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Archive for the ‘Virtual Law Practice’ Category

Rejoinder: "Is the Virtual Law Model Coming up Short?"

24 Sep

Jay Fleischman in a blog post entitled: “Is the Virtual Law Firm Model Coming up Short?”  states:

"The ABA elawyering Task Force tells us that, “[t]o be successful in the coming era, lawyers will need to know how to practice over the Web, manage client relationships in cyberspace, and ethically offer “unbundled” services.”

Bull—t.

Jay also states:

"Email doesn’t substitute for a phone call.  A phone call isn’t the replacement for a handshake."

"Those who offer the virtual law firm are selling something most people don’t want.  People want to be able to make a personal connection with other people, to build trust in a lawyer’s expertise.  They don’t want to be met with a password-encrypted firewall and triple-redundant backup systems.".

Unfortunately, like some commentators of a well known news network that make up facts and then offers opinions based on those false assumptions, Jay makes up facts to support his point of view.

Jay is entitled to opinion, but not to his own set of facts.

Here are some of the facts:

1. The ABA/LPM’s eLawyering Task Force

The eLawyering Task Force , of which I am co-chair (with Marc Lauritsen), through it’s web site, publications, and statements has never made the claim that delivering legal services online was the only way that law firms should  connect with clients. The value of an online platform depends on the kind of law practice and the kind of clients served. Clients obviously have preferences that lawyers who serve those clients must respect.

Many firms will have a "virtual component" incorporated into a traditional practice. As Marc Lauritsen puts it,  there will be:

" a shared online environment that is persistent across the life of a matter. For instance, providing interactive questionnaires on their web sites to gather information from prospects and clients, or supplying do-it-yourself document generators, checklists, or calculators.Or opening up a shared space for collaborative deliberation about a particular decision, using interactive visualizations like I ‘ve been promoting under by ‘choiceboxing" idea."

In fact, the firms that are getting the most successful results from the addition of a client portal are those that have a traditional practice and who add an interactive online component. 

We know this from the analysis that we have done from observing over 200 law firms that have subscribed to our DirectLaw virtual law firm service during the past two years. We have also learned why some law firms fail to successfully implement an online strategy. We also know that some lawyers have an unrealistic expectation of what it takes to be successful as a "pure play" virtual law firm.

To read the results of our analysis download our White Paper on Virtual Law Firms: Success Factors.

Also see these blog posts on this topic: Online Legal Services: Is it Hype or a New Way of Delivering Legal Services?;  Framing the Discussion About Virtual Law Firm Practice; and Defining the Virtual Law Firm .

2.    Affordable Legal Service and Access to the Legal System

The work of the eLawyering Task Force has always focused on identifying ways in which lawyers can become more productive and efficient by using the Internet as platform for the delivery of legal services and ways in which clients can benefit from the use of Internet technologies in terms of the fees they pay for legal services.

President Bill Paul of the American Bar Association, who created the Task Force, had the idea that through the use of Internet technologies it would be possible to lower the cost of legal fees to make the legal system more accessible to those who cannot afford typical attorney fees.

Instead, rather than the legal profession responding to this challenge, we see the emergence of companies like LegalZoom, SmartLegalForms, CompleteCase, LegacyWriter, Nolo, and the dozens of other non-lawyer internet-based legal solution providers who are responding to the need of consumers  for a ":good enough" legal result at the lowest possible cost. For millions of moderate and middle class consumers the purchasing of traditional high cost legal services delivered on a one to one basis is no longer an option. Their choice is to do the best they can with a legal solution provided by a non-lawyer provider, (which now may be a court or an online legal aid provider).

Jay seems to imply that if a client can’t afford the profession’s legal fees, then so be it.  Who cares?

Bring me The MoneyMy opinion is that it will be harder to justify the profession’s monopoly on the delivering of legal services when it only serves a tiny portion of the US population.

The reality is that many of us didn’t become lawyers just for the money. We want to serve people and help them with resolve their legal problems. Now there are technologies that can help us do that in a cost effective way and expand the market for legal services.  We shouldn’t ignore these technologies, just because we are not practicing law like the last generation of lawyers.

3.  The "Secure Client Portal" Concept":

Examples of Internet based applications range from web enabled document automation, to paying legal bills online, to the provision of written legal advice online, to simply storing the clients legal documents online so they can be referenced later. All of these functions require that the client have access to a secure client portal within which these functions can take place.

It is indisputable that a secure client portal is necessary for secure and confidential activities and tasks between to take place between lawyer and client. This doesn’t mean that a lawyer should not use email to provide confidential legal advice which I am sure happens all of the time, at whatever the risks.

