Payroll for Law Firms and How Clio is Reshaping Legal Practice Management

Embedded Partners
Clio SMB Innovators Podcast - Ronny Gurion on Payroll for Law Firms
Bookmark

As legal technology advances, small law firms face the challenge of adapting quickly and managing multiple applications to run their practices. In this episode, Ronnie Gurion, Chief Operating Officer of Clio—Cloud-Based Legal Technology—explains how Clio’s platform simplifies legal operations with payroll and other SaaS solutions. It helps law firms streamline case management, integrate AI, and improve efficiency to better serve their clients.

 

Key Takeaways:

 

  • An all-in-one platform to help law firms manage operations from intake to invoicing.
  • Law firms increasingly want to consolidate their tools, preferring fewer, more integrated solutions.
  • The complexity of legal compensation systems, such as billable hours and revenue-sharing, requires tailored software solutions.
  • Clio is cautious about bolting on solutions without integration with the existing platform.
  • Effective onboarding sequencing is critical to avoid overwhelming small business clients.
  • Law firms have lower churn rates than other industries, which helps Clio maintain long-term customer relationships.
  • Clio Duo, an AI-driven product, enhances efficiency in legal practices by streamlining operations.
  • The importance of customer obsession when building vertical SaaS solutions.

 

Listen to the podcast.

How Clio is Modernizing Law Firm Operations with Tailored SaaS Solutions and Payroll Integration

 

In an episode of the Gusto Embedded podcast, Brian Busch, Head of Marketing at Gusto Embedded, sat down with Ronnie Gurion, CEO of Clio, to discuss the evolving role of SaaS solutions in the legal industry. Their conversation covered how Clio, a leading legal practice management software, addresses the unique needs of small and medium-sized law firms, the future of AI, and the challenges of customer acquisition in vertical SaaS platforms. One of the key points of discussion was Clio’s potential to introduce tailored solutions like payroll for law firms, helping attorneys streamline business operations.

 

Ronnie’s Journey to Clio

 

Ronnie, now at the helm of Clio, has a background in management consulting, investment banking, and leadership roles at tech companies like Expedia, Uber, and Airbnb. His transition into tech during the early days of the internet, combined with his B2B experience at Uber for Business, gave him a unique perspective on small and medium-sized business (SMB) needs. This perspective became instrumental in guiding his approach to scaling Clio.

 

At Uber, Ronnie led the B2B division, helping corporations manage transportation and travel for their employees. This experience offered Ronnie valuable insight into what SMBs need from software solutions, preparing him to take on his current role at Clio. His drive to improve business management for law firms aligned perfectly with Clio’s mission.

 

“I was typically always on the B2B side of those organizations, helping those consumer businesses and those marketplaces build out really interesting but less well-known B2B arms of their division,” Ronnie recalled during the podcast.

 

Clio: The Operating System for Law Firms

 

Clio was founded with the vision of becoming the core operating system for law firms, particularly small practices, and solo attorneys. As Ronnie pointed out, the legal industry in the U.S. is largely composed of these smaller firms, with only a small percentage of attorneys working for large firms. This unique structure presents both opportunities and challenges, particularly when providing comprehensive software solutions for legal practices.

 

Clio’s platform offers many tools, including client intake, case management, time tracking, billing, invoicing, and payment processing. Clio becomes the nerve center for a law firm’s daily operations by simplifying these complex workflows. Ronnie highlighted, “Establish a strong control point, deliver excellent customer service, and understand their needs—this will attract more of your target market to vertical SaaS solutions.”

“Establish a strong control point, deliver excellent customer service, and understand their needs — this will attract more of your target market to vertical SaaS solutions.”
Ronnie Gurion, CEO of Clio

Clio’s commitment to addressing the specific challenges faced by legal professionals, from tracking time in six-minute increments to handling intricate billing arrangements, has cemented its place as an essential tool for law firms across the country.

 

The Challenge of Serving SMBs in the Legal Sector

 

One of the critical issues Ronnie explored during the podcast was the fragmented nature of the legal sector. Unlike other industries where SMBs might be slightly larger, law firms often operate as micro-businesses. Solo attorneys or very small firms dominate the market, making it harder to scale a business solution across a highly fragmented market.

 

To overcome this challenge, Clio focuses on simplifying legal operations for these small firms. Ronnie noted that law firms prefer simplicity and are often overwhelmed by the number of software solutions they are expected to use. “Many SMBs don’t want 5, 10, 15 different SaaS or point solutions, right? They want it simple. They want to consolidate their vendors and tools into one platform as long as it meets their needs,” he explained.

 

The Evolution of Vertical SaaS Solutions

 

The legal industry’s move toward vertical SaaS has been a significant trend in recent years. Unlike horizontal SaaS platforms that cater to various industries, vertical SaaS platforms like Clio are tailored to meet the specific needs of a single industry. Ronnie discussed the misconceptions that vertical SaaS platforms have limited market potential and how this view has changed.

 

“A lot of the early investors… loved the product, but just were like, ‘Hey, how big of a business can this really be?'” Ronnie explained. However, as Clio has demonstrated, vertical SaaS platforms can achieve significant growth by solving specific industry problems and expanding their product offerings to cover more functions.

 

According to Ronnie, the secret to success in vertical SaaS lies in establishing a solid foundation based on customer needs. Once that trust is built, companies can introduce new services and features that integrate seamlessly into their core platform. This approach has helped Clio expand its product portfolio and cater to the evolving needs of law firms.

