I’ve written extensively about consumer-facing legal startups – those startups whose focus is on engaging consumers to use their products or services in an effort to help them take charge of their legal matters. (LegalZoom, Rocketlawyer, 3StepDivorce.) This reduces cost for the consumer and gets them actively involved in the process.  This can either be seen as a negative from those in our profession who feel threatened or seen as a positive.  I prefer to see it as a positive because a truly educated consumer is a better client, in my opinion.

Awhile ago I listened to Will Hornsby talking about lawyers who serve personal consumers.  It was a highly informative video but, unfortunately, is no longer available to watch.  The most impactful information from the video and what I want to share is this: the narrative as to why consumers don’t engage lawyers has been all wrong.  It is not monolithic.  There are a myriad of reasons.  One reason which is thematic in legal needs surveys but still surprises lawyers is that cost  is not the predominant factor when deciding not to hire a lawyer…even in today’s economy.  Yet cost is what is discussed the most as the primary reason why consumers don’t contact lawyers.  This misconception dictates the narrative.  Surprisingly, the dominant reasons consumers are not contacting lawyers is they don’t understand they have a legal problem, they don’t think the problem is large enough for the exchange of dollars (no value), they believe nothing can be done, or they think they can settle it on their own in a satisfactory manner.  The survey conducted to garner these results was conducted on lower income consumers so this even plays into the access-to-justice movement.  If the narrative we’ve been buying into is wrong, then lawyers are constructing models that are misdirecting resources.  Then they wonder why potential clients aren’t calling.

Here’s a startling fact:

Only 8% of those with a justiciable legal problem went to a lawyer.  That means 92% didn’t.

That doesn’t mean cost isn’t a factor. It’s just cost is not the primary factor. It also means there is an ‘engagement deficit’ as Will Hornsby defined it.

Therefore, when you have these consumer-facing legal startups, they are actually doing you a service on a large scale.  They are helping those consumers who are unsure if they have a legal problem identify that they actually do.  If cost isn’t the primary factor stopping clients from retaining a lawyer, then addressing the knowledge gap is the best first step towards a client engaging you.  If lawyers start recognizing that these consumer-facing legal startups are doing the heavy lifting (education), and then providing tools to get the consumer involved in the legal process by identifying they have a legal issue that must be addressed by an attorney, you must start working with them. They aren’t the enemy to your bottom line.  They will enhance your bottom line if you are wise enough to get engaged with them.