Having shaken up the world of bricks-and-mortar retailing, technology entrepreneurs are using cut-price, online offerings to disrupt pricey professional services for example law and recruitment.
Half an hour having a city lawyer costs at the very least $200, but clients of your newly launched LawPath website can consult a professional practitioner just for $29. In the other end of the spectrum, engaging legal recruitment may mean a placement and other hefty fees. Yet not if you engage them with the hour, online, on RecruitLoop.
Technology entrepreneurs are utilizing cut-price, online offerings to disrupt professional services such as law.
Technology entrepreneurs are utilizing cut-price, online offerings to disrupt professional services such as 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 site permits people who wouldn’t normally be capable of afford a legal representative to get a basic consultation for little outlay. Customers pay for the low fee to inquire about a matter, LawPath pockets the charge and farms the enquiry over to a professional lawyer who consults totally free. In turn, lawyers may convert the session in to 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 lead generation. Besides, lawyers’ modus operandi is overdue for a re-think, he says.
“The legal profession is one of the last channels to be modernised. I do see it like a disruption however, not in the bad way – within an efficiency way. It’s about finding out how the web can facilitate connecting with clients.”
The model has found favour with all the technology sector, he says, with IT start-ups comprising 50 per cent of clientele to date.
“It’s not devaluing [lawyers’] work – they’re more than happy for taking it,” Lupson says. “They’re up for your loss leader.”
The phrase disruptive innovation can be used to explain change that improves a service or product in ways the market did not expect.
Since the introduction of the world wide web it’s become increasingly common and happens a large number of times more often than three decades ago, in accordance with David Roberts, a vice-president of 77dexrpky Valley’s Singularity University.
“Disruption is all that matters with a start-up,” Roberts told delegates on the Australia Association of Angel Investors conference on the Gold Coast last month.
RecruitLoop founder Michael Overell hopes his venture will provide the recruitment sector an identical jolt.
The web page allows companies to engage independent recruitment consultants by the hour, as opposed to paying commission to an agency based on the candidate’s salary, every time a role is filled.
RecruitLoop had a low-key launch 18 months ago and ended up being to present an impromptu showcase of the 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 average spend by RecruitLoop customers is $1500 to $2000 per role, which buys 15 to 20 hours of your consultant’s time. RecruitLoop needs a commission as much as 30 per cent.
For clients, it’s a saving of 80-90 % on fees charged by recruitment agencies, Overell says.
Recruiters are screened prior to being permitted to offer their services using the site and simply one in eight will get the guernsey.
“We’re being really tough about maintaining quality,” Overell says.
The corporation uses 50 recruiters across Australia, Nz, Dubai and also the west coast in the US and wants to expand into other countries as demand builds.