A long time ago in Internet years, I wrote that solos and smalls must come up with ways to diversify their services. That doesn’t mean having cheap rates for certain clients and full fees for others, but rather developing different revenue streams to ensure that cash is coming through the door.
Back in 2008, the cloud was in its nascency and social media was just gaining traction. Fast forward, and we have other developments – like the internet of things that, according to this Harvard Business Review blog post is changing how non-legal businesses think about their business model.
From the article:
However, making money in the connected space is not limited to physical product sales; other revenue streams become possible after the initial product sale, including value-added services, subscriptions, and apps, which can easily exceed the initial purchase price. In a recent conversation, Renee DiResta, a Principal at O’Reilly AlphaTech Ventures, noted: “Things that generate recurring revenue are actually more appealing to venture capitalists. Otherwise, the business model is banking on the hope that prospective customers will be loyal and be compelled enough to come back to buy the second product.”
See any applicability for law firms?