The legal counsel business model is nearing a catastrophic end due to a looming economic event. Unless we follow Kim’s example.
Every business has but one real competitor according to Clayton Christensen and it’s called “non-consumption“. Traditionally, legal services came prepackaged with a law incentivizing you to procure it no matter the price. Case in point: Europe’s GDPR legislation hatched an entire privacy protection industry which collected $24.1 Billion in venture capital.
Still, its anyone’s choice to hire a lawyer or to do-it-yourself (DIY). The number one weapon to combat DIY is advertising. Businesses buy ads to push people into a purchase.
The current Cost of Acquiring a Customer, known by the acronym CAC, is nearing an unsustainable rate according to Mary Meeker. Soon you have to pay more to market your products then you are able to earn from your customers. No need to be an economist to realize that’s a formula for disaster.
Especially for programmatic ads. The most expensive programmatic ads are those for legal counsel services. Why? While any lawyer, on paper, can earn more than $800 an hour, only a few do. The reason is that only a rare selection of legal services merit such a price. Looking at you, mega-merger lawyers.
Then why does it feel like we need to pay $800 an hour to become an attorney? The law of economics dictates you can’t charge such a rate for getting someone out of a parking ticket. Yet, most attorneys need to ask a lot in order to manage a decent living.
The main cause is the hefty investment it requires to become a legal specialist. To get a prestigious education in law, most will plunge themselves in debt. Among the richest private companies in the Legalpioneer dataset is SoFi: an online personal finance company that provides student loan refinancing. End of May they quietly raised $500 million bringing their total in capital raised to $2.1 Billion. Yes, quietly.
It’s a myth one can easily repay any study. Especially one that doesn’t properly train you to be efficient.
One person, with the means to pay but not the patience to go through a bloated legal education, found a way. You only need to pass the bar to approach the bench. Kim Kardashian will take 18 hours a week apprenticeship to pass the California Bar exam. This will allow her to plea cases for inmates by 2022.
Solving injustice does not require an Oxford law degree, it requires determination. No need to bribe anyone or donate millions to get in. Looking at you, Dr Dre. We can skip the AI, bypass the VC and realistically boost A2J if we do the following: make education affordable and inject law in every curriculum. This will enable most to avoid courts and receive justice at a fair price.
Mega-merger lawyers can save wrongly accused from death row. However, the costs of producing legal expertise may eventually force them not to. That will be a sad side effect of a rising CAC.
So, Go Kim! We all need you to succeed for society’s sake. With Mommy’s marketing skills and Daddy’s legal DNA, you’ll be a precious addition to the profession.
The current US President believes you’ll be the best of the West and I agree.