Having shaken up the industry of bricks-and-mortar retailing, technology entrepreneurs use cut-price, online offerings to disrupt pricey professional services including law and recruitment.
Half an hour having a city lawyer costs a minimum of $200, but clients from the newly launched LawPath website can consult a professional practitioner for only $29. In the other end from the spectrum, engaging legal recruitment may mean a placement and also other hefty fees. Although not should you engage them from the hour, online, on RecruitLoop.
Technology entrepreneurs are utilizing cut-price, online offerings to disrupt professional services including law.
Technology entrepreneurs are utilizing cut-price, online offerings to disrupt professional services including law. Photo: JESSICA SHAPIRO
Paul Lupson is chief executive of Lawpath, a start-up financially backed by Ludson who recently successfully exited budgetplaces.com, technology lawyer Nick Abrahams, partner at Norton Rose Australia, and technologist Andy Rose.
Lupson says the web page allows people who wouldn’t normally be capable of afford a lawyer to obtain an initial consultation for little outlay. Customers pay for the low fee to inquire about a matter, LawPath pockets the fee and farms the enquiry in the market to a specialist lawyer who consults for free. In return, lawyers may convert the session right into a contract for further work, something Lupson says has happened in 50 percent of cases.
Lupson insists the arrangement is win-win, with small enterprise and private individuals receiving professional advice and lawyers generating leads. Besides, lawyers’ modus operandi is overdue to get a re-think, he says.
“The legal profession is one of the last channels to get modernised. I do see it being a disruption although not inside a bad way – in a efficiency way. It’s about finding out how the internet can facilitate connecting with clients.”
The model has found favour together with the technology sector, he says, from it start-ups comprising 50 per cent of clientele so far.
“It’s not devaluing [lawyers’] work – they’re more than happy to consider it,” Lupson says. “They’re up for your loss leader.”
The word disruptive innovation is commonly used to illustrate change that improves a service or product in ways the current market failed to expect.
Considering that the advent of the web it’s become increasingly common and happens 1000s of times more often than three decades ago, based on David Roberts, a vice-president of 77dexrpky Valley’s Singularity University.
“Disruption will be all that matters with a start-up,” Roberts told delegates in the Australia Association of Angel Investors conference around the Gold Coast recently.
RecruitLoop founder Michael Overell hopes his venture will offer the recruitment sector a similar jolt.
The site allows companies to engage independent recruitment consultants from the hour, instead of paying commission to an agency based on the candidate’s salary, each time a role is filled.
RecruitLoop had a low-key launch 18 months ago and would be to present an impromptu showcase of their system at San Francisco’s Launch Festival for top-tech start-ups earlier this month.
The annual event includes competitions judged by IT and venture-capital heavyweights including Rackspace’s Robert Scoble and Google Ventures’ Wesley Chan.
The standard spend by RecruitLoop customers is $1500 to $2000 per role, which buys 15 to 20 hours of your consultant’s time. RecruitLoop requires a commission of up to 30 percent.
For clients, it’s a saving of 80-90 per cent on fees charged by recruitment agencies, Overell says.
Recruiters are screened prior to being able to offer their services through the site and only one in eight will get the guernsey.
“We’re being really tough about maintaining quality,” Overell says.
The company uses 50 recruiters across Australia, New Zealand, Dubai and also the west coast in the US and intends to expand into other countries as demand builds.