There was an interesting article in Forbes magazine in October about the rise of LegalZoom and other legal websites. LegalZoom has been around for about ten years now, and some lawyers are starting to feel the heat.
For those of you who don’t know, LegalZoom (and other websites like it) have been popping up on the web. They aim to customize typical legal forms such as wills and incorporation papers for people who are not hoping to spend a lot of money on a lawyer. The article reports that LegalZoom charges $69 for wills and as little as $99 for articles of incorporation. Many old school lawyers who still bill by the hour could charge thousands for these services. Websites like LegalZoom seek to remove the middle man and help intelligent people manage simple legal matters on their own.
The reality is that you don’t need a law license to draft your own will or incorporation papers. Many people can and do take on these tasks without the aid of an attorney. Hiring an attorney can provide some benefit, however. For instance, attorneys may be aware of nuances or differences in your particular situation that a legal website that spits out the same document for every person with the same information. Is this knowledge worth thousands of dollars of additional money? Often the answer is no.
Instead of fighting websites like LegalZoom, attorneys should be exploring new pricing schemes that reflect the value of the service they are providing. An attorney’s expertise, knowledge, and advice can and should be reflected in the cost of legal services, but not at the great expense of the client. The legal community should embrace these alternatives and use it as an opportunity to explain why what they provide is worth any additional funds. Hopefully, these legal sites will help lawyers to rethink the billable hour and offer fixed fee services for work when the amount of time and energy required can be easily estimated.