On the other hand, it is not possible to pay your legal fee by credit card using email, and I have yet to see a web enabled document assembly solution being delivered through email. For legal work to be done securely online requires a secure client portal.

It us for this reason that the eLawyering Task Force included, as part of the definition of  what constitutes a virtual law practice, that the firm make available to its clients a secure client portal. This seems very obvious to us. Communicating with clients using a mobile phone and by email, is not the same thing as using legal applications online that do legal tasks.

Most people use some form of a secure portal everyday. We do our banking online, our stock brokerage online, buy insurance online, book travel online. It’s not rocket science. Except that right now the legal profession is lagging behind every other service industry in the economy in its use of interactive web technology. According to Jay, we should stay where we are and eschew these web technologies. In my opinion, we do so at our peril.

4. Web-Enabled Document Automaton.

Jay seems to think that the use of a web enabled document automation application is not in a clients interest and has little value, or that client’s don’ t want "just forms."  (It is hard to really know what he believes because of the confused logic that is used to support his argument). 

I think he is wrong about this. He can read our White Paper on Web-Enabled Document Automation as A Disruptive Technology and these blog posts: Document Automaton as a Disruptive Technology  and What Every Lawyer Should Know About Document Assembly.

5  The Legal Profession is Losing Market Share.

Solos and small law firms, with existing methods of delivering legal services, are pricing themselves out of the middle class marketplace. This is the real reason that LegalZoom is rumored to be generating more than 100 million in revenues this year.  LegalZoom and other non-lawyer providers continue to increase their market share at the expense of solos and small law firms.  The assertion that lawyers don’t need the people as clients that purchase forms from non-lawyer providers is a misrepresentation of what is really happening in the solo and small law firm marketplace. The clients that are turning away from law firms are clients that law firms need and who they previously served in an earlier, pre-Internet era.

6.     eLawyering Applications are Not Just Tools.

It is not accurate to see state that eLawyering applications are just "tools". In fact they are can be disruptive of the typical law firm business model.  If a consumer can get the result that they want by using a Internet-based legal solution, or "digital legal application" at a fraction of the cost of using an attorney, many will opt for that "good enough" solution. What is important to the consumer, is the legal result, not the fact that they have to go to an attorney to get it.

7.    A  New Generation of Clients is Coming Who Don’t Like to Talk on the Phone or Shake Hands With Their Lawyers.

It’s is true that many clients are not interested in working with their lawyers online, but we think that as a connected generation comes of age and they have legal problems that they will prefer to deal with their lawyers online and prefer to text rather than even talk on the telephone, much less meet with their attorney face-to-face, unless it is unavoidable.  For facts to support this assertion, see books like New Rules of Engagement: Understanding on How to Connect With Generation Y. and the work of Christine Hassler.

In a study conducted last year by YouGov, a UK-based research and opinion firm,  on consumer preferences for legal services, one of the conclusions was that:

"34% of respondents said they would be more likely to choose a law firm that offered the convenience of online access to legal documents over one that had no online capability; 22% disagreed and 37% neither agreed nor disagreed."

 Younger males were the most likely to choose a law firm with online services and access: 44% of 25-to-39 year-old males (and 40% of such women), along with 40% of 16-to-24 year-old males, would choose a law firm offering online access to documents over another law firm."

There is obviously a generational shift happening.  As a younger generation matures to the age where they have legal problems, their desire to deal with lawyers online becomes a requirement, not a preference.

Summary

These are serious issues for the legal profession. The American Bar Association Legal Technology Resource Center reported last year in one of its technology surveys of the legal profession that only 52% of solo practitioners have a web site. That means that almost half of solo practitioners don’t even have a web site. Is it that these practitioners are making so much money that they don’t have to even have a presence on the web? Or are we as a profession so out of touch with contemporary trends, that we will have to race even faster to catch up?

Neaderthal Man = Legal ProfessionSo where are we on this spectrum of evolution? Are we still stuck in Web 1.0 with brochure web sites, or are we evolving to interactive web sites that connect with clients who will want to work with their lawyers online or are we still stuck in Internet circa 2002?

Let’s expand this discussion, so that lawyers, particularly solos and small law firms, can figure out how to utilize these new technologies to expand and sustain their law practices in an environment that will become increasing competitive. 

Disruptive web legal services such as AttorneyFee.com, Law Pivot,  LegalZoom, are not going away. They will expand and proliferate. The "new normal" is here.

