Better Legal

How Chad Sakonchick Built Legal Services Platform to $1M ARR Using No-Code Solutions

Monthly Revenue

$208K

Starting Costs

$8.5K

Founders

Profitable

Yes

Year Started

2016

Customer

B2B

Founders

Profitable

Yes

Year Started

2016

Customer

B2B

Who is Chad Sakonchik?

Chad Sakonchick, the founder of Better Legal, is a serial entrepreneur with a background in film from the University of Texas. He began his career at Dell but soon ventured into tech entrepreneurship, launching various startups with a focus on no-code solutions.

What problem does Better Legal solve?

Better Legal simplifies the business formation process by offering a straightforward, one-price service for startups to quickly and affordably handle all necessary legal paperwork without upsells or hidden fees, eliminating the hassle and time investment typically required in navigating state requirements.

How did Chad come up with the idea for Better Legal?

Chad Sakonchick, the founder of Better Legal, identified a gap in the market when he realized that his attorney friend was losing potential clients due to high charges for basic legal setup services. Observing that this friend billed $1,500 for forming an LLC, with much of the task involving manual data entry, Chad recognized an opportunity to streamline and automate the process. This insight convinced him that technology could reduce the time spent on forming a new business from hours to minutes, and in turn, allow for pricing significantly below competitors while increasing efficiency.

Chad's background in leveraging automation tools like Zapier and experience with CRM systems informed his approach. By initially integrating tools such as Typeform, Asana, and WebMerge, he created a prototype that drastically reduced the complexity and cost-effectiveness of setting up legal documents. This solution's success, with more efficient processes leading to a higher volume of work at lower prices, inspired Chad and his friend to co-found Better Legal.

Before fully committing, they validated the market demand through trial sales, confirming the idea's viability. Chad's willingness to refine the concept through iterative development and feedback reflected his adaptability. His journey demonstrated the critical lesson that understanding and addressing a real-world inefficiency, combined with technological integration, can open up substantial business opportunities in traditional sectors like legal services.

How did Chad build the initial version of Better Legal?

Better Legal was initially built using no-code tools like Typeform, Zapier, and WebMerge, creating a streamlined process to replace tedious document handling tasks. Chad Sakonchick, the founder, switched to Salesforce for improved data management, despite its high cost and limitations. Eventually, they transitioned completely from custom code to a no-code platform using Bubble to overcome development delays and high costs.

This migration allowed Better Legal to recreate five years of custom code within a year, reducing development costs significantly to $5,000-$7,000 monthly. The switch to Bubble also significantly increased efficiency, allowing them to build and iterate features faster while reducing dependence on external developers.

What were the initial startup costs for Better Legal?

Development Costs: At one point, Better Legal was spending $8,000-$10,000 per month on custom development before switching to a no-code solution to reduce costs.
Cost-reduction Strategy: By switching from custom code to Bubble, they aimed to cut operational costs significantly.
Platform Transition: The migration to Bubble as a no-code platform was prompted by high expenses and slow feature deployment, with the entire process taking under a year.

What was the growth strategy for Better Legal and how did they scale?

Google Ads

Better Legal initially used Google Ads to attract their first customers. They spent $900 on Google Ads, which resulted in two sales valued at $600. This indicated a promising return rate and validated their service, thus encouraging further investment in this channel.

Why it worked: Google Ads helped them reach potential customers who were already looking for legal services online. This direct approach to advertising allowed Better Legal to effectively showcase their simplified and cost-effective solution to startup headaches, immediately capturing the interest of those in the process of forming a business.

Strategic Use of Technology and Automation

Initially, Better Legal used a combination of no-code tools like Typeform and Zapier to automate the legal document creation process, saving significant amounts of time and reducing costs for filing new business formations. They later transitioned to Bubble, allowing them to rebuild their system efficiently and at a lower cost.

Why it worked: By switching to no-code tools and later to Bubble, Better Legal minimized their dependency on expensive and time-consuming custom development work. This technology strategy not only reduced their operational costs but also allowed them to innovate and offer faster service compared to traditional methods.

Lean Operations and Lower Overheads

Throughout their development, Better Legal kept a lean operations model with a small team, predominantly hiring part-time contractors through Upwork, allowing them to manage costs effectively while scaling operations.

Why it worked: Maintaining a small, efficient team empowered Better Legal to keep operational costs low. This cost advantage allowed them to price their offerings competitively while investing in critical areas like product development and customer service, which contributed to their growth and customer satisfaction.

Customer Transparency and Simplicity

Their marketing focused on customer needs by offering a straightforward and transparent pricing model. Unlike competitors that complicate their offerings with various packages and upsells, Better Legal provided a single all-inclusive price.

Why it worked: This simplicity and honesty in pricing attracted customers who were overwhelmed by the complexity or cost configuration of other services. This clear messaging reduced the hesitation and decision-time for customers, incentivizing them to choose Better Legal for their straightforward approach.

What's the pricing strategy for Better Legal?

Better Legal offers a flat fee of $299 for comprehensive business formation services, including state filing, EIN, and legal documents, eliminating upsells and simplifying the process.

What were the biggest lessons learned from building Better Legal?

Embrace No-Code Solutions: Better Legal transitioned from custom coding to a no-code platform, drastically reducing development time and costs. This shift allowed for rapid feature implementation and reduced dependency on traditional developers, proving that no-code solutions can effectively support complex business operations.
Iterate and Improve: By moving from multiple software versions to a streamlined no-code platform, Better Legal could iterate quickly based on real-time feedback, enhancing their product faster and more efficiently. Regularly revisiting and improving processes is crucial to staying competitive and meeting customer needs.
Cost Efficiency Through Integration: Replacing external services with internally developed solutions on Bubble enabled Better Legal to cut down on SaaS subscription costs. This approach highlights the importance of integrating key processes to reduce expenses and increase efficiency.
Focus on Core Business Needs: Better Legal's initial struggle with front-end development was a lesson in prioritizing business functionalities over technical complexities. Partnering with the right tools allowed them to focus on core operations rather than getting bogged down in development nuances.
Adapt to Market Conditions: During challenging times, Better Legal adjusted its focus, transitioning to no-code to sustain operations and remain profitable. This adaptability underscores the need for businesses to be flexible and responsive to market and economic pressures.

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