Dynamo: insurance offering
A new collective marketing brand called Dynamo Legal has today announced plans to recruit 245 law firms across England and Wales and build a £7m advertising warchest.
The brainchild of Welsh businessman Alexander Mills – who previously founded a company selling slate signs – Dynamo is working with insurer Composite Legal Expenses to distribute legal expenses insurance policies through brokers as one route to market.
Dynamo Legal aims to be a digital-only brand that attracts customers from its advertising, claims on their legal expenses insurance (LEI) policies or via its legal support line, which is run by Composite.
In addition to receiving work from LEI policies, Dynamo says firms can receive commission by selling insurance products to new and existing clients.
Dynamo is focusing on eight areas of law – criminal, family, property, motoring, personal injury, employment, commercial, and wills and wealth – and firms choose which they would like to offer and pay a three, six or 12-month subscription. It is pushing hard on the fact that it is not a ‘takeover’ brand; firms
Recruitment is to begin next week – although 10 firms in south Wales are already said to be on-board – with a view to running a one-month trial in south Wales and the south-west next month.
A firm can trial Dynamo Legal for 30 days at £720 for one service or £1,200 for two – once they sign up, it will be £1,200 per service per month. Dynamo predicts that the average firm will offer two services.
If it succeeds in recruiting 245 firms across England and Wales in 2013 offering two services, their collective marketing spend would be £588,000 a month or just over £7m year.
A spokesman said: “This would enable us to have a clear defined position in the market as ‘The Legal Superbrand’ offering our customers a nationwide coverage so we’re easy to find and offer additional benefits such as finance and a 24/7 support line, to make their experience easier and less stressful.
“Our whole brand ethos attracts the public with our ‘non-stuffy, non-complex’ solution to finding a solicitor and markets itself as ‘Making legal services simple’. We have called the brand Dynamo Legal because the industry needs visual and recognisable change.
“We are all aware that the common perception of solicitors and the legal industry by the general public is not at all flattering. Our brand is talking to customers on their level; approaching the industry as a dynamic, new, energetic, innovative and cost-effective solution to finding and using a solicitor.”
Law firms need to remember the rules (O1.15) on commissions and that a commission belongs to the client until such time as the client gives informed consent for the firm to dispose of it as agreed (give it to the client, keep it, offset against a bill, etc); this issue needs to be dealt with in writing so appropriate evidence can be shown if challenged.
The SRA is very mindful of firms making secret profits so ensure you comply!