The Latent

Market for Legal

Services
Closing the Justice Gap
Richard S. Granat
CEO, LawMediaLabs, Inc.

What do Consumers Want

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

Empowered Consumers

There is a growing
online market for
legal services.
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.

Market Opportunities
Latent Market for Legal Services: Non-customers- Potentially Huge
Making money while you sleep = initial investment in system,
minimum effort and time
o Online
o Charge serious fees
o No competing products

Packaging versus commodity

o Ex: legal counsel and strategy with legal document creation
o 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

$145 billion market in total

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
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

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

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

NOW
Most
Solos
and
Small
Law
Firms

Early
Adopt
ers

Web
2.0

Web
3.0

Web
4.0

Web
1.0

60%
60% of
of Solos
Solos Dont
Dont Have
Have aa
Web
Web Site.
Site.
Brochure
Brochure ware
ware sites
sites
No
No Advanced
Advanced Technology
Technology
Tiny,
Tiny, Undercapitalized
Undercapitalized
Operations
Operations
Uneven Quality

User
User generated
generated content
content
Client
Client Portals
Portals
Free
Free Advice
Advice
Collaboration
Collaboration
Non-Law
Non-Law Firm
Firm Providers
Providers
Free
Legal
Forms
Free Legal Forms

New
New Generation
Generation Law
Law Firms
Firms
Internet
Internet is
is the
the Platform
Platform for
for
Delivery
Delivery
Nationwide
Nationwide Brands
Brands
Online
Online and
and Offline
Offline
Online
Online Delivery
Delivery of
of Legal
Legal
Services.
Services.

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

Resources
Marketing Legal Services Online.
The Evolution of Legal Services Stage IV- by Jor
dan Furlong
The Future Middle Class of the Legal Profession U
nbundled Legal Services from Solo Practice Univer
sity