Cut of lawsuit verdict

[Maxjohan]

Hi.

I came up with this idea a few months ago. But I put it in the back of my head. And it came back up today.

Idea is to get a commission on winning lawsuit verdicts. Say someone sues a company for breach of contract. I directed an attorney the lead to get the case. Lawsuit is won or settled for $2 million. Law firm gets $150,000 (Just example.) and I get 10% of what the law firm gets. So that's $15,000.

Could this model be possible?? I'm only going to aim for cases that I feel for and that could yield me a few $k on my end.

I regged a good domain for this today.

My questions are, what do you guys think about the idea?? I think it seems very fastlane. But is it legal to do like this??? In the US??

 

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[AgainstAllOdds]

Cool idea. Maybe make it an Odesk for lawsuits? As in:

1. A person submits the lawsuit they're interested in, and the percentage they want to pay the attorney.
2. Attorneys apply to represent them.
3. You take a transaction fee.

Don't know the legality, but do think that'd be cool (until I get sued, then I'd be livid).

 

[Jon L]

I've seen law firms do this: they'll advertise on Google or wherever about certain types of claims (mesothelioma is a classic one - if you get that disease, it was very likely from Asbestos exposure). They will say on the ad, 'we will refer your case to a firm in your state' somewhere in the fine print.

What might work here is to find an underserved niche where you could buy keywords fairly cheaply. Mesothelioma goes for about $100 a click, if I remember right.

What I dont know is if you need to be a law firm to advertise like this...

 

[Maxjohan]

Cool idea. Maybe make it an Odesk for lawsuits? As in:

1. A person submits the lawsuit they're interested in, and the percentage they want to pay the attorney.
2. Attorneys apply to represent them.
3. You take a transaction fee.

Don't know the legality, but do think that'd be cool (until I get sued, then I'd be livid).

Alright. At least one liking the idea. Great.

I don't think you can make it that simple. If I do this project. I'm going to go big. And try to get biz lawsuits. Contract breaches for millions or hundreds of millions. I will focus on that then. Because I'm not big into small ball claims.

If I could get a few bigger verdicts a year. Like $10-$20 million. I'd be good to go.

The problem with me is that I'm very morally conscious. I don't want some attorney to represent someone with some bullshit claim. Maybe I just care to much. And this is holding me back in business. But I want to do what feels right. Pick and choose. Instead of making it an open market.

I believe it's not so much about what percentage you can get. More about getting the best attorney that can milk it.

But still. I don't know the market too well right now.

 

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[Maxjohan]

I've seen law firms do this: they'll advertise on Google or wherever about certain types of claims (mesothelioma is a classic one - if you get that disease, it was very likely from Asbestos exposure). They will say on the ad, 'we will refer your case to a firm in your state' somewhere in the fine print.

What might work here is to find an underserved niche where you could buy keywords fairly cheaply. Mesothelioma goes for about $100 a click, if I remember right.

What I dont know is if you need to be a law firm to advertise like this...

I've heard about Mesothelioma before. But I think I will focus on contract breaches. Great that there seems to be a model for this already. To work with leads. I vaguely remember finding ads like that too. Now when you mention it.

 

[xmartel]

I don't run a huge corporation, so my opinion may be wrong. But any companies and individuals that would be involved in lawsuits in the 10's-100's of millions wouldn't use a service like yours. They'll already have their own connections. Most corporations that large, or individuals that high up, already have lawyers on retainer.

My opinion of who you'll attract with this type of service is someone that just wants to sue someone else cause they want money. I.E. I spilled coffee on my lap so I'm going to sue McDonald's.

America is already a very litigious nation. Which is very unfortunate. People getting sued for just looking at someone else wrong. I only see this serivce adding to that. You probably will get some legitimate people using it, but I've got a feeling the vast majority would be frivilous or at least very grey.

On moral gounds I could never run a business like this regardless if it made lots of money or not. This doesn't add value to society, it just creates another easy avenue for unwarranted lawsuits.

That's just my 2 cents.

 

[Y.B.]

Attorneys cannot share legal fees with non attorneys. There are many different laws and ethical responsibilities that lawyers have to abide by.

