DirectLaw is Becoming an Open and Multi-Sided Platform for Virtual Law Firms

The DirectLaw Virtual Law Platform is evolving into what is called a multi-sided and open platform. Our latest feature enables the sales of non-Rapidocs documents and HOTDOCS templates, in addition to Rapidocs automated document templates.

We added this functionality in response to our #1 question from law firms -- "Can I use my own documents?" While this option doesn't have the benefits and efficiencies that our libraries of Rapidocs-based documents provide -- i.e., clients won't be immediately presented with an on-line Questionnaire that will automatically create their docs – firms now have the flexibility to easily put their own documents on the "menu" and convert them to sales.

Moreover, beginning in mid-June, 2010, law firms who have invested in automating their legal forms and documents in HOTDOCS for use on the desktop will be able to serve HOTDOCS Questionnaires through the Web browser via the DirectLaw Platform and charge clients for legal forms bundled with legal advice. We are also in the process of identifying other legal applications created by independent developers that can be served from DirectLaw’s Virtual Law Firm Platform.

The launch of our new consumer portal, MyLawyer.com, provides another side to DirectLaw’s Virtual Law Firm Platform. MyLawyer.com contains a searchable Law Firm Directory, legal information, legal tools such as calculators, and a limited number of free legal forms. 

The inclusion of free legal forms enhances DirectLaw's ability to promote the site most effectively through search engines.  DirectLaw also markets this site via press releases and articles/interviews in relevant media channels to drive traffic to DirectLaw’s network of virtual law firm web sites.  

Designed around the concept of limited ("unbundled") legal services, MyLawyer.com compares the differences between limited legal services provided through a law firm vs. a non-lawyer entity like LegalZoom.com

Consumers can easily search for a law firm in their state offering on-line, unbundled legal services, clicking directly through to the firm's MyLegalAffairs "menu of services". 

Debate on Virtual Lawyering on Twitter - May 7, 2:00 P.M.

This Friday there will be a debate on twitter about virtual law practice between Stephanie Kimbro (@StephKimbro and Brian Tannebaum (@BTannebaum) You can follow the debate at:
 @22Twts and with the Twitter hashtag #22TwDb.

Brian has already launched an opening salvo in response to a blog post that Stephanie wrote just yesterday.  Unfortunately the ABA Journal, which is co-sponsoring the debate, has framed the issue of whether lawyers can dispense with physical office space.

The issue should have been framed in terms of whether on-line legal services delivered through a secure client portal are a valuable adjunct to an existing law practice, and whether a law firm operating purely virtually, with out a physical office can be a viable mode of law practice. It is hard to discuss this complex topic in 140 character sound bites but I am going to try:

Virtual lawyering is about delivering legal services on-line, not about doing away with a physical office, although that is an option.

Virtual lawyering is about relating to clients through a secure client portal where the client signs on with a user name and password.

Within a secure client portal clients can communicate with their lawyer securely, provide data to assemble legal documents, pay bills, etc.

The utility of the client portal concept depends on the type of law practice. I would not recommend it for a criminal defense practice.

Some kinds of law practices require rich face-to-face interactions. Other kinds of practices, can get by with more digital transactions.

One size doesn't fit all, but a physical office is not necessary for some kinds of law practices.

Millions of middle class Americans have turned away from using lawyers to solve their legal problems.

50% of middle income households in the US have at least one legal problem per year . Only 20% seek the assistance of an attorney.

A younger generation with the Internet in their DNA will prefer to deal with their attorneys online.

They prefer to go on-line and use non-lawyer providers like LegalZoom, USLEGALUSLEGAL and Nolo and other non-lawyer web sites.

These non-lawyer solutions are inadequate but seem to be good enough, for the average consumer.

Unless solos and small law firms wake-up they will continue to lose market share to these non-law firms providers.

Fact: A recent study showed that over half (56%) of consumers expect good law firms to offer legal services online.

The same study revealed that  (47%) of consumers would be more likely to choose a law firm that offered the convenience of online access.

