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Why Legalzoom's Business Model is so successful?

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Legalzoom’s Company Overview

LegalZoom is a leading provider of online legal solutions for families and small businesses. Founded in 2001 and headquartered in Glendale, California, the company has been instrumental in helping over four million people create various legal documents without the need for an attorney. LegalZoom offers a broad range of services, including business formation (LLCs, corporations, nonprofits), intellectual property protection (trademarks, patents, copyrights), estate planning documents (wills, living trusts), and more. The company's mission is to democratize law, making it more accessible and affordable for everyone. LegalZoom employs a team of experienced attorneys and legal professionals who work tirelessly to ensure the quality and accuracy of every document. Business Model: LegalZoom operates on a service-based business model, providing a wide range of online legal services to individuals and businesses. The company primarily functions as a legal technology platform, utilizing technology to simplify and streamline legal processes. LegalZoom's services are delivered through a user-friendly online platform, allowing customers to create legal documents from the comfort of their homes. The company offers both one-time services, such as creating a single legal document, and subscription-based services, where customers pay a monthly or annual fee for unlimited access to certain legal services. Revenue Model: LegalZoom's revenue model is a combination of transactional and subscription-based. The company earns revenue from the one-time fees for individual legal services, such as business formation or trademark registration. Additionally, LegalZoom offers a legal plan subscription service known as the Business Advisory Plan for businesses and the Legal Advantage Plus for individuals. These subscription services provide members unlimited 30-minute consultations on new legal matters, review of legal documents, and annual business evaluation for a recurring fee. This dual revenue stream allows the company to maintain a steady cash flow, as the subscription-based model provides a consistent revenue stream. In contrast, the transactional model allows for additional earnings from one-off services.

Country: California

Foundations date: 2001

Type: Private

Sector: Consumer Services

Categories: Professional Services

Legalzoom’s Customer Needs

Social impact:

Life changing: affiliation/belonging

Emotional: provides access

Functional: saves time, simplifies, reduces risk, reduces effort, avoids hassles, reduces cost, informs

Legalzoom’s Related Competitors

Legalzoom’s Business Operations


Cross-selling is a business strategy in which additional services or goods are offered to the primary offering to attract new consumers and retain existing ones. Numerous businesses are increasingly diversifying their product lines with items that have little resemblance to their primary offerings. Walmart is one such example; they used to offer everything but food. They want their stores to function as one-stop shops. Thus, companies mitigate their reliance on particular items and increase overall sustainability by providing other goods and services.

Customer relationship:

Due to the high cost of client acquisition, acquiring a sizable wallet share, economies of scale are crucial. Customer relationship management (CRM) is a technique for dealing with a business's interactions with current and prospective customers that aims to analyze data about customers' interactions with a company to improve business relationships with customers, with a particular emphasis on retention, and ultimately to drive sales growth.

Customer loyalty:

Customer loyalty is a very successful business strategy. It entails giving consumers value that extends beyond the product or service itself. It is often provided through incentive-based programs such as member discounts, coupons, birthday discounts, and points. Today, most businesses have some kind of incentive-based programs, such as American Airlines, which rewards customers with points for each trip they take with them.


A digital strategy is a strategic management and a business reaction or solution to a digital issue, which is often best handled as part of a broader company plan. A digital strategy is frequently defined by the application of new technologies to existing business activities and a focus on enabling new digital skills for their company (such as those formed by the Information Age and frequently as a result of advances in digital technologies such as computers, data, telecommunication services, and the World wide web, to name a few).


Keeping the purchase price low by avoiding mediators and maximizing supply margins is a win-win situation. In finance, disintermediation refers to how money is removed from intermediate financial organizations such as banks and savings and loan associations and invested directly. Disintermediation, in general, refers to the process of eliminating the middleman or intermediary from future transactions. Disintermediation is often used to invest in higher-yielding securities.

Online marketplace:

An online marketplace (or online e-commerce marketplace) is a kind of e-commerce website in which product or service information is supplied by various third parties or, in some instances, the brand itself, while the marketplace operator handles transactions. Additionally, this pattern encompasses peer-to-peer (P2P) e-commerce between businesses or people. By and large, since marketplaces aggregate goods from a diverse range of suppliers, the variety and availability are typically greater than in vendor-specific online retail shops. Additionally, pricing might be more competitive.


Subscription business models are built on the concept of providing a product or service in exchange for recurring subscription income on a monthly or annual basis. As a result, they place a higher premium on client retention than on customer acquisition. Subscription business models, in essence, concentrate on revenue generation in such a manner that a single client makes repeated payments for extended access to a product or service. Cable television, internet providers, software suppliers, websites (e.g., blogs), business solutions providers, and financial services companies utilize this approach, as do conventional newspapers, periodicals, and academic publications.

Knowledge and time:

It performs qualitative and quantitative analysis to determine the effectiveness of management choices in the public and private sectors. Widely regarded as the world's most renowned management consulting firm. Descriptive knowledge, also called declarative knowledge or propositional knowledge, is a subset of information represented in declarative sentences or indicative propositions by definition. This differentiates specific knowledge from what is usually referred to as know-how or procedural knowledge, as well as knowledge of or acquaintance knowledge.

Solution provider:

A solution provider consolidates all goods and services in a particular domain into a single point of contact. As a result, the client is supplied with a unique know-how to improve efficiency and performance. As a Solution Provider, a business may avoid revenue loss by broadening the scope of the service it offers, which adds value to the product. Additionally, close client interaction enables a better understanding of the customer's habits and requirements, enhancing goods and services.

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