 

The Online Bar Association Meets 04/29-05/01 in Coral Gables, Fl

26 Apr

A new international bar association was formed last year, based in Miami, Florida, called the Online Bar Association. It is an eclectic group of attorneys some based in the United States and many based internationally, who have come together around a common interest – the online delivery of legal services.

The first inaugural meeting is this weekend, April 29-May 1, 2011 at the Westin Colanade Hotel in Coral Gables, Florida.  Here is information about the meeting and the agenda.

 

Online Legal Services: Is It Hype or a New Way of Delivering Legal Services?

09 Apr

We have been evaluating the experience of law firms that have subscribed to our DirectLaw Virtual Law Firm Platform to determine what are the factors that make for success. Subscribers to our service are mostly solo practitioners and small law firms who are experimenting with this new mode of delivering legal services online. We want to share their experiences as we learn from them about what works and what doesn’t work. When we have exemplary examples of success we will develop case studies from which we all can learn.

All kinds of lawyers have subscribed to our DirectLaw client portal which enables the online delivery of legal services:

  • recent law school graduates who can’t find a job and forced to hang out their own shingle;
     
  • lawyers who want to give up on a physical office for one reason or another and want to try working from anywhere, but still see clients face to face when necessary;
     
  • lawyers who think they can copy LegalZoom and get rich quick by simply putting a site up that sells legal forms and documents online;
     
  • lawyers who are in transition because they have been terminated by their law firm employer because of the impact of a constrained economy which is not growing;
     
  • retiring lawyers, with deep experience and expertise, and who want to transition into a part-time practice, rather than give up the law entirely;
     
  • “pure-play” virtual law firms, where the lawyer never sees a client face to face in an office setting or goes to court;
     
  • more traditional law firms, and the experienced lawyers that run them, that want to extend their brand online by adding what we refer to as a “virtual component” or a “virtual law firm platform.”
     
  • Less experienced lawyers who want to compete against older more experienced lawyers with an online service to distinguish themselves from more traditional law firms in their community.

Each of these lawyers see potential in the “virtual law firm” concept acquiring new clients and serving existing clients more effectively.

Almost all of our DirectLaw subscribers hope to acquire new clients by creating a dynamic, and interactive Internet presence that is more than a passive web site, which is no more than an online brochure.

Some law firms are struggling as "virtual law firms" and are not able to generate new clients and new sources of revenues. On the other hand, we know from our own direct experience in running a virtual law firm since 2003, that the concept can work, and our own success in selling automated legal forms directly to consumers through a network of more than 30 legal form websites, indicates that there is real demand for online legal solutions.

So what are the factors that contribute to success?

1. Your law firm web site needs to be findable on the web.

Our analysis indicates that a major cause of failure for law firms trying to market their services online is a poorly constructed front-end website that is not search engine optimized. DirectLaw’s client portal integrates with a law firm’s front end website and it is through the law firm’s web site that the client finds the law firm, and logs on to their own password protected and secure client space.

If the firm’s web site is not findable on the Internet, the site gets little traffic, which translates into no prospects and no new clients. Most lawyers no little about the art and science of inbound internet marketing and the techniques of how to make their web sites findable. Web design firms that create graphically intensive law firm web sites that look beautiful do a disservice to law firms unless the sites they develop are also search engine optimized and the web design firm stresses the importance of  creating new legal content that is practice specific as a magnet for web traffic.

See: Law Firm Web Site Design: Tips and Techniques

2. You need to have a good reputation as a competent attorney in your community with an existing client base if you are going to make it online. There are some exceptions to this rule, but not many.

A major factor that contributes to online success is having a good reputation in a particular area of legal practice. See Case Study

“Pure play” virtual law firms launched by lawyers who can’t quite make it in the real world won’t make it online.

The most successful use of online virtual law firm technology is demonstrated by law firms who already have a successful traditional practice and a base of clients to draw upon. Online law firm technology enhances the experience for existing clients and increases the productivity of the law firm in serving these clients. Word of mouth referral from existing client’s, sends new clients to the law firm’s web site. New online prospects convert to clients because of the credibility of the attorney in the real world, and the potential for a face to face meeting when necessary. The online technology component complements the offline practice, and vice versa. This doesn’t mean that a “pure play” virtual law firm can’t work; it just requires a special type of practice to make a "pure play" business model work. A "click and mortar" law firm model seems to work best, at least during this period of early development of the online legal services concept.

This is a complex subject  that requires more space than can be contained in a single blog post.

For further analysis and discussion of success factors see: Factors That Contribute to the Successful Delivery of Online Legal Services.

