The Latent Market for Legal Services

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There is a 45 billion latent market for legal services waiting to be served. This market represents the legal needs of low and moderate income individuals and families who cannot afford the existing high cost of legal fees.

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  • Module 1 Class 1- Legal Services Industry – trends - Live 30 minutes
  • Module 1: Class I: - Live Session- high level points- Granat/KimbroChanging consumer behaviour has to be factored into making a prediction on the future of the profession.
  • The Latent Market for Legal Services

    1. 1. The Latent Market for Legal Services Closing the Justice Gap Richard S. Granat CEO, LawMediaLabs, Inc.
    2. 2. What do Consumers Want • • • • • • • Speed Transparency Fixed Prices Manage Risk Use of Latest technology Lower Fees Trust
    3. 3. Empowered Consumers
    4. 4. There is a growing online market for legal services. • Online companies such as Legal Zoom and Rocket Lawyer, when available for specific areas of law, are being turned to by the public who may otherwise have consulted with a lawyer.
    5. 5. Market Opportunities • Latent Market for Legal Services: Non-customers- Potentially Huge • “Making money while you sleep” = initial investment in system, minimum effort and time o o o Online Charge “serious” fees No competing products • Packaging versus commodity o o Ex: legal counsel and strategy with legal document creation Ex: limited appearance with doc creation • Value billing versus billable hour
    6. 6. Latent Market • Refers to something that is dormant, not observable, or not yet realized. • The earning of a market when that market becomes accessible and attractive to serve. • Potential industry earnings or total revenues if a market is served in an efficient manner. • Sources: o The 2011 Report on Legal Services: World Market Segmentation by City, Icon Group International (2011. o Bureau of Labor Statistics; US Census Bureau. o Legal Services: Market Research Report, Market Publishers, October, 2009. o American Bar Association; US. Legal Services Corporation.
    7. 7. 7 The U.S Legal Services Market • $145 billion market in total • American consumers spend approximately $43 billion to $56 billion annually on personal legal services • 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 defined as the value of legal problems that are not serviced. $45 billion Total market $88 billion
    8. 8. 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. • 26% do nothing at all. • Increasing percentage of consumers seek alternatives to lawyers such as self-help. E.g., Nolo and LegalZoom • Potentially huge market waiting to be tapped in the US for personal consumer legal services.
    9. 9. Market Metrics 78% of Americans do not have a will or updated will. 50% of all marriages end in divorce. Personal 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. (Legal Needs Study). • In fact, seven out of 10 Americans said they experienced a legal event within the past year*, according to a recent survey conducted by ARAG, a legal solutions provider. (Legal Needs Study). Data also supported by American Bar Association Legal Needs Study. • • • •
    10. 10. Clients are online, lawyers aren’t • Pew Research Center: 3 out of 4 consumers seeking an attorney over the last year used online resources at some point
    11. 11. NOW Most Solos and Small Law Firms Early Adop ters Web 4.0 Web 2.0 Web 3.0 Web 1.0 60% of Solos Don’t Have a Web Site. ‘Brochure ware’ sites No Advanced Technology Tiny, Undercapitalized Operations Uneven Quality User generated content Client Portals Free Advice Collaboration Non-Law Firm Providers Free Legal Forms Out Sourcing New Generation Law Firms Internet is the Platform for Delivery Nationwide Brands Online and Offline Online Delivery of Legal Services. ©NakedEyes http://www.flickr.com/photos/55456073@N00/301678287/
    12. 12. Resources • Marketing Legal Services Online. • The Evolution of Legal Services – Stage IV- by Jordan Furlong • The Future Middle Class of the Legal Profession Unbundled Legal Services from Solo Practice University

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