A Virtual Law Office: Advantages and Disadvantages

The growth in the virtual law office concept is pretty big these days.  There are a number of reasons why this is the case, but the biggest is that technology is now at a point where 100 percent of certain legal services can be delivered electronically.

1.  What is a virtual law office?

A virtual law office is a when legal services are delivered solely electronically via the internet, telephone, online meetings, video conferencing, e-mail, fax, and even cloud computing document storage and sharing websites.

Some might argue that a pure virtual law office requires no verbal contact between lawyer and client.  I’m of the view that if the legal services can be delivered without in-person presence, that qualifies as a virtual law office.

The typical services provided virtually revolve around standard document preparation such as wills, family law documents, intellectual property, small business services, estate administration documents, most document-based legal services.

However, with the growth in micro-niche legal practices that are research-based, many lawyers are developing virtual law practices that are research-centric rather than document-centric.

Virtual office locations can be at home, on the road, or traditional fixed office location. What defines a virtual law office is that all services are delivered electronically; the entire legal service delivery from start to finish is done without in-person client contact.

That said, a home office isn’t necessarily a virtual law office if the lawyer or professional meets in-person with clients.  The same is with a mobile or remote office.  Likewise, you can have a virtual law office in a commercial setting – it’s just clients don’t attend the office.

2.  Virtual Law Office Advantages

  • Security breaches: if your computer system is breached, it can compromise your clients.  However, nearly all traditional firms have this same issue.
  • Lower overhead: it’s not necessary to rent commercial space and you can invest more into technology than human resources.
  • Lower cost to clients: lower overhead means you can compete on price and use technology to increase volume.
  • Client convenience: clients don’t need to visit your offices; they can instruct you using the computer.
  • Work flexibility: work when you want – break free of traditional firm hours.
  • Work from anywhere: turn your laptop into your entire office and work from anywhere in the world.
  • Micro-niche the practice: clients are global which means a lawyer can specialize in a very specific area that serves clients globally.
  • Leverage services: using technology and delivering electronically gives rise to leveraging existing products for faster and more cost-effective legal services.
  • Global reach – not restricted to local clients.  Can market and deliver legal services anywhere in the world.
  • You get to work using plenty of technology.  This is only a plus if you love technology.
  • Job protection – it’s a way to adapt to the changing practice of law.  Law is changing; some people see it becoming commoditized.  Embracing technology could very well be an excellent method for job protection.
  • Staffing convenience – a virtual law office easily enables telecommuting and virtual assistant arrangments.

3.  Virtual Law Office Disadvantages

  • Less personable – no person-to-person contact.  You don’t watch the body language of clients; often a way of further understanding clients’ communications.  Also, you may miss working with people in person.
  • End up competing on price.  It’s not always fun to compete strictly on price.  This need not be the case if you work in a micro-niche legal area.
  • Fewer resources.  You most likely won’t have the human, technology, and other resources a larger firm has.
  • You’re very reliant on technology – if problems arise, not good.  If you systems crash, business grinds to a halt.  This really isn’t a unique problem to virtual law offices because most firms these days are extremely dependent on technology – a crash affects a traditional firm as much as a VLO.
  • Restricted to certain types of law.  You can’t deliver 100 percent of legal services electronically in most litigation matters.

A virtual law office isn’t for every lawyer; some will do it and love it, while others will find it restrictive, lonely, and too technology-centric.  That said, more firms, in my view, will add virtual law office aspects to their service delivery in order to gain the above-listed advantages.  Afterall, it’s hard to dispute the fact that electronic delivery of legal services is cost-effective and convenient for clients.  Firms that don’t see this will lose out in the long run.

I don’t presently have a virtual law office, but I’m looking into it.  My practice is a litigation practice, but I’m constantly striving to incorporating technology and electronic delivery in my litigation practice.

Related posts:

  1. Paperless Practice
  2. Set up a Paperless Office by Stopping Piles of Inbound Paper Mail
  3. How to Take Your Law Office Paperless? Plan Workflow
  4. Best and Worst In-Office Communication Methods

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