Debunking the Myth that Freelancing as a Paralegal Lacks Security.

I get this concern often.  Paralegals will come to me and say, “I want to start freelancing so badly, but I need financial security.”

It’s a valid concern that deserves more than a “you will find security” type of blind-faith answer.

Paralegals find themselves desiring freelancing for a multitude of reasons:

 ·      They want to earn more money.

·      They want to have more freedom in their schedule.

·      They want to specialize in the work that lights them up.

·      They want to have more say in who they work with and what they will do.

 Typically, it’s a mixture of the above.

However, everything I just listed often gives a paralegal a feeling of “that would be nice, but if it seems too good to be true, it probably is.”

Myself and countless other paralegals around me are living proof that not only can starting a freelance paralegal business be financially sustainable, secure, and lucrative, it can also completely elevate your life both in financial abundance AND personal freedom. 

So, let’s dive in and I’ll make my case without avoiding the obvious…

Your biggest client could drop your contract at any given moment.

Yes, this is true.  Truth be told, I have had major contracts generating 10k in revenue each month “drop” our contract.  The reason usually being is that once a contract gets that big, its typically more financially sound for that attorney to go and hire a full-time employee on payroll. 

The 80-20 rule has never proven to be accurate in my paralegal business because of the exact dilemma firms find themselves in.  The rule is that 80% of sales typically come from 20% of your customers. 

Looking at my client list now, most of my clients are making up 5% of my monthly revenue, where others are making up 20%. 

The reason being is that the business we are offering is not SUPPOSED to be high volume with each client.  In fact, it somewhat defeats the purpose, laws, and regulations surrounding contractors.

As a contractor, you should be in business for yourself.  You should be taking the necessary actions to protect your cash flow, and now allow most of your income to be dependent on one client. 

Further, your business is filling very specific needs for your client:  providing law firms with fractional support so they don’t waste money on an unnecessary full time hire and/or providing them with the expertise required for specific projects.

If you’re worried about your biggest client dropping you and losing 80% of your revenue as a result, focus on structuring your client list this way instead:

·      Offer 5- or 10-hour packages each week as a maximum, so you can have a good variety of clients.

·      Never shut off marketing and try to continue to generate at least one new sales call per month.

·      Have at least a 30-day cancellation policy with pre-paid minimum hours.

If you lose a client, it could take months to fill that slot of time back up.

 I love speaking on this “dilemma” because the solution is quite exciting.

As stated in the above-paragraph (and I will probably mention it another time or two in this article), never-ever shut off marking and try to continue to generate at least one new sales call per month.

But Jaclyn, why would I take more sales calls if I am maxed out on my hours?

ONE- You can have a waiting list.

How totally bada** would it make you feel as a sought after professional if you could tell a client your wait list is into next quarter?  How do you think that would make you look as a freelance paralegal.  Not only are you full up on clients, you have a WAIT LIST. 

Now, I don’t want you to lie to your client just to give off the perception of your high-demand.

However, that can be your first option you state to your client, if it is true.  “It sounds like we would work really well together, and I am aligning with your needs.  My earlest availability to start would be xxx date.  Does that fit into your timeline?”

If the client says, “No way.  I need someone now,” then:

TWO: You have partnered with a strategic alliance under a referral commission agreement

 You tell them, “I completely understand.  With what you’ve share with me today, I would really love to introduce you to Jaclyn Foster, she specializes in 1099 placements and can help expedite a great match for you.”

You send the referral over to me, the client signs, and you get a commission check!  There are many paralegal agencies and independent paralegals out there that would love to get into a referral agreement with you.

This way, you’re not shutting off marketing and you’re generating at least one sales call per month.  If you don’t have the room for an additional client, you’re making an easy referral commission.  If a client cancels their contract with you and you need to fill that slot, you’re covered!

Businesses fail all of the time…

Yes.  In fact, they fail even more than “all of the time.”  However, do you recognize you’re currently working for a business?

Even though you don’t own the business and you’re not self-employed, you’re working for a business owner.  You’re working for a business that just simply started one day and went through a lot of growing pains.  You’re working for a business that isn’t immune to the economy. 

You’re working for a business that you hope has executives and management that will keep it running for your own job security.

There is no more security in working for someone elses’ business than there is your own.

Yes, the startup failure rate is quite high, so I can understand how you might think that because your law firm has been in business for 10, 20+ years that it has stood the test of time.  But did you know that the primary reason for that is no market need.

Look around you.  Do a quick search on LinkedIn and see how many paralegals are currently freelancing. 

Look at my company that hires dozens of freelancers each month.  Look at many of my former students running successful freelance businesses.

There is a massive market need for freelance paralegals, even long before the pandemic kicked it into overdrive.  And no, it isn’t even close to being “saturated.”

While there are other reasons businesses fail at that rate, such as cash flow (common issue while scaling with overhead, which you will not have to do if you take my course, Freelance Paralegal Roadmap in January 2024).

What I have found over the years of watching paralegals explore freelancing opportunities, is that the biggest reason you could potentially fail would be due to the loss of focus and deviation from the roadmap.

BUY OUR PLANNER!

I found that during the first 12 months of building my business, consistency was the number one element of successfully scaling to 6-figures.  The rest just works its way out as you gain more experience in business and maintain a growth mindset.

You don’t have to jump feet first all at once into ice-cold water.  You can inch your way there and transition gracefully from full-time employee to full-time freelancer.  (Watch this video where I teach you how to do that)

Conclusion

In conclusion, I hope I have debunked the myth that freelancing as a paralegal lacks financial security. While the concern of losing a major client exists, strategic planning can mitigate risks and ensure a steady income. By diversifying clients, maintaining a waiting list, and establishing referral agreements, freelancing paralegals can safeguard against uncertainties.

The notion of job security in traditional employment is also challenged, emphasizing that businesses, regardless of ownership, face risks. The thriving market demand for freelance paralegals, coupled with consistent effort and focus, can lead to financial abundance and personal freedom.

Transitioning from a full-time employee to a full-time freelancer is a gradual process that, when executed with consistency, can result in a successful and lucrative freelance paralegal career.

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