 32 More Benefits Increase law firm productivity and profitability. Enhance to client experience. Reduce telephone-tag. Enable a more integrated lawyer/client relationship. 33 How do you reach web-savvy clients? You have to learn how to deliver legal services over the Internet and create an “online” brand. Requires an interactive web site which support the “virtual practice of law.” More than a passive web site. The web site as the “front-door” of your law practice. The web site as a way for your firm to create an “online brand.” If you are not getting clients off the Internet, you are missing part of the market in your territory. 35 36 Costs of a Virtual Law Office Front End Web Site- Hosting and Design Client Portal Vendor pricing ranges from $49.00 to $299.00 a month depending on complexity. Web-Based Practice Management Solutions. Approximately $49.00 per attorney per month. 37 Vendor Selection Do It Your Self- meaning programming a virtual law office is cost prohibitive. The Software as a Service Solution (SaaS) – Benefits. What to look for in a SaaS Vendor generally. Needs Analysis. 38 Typical Virtual Law Firm SaaS Offering- What to look for? No Up-Front Capital Investment or small set-up fee. No software or Hardware to Install East to Implement Ethically Compliant Totally Secure Subscription-based Plugs Into Your Existing Web Site. 39 Pure Play Virtual Law Practice Difficult to pull off unless you have a specific niche that you can expand on through your web site. Need to have a web that can be found on the web through the search engines. Need to understand how to drive traffic to you web site and convert visitors into paying clients. Failure is Easy A “pure play” virtual law practice is harder to make successful that a practice that has a “brick and mortar” element. A blended model is easier to succeed at because you can augment your on-line marketing with more traditional off-line marketing and referral networks. Developing an Online Marketing Strategy A clearly defined niche; A web site that is search engine optimized A strategy for driving prospects to your web site and converting them into clients. Potential winners Firms who operate on the web Firms that develop “packaged” solutions Institutions that serve their customers with law firms Losers Under-capitalised, fragmented small & medium firms Sticking with one-to-one limited reach relationships Don’t lever information technology and the web BUILDING A STRONG BRAND ONLINE • Differentiation • Remarkable • Client experience WINNING LAW FIRMS WILL HAVE A STRONG BRAND & USE THE POWER OF ONLINE TECHNOLOGY Learn More About On-Line Legal Services 1. ABA eLawyering Task Force http://www.elawyering.com 2. The Virtual Law Firm Learning Centerhttp://www.virtuallawyerconnect.com Get the Book: Delivering On-Line Legal Services by Stephanie Kimbro. 3. DirectLaw Learning Center © Copyright, 2011, Richard S. Granat