The legal profession is changing. Change is caused by the Internet as a new platform for the delivery of legal services.

@BTannebaum is completely wrong. He doesn't let facts get in the way of his opinions.

@BTannebaum doesn't understand the risks that he is taking by using email to send documents to his clients in his criminal law practice.

The virtual law office issue is not about not having a physical office. It is about providing legal services on-line.

No virtual lawyer that I know has argued that client files should be kept on an IPad while sitting in Starbucks.

There is more danger in keeping records in paper format in the office, than there is storing them in a Tier IV facility in encrypted format.

Does @BTannebaum even know what a Tier IV facility is?  Has he bothered to find out?

@BTannebaum thinks lawyers looking for a better way are whining, when in fact they are looking for a better way to serve clients.

Almost every other industry provides a on-line  client portal for their customers -- except the legal profession.

Virtual lawyering is not for the convenience of the lawyer. It is an approach which is aims to offer legal services at an affordable price.

It is an approach the offers more convenience and a more transparent lawyer-client relationship.

A face-to-face meeting with a client is often optimal, but it is expensive, and clients are looking for cheaper alternatives.

In a criminal defense practice, price is usually no object.

If you are going to lose your license to practice law, price is usually no object.

@BTannebaum is biased because his vision is limited to his kind of law practice. He has blinders on.

@BTannebaum can keep arguing for traditional methods of law practice, while consumers turn away from the legal profession.

Brian Tannebaum (@BTannebaum) stop whining. Wake-up. Its the 21st century.

Stephanie Kimbro (@StephKimbro is a pioneer and a legal rebel breaking new ground in developing new methods of delivering legal services.

 

 

 

 


 

RocketLawyer Raises More Venture Capital

RocketLawyer, a consumer portal linked to a network of law firms has announced that they have secured $6.55 million out of a $7.55 million funding round, according to a regulatory filing.  This is in addition to an initial $2.9 million investment by LexisNexis. It would be interesting to know RocketLawyer's valuation. If the $7.55 million bought 25% of the firm, then RocketLawyer, would be worth upwards of $30,000,000, post-money. If RocketLawyer is generating $6.000,000 in annual volume, then the valuation would be 5 x revenue. Sounds pretty rich. Typically valuations are confidential, but this information could shed some light on how hot the "Software as a Service" legal industry is. 

Dan Nye, former CEO of LinkedIn, has assumed the role of CEO, replacing Charley Moore, the founder of RocketLawyer., who remains as Chairman. (I guess the old adage that the first thing that a VC does when investing in a company is to replace the CEO is true!).

It will be interesting to see how RocketLawyer scales its operation with this funding, and how it develops a strategy to differentiate itself from AVVO and LegalZoom.  As AVVO adds functions to link consumers with lawyers, and as LegalZoom moves towards expanding its referrals to law firms for consumers that need the assistance of lawyers, one can see a certain amount of convergence in these sites. Of course, neither RocketLawyer nor LegalZoom, actually rate or evaluate lawyers, so in my opinion, gives AVVO an upper hand.

Our own legal consumer portal at MyLawyer.com also offers to link consumers to law firms, but the MyLawyer.com Directory only contains virtual law firms that offer legal services online, a niche which we believe will continue to grow. MyLawyer.com's free legal forms and legal documents service is a disruptive move designed to undercut the RocketLawyer and LegalZoom, approach that a consumer should have to pay for a legal form. (Although, our own experience has demonstrated that consumers really like the idea of a person reviewing and creating a legal document even though the person is not a lawyer and can't function as much more than a "scrivener." )

Like "open source" code we believe that the cost of legal forms on the web will continue to decline until pricing approaches zero, and that the real value add while be an attorney's advice and review when it is needed. For an elaboration on this theory, see generally, Chris Anderson' work on , Free - the Future of a Radical Price.  Once a person's situation becomes a bit more complex that the simplest fact situation, it is arguable that some form of legal advice and guidance is required.