The Latent Market for

Legal ServicesClosing the Justice Gap

Richard S. GranatCEO, LawMediaLabs, Inc.

What do Consumers Want

• Speed• Transparency• Fixed Prices• Manage Risk• Use of Latest technology• Lower Fees• Trust

Empowered Consumers

• Online companies such as Legal Zoom and Rocket Lawyer, when available for specific areas of law, are being turned to by the public who may otherwise have consulted with a lawyer.

There is a growing online market for legal services.

Market Opportunities

• Latent Market for Legal Services: Non-customers- Potentially Huge

• “Making money while you sleep” = initial investment in system, minimum effort and timeo Onlineo Charge “serious” feeso No competing products

• Packaging versus commodity o Ex: legal counsel and strategy with legal document creationo Ex: limited appearance with doc creation

• Value billing versus billable hour

Latent Market• Refers to something that is dormant, not

observable, or not yet realized.• The earning of a market when that market

becomes accessible and attractive to serve.• Potential industry earnings or total revenues if a

market is served in an efficient manner.• Sources:

o The 2011 Report on Legal Services: World Market Segmentation by City, Icon Group International (2011.

o Bureau of Labor Statistics; US Census Bureau.o Legal Services: Market Research Report, Market Publishers, October,

2009.o American Bar Association; US. Legal Services Corporation.

The U.S Legal Services Market

• American consumers spend approximately $43 billion to $56 billion annually on personal legal services

• Latent legal services market adds another $45 billion to the potential market

• $145 billion market in total

Size of the market for legal services

What consumers spend now $43 billion

Estimated value of under-served consumers or latent market defined as the value of legal problems that are not serviced.

$45 billion

Total market $88 billion

7

Latent Market for Legal Services• 50% of middle income households in the US have at least

one legal problem per year

• Only 20% seek legal assistance from attorneys.

• 26% do nothing at all.

• Increasing percentage of consumers seek alternatives to lawyers such as self-help.E.g., Nolo and LegalZoom

• Potentially huge market waiting to be tapped in the US for personal consumer legal services.

Market Metrics• 78% of Americans do not have a will or updated will.• 50% of all marriages end in divorce.• Personal Bankruptcy filings have almost doubled since

1990.• More than 10 million American are victims of Identity Theft

each year.• Nearly 9 our 10 employees experienced at least one legal

concern during the past year. (Legal Needs Study).• In fact, seven out of 10 Americans said they experienced a

legal event within the past year*, according to a recent survey conducted by ARAG, a legal solutions provider. (Legal Needs Study). Data also supported by American Bar Association Legal Needs Study.

Clients are online, lawyers aren’t

• Pew Research Center: 3 out of 4 consumers seeking an attorney over the last year used online resources at some point

60% of Solos Don’t Have a Web Site.‘Brochure ware’ sitesNo Advanced TechnologyTiny, Undercapitalized OperationsUneven Quality

User generated contentClient PortalsFree AdviceCollaborationNon-Law Firm ProvidersFree Legal FormsOut Sourcing

MostSolos and

Small Law Firm

s

Early Adopters

Web 1.0

Web 2.0

Web 3.0

Web 4.0

©NakedEyes http://www.flickr.com/photos/55456073@N00/301678287/

New Generation Law FirmsInternet is the Platform for DeliveryNationwide BrandsOnline and OfflineOnline Delivery of Legal Services.

NOW

Resources• Marketing Legal Services Online.• The Evolution of Legal Services – Stage IV- by Jord

an Furlong• The Future Middle Class of the Legal Profession U

nbundled Legal Services from Solo Practice University