How to prepare for law firm competition from nontraditional firms

Law firm competition has always existed, but the modern landscape has altered it in some significant ways. Look beyond that law firm down the street when considering the competition.

Alternative Legal Service Providers (ALSPs)

These firms offer legal services through nontraditional platforms or delivery methods, and they have grown in number and popularity over the past several years.

As reported by Thomson Reuters, these providers have become more mainstream than alternative, a trend experts expect to continue:

“…ALSPs are moving from a simple cost-saving proposition to a true partner than can be counted on for expertise, tech-enabled solutions and new ways of doing business…The ALSP market has grown during the last six years and now is valued at nearly $14 billion, according to the report, with almost 80% of law firms and more than 70% of corporate law departments surveyed using ALSPs.”

Of note, this report shows that more law firms have turned to these providers as partners and collaborators. Both clients and law firms turn to ALSPs for technology.

As an independent lawyer, these providers can help support your efficiency and reach by fulfilling some time-consuming tasks that don’t require a law degree to execute. These tasks may include:

  • Document review
  • Legal research
  • E-discovery
  • Contract management
  • Technology
  • Client management and communication

Think of ALSPs as a way to grow your small law firm rather than as direct competitors.

Create a Boutique Law Firm Brand

You don’t need to replicate the service offerings of ALSPs, but you do need to show potential clients the value of working with your full-service firm.

JD Supra advises:

“Ask yourself, or ask them, what are those things that would cause these people who are so valuable to you and the future of your practice and your firm to be so secure, confident and pleased with your working relationship that, when faced with alternate sources for service that you offer, they would easily make the decision to continue working with you?”

When comparing a boutique law firm to an ALSP, that decision often comes down to people. Clients want quick and effective solutions to their legal needs, yes, but they also want to respect and trust the people serving them.

You can show the most value by communicating your:

  • Focus on client relationships
  • Commitment to above-and-beyond client service
  • Personal experience and expertise that uniquely meets their needs
  • Simple and effective approach to legal services
  • Depth of connections and robust offerings

While you might not have the capacity to compete on bottom-line spend, you can show that you add significant value for the client’s investment. In short, your law firm should represent high value and commitment to specialized client care.

Think Local

Many ALSPs operate on a national scale, so your ability to navigate the local landscape can work to your advantage. You know the local people, laws, courts and judges, and no artificial intelligence driven online resource can match that asset.

As this writer notes:

“Local law firms with strong connections in the legal and local community know the judges and other legal personnel in the local community. That local connection often leads to greater success with legal matters, and that can help law firms to better maintain a local client base.

Law firms with exceptional records of success can leverage that into word-of-mouth referrals from key clients who are pleased with their legal outcomes.”

While a client might be able to connect quickly with an online legal resource, the service they receive will generally feel transactional and one-sided. With you, they can develop a two-way relationship and rapport. In time, you can become their go-to source for counsel.

To learn more about growing a small law firm in Denver or Las Vegas, reach out to us. We support law firms of all sizes with affordable and flexible office space solutions, including coworking, private office space and tenant vetting for larger law firms.