Sams Club Makes Legalzoom a Member Benefit

I predicted the further commoditization of legal services in a recent post, “The “Walmart Lawyer” Has Arrived.” Now Walmart has gone beyond its Canadian experiment with Avvo and rolled out Legalzoom nationwide. Just as I predicted.

This from today’s edition of The Florida Bar News:

“Legal Zoom did more than 1 million wills last year. It’s now a benefit for members of Sam’s Club, whose stores may eventually have lawyers on site. Avvo, which started as a lawyer rating service, now links a potential client to a lawyer every eight seconds and is setting up a service where anyone can speak to a lawyer for 15 minutes, for $39.” Read the full Florida Bar article HERE.

What is the bigger picture here? Bar associations, starting with the ABA, have so badly failed their profession that thousands of lawyers are inevitably – and in many cases, not even gradually – losing their ability to make a living at the law. Bar associations are tragically far behind the curve in serving the needs and interests of their members. The very organizations which used to protect entry to the hallowed portals of the law and keep legal services expensive, are now at the back of the pack, trying to react to the fast-moving world of business.

Futurists such as Richard Susskind in “The End of Lawyers?” and Jordan Furlong, in scores of far-seeing posts on his blog law21.ca (and occasionally myself) have been laying it all out in chapter and verse for years.  And Bar associations have done essentially nothing – at least nothing substantive – to respond. They have been re-arranging deck chairs on the Titanic.

The next big challenge for Bar associations – to which they will fail to rise – is the rising tide of transformation in the profession in Australia, Britain, and soon, Canada – multi-disciplinary practices, non-lawyer ownership of law firms, and more – as outlined the the Canadian Bar Futures Report (an absolute must-read). Bar associations will dither and quibble until the questions become irrelevant, as outside forces take over.

As I and scores of others have predicted, the bottom half of the market for legal services – the “commodity” half (where a great percentage of most attorneys live) is going away, or becoming commoditized to the $39 level now offered by AVVO.

The top half – where legal services are more complex and problems and solutions more unique – can survive, but only by taking dramatic steps to re-invent how they accomplish and deliver their services. For they too are coming under immense pressure from corporate clients who are no longer tolerating the “black hole” approach to billing. Pfizer fired one of the first shots here as early as the mid-2000’s. They announced that they were spending nearly half a billion dollars a year on legal services, and were firing half of their law firms and requiring the rest to provide services on a flat-fee basis. Thousands of companies are following suit.

The solutions? The “legal project management” approach, in whole or in part. As currently taught, it is aimed at mega-matters, and is far too complex for many practitioners (just like much case management software). But focus on internal capacity and efficiency – building strong, efficient and fast-moving teams – is essential to safe navigation of the future, even at the “bespoke” level of the law.

To survive attorneys and law firms must take heed of the principles I put forth in my “Heirarchy of Value of the Attorney In the Practice.”

First and most important – marketing – making sure we have clients to serve. Without clients, the attorney’s skills are irrelevant.
Second – client relationships – making sure the client is being well served (by the team), is happy with the work, speaks well to others about the attorney, and comes back with more work.
Third – Creating the strategy and direction – the roadmap – for the matter. I call this the “wisdom” piece.
Fourth – leading the team to get the result. Leading, not doing it all.
Fifth – the high-level legal work which no team member can do. This hearkens back to the strategy, but also means key client meetings, depositions, hearings, mediations, and trial. This is the neurosurgeon approach. He or she has a team that provides all the initial work, preps the patient for surgery, and often even does the initial opening. The neurosurgeon does only that part of the surgery that no one else can do. And when they’re done they leave the team to close and complete the surgery.

If you’re looking into the face of a rapidly changing marketplace and could use some input, call me. Always happy to offer whatever advice I can. 407-830-9810.

More rants – and more solutions – in coming posts.