 

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[Maxjohan]

I don't run a huge corporation, so my opinion may be wrong. But any companies and individuals that would be involved in lawsuits in the 10's-100's of millions wouldn't use a service like yours. They'll already have their own connections. Most corporations that large, or individuals that high up, already have lawyers on retainer.

My opinion of who you'll attract with this type of service is someone that just wants to sue someone else cause they want money. I.E. I spilled coffee on my lap so I'm going to sue McDonald's.

America is already a very litigious nation. Which is very unfortunate. People getting sued for just looking at someone else wrong. I only see this serivce adding to that. You probably will get some legitimate people using it, but I've got a feeling the vast majority would be frivilous or at least very grey.

On moral gounds I could never run a business like this regardless if it made lots of money or not. This doesn't add value to society, it just creates another easy avenue for unwarranted lawsuits.

That's just my 2 cents.

Thanks for your post. I actually posted almost the same thread on Swedens biggest online forum. In the law section of the forum. Thread has been going for 3 pages now. And it hasn't even been 24 hours.

Somebody said the exact same thing about big companies having the contacts already. I countered with that, even though big companies have contacts. They could always do research before and see what options they got.

My slogan could be: Look here first. Validate. Take action/proceed.

Or something in that style. There is always a losing part in an lawsuit. So 1 part is always disappointed or unstatified with the results. Maybe their "contact" wasn't that great after all.

With the other things you said. I agree with you very much. I will not participate in any ridiculous cases at all. Only serious cases that I believe in. So I can pick and choose as I said before, who I want to direct to a lawfirm(I trust, and is serious, and click with).

As you said. The hard part is going to be finding serious cases. And not just sue-happy people. If anyone got any ideas on what search keywords such serious cases could steam from. I be happy to listen.

My domains I've registered so far. Are. MassiveLawsuit.com and MassiveLawsuits.com. Will use the second as my main site. If I get going with this biz idea/concept.

 

[Maxjohan]

Attorneys cannot share legal fees with non attorneys. There are many different laws and ethical responsibilities that lawyers have to abide by.

I was skeptical. But it seems like you are right about that.
http://www.americanbar.org/groups/p..._4_professional_independence_of_a_lawyer.html

Found that. So, I got to skip the 10% or whatever fee. And go on to sell leads instead. Which is a little less exciting. But probably a lot simpler.

Edit: Are leads possible to sell or is that a No-No too for Law firms?? I mean. For an upfront fee.

Seems to be sites doing it: www.claim.com

Pretty sure there is a Internet company behind it, and not a law firm.

But I'm not 100% positive.

 

[Y.B.]

Yes selling leads to lawyers is fine

 

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[Maxjohan]

Yes selling leads to lawyers is fine

Thanks. Good to know.

 

[Bouncing Soul]

Go study "standing".

 

[Andy Black]

Start by generating a lead, then see where that takes you.

Give that lead free to a law firm to start a conversation and relationship with them.

You might not be able to (and maybe shouldn't) try to specify exactly what type of lead you want to generate before hand. Maybe let the market tell you what's most in demand, and what are worth the most to you.

To make this work, you need to be able to generate a steady stream of good quality leads, and be able to signup businesses to buy them (one way or another).

It's a two sided market you're serving.

If you can't generate leads then everything else is a moot point.

If you can generate leads, then that's probably the easiest part, and you'll live or die by your ability to signup businesses, and keep your cost-per-lead lower than your revenue-per-lead.

There's other models than just CPL, which is where building a relationship with a business will help, even if the first one is a client so you get to understand the vertical.

Good luck.

 

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[Joseph Wilson]

I telemarketed for a comany who does exactly what you're thinking about for a few months, they are the biggest company in that space. They advertise under 'the injury helpline' on tn, radio, and of course the internet, screen the leads as much as they're legally able to and redirect the inquiries to their clients/attorneys in the area the inquiry is in.

There's a whole lot of money in it. Millions and millions of dollars.

The laws vary by state, but usually to receive a referral fee you have to be an attorney. And some states have really strict rules about that as well. They won't let you share a fee unless you actually worked on the case etc... or outlining how much of the fee you can share based on how much work you did. It's really pretty crazy in some states.

