J Peters New, Smart and Ethical Business Structures
1. New, Smart and
Ethical Business
Structures
Working with Legal Startups
James Peters
VP New Market Initiatives, LegalZoom.com, Inc.
2. Why work with law
startups?
• More consumers are turning to the internet for legal
solutions
• Internet usage
o 79% of US adults use internet daily, 50% own smartphones
• Law startups are building brands
o Ex: LegalZoom had 60% aided brand awareness in early 2012
• Law startups have access to capital
o Ex. $15 million to TotalAttorneys last year
• Law startups have individuals or teams dedicated
to online marketing
3. How do consumers find
attorneys?
• US – ABA Survey
o Ask a friend, family member or colleague = 46%
o Contact a lawyer I know or have used before = 34%
o Look in the Yellow Pages or a similar printed directory = 8%
o Search online 7%
o Other form of advertisement like TV, newspaper ad or billboard = 3%
o Not sure/Refused (v) 2%
• UK – YouGov Survey
o Ask a friend or family member = 40%
o I have a family solicitor = 21%
o Google = 20%
o Local high street firm = 17%
o Yellow Page = 6% Source: In Person Interviews
Source: Landline Interviews
6. Interest in the New
• 2011
o LawPivot: $600k
o LegalZoom: $66 million
o Rocket Lawyer: $18.5 million
o Docracy: $650,000
• 2012
o Rocket Lawyer: $10.8 million
o DocRun: $1.1 million
o Total Attorneys: $15 million
• 2013
o Axiom: $28 million
o Docracy: $200k
o ???
7. Is it Ethical?
• Unauthorized Practice of Law
o Multijurisdictional offerings
o Aiding a nonlawyer
• Lawyer/Client Relationship
o Legal Q&A
• Confidentiality
o Cloud computing
• Attorney advertising
• Prof Independence
• Fee Splitting
o Daily Deals
• Scope of Services
o Unbundling
8. Is it Smart?
• Does the brand fit?
• Can you assess product quality?
• Do the numbers make sense?
• Do they provide business that you want?
• Are they supporting your state?
• Can you get out if it doesn’t work?
• Can you scale if it does?
