With millions of small business owners seeking help amidst the coronavirus pandemic and government lockdowns, LegalShield announced today all-time highs in demand and utilization for its small business legal products. In a sign that the American entrepreneurial spirit is far from defeated, the company’s business formation product, Launch By LegalShield, also experienced its single largest year of growth in 2020, with nearly a 100% increase in year-over-year sales; Small Business Plan memberships grew by almost 20%; and finally, sales of business plan legal supplements—Business Plus, Home Business and Trial Defense—rose nearly 40%.
“The effects of the pandemic have been devastating for millions of small businesses; but despite the challenging landscape, many thousands of new businesses are forming as furloughed or displaced workers take control of their financial future by striking out on their own,” said LegalShield CEO Jeff Bell. “Simultaneously, Main Street and home businesses weathering the storm are reaching out for more legal assistance than ever to stay afloat, and that demand is reflected in all our numbers.”
In 2020, the LegalShield Small Business Plan facilitated more than 250,000 service intakes for US and Canadian small businesses in a wide range of legal areas, the top five of which were business licenses and fees, collections, employment issues, contracts and consumer finance. Additionally, the plan welcomed a substantial number of new members, representing an 18.3% year-over-year sales increase, and resulting in compound annual growth from 2017 through 2020 of 15.8%. Additional highlights:
- Generation X comprised the majority of Small Members Plan members (29%); followed by Millennials (23%); Baby Boomers (17%); Other (26%) and Gen Z (3%)
- Small Business Plan Members reside in all 50 U.S. states, with the greatest demand in California, Texas, Florida, Georgia, and Illinois.
- Plans start at $49 per month, and are available in three tiers: Essentials, Plus and Pro to meet the needs of everyday entrepreneurs.
Launch by LegalShield, which provides business formation assistance bundled with other legal benefits, helped introduce thousands of new businesses to the market in 2020. These sales represent a 99.4% increase over 2019, resulting in compound annual growth from 2017 through 2020 of 52.1%.
Entrepreneurs wanting to extend their core legal memberships were able to enroll in one of four business plan supplements—two of which were created last year in response to market demand. These supplements address specific circumstances, such as operating a home business, or working in the ride share and delivery industry. Overall business plan supplement sales rose 39% year-over-year, and include:
LegalShield Business Plus: Thousands of new supplements were added in 2020 for a year-over-year sales spike of 24%. This supplement can be added to Small Business Plan Memberships and provides business and marketing consultation.
Home Business: New Home Business Supplements sold represent a 31.9% increase over 2019 and resulting in compound annual growth from 2017 through 2020 of 6.7%. This supplement is designed specifically for home-based business owners, consultants, and those with up to 10 rental properties and are sold in combination with, or added onto, family legal plans.
Ride Share and Delivery Supplement: In the fourth quarter of 2020 LegalShield launched its Ride Share and Delivery Supplement which is generating enthusiastic reception among new and existing members. This supplement is designed specifically for drivers who use cars, vans, or pick-up trucks to support their livelihood.
- Trial Defense for Business: New in market as of January 2021, the Trial Defense for Business Supplement adds a specified number of pre-trial and trial hours for members whose businesses are named as defendants in a lawsuit. This service was initiated in response to rising demand.
LegalShield Business Plans’ Net Promoter Score (NPS) is 59, with over 70% of respondents being Promoters. In contrast, the Clio Legal Trends Report reported the NPS score of 25 for the US legal profession as a whole. This score breaks down to 48% Promoters, 30% Passive and 23% Detractors.
About LegalShield and IDShield
A trailblazer in the democratization of affordable access to legal protection, LegalShield is the world’s largest platform for legal, identity, and reputation management services covering more than 4.4 million people. IDShield, LegalShield’s identity theft solution for individuals and families, has more than one million members. LegalShield and IDShield serve more than 140,000 businesses. In addition, over 34,000 companies offer LegalShield and IDShield plans to their employees as voluntary benefits. Both legal and identity theft plans start for less than $25 per month. For more information about LegalShield, visit: https://www.legalshield.com or for more information about IDShield, visit: https://www.idshield.com/.