Make Money Monday: Take a Page Out of Legal Zoom’s IPO With Subscription
As the saying goes in real estate, house value is all about location, location, location.
To paraphrase from Legal Zoom’s recent IPO filing, legal services value is all about subscription, subscription, subscription. Driving that point home, Legal Zoom’s IPO filing uses the term subscription 275 times and discloses that fees from subscriptions account for over half of overall revenues.
Why are subscriptions so valuable to a company like Legal Zoom? I explained the reasons here nine years ago with Legal Zoom’s first attempted IPO. For starters, subscription services are a source of recurring revenues that smooth out the dips in cash flow that come from selling one-off services. Second, subscription services cement relationships with clients and allow providers to learn more about their needs so that they can expand their offerings.
So how does Legal Zoom promote its subscription services? Interestingly, it doesn’t try to sell them directly to consumers. Instead, according to the IPO, Legal Zoom’s incorporation services provide the gateway to subscription sales.
The Legal Zoom IPO proves the point that subscriptions work. If you’re interested in learning more about how they can work for you, here are a couple of past posts:
Four Strategies to Create a Legal Subscription Service
Pricing Legal Subscription Services
Ethics of Legal Subscription Services
You can also gain more information about contracts for subscription services and ethics issues from the Legal ClauseIt Power Pact still available for $127 dollars. And as a last free bonus, you can download a FREE sample legal subscription agreement here (you’ll find two other templates if you purchase the Legal ClauseIt.
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