Subscription Legal Plans and Why Your Law Firm Needs to Create One

2019-02-10

Law Innovator's Newsletter #25

Subscription Legal Plans and Why Your Law Firm Needs to Create One

The ONE400 team is a big fan of legal plans for a variety of reasons. One, they create recurring revenue and scalability for law firms and two, they reduce the barrier of access for consumers and businesses.

The Group Legal Services Association will be hosting their annual conference in May and our very own Allen Rodriguez will be moderating the panel on the state of the legal plan industry. That upcoming event inspired us to write a comprehensive piece on the value of legal plans and why your firm needs to create one now.

A summary of the piece can be found below, but the comprehensive post is worth a read (and loaded with graphs and other data).

Before you take dive into that, I do strongly recommend you consider going to the GLSA conference to learn more about legal plans, get some CLE and hangout with a bunch of legal innovators. You can learn more about the GLSA Conference at their website: https://glsaonline.org/events/2019-glsa-conference/

Read the Comprehensive Guide Here

History of Legal Plans
Subscription legal plans have been around since at least the 70's, but it's only in the last decade that changes in consumer behavior (mostly collaborative consumption) are creating more demand for subscription based legal services. To get a better sense of what we mean by the collaborative consumption model, check out our breakdown of Netflix as a business that explains the concept.

Is This Really Worth Exploring?
Well only if you like money. In Europe, legal expense insurance is very popular across many countries. In fact, RIAD, the International Association of Legal Expense Insurance estimates that total premiums paid across Europe is over 10 Billion Euros annually with significant market penetration in many countries. In the U.S. it is still an emerging market but that presents significant opportunity for early adopters. Check out our data on the full post here.

Niche Legal Plans Are The Future
While a lot of big names in the legal industry such as LegalZoom, LegalShield, Arag and Hyatt have been generating 100's of millions with this model, we have seen demand for very specific niche plans that cater to a specific community of users. We break down why this is in our post.

Need Examples?
Sure its a lot to digest. We provide at least 3 organizations who are doing this well so you can see the specific ways firms are creating these to generate recurring revenue and scale their practices. Two of the examples are law firms, Goodlaw.legal and Counsel For Creators. The third is a niche legal plan that is non-law firm owned. The law firm owned plans are small firm (solos) and the other enterprise. The point is that you don't have to be VC backed to make this happen. See the examples here.

The Future of Legal Plans
Now that consumers are more comfortable than ever receiving services under a subscription model, legal plans are poised to gain strong momentum. However, it is the niche legal plans that will be the real winners in all of this because they will be creating specific solutions based benefits that will resonate well with their target markets. In today’s "there’s an app for that" consumer mindset, consumers will look for very specific (niche) solutions to their legal issues and that will be the primary drive for low cost adoption and longevity in these plans.

We cover lots more in the full blog post. So, if you want to take a look at that click on the link here: read more...

Pat Monks