3 Things You Can Learn from Spotify IPO
What a week to be an investor, right?
Yesterday’s big stock-specific news was the IPO of Spotify
(Obviously, there was other news that rocked the market, but I’m going to talk about the music-streaming service instead of tariffs)
It hit the stock exchange trading at a premium in what was not your traditional initial public offering. It’s actually a “direct offering,” meaning they’re not offering new shares but allowing existing private shareholders to sell their shares on the public market.
So what does this have to do with your law firm?
There are actually three things I want to point out…
#1: There is no better investment than your law firm.
Amidst the chaos of the stock market, it’s worth remembering that the highest return you can get on your investment is your law firm. If five hundred bucks spent on marketing can bring in a couple thousand bucks in client fees… well, you can’t find such a return from any stock (unless you’re aiming to get lucky on a random penny stock – good luck)
#2: Spotify’s greatest appeal to investors is its loyal user base.
They measure “churn,” which is the percentage of people who leave the service. In 2017, that was just 5.5%. Pretty good overall. Spotify says its family plans are one of the reasons for the low churn.
Think of churn as referrals for yourself. How loyal are you keeping your “fan base?”
(Side note here… another reason for growth and retention is that Spotify has a great referral base. Once a few friends start sharing playlists with each other, that locks them in on the service. Can you connect people in your world? Clients and referral sources?)
#3: The big weakness for Spotify is the same weakness as Apple Music, Pandora, and whatever YouTube rolls out…
Spotify is at the whims of trends and the greater music industry
There isn’t anything proprietary about a music-streaming platform.
Their forever struggle will be how to keep their message bigger and stronger with potential users. They need the classic advertising element: a Unique Selling Proposition (USP).
Within all of the ideas above, there are direct correlations to the challenges YOU face
Marketing your law firm is about more than “getting your name out there.”
It’s about building direct connections with those people you can help.
Most attorneys start their firms assuming that being a really, really good attorney should, in and of itself, be a marketing advantage. Those attorneys believe that joining a whole bunch of committees and putting their name in lawyer directories is “marketing,” and they never bother to ask if there is a better way.
Attorneys are catching on, however, and those who succeed learn to leverage their current resources to create effective (and ethical) marketing. What they discover isn’t a magic pill or silver bullet but a different approach to marketing that your competitors haven’t considered.
by Ben Glass
Ben is a nationally recognized expert in attorney marketing and the owner of Great Legal Marketing.