The company I worked for charged a monthly fee and required 12 months contracts. They provided a lot of support to their clients though.

They have ongoing contracts with all of the tv and radio networks, a few decades of experience in the industry and have a very sophisticated ppc ad management system. Plus there is a lot to learn about how to advertise for legal services. There is a lot to it.

It would be hard to beat them on quality of service. However...

Their client acquisition strategy sucks. They literally have two telemarketing offices and don't do any advertising. Wouldn't let me do any even when I offered to pay for it to generate my own leads. Just told me to sit at a computer and cold call 8 hours a day.

I think their biggest problem was not having any kind of trial period in place. These attorneys have all been screwed over by SEO companies who promised the world and delivered nothing but a monthly invoice so they're very afraid of getting stuck in another contract to pay for another worthless service. If you could come up with a way of generating leads that didn't require you to make any long term commitments so that you could run trials with prospective clients then I think you would be able to get come customers that way.

It wouldn't be easy, but there is definitely some opportunity there. If you could figure out a workable model then you could make a killing.

I think there are some CPA offers for this kind of stuff already. It might be a good idea to do some competitive research on those websites.

 

[Maxjohan]

Start by generating a lead, then see where that takes you.

Give that lead free to a law firm to start a conversation and relationship with them.

That's a really good idea. To get the ball rolling without coming off as a salesman. Thanks for the idea. To be honest it's a bit foggy on the side on how I should be able to generate leads. I don't think I could relay on SEO. Most likely, I would need to turn to advertising/Google Adwords. Etc.

 

[Maxjohan]

I think their biggest problem was not having any kind of trial period in place. These attorneys have all been screwed over by SEO companies who promised the world and delivered nothing but a monthly invoice so they're very afraid of getting stuck in another contract to pay for another worthless service. If you could come up with a way of generating leads that didn't require you to make any long term commitments so that you could run trials with prospective clients then I think you would be able to get come customers that way..

Thanks for the idea. And all the other INSIDERS information. It really helps.

 

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[Andy Black]

To be honest it's a bit foggy on the side on how I should be able to generate leads. I don't think I could relay on SEO. Most likely, I would need to turn to advertising/Google Adwords. Etc.

Here's one way to do it

 

[Maxjohan]

Hi guys. I'm back. Thanks for all comments in this thread. I believe there is potential in this. Big time. But I don't feel like starting a company around it. I would love to find a partner from this forum. For 40% of the company. You get 60%. I know a stellar web designer too. And I would gladly split the costs for that 50/50.

Focus on big lawsuits. As mentioned, there is no possibility to get a % cut of a verdict. But I got other ideas to increase value of the leads. And add value.

I swear to god. This has the potential to be a 500 million dollar exit. If execution is tight. For 5-10 years.

We will be co-founders and I can put in 5 hours per week. Most of the year. As advisory. But I'm looking for a partner who can commit full time. Or next to full time.

Edit: I think I could even do 20% for me. If I could find the right partner who likes to commit and think they have the stamina to work on it daily.

Edit 2: I doubt I will get any takers from here. But who knows. Maybe someone likes the idea as much as I do.

 

[Maxjohan]

Go study "standing".

What is your point. If you don't mind elaborating?

 

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[Gsuz]

I swear to god. This has the potential to be a 500 million dollar exit. If execution is tight. For 5-10 years.

We will be co-founders and I can put in 5 hours per week. Most of the year. As advisory. But I'm looking for a partner who can commit full time. Or next to full time.

At least you'd be willing to split the webdesigner costs 50/50.

What a F*cking waste of time. How someone can be this delusional is beyond any imagination. Ignored

 

[GSF]

Hi guys. I'm back. Thanks for all comments in this thread. I believe there is potential in this. Big time. But I don't feel like starting a company around it. I would love to find a partner from this forum. For 40% of the company. You get 60%. I know a stellar web designer too. And I would gladly split the costs for that 50/50.

Focus on big lawsuits. As mentioned, there is no possibility to get a % cut of a verdict. But I got other ideas to increase value of the leads. And add value.

