Impact Pricing Reimagining Legal Fees: How AI and Subscription Models Create Win-Win Solutions with Mathew Kerbis
Mathew Kerbis is The Subscription Attorney who is on a mission to affordably serve latent legal market clients at scale via the subscription model and inspire attorneys to abandon the billable hour. He founded the law firm Subscription Attorney LLC.
In this episode, Mathew shares how he's leveraging subscription pricing to disrupt the traditional billable hour model in the legal industry, making legal services more accessible. He highlights his strategy of targeting an underserved market while offering premium pricing options for higher-value clients. Mathew emphasizes his business's profitability, operating with minimal expenses while maintaining a large margin and serving both small and large-scale clients.
Why you have to check out today’s podcast:
- Discover how subscription-based pricing is disrupting traditional legal service models, making legal help more accessible and predictable.
- Learn how addressing the vast underserved legal market can create new opportunities for both clients and lawyers.
- Gain insights on how offering premium pricing options alongside accessible subscription plans can balance profitability with customer satisfaction.
“Don't be afraid to experiment and to try something new. I experiment with my pricing to find what works. And so, you should experiment, too, and listen to Mark.”
- Mathew Kerbis
Topics Covered:
01:37 - How he was led into pricing
03:24 - Discussing the similarities between doctors transitioning to direct primary care (DPC) and lawyers adopting subscription-based pricing
05:05 - Explaining his flexible subscription model
08:48 - Sharing how instead of tracking time or focusing on cost accounting, he views his business costs as fixed expenses
11:03 - Optimizing efficiency and delivering value through his subscription model
14:04 - Arguing that while clients can access AI tools themselves, they can't match the expertise of a lawyer using them effectively
16:04 - Emphasizing that while AI can generate rapid insights, it requires human judgment to interpret results accurately
18:52 - What he meant when he said he drives prices down and discussing the unmet demand creating a significant opportunity despite price competition in the legal industry
21:53 - Targeting underserved clients while maintaining flexibility to serve both small businesses and larger clients
24:26 - Maintaining accessible pricing while using tiered subscription pricing to price higher
26:30 - Highlighting the importance of strategic pricing to remain competitive without risking client loss or revenue instability
27:30 - Mathew's best pricing advice
Key Takeaways:
"Ron Baker has educated me on how cost accounting isn't the way to think about what your actual costs are as a business owner." - Mathew Kerbis
"What's great about a month-to-month subscription is, I could drop the client just like they could drop me. And the fact that they have the flexibility to leave at any time actually makes them not leave." - Mathew Kerbis
“I still want to offer the accessible pricing, but I will have super premium pricing for the best customers that need it.” - Mathew Kerbis
"I don't assign any dollar number to my time or the hours that I spend because things don't take as long as they used to. I was using AI when I launched my firm because I knew less time equals more money doing what I do when you're not billing by the hour." - Mathew Kerbis
"Sure, you could use the legal AI tools that I'm using, but are you able to get the same output that a lawyer who is actually using the tool in the way in which it was designed can get better output?" - Mathew Kerbis
"Judgment is really important. I don't think AI replaces subject matter experts, frankly ever." - Mathew Kerbis
People/Resources Mentioned:
- Ron Baker: https://impactpricing.com/podcast/497-classic-trash-the-timesheet-exploring-opportunities-in-subscription-businesses-with-ronald-j-baker/
- Calendly: https://calendly.com
- Adobe Photoshop: https://www.adobe.com/
- ChatGPT: https://chatgpt.com
- ClaudeAI: https://claude.ai
- Perplexity Pro: https://www.perplexity.ai/hub/faq/what-is-perplexity-proUber:https://www.uber.com
- Grandview Research: https://www.grandviewresearch.com
- Walmart: https://www.walmart.com
- Target: https://www.target.com
- Sam Walton: https://en.wikipedia.org/wiki/Sam_Walton
- Jeff Bezos: https://en.wikipedia.org/wiki/Jeff_Bezos
Connect with Mathew Kerbis:
- Website: https://mathewkerbis.com/
- LinkedIn: https://www.linkedin.com/in/kerbisverse/
Connect with Mark Stiving:
- LinkedIn: https://www.linkedin.com/in/stiving/
- Email: mark@impactpricing.com