Vertical Markets in Law

There has always been a lot of talk around the technology water cooler concerning the concept called vertical markets.  Back in 1994 or so, the world awoke and realized that something called the Internet existed.  The initial concept was that you could create a software product for the entire world.  Financial projections for internet companies back then and through the mid 90’s typically exceeded $100 million over five years.

Software technology companies soon realized that users had specialized needs and that it was extremely difficult to create a product which really did cater to the entire world.  We have seen a decade of rather specialized software being developed even over the Internet.  Unless you’re the browser or the operating system, your functional requirements typically get narrower.

So companies began talking about vertical markets.  So you couldn’t reach a billion people across the globe. You could reach 1.5 million within a niche vertical market.  The numbers still projected well enough (Ahh..longing for the days of the fantasy tech companies where a simple idea could net you a $100 million).

I believe in vertical markets.  If you jump out on your own, you will eventually start to see more work in certain practice areas.  You need to be careful to try and direct the traffic areas you are interested in. For instance, if you want to be a technology lawyer, you better integrate a lot of technology and look the part. You better do license agreements, trademarks, copyrights, domain transfers, WIPO arbitrations and the like. Pick a niche which is low risk and high return as your base.  On top of that niche, grab a couple vertical markets which are higher risk but with greater potential return. Decide what you want to do and go out and do it.  If you are a smart attorney, you will quickly become very good at your vertical choice and gain tremendous experience in a relatively short period of time.

Lawyers need to get vertical, reduce the size of the market which they are pursuing and focus their marketing and client development activities within that vertical space (didn’t I sound like a software developer there?).

While your competition is trying to go horizontal by doing anything that comes in the door, you’ll be gaining the efficiencies of going vertical.

Comments

[J Temple]

GAL:

You say:

Pick a niche which is low risk and high return as your base.

My question is (to you or other readers): What are the high risk areas? My guess is that real estate law is moderate to high risk. Any suggestions about where to look or do you have any ideas of your own?

Many thanks for an inspiring blog.

[Greatest American Lawyer]

J: High risk includes clients who might not pay, contingency fee cases which you have to finance and then wait for possible payment, cases where the client can pay the retainer but maybe not anything more, cases in areas where you don't know what you are doing.

Low risk are clients you know you can pay in areas of law you know you cna provide value.

[Darren Davis]

nice post, i enjoy reading your blog.

-Darren
increase vertical jump