 

 

Venture Capital Flowing Into Legal Enterprises: Total Attorneys Receives Infusion of Capital

22 Jan

Private capital is beginning to flow into companies that are operating at the intersection of the delivery of legal services and the Internet.

Total Attorneys, a Chicago-based company,  just announced that they received a multimillion dollar investment from BIA Digital Partners, a Virginia-based venture capital firm. Total Attorneys is most known for the marketing services that it provides to law firms and the recent ethical controversy in some states surrounding the use of pay-per-click advertising on behalf of law firms. (Apparently this controversy has been resolved in favor of Total Attorneys in every state where it was considered by bar ethics committees.)

The company plans to extend its technology assisted services to law firms by expanding its virtual law firm Software as a Service offerings (SaaS).   Total Attorneys mission is to become a leading provider of elawyering Services to solos and small law firms by providing a comprehensive suite of outsourced technology services, from marketing to web-based practice management tools to a robust client portal.

The company licenses virtual law office technology to solos and small law firms as a subscription service, that now consists primarily of a robust suite of "back-office" practice management tools. The pan is to expand the service into a more comprehensive "front-office" client portal, providing a total solution to solos and small law firms.

This expansion would entitle the company to claim that it is a leading provider in the eLawyering space  and it would compete more directly with our own DirectLaw virtual law firm platform service and other web-based companies moving in the same direction.  [ See:  Legal Vendors Cloud Computing Association ] .

The concept of "technology-assisted service" is an interesting category for  the legal industry for it describes a form of outsourcing which combines both a digitally-based service combined with human service. Thus Total Attorneys also provides "virtual receptionist services", and at one point virtual support services to bankruptcy law firms. One management solution for solos and small law firms it to out source to independent specialized companies functions which can be done more effectively and at less cost than the law firm can do itself using internal resources.

It is good to see competition heating up in the eLawyering space, which has been moribund for a long period of time.  The eLawyering Task Force of the Law Practice Management Section of the ABA was created in 2000, more than a decade ago. For many  years there was not much to report in terms of the innovative delivery of on-line legal services by law firms. The last 2 years has witnessed an explosion in elawyering industry developments as lawyers adapt to change — caused by a severe recession, widespread unemployment of recent law school graduates, and the challenges created by consumers who are seeking lower-cost and "good enough" alternatives to lawyers, [such as LegalZoom.]

Competition among a variety of vendors provides choices to law firms.  Competition focuses attention on the fact that delivering legal applications as a SaaS is emerging as a new paradigm for enabling solos and small law firms to access complex Internet technologies at a fraction of the capital cost of developing these applications internally.  Private capital moving into the legal industry will create more choices for law firms, and as a consequence more choices for consumers.

Creative legal outsourcing will enable solos and small law firms to become more productive and survive in an increasingly competitive environment.

 

Online Legal Services-A Revolution that Failed?"

06 Dec

Chrissy Burns, an Australian lawyer produced a PHD thesis in 2007, entitled ‘Online Legal Services-A Revolution that Failed?’, where she argued that Clayton Christensen’s theory of disruptive innovation does not apply to online legal knowledge products and that a "latent market" for legal services really doesn’t exist. Ms Burns is presently Director of IT and Knowledge Management at Blake  Dawson so she brings first hand knowledge to her thesis based on her  work with large law firms. In a recent review of her workby Darryl Mountain, an attorney with expertise in document automation, makes the counter-argument  that Ms Burns focus is purely on large law firms and the corporate legal market and overlooks the documented unmet legal needs of the broad middle class and the disruptive response of non-lawyer providers such as LegalZoom which has served generated over a 1,000,000 wills for consumers during the past five years. Mountain cites other evidence that there is a wide and growing latent market for legal services, that Burns has overlooked. Mountain concludes that, " The legal marketplace has continued to evolve since Burns finished writing in 2007. On the retail side of law practice, the revolution is very much alive and people are beginning to resolve legal problems solely through the use of online legal knowledge products."

Mountain also argues that Burns has defined "online legal services"  too narrowly because her definition is limited to knowledge products that solve legal problems without lawyer assistance or involvement. Such products are stand alone applications, such as "expert systems."

Mountain argues that the better model for thinking about disruptive change is to consider how Internet-based legal technology can work together with legal professionals to increase law firm productivity, maintain profit margins, or result in lower fees. Instead off stand-alone, legal  knowledge products, Mountain argues that technology-assisted legal service is likely to become the more pervasive model in the future. Mountain writes:

"The best solutions are often those that combine people and software, whether the people are lawyers, paralegals, or outsourced personnel. "

His review and Burns’ thesis are both worth reading for those who follow developments in the delivering of legal services online.