What's Driving Growth @ Goodlawyer?

Fractional General Counsel.

There, got the big mystery out of the way!

Now let's go a little deeper.

Fractional General Counsel (FGC) is a product that left the pilot phase six months ago and today it makes up just under half of Goodlawyer's revenue. We knew there was demand for it when we started the pilot, but the reasons for its popularity have becoming more clear more as time goes on.

This post is our theory as to why the demand for FGC has been so strong.*

* One thing we discovered while selling FGC was that enterprises with 1,000+ employees wanted something similar, but different. As a result, we now have a growing number of enterprise customers, but to keep this post simple we won't be discussing enterprises.

FGC Doesn't Compete

Fractional General Counsel does not require a company to abandon their existing law firm relationships.

Customers get an in-house legal department that takes care of their operational legal work (often contracts, corporate management, and employment) and leverages their existing law firms for larger projects (often big financings and litigation).

We get audible sighs of relief when we explain this to future customers.

They've spent years getting their existing counsel up to speed, they like them, and they don't want to switch —?but paying $500+ / hr for contract reviews and stock issuances is starting to wear them down.

FGC Relieves Stress

Before getting an FGC, companies typically handle their operational legal work themselves. The CEO or CFO (whoever is more risk-averse?) is spending hours reviewing contracts, Googling stock options plans — and sweating bullets at the thought of what might go wrong!

When the FGC joins the team, they take on risk mitigation for the whole company. That is the core of the legal function.

Understandably, this is a huge relief to the executive team, who can get back to doing what they do best.

FGC Saves Money

Outsourcing a legal project to a big firm typically costs $500 - $750 / hour. Fractional General Counsel rates are typically $200 - $300 / hour.

It's immediately obvious why customers prefer the FGC rate, but why do the lawyers like it?

Because more of that money goes into their pockets.

An associate lawyer at a big firm often takes home less than 20% of their billable rate. An FGC lawyer takes home 4x that.

On top of the higher take-home, FGC lawyers have a lot more flexibility in how they practice. If they want to work 80 hours a week, they can, but they can also limit their hours to 40 and enjoy a date night now and again.

FGC Lawyers Are Awesome

Lawyers selected for FGC placements are rigorously vetted to ensure they are top notch. Not only do they boast impressive resumes at places like Osler, Fasken, Walmart, Shopify, and DC Bank, they have sharp business acumen and social skills.

Yes, being friendly is critical to being an FGC :)

Lawyers are incredibly talented people and FGCs are among the most skilled, practical, and personable members of this elite profession. They contribute not just legal support, but skilled executive leadership to the team they join.

So, that's most of it.

That's our theory as to why Fractional General Counsel has been such a hit.

If you have questions, or you think your company might benefit from an FGC, send me a DM on LinkedIn. We're always happy to chat!