Who’s Afraid of LegalZoom? And Why?

Mentioning LegalZoom in a group of lawyers elicits a similar reaction to uttering “Voldemort” to magical folk in a Harry Potter book/movie — fear and contempt for “He Who Must Not Be Named.” He Who Must Not Be NamedLegalZoom is the most reviled recent innovation in the legal industry, the bete noire of small business and family law.

But like family lawyer Lee Rosen, I’m puzzled why lawyers seem focused on destroying the business through legal challenges and rhetorical attacks instead of besting it in the marketplace.

 “…The flaws in LegalZoom…are fixable. LegalZoom has resources and they’ve got time. They’re going to fix every issue they identify and, eventually, they’re going to have an excellent product. They’ll build greater and greater intelligence into the service and they’ll, one day, get it right for every client.

“Once they get it right, you’re still going to need to make a living. It’s time to start telling the stories of how you add value and give people a reason to come to you.”

With some innovative marketing — like adapting your service delivery model and sharpening your value proposition — you can actually benefit from LegalZoom’s outsized presence in the market.

  • LegalZoom can only say it’s cheaper; not better, or even as good.
  • If you’re honest with yourself, you don’t even want clients who think online forms are good enough. They would never be happy, you would end up over-servicing the client, and you would likely not get future business.
  • Is anyone actually losing clients to LegalZoom, or is the service model just attracting individuals and small businesses who otherwise wouldn’t consult with an attorney?
  • LegalZoom’s Achilles’ heel is that it cannot provide peace of mind. Leverage that. Create a higher-margin niche in reviewing draft DIY documents.
  • Productize and market your own forms. 
  • Give templates away. It’s a mitzvah to other small and solo firms (and potential referral sources), and a good marketing hook for your higher-value client services.

Do you think LegalZoom is an actual threat to small and solo firms, or are you embracing the challenge?

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