Does LegalZoom Compete with Law Firms? Co-Founder Brian Liu Says “No”

Over the weekend I caught an interview with Brian Liu, co-founder of LegalZoom, broadcast on From Scratch, a radio show about “entrepreneurial life.”  The host, Jessica Harris, who has an interesting business background of her own, is a very good interviewer, encouraging guests to explore strengths and weaknesses of their ideas, moving from first inspiration to current goals.  She also asks “work/life balance” questions, often getting candid admissions of the private struggles some have to achieve balance.

I was intrigued with Liu’s central premise, that his company does not compete, at least not directly, with law firms for business.  Rather, he believes that the vast majority of clients are drawn to his company precisely because they would never go to a lawyer, whether because of cost, unease about attorneys, or perceptions about value. 

It was also interesting to hear that Legal Zoom’s first ten clients, accessing the company’s on-line document portal on a Friday night, were seeking “living wills.”  That fact tells us a lot about underserved legal and health care needs, doesn’t it.