LegalZoom, which has valued itself at $483 million, is getting some negative feedback on that valuation. Carolyn Elefant points out that no matter whether you are churning work comp cases or peddling mediocre forms online, volume requires a constant stream of new clients, which costs money. That’s why LegalZoom spent $41 million on advertising for $12 million in profits … and it will have to do that every year.

Read The LegalZoom IPO: Proving That Volume Practice Doesn’t Work, Even 21st Century Style on myShingle.