Legal Advice on a Dime – Should Lawyers Play?

With last week’s announcement of Legal Zoom’s recent partnership with Sam’s Club to offer deals on legal services as well as Avvo’s launch of Avvo Advisor, the blogosphere’s abuzz with discussion of “should lawyers participate or shouldn’t they?” ( See  Susan Cartier-Liebel, The Bridge Builders  at Above the Law, Bob Ambrogi’s coverage of Avvo Advisor and Law Dingo  (offering a similar service to Avvo)and Victor Li at the ABA Journal.

Of course, the $39/15-minute question is: should lawyers participate in these platforms or not? Can these types of services introduce lawyers to leads that will convert into valuable clients – or are they a waste of time that could even potentially put lawyers at ethics risk or loss of a bigger client?

Frankly, it’s hard to say. The idea of taking on loss-leader work isn’t new; lawyers have long offered low-cost services through bar referral services and employer-sponsored pre-paid legal plans – often with favorable results. The theory is that you establish a relationship for a low cost, and the client may return for help when larger matters arise. On the other hand, most lawyers’ experience with internet-based leads, at least in the early days, left much to be desired – with calls from crazies whose case had already been rejected by every lawyer in town.

But that’s what’s changed. As the Internet matures, it’s no longer a source of last resort but rather, the first stop for many people seeking legal services who actually have money to spend.  Many haven’t asked friends for referrals because, let’s face it – people often don’t want to share their legal problems with colleagues. Also, sometimes (as has happened with me when it comes to referrals), people may have very different price sensitivities from friends. There’s nothing more awkward than receiving a list of estate planning lawyers who start a $10k for a trust when you were looking for someone at half the price. On the Internet, folks can search for lawyers from the privacy of their home without having to share their legal problems or financial limitations with friends and colleagues.

So whereas as recently as two or three years ago, it was easy to shrug off the Internet as a potential source of solidly priced work, that’s no longer the case. 

Still, even though decent clients may be seeking out sites like Avvo or Law Dingo, that doesn’t necessarily mean that lawyers ought to sign up. In many ways, the the pros and cons of lawyer participation in an online platform are similar to those for crafters who determining whether To Etsy or Not to Etsy (Inc Magazine):

 —Etsy offers participants more exposure which may lead to  “breakthrough opportunities.” exposure comes at a price, to the tune of a 3.5 percent commission on sales for Etsy and potentially up to ten percent commission per sale on eBay.

—On Etsy, a brand can get lost in the market place in the marketplace – but it can also be difficult to establish a brand independently without significant resources.

But there’s also a difference between Etsy and some of the lawyer sites. As the article describes, “Etsy shoppers care” – when they come to Etsy, they are seeking the appeal of a unique handcrafted goods and appreciate the value. Etsy has done much to cultivate that impression. Etsy has also established a community for sellers where they can exchange ideas and get to know each other in person. In short, Etsy offers participants a distinct value add that it’s not yet clear the platforms provide to lawyers.

Bottom line – these are transitory and fluid times with lots of opportunity. Lawyers can participate in some of these platforms – or perhaps team up with a couple of colleagues to create a “dial in” line or online clinic that could also function as a conduit for clients. For now, I don’t know what the right answer is when it comes to platforms and your practice except for one: don’t ignore them.

2 Comments

  1. Paul Spitz on November 5, 2014 at 1:22 pm

    As I come up on the end of my first year as a solo, I am realizing that I am getting as many, if not more, clients from the internet than from face-to-face efforts or referrals. I tried lawdingo but got nothing from it, and I’m trying Avvo but have very low expectations (the clients seem like tire-kickers, and most of the questions they ask seem to involve the consequences of sending or receiving nude pictures of underage girls). I am getting positive results from lawtrades, which seems to have more business-oriented clients.

    As for the low-cost phone consultations like Avvo Advisor, if a lawyer wants to sell his or her time at $160/hour or less, fine. That’s a business decision. I don’t think it will depress prices overall. The bigger issue is the ethics — how can a lawyer doing that limit the scope of his engagement, so as not to get in an ethical mess if the client expects more than just a 15-minute phone consult? The lawyer may never meet the client, or may talk only by phone and not via email, so the opportunity to get some kind of written engagement agreement is not really there. I think that the lawyers are taking on more exposure than they are getting paid for.



  2. Alex on November 6, 2014 at 12:52 pm

    It’s possible that as these platforms mature the value to new participants will degrade. My hypothesis that with a lot of Internet platforms the first movers and early adopters build an advantage that is costly to later replicate. By analogy, in the early days of political blogging, many folks with a blogger account ended up having conversations at the highest levels of policy and created neat careers for themselves: Ezra Klein, Kevin Drum, Matt Yglesias on the liberal side. Yet breaking into these markets now is much more competitive.

    If these platforms succeed, I think the persons that get there first will build up the equivalent of high google page rank and make some money. Folks coming later, perhaps not.

    I tried Rocket Lawyer when I started out and ended up taking 10+ urgent phone calls over 9-10 months (they want you to contact the client within 24 hours of the referral). I got 9 tire kickers and 1 client that paid $150 to write a letter. I have let my account expire.

    With respect to AVVO, I find that uninterrupted chunks of time to work are extremely valuable. So stacking up a bunch of 15 minute calls has a significant opportunity cost. Also few phone consults fit neatly into a 15 minute box. More likely, I would spend 10 minutes to say, “these are a few potential outcomes and answers” and 5 minutes to say “I’ll look into that for $200/hr.”

    Finally, I think that lazy recent grads should move to Thailand and field these calls from the beach. If $49 covers a week of living expenses, you’re doing great for 15 minutes. The future of out-sourcing may be licensed American law grads engaging in “location arbitrage.”



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