I swear to god. This has the potential to be a 500 million dollar exit. If execution is tight. For 5-10 years.

We will be co-founders and I can put in 5 hours per week. Most of the year. As advisory. But I'm looking for a partner who can commit full time. Or next to full time.

Edit: I think I could even do 20% for me. If I could find the right partner who likes to commit and think they have the stamina to work on it daily.

Edit 2: I doubt I will get any takers from here. But who knows. Maybe someone likes the idea as much as I do.

I highly doubt you will have any takers for this proposed arrangement, maybe you can create an INE (idea that needs execution) and post it on the forum for someone to run with

 

[Maxjohan]

At least you'd be willing to split the webdesigner costs 50/50.

What a F*cking waste of time. How someone can be this delusional is beyond any imagination. Ignored

It's the same F*cking thing when you invest in a company. But I actually can commit too. Not much but some. So what's the problem?? Hater!!

 

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[Maxjohan]

I highly doubt you will have any takers for this proposed arrangement, maybe you can create an INE (idea that needs execution) and post it on the forum for someone to run with

Nah. I just start the company and find a CEO, or run an ad in a newspaper for co-founder. I think those are the best options for me. If I want to go at it on my own. I don't feel like giving away my idea for free.

But I got so many other ideas too. It's hard to know which one to pick and run with.

 

[RHL]

"This really has potential to be worth $500 million in five years. I believe that so strongly that I can devote a whole hour to it most days. What I'm doing with the rest of my time is worth more than $100 million a year. Oh, I have other ideas that are worth more too. Anyone else believe in this as much as I do?"

This is a bit all over the place, no?

 

[Jon L]

Nah. I just start the company and find a CEO, or run an ad in a newspaper for co-founder. I think those are the best options for me. If I want to go at it on my own. I don't feel like giving away my idea for free.

But I got so many other ideas too. It's hard to know which one to pick and run with.

I'd recommend that you go do this.

And then come back and report on your progress.

...

Ideas are worth absolutely zero. Proper execution is worth a ton.

I have a friend that sells DIRT and ROCKS to landscapers. He is well on his way to becoming a millionaire.

Waste Management takes trash to the dump. But because they executed well, they're worth $24B.

 

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[Maxjohan]

"This really has potential to be worth $500 million in five years. I believe that so strongly that I can devote a whole hour to it most days. What I'm doing with the rest of my time is worth more than $100 million a year. Oh, I have other ideas that are worth more too. Anyone else believe in this as much as I do?"

This is a bit all over the place, no?

Why do you bend the truth. I said 5-10 years. I never said that my other ideas where worth more. Stick to the truth!!

How do VC and angel investors make money then? It's the same F*cking thing but reverse. But this time someone goes with my idea for equity.

I wish there were a platform for this somewhere.

 

[Maxjohan]

I'd recommend that you go do this.

And then come back and report on your progress.

...

Ideas are worth absolutely zero. Proper execution is worth a ton.

Yeah. You are right. I probably have to do it myself if I want to make it work. Yes. There is money to be made everywhere. Like I said. I'm the idea guy, so it would be great if I could find someone to excute with me. But I know it would be hard to find someone who were willing to.

 

[LynnD5000]

Attorneys cannot share legal fees with non attorneys. There are many different laws and ethical responsibilities that lawyers have to abide by.

What he says is true - it also works the same in the Real Estate Industry

 

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[Bouncing Soul]

What is your point. If you don't mind elaborating?

Legal standing is what allows someone to be a party in a lawsuit. Lead generation will be about finding people with standing that want to create a legal action. This will be important to your idea. Do more than a Wiki search, but for starters-

https://en.wikipedia.org/wiki/Standing_(law)

 

[Maxjohan]

Legal standing is what allows someone to be a party in a lawsuit. Lead generation will be about finding people with standing that want to create a legal action. This will be important to your idea. Do more than a Wiki search, but for starters-

https://en.wikipedia.org/wiki/Standing_(law)

Thanks. But I think I got the basics of it already. I did the wiki search before. But I didn't snap up what your point was. Now I got it though.