Online legal services are growing robustly over the last five years due to many factors; including the sale of legal documents, attorney networking and generic legal services easily accessible for both consumers and small businesses. The most popular legal services purchased online include LLC formations, small business incorporations, wills and trusts and power of attorney.
According to the 2018 report from the Pew Research Center, more than 75% of all consumers want legal help and are using the internet to perform their buying research. The internet is the primary marketing focus online services such as LegalZoom and Inc File. Learn the difference by reading the comparison of Incfile vs Legalzoom.
Budget oriented consumers have used the Internet to find lower-priced alternatives to independent attorneys and traditional law firms fueling the online legal service market growth. This industry trends in the US over the last five years has shown a 9.4% revenue reach to expand the industry to $7 billion in 2018.
Total number of companies has grown by 8.5% and the number of employees in the industry has grown by 6.9%. Number of companies in the online legal industry is 10,720 and total industry employment is 30,905 individuals.
Services sold include the following listed in order of greatest number; transactional services including interactive legal documents, subscription legal plans, estate planning and small business startups.
Industry experts cite the following opportunities and threats after analysis:
The projected decrease in crime for 2018 could pose a threat for lack of demand for online legal services. Less people in trouble with the law will be seeking online legal services less.
The projected increase of consumer purchases of services online will be an opportunity of growth for this industry.
Independent law firms are achieving strong growth by breaking away from traditional marketing strategies and better aligning themselves with their customers needs and investing in both workflow improvement and business development.
2018 industry projections indicate find zero growth for services of law firms, decreasing profit margins and continued loss of market share to alternative and online legal service providers.
This will require attorneys to stop depending on the old-fashioned marketing techniques and stopgap cost-cutting to improve their profit margins. Instead they will need to be proactive and study their market needs and answer them in a bold way that is consumer attractive for future company success.