 

AI and the Future of Law Firm Efficiency

 

One of the most exciting parts of the podcast was Ronnie’s discussion on how Clio is expanding beyond being just a business management tool and is moving into what’s known as the “practice of law.” Leveraging AI and data, Clio aims to help lawyers become more efficient in drafting documents, analyzing cases, and managing their time.

 

As AI becomes more integrated into legal practices, Ronnie sees new opportunities for Clio to deliver more personalized and purpose-built solutions. For example, while Clio does not currently offer a payroll solution, Ronnie explained how such a product could be developed to meet the unique requirements of law firms, such as billing in six-minute increments and handling complex commission splits.

 

This ability to offer tailored solutions for specific niche needs sets vertical SaaS platforms like Clio apart from broader, horizontal SaaS products. AI will enable law firms to streamline their operations further, reducing time spent on administrative tasks and improving overall productivity.

 

Simplifying SaaS for Law Firms

 

A recurring theme during the podcast was the demand for simplicity among SMBs. With so many software solutions available, law firms are often left juggling multiple tools, creating inefficiencies. Ronnie emphasized that SMBs want to consolidate their software into one solution that meets all their needs, which is why Clio continues to integrate new features into its platform.

“SMBs don’t want multiple SaaS solutions; they prefer simplicity. If one solution can cover their needs, that’s what they’ll go for,” said Ronnie. Clio’s focus on simplifying the work of law firms ensures that it remains a go-to solution in the legal industry, offering comprehensive functionality within a single platform.

SMBs don’t want multiple SaaS solutions; they prefer simplicity. If one solution can cover their needs, that’s what they’ll go for.”
Ronnie Gurion, CEO of Clio

As Ronnie put it, “When you really understand their needs, more and more of that target market will flock to the vertical SaaS solutions.” Clio’s journey proves that with the right focus, even niche markets can provide significant opportunities for growth.

 

Building vs. Partnering: Clio’s Approach to Product Development

 

One important aspect of scaling a vertical SaaS company is deciding when to build a product in-house versus partnering with another provider. Brian asked Ronnie how Clio approached this decision, particularly in the context of expanding its total addressable market (TAM) by adding FinTech products like billing and payment processing.

 

“We launched Clio Payments about three years ago, and it’s been a resounding success,” Ronnie said, emphasizing Clio’s preference for building when it makes sense. However, he quickly pointed out that Clio is also open to partnering with third-party providers as long as the solution can be customized to meet the specific needs of law firms.

 

“We’re not foolish to think we can build everything,” Ronnie acknowledged, adding that Clio prefers to partner with experts in specific areas, but only if the solution aligns with Clio’s mission. For example, when developing a payroll solution, Ronnie pointed out that generic solutions wouldn’t be sufficient unless they could account for the legal industry’s unique billing structures and timekeeping systems.

 

Customer Acquisition and Retention in Vertical SaaS

 

Ronnie also discussed Clio’s approach to customer acquisition and retention. Clio uses a “land and expand” strategy, initially focusing on its core platform and gradually introducing additional products. This careful onboarding process ensures that law firms aren’t overwhelmed by too many features at once.

 

“If you try to do too much, they’ll just throw up their hands and not adopt,” Ronnie explained, emphasizing the importance of a measured approach to product introduction. Once firms are comfortable with the platform, Clio can introduce additional features, ensuring customers get the most value from the product.

 

One key advantage Clio enjoys is the relative stability of the legal industry compared to other sectors. Law firms have long lifecycles, meaning once they adopt a solution like Clio, they tend to stick with it for many years. This customer retention provides Clio with a solid foundation for long-term growth.

 

Trends and Advice for SaaS Founders

 

As the podcast came to a close, Brian asked Ronnie what trends he was excited about and what advice he would offer to other SaaS founders. Ronnie highlighted the growing shift from billable hours toward project-based pricing and AI’s increasing role in legal practices. Clio is well-positioned to lead these trends, particularly as it continues to expand its product offerings and explore new markets.

 

For SaaS founders, Ronnie’s advice was simple: “You need to create a culture and a mindset that is truly obsessed with servicing the needs [of your customers].” In vertical SaaS, the depth of customer relationships is critical to success, as these platforms are built to solve specific industry problems. Ronnie emphasized that successful companies need to understand their customer’s pain points and develop tailored solutions that directly address those needs.

 

Clio’s Role in the Future of Legal Tech

 

Clio’s focus on simplifying business operations for law firms, combined with its customer-centric approach to product development, positions it as a leader in the legal tech space. As Clio continues to expand its offerings and leverage AI, it will undoubtedly play a pivotal role in shaping the future of law firm management. For law firms looking to streamline operations—whether through case management, billing, or even payroll solutions—Clio offers a comprehensive, integrated platform designed to meet their specific needs.

 

Listen to Ronnie Gurion’s interview on the SMB Tech Innovators Podcast, then learn more about Gusto Embedded payroll.

Brian Busch Brian is currently Head of Marketing at Gusto Embedded; the only payroll API with 10 years of experience and actionable data behind it. Before joining Gusto, Brian held leadership positions at Cloud Elements, Kapost, and Captricity. He holds a BS in finance and a BA in philosophy from Boston College and an MBA from the Cal Berkeley Haas School of Business.
Back to top