• 04
  • Feb
  • 2019
The top 5 reasons why lawyers are finding it so hard to make a good income in the current legal market

The top 5 reasons why lawyers are finding it so hard to make a good income in the current legal market

Many lawyers today are finding it more difficult to maintain their active client base and obtain new clients. This is a real problem for all law practices from small law firms / sole practitioners all the way through to the very largest of firms.

Why is it becoming harder to become a lawyer and why is it harder to make ends meet as lawyers in the current market.

1. Prospective clients are looking for value for money and innovative ways to access law to lower their costs

It has been discussed in recent times that for law firms to profit and remain relevant in the current market that they need to change the way they offer their services.

This is because the way people access information and services in the modern day is very different to even ten years ago.  

The fall of paper media and the rise of electronic media and information means that traditional advertising in newspaper and telephone directories has seen a massive slump in return on investment.  It is now imperative to have an online presence if your law firm relies on attracting new clients from the general public seeking service of firms such as yours. The vast majority of service searches are now online and in the most part through Google.

2. The general public are struggling financially

Due to the cost of living in Australia being the highest it ever has been the general public have much less disposable income and savings.  

Australia is now one of the most expensive countries to live in and especially in major cities where the majority of the populous live.

For the average Australian accessing legal representation at short notice is usually out of their reach.  The same goes for business as many operate with very little in the way of liquid assets to be able to pay legal costs and many operate week to week.

This means prospective clients are looking for ways to access legal advice and representation at much reduced rates and via methods that mean they do not need to spend any more time away from their business or employment than they have to.

3. Competition in the legal market

The legal market is now extremely competitive as the push to get to the top of online search results is hard to do, as is getting to the top of paid online advertising due to the big firms being able to afford to pay large sums for “cost per click” advertising in the form of Google AdWords or similar.

It is getting harder and harder for the smaller firms to compete online and put themselves in front of prospective clients who now mainly search for legal services online.

Even larger firms are using their online search position to exploit other market segments knowing that it will push their smaller competitors out of business.

4. The cost of being a lawyer is increasing

Along with the increase in marketing budget the cost of professional indemnity insurance, online research tools and the need to forever update legal libraries is becoming prohibitive for lawyers.

Lawyers have to work a great number of hours per week to cover overheads before they begin working for themselves.  

It is possible for lawyers to work to make a good profit however margins are being squeezed on all sides and new and innovative models for obtaining clients is more necessary than ever.

Competent support staff, such as good paralegals, administrative, accounting and managerial staff are vital to a law firm operating efficiently.  Skilled staff are expensive but necessary in the modern legal office. The Law App will greatly reduce admin staff dependence.

The cost of leasing commercial premises in big cities and even smaller towns has been a major consideration for a long time.  The better the location the more it costs and let’s face it, putting out the high profile corporate image is becoming harder to achieve with the prohibitive cost of top line premises.

5. The general public believe that lawyers charge too much

Even though lawyers know the exorbitant costs of providing legal services the public don’t.

Most people see the charge out rates of lawyers being in the hundreds of dollars per hour and just can’t see the value (much less be able to afford the fees in a country such as Australia that has one of the highest living costs of any country in the world).

Many people need to self-represent or just don’t contest a legal situation meaning lawyers simply lose their custom.

The solution to client’s paying high lawyer charge out rates is here

The Law App is new and innovative technology that offers the general public the best and most experienced lawyers at much reduced charge out rates by agreement.  

The Law App is a web-based system that allows lawyer to set out their legal costs (generally at a lower rate to entice clients) and pitch to clients who have set out their legal problem.  Lawyers have the ability to compete with other lawyers and show their competitive advantage to win clients. The more a lawyer uses the Marketplace the better they will become at obtaining clients.  

This works well for lawyers matching with clients who want either experienced lawyers at a good price, or for clients with a low budget getting the most for their money.  There are multiple cost categories for clients to match with all lawyer types in all fields of law Australia Wide.

This service is transparent and is what clients in the current market desire.  A service that can cut overheads for lawyers who are then willing to pass on the saving to clients so each win.

Why does it work?

All lawyers have some down time and experience times throughout the week or month when they could be working and otherwise aren’t.  Jump on The Law App and pitch for more work that is looking for a lawyer just like you.

Another factor to consider is that some experienced lawyers (Solicitors and Barristers alike) are old school.  Many don’t even have a website. These lawyers are finding it harder in the current market to have their reputation bring in new clients by referral only.

Some lawyers are willing to forego the expensive office space and work at home or in suburban offices to service client’s needs at a reduced rate to improve their competitive advantage.  With technology such as The Law App and online video conferencing offered through the system the traditional view that a lawyer needs an office is changing.

A major drawcard for the general public and lawyers alike is that it’s free for clients to search for the right lawyer by registering with The Law App.  

All of this means that the lawyer can work for new clients at much reduced rates.  

As lawyers we know that there are clients out there searching for our services who just cannot afford the high fees; and there some of those who can afford the normal rates of lawyers but will pay less for a lawyer if they can.

Prospective clients are becoming more focussed on the price point, and if a lawyer can cater to that through a low cost law online marketplace providing new clients as The Law App does, it takes little reasoning to understand that The Law App is a necessary marketing tool for nearly all lawyers in Australia.

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