Paralegals Freelancing Independently or With an Agency: Which is Better?
In 2020 when I started freelancing my paralegal services out independently, I had been working for a virtual assistant agency, freelancing as a paralegal as a subcontractor, and supporting the agency’s law firm clients.
In 2018 when I received my first freelance, work from home gig, working with a large law firm out of Chicago, I truly thought I was being scammed. It was rare to find remote jobs working for a law firm.
Fast forward to 2020 when the pandemic came and shook up our world, law firms were forced to figure out how to continue to operate with their people at home. Although freelance paralegals existed over a decade before 2020, the pandemic truly “blew up” the freelance paralegal industry.
Now, paralegals have immense opportunity to hang up their employee hat, open up a business, and start commanding $60 per hour + rates as independent contractors, set their own schedules, and become an established and known expert within the industry.
Since then (and even before then), many paralegals or other legal and non-legal entrepreneurs have gone on to open staffing agencies, offering freelance paralegals, legal assistants, and general virtual assistant services to attorneys across the United States. In fact, I merged my own freelancing business into an agency in late 2020.
With that comes the question: Is freelancing as a paralegal independently or joining an agency better?
Let’s dive in and evaluate the pros and cons between independently freelancing as a paralegal or joining a paralegal agency.
1. Acquiring Clients and Managing Relationships
As a paralegal freelancing independently, you are responsible for acquiring your own clients, managing contracts and client relationships, invoicing, and everything administrative that comes with running a business.
As a paralegal joining a freelance paralegal agency, the agency is responsible for all of that.
When I was with my agency, this was a huge blessing as I was very uncomfortable with starting a business, had no idea where to begin, and I didn’t have a roadmap like the Freelance Paralegal Roadmap I offer paralegals to know how to build a successful business quickly.
Further, I had a baby at home, and I just didn’t have the time to figure it all out by piece milling information from all over the internet. It was a great steppingstone for me to gain knowledge, experience and confidence when there was no guidance available to me otherwise.
2. Rates
As a freelance paralegal of any kind, whether you are working for an agency or working independently to acquire and sign your own clients, you set your own rate. Of course, that comes with potential negotiations as you weigh your current client load, how desperately you need a client, how established your business is, and the nature of the projects you are taking on. Often, a client will have a budget in mind for their project or freelance paralegal, but it is ultimately up to you if you are willing to discount your services to be in alignment with that client or agency.
We must keep in mind that freelance paralegal agencies are for profit, so they have to make a profit on your work performed. As a result, what you can be expecting to make as an independent paralegal will typically be about 50 - 55% higher than what you can expect to make while working through a freelance paralegal agency.
The average rate of an independent freelance paralegal is around $65 per hour, where the average rate of a freelance paralegal working with an agency is around $30 per hour.
Some things to consider, in relation to that percentage, is whether that 40-50% is worth it for you to not have to oversee business administrative work, client relationship management, invoicing, and, most importantly, the acquisition of new clients.
Once you get your momentum with your own independent freelance business and have refined and established the proper components of that business, you will find that the acquisition of clients is not as difficult as it may seem in the beginning.
On the other hand, agencies already have a huge jump start on their brand authority, recognizability, and reputation. Once you get in with them and have demonstrated your professionalism and quality, the agency will work to keep you as busy as possible because you make them money.
I utilized my subcontracting as a safety net while I built up my business. Although I had ten clients and two paralegals working with me around 4 months into my business, I continued a contract with the agency for around 5 hours per week of work until 9 months into my business to give myself a “comfort blanket.”
Working with a freelance paralegal agency temporarily can provide you income and experience as you work to develop your own business. Truth be told, I’ve had dozens of paralegals that have worked with my agency take my Freelance Paralegal Roadmap Course. Yes, they ended up leaving me once they got busy enough with their own clients. No hard feelings. I was, and still am, so proud and happy for them.
In fact, the owner of the agency I worked for remains a good friend, colleague, and mentor to me to this day.
3. Freedom of Schedule
Whether you’re working independently as a freelance paralegal or working through a freelance paralegal agency, your schedule is yours to set and manage. It is the law (this isn’t legal advice, though).
Typically, agencies are enforcing minimum packages of hours to their clients that you’re working with. I recommend you as an independent freelance paralegal do the same if you are offering hourly services. These minimum packages provide predictability and help you to manage your schedule around batches of hours for each law firm.
There are many agencies as well as attorneys out there that will bring you in for projects and “as-needed” work. This is useful for paralegals trying to slowly transition from full time W2 employment to freelancing full time.
What was nice about working with an agency in the beginning, is each client would come in for around 5 to 10 hours per week. I was then able to easily spread out those hours across the week, and still provide myself time to do all of the stay-at-home motherly things. This method worked so well for me; I implemented it into my own business almost immediately upon starting. The first client I took was a project based, but after that they all came in with at minimum 20 hour per month packages.
This is a testament to the amazing lessons I learned while wor
4. Ideal Client
As I teach in the Freelance Paralegal Roadmap course, setting your ideal client (or what I like to call, the “North Star Client”) is one of, if not the most, important things you will do in your freelancing career. It allows virtually everything else in business to fall in place, especially your marketing and client acquisition success.
As you work for a freelance paralegal agency, somethings they miss the mark in aligning you with who you want to work with and who you will shine for in working with. Rightfully, the agency has set their own parameters of an “ideal client.”
When I worked in my agency, less than half of the clients were a great fit for me. Of course, I had the knowledge base, professionalism, and communication skills to accommodate those that didn’t, but it came at the expense of my mental sanity with some of them.
I was fortunate to work for an agency that respects and values their contractors immensely. However, I have heard difficult stories from paralegals that come to me from another agency, stating they were treated so terribly, put down, and the company never had their backs. Some of those same contractors still contract with me today and are amazing.
As an independent freelance paralegal with your own business, you can set your ideal client, establish your services you want to provide, set your own rate, and attract that exact ideal client with your marketing, working with people that light you up and bring you joy each day. To me, this is one of the biggest benefits of freelancing.
If you find yourself looking at agencies to work with, your ideal agency should be determined and contemplated, ensuring that all the stars align with them as you would with your own attorney client.
CONCLUSION
In conclusion, the landscape of freelance paralegal work has undergone a remarkable transformation, particularly accelerated by the challenges brought forth by the pandemic in 2020. What began as uncertain steps into independent freelancing has prospered into a thriving industry, offering paralegals amazing opportunities for autonomy and financial success. Whether opting to navigate the terrain solo or joining forces with a freelance paralegal agency, each path presents its own set of advantages and considerations.
For those venturing into independent freelancing, the journey involves building a business from the ground up, managing client relationships, and setting rates independently. Yet, the rewards of this path are substantial, with the potential for higher earnings and the freedom to define one's ideal clientele and work schedule. Conversely, joining a freelance paralegal agency offers a structured approach, relieving individuals of administrative burdens while providing a steady stream of work. However, it may come at the cost of sacrificing some control over client selection and rates.
The strategy I highly encourage is to consider working with freelance paralegal agencies while you’re building out your own business. You will learn invaluable lessons on this path, build incredible relationships, and ultimately gain organic confidence along the way.
Ultimately, the decision between freelancing independently or joining an agency boils down to individual preferences, circumstances, and long-term goals. Each avenue presents its own opportunities for growth, learning, and professional fulfillment. As the freelance paralegal industry continues to evolve, the choice between independence and agency affiliation remains a deeply personal one, shaped by individual aspirations and values.