For anyone in legal tech entering the start-up or scale-up game, there's no crash course on how to sell your tech to law firms. Threading together the "why," "what," and "who" to build a revenue architecture engine and formulate product-market and go-to-market fit isn't always easy. However, if your product solves a valuable problem, demonstrates tangible impact, and supersedes the cost of doing nothing, then you're in good shape.

In a previous post, we talked about legal tech marketing. Our goal with this post is to guide anyone on how to navigate the complexities of selling legal tech, and Part I focuses on what you need to know about selling to law firms.

Market Segmentation

Law firms are distinctly segmented by their size (number of lawyers). The categories are as follows:

• Small law (1 to 10 lawyers)

• Medium law (10 to 100 lawyers)

• Large law (100 to 1000 lawyers)

• Mega firms (1000+ lawyers)

Each of these segments adopts and purchases technology differently. Knowing which segments your product addresses could determine the success or failure of your go-to-market strategy.

Even if your solution can be perfectly suited for all segments, you will need to implement different strategies for each segment, making it increasingly complicated to do all of them at once.

Time is Money

Unlike corporations that produce tangible products, a law firm's product is time, delivered as a service. This product is created through years of experience, expertise, knowledge, people, and processes. These services are crafted by teams of legal professionals and partner owners of the firm, who have a vested interest in the firm's profits and operational efficiencies.

Getting a deal done with a firm is difficult if the technology isn't a must-have solution that provides competitive advantages, efficiencies, or differentiators that solve these pillars:

1. Increase in profits and revenues

2. Reduction in costs

3. Decrease in risk

🎯 Steal this tactic: If your product has no clear path to ROI that hinges on the three pillars mentioned above, go back to the drawing board and figure that out. If your product has a clear ROI but can't properly articulate it, revisit your messaging. More importantly, if your product is a "nice to have," you must clearly convey your competitive advantage.

Who Makes Purchasing Decisions

Law firms' capital and operational structures, risk profiles, and business models are more complex and multi-layered than typical corporations. Instead of working with one CEO to articulate a value proposition, it can feel like you're working with several CEOs. Law firms are predominantly owner-managed by equity partners and committees with significant decision-making influence and CEO-like veto power over technology acquisition decisions.

I've often seen deals approved by a law firm's Executive Director, CFO, or CIO suddenly put on hold for reasons that don't make business sense. Once, a multi-year six-figure deal was stopped because one equity partner was retiring, and the firm didn't want to incur that expense that year.

🎯 Steal this tactic: Ensure you work with a champion at the law firm who believes in the value you offer and can help you navigate the decision-making process. Build trust by working side-by-side with your champion and not going around them when your deal is not closing.

Regulatory Environment

The regulatory environment in which law firms operate significantly influences their technology needs and adoption. Compliance issues, data security, SOC2 and/or ISO standards, and the need to ethically manage confidential information dictate the type of software that can be used and how and where it is implemented. This necessitates a product engineering and business partnership approach that respects and addresses these regulations head-on, presenting solutions that enhance compliance and streamline processes without compromising confidentiality or security.

Change Management

The legal profession is inherently risk-averse, as lawyers are focused on minimizing risks for their clients and themselves. Regardless of the segment(s) your product addresses, change is often a point of resistance for most law firms. As such, one of the most overlooked challenges during the sales process is not introducing early enough change management and failing to help decision-makers visualize how your technology will be adopted.

Start with the end in mind. If your legal tech buyers see the value in your solution but can't figure out how it will be adopted, you might not get final approval, or it would sit on the shelves with little chance of renewal.

Proven Expertise, Don’t Want To Be First

Law firms value proven expertise and are more likely to engage with legal tech vendors that demonstrate a deep understanding of their unique needs and can solve complex process issues. However, law firms do not want to be the first to implement new solutions, often asking, "Who else has this?" referring to other firms that have taken the risk before they do.

The legal industry tends to be more risk-averse than other industries (for the reasons mentioned above). It is very important for them to know if their peers have used this technology before buying it because they rely on a trusted firm that has already vetted the product.

🎯 Steal this tactic: To avoid the chicken-or-egg situation, in the initial stages of your company, work with firms that have the capacity to try innovation and an acute need for your product that makes them willing to overlook certain features and capabilities. Get obsessed with providing the best user experience, adequate performance, and optimal security. Prove that you have users within the firm who love your product, become champions, and can help you sell it internally. Do this flawlessly, and move to the next. Before you know it, you have the recognition to start growing and scaling sales. Don't waste your time convincing firms that they should be your early adopter, or even worse, tricking the firm into thinking your product is mature when it is not—a bad shortcut, and you'll pay the price later.

Land and Expand

The ability to "land and expand"—starting with a small implementation and gradually increasing the firm's reliance on the software—relies heavily on building and maintaining trust. Each successful rollout can pave the way for further expansion within a firm, but this growth is never guaranteed, as partnerships can reassess and switch vendors based on performance and evolving needs.

Law firms love to start small and then expand; it's a safe way to mitigate risk. In most cases, it works. However, as you sign more customers and have good references, you must have clarity on when to move out of that approach and start selling/deploying your full solution.

Closing Thoughts

Navigating the complexities of selling legal tech to law firms requires a deep understanding of the industry's unique challenges and structure. By focusing on solving real problems, demonstrating tangible impact, and building trust, legal tech vendors can successfully penetrate this market. Remember to tailor your approach to different firm sizes, address regulatory concerns, and provide proven expertise.

With patience, persistence, and a willingness to start small and grow, you can build lasting partnerships in the legal tech space. As you continue to refine your strategy, keep in mind that success in this industry is not just about having a great product—it's about understanding and adapting to the specific needs and decision-making processes of law firms.

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