So, law firms should create recurring revenue streams and make more use of technology and new business models.

According to our research, law firms are losing about thirty percent of their revenue. There are many factors behind this, but I would focus on this first:

- Customer acquisition. A few years ago, it seemed this would never be a problem. Now we see the opposite trend. Clients often go to those who are open to this. What does it mean?

The entry threshold for a new customer is challenging. Technology penetration into the industry is shallow, affecting communications and customer service.

- Customer retention. Like the customer acquisition, it seemed like customers had no choice, but now they have. Legal companies, unlike other industries, do not allow their clients to split the cost over a certain period, which is possible in the case of a monthly subscription to services.

Thus, funds the company could use for development were flushed out of the turnover. As a result, customers have shallow loyalty. Sixty percent are ready to change their legal service provider with more flexible conditions.

- Lack of profit. You can increase the average bill by thirty percent by allowing your customers to split costs throughout the year. It is our internal data, but it is obvious even from other industries that actively use the subscription model.

- What does it mean to have recurring revenue?

1. This means you can plan a year or more.

2. There are no financial flops during the year.

3. Opportunity to raise funds.

4. Did you know that you can sell your recurring revenue at a discount of several percent?

Think about it; many investors are willing to buy recurring revenue on the market. It means – access to investments without collateral, loans, or equity sales.

Ok, I could describe each point in more detail and give some more arguments. But, if you are interested, let me know with your "Like."

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The Solten Letter

Why should law firms create recurring revenue…