Paralegal services companies may develop from freelancing. A successful freelancer may hire his or her own staff and set up a business organization, partnership or corporation. Paralegal services companies have their own office space and undertake more sophisticated marketing strategies than do individual freelancers. They usually provide services of temporary paralegals, legal research services, managing clerk services (the service of papers and filings at court) or specialized services in trusts and estates and the like. Essentially, these services are small businesses run by entrepreneurs who, if successful, must be good managers as well as knowledgeable paralegals.
Both types of freelance paralegals bill their clients depending upon how specialized and sophisticated the work is.
Now arises the question, that how much can you earn as a freelance paralegal.
It's possible to earn a huge amount if you run a paralegal services business and have many people working for you. But suppose you're an independent contractor. You will have to analyze your budget, billing rates and profitability. You'll have to allot some time for selling and conducting a marketing campaign- as much as five to ten hours per week, as well as whenever you don't have any projects. This marketing time will cut into your billing time.
The way to earn as a freelance paralegal is to win projects or assignments through your marketing efforts and then delegate these to associates whose work you will supervise and for which you are responsible. Of course, their share of the billings has to be less than the gross amount in order to cover your selling cost, supervising time and a modest profit. It's suggested that when you delegate work to others who are not employees that you give them % of the billing.
Of course, money isn't the only reward. Some freelancers earn significantly more as freelancers, others less than they did as full-time employees; but almost every freelance has the added benefit and personal satisfaction of being self-reliant.
Billing Your Clients
Billing clients can become a touchy issue for freelance paralegals. One paralegal with whom we spoke thought that the hardest part of her job was collecting from clients. Another mentioned that when the economy was bad, and firms were short of cash, collecting for work completed could be a long, drawn out affair.
Professionalism is the key to avoiding problems with billing and collecting. Before you begin a project, have a detailed, written and signed agreement that spells out the terms of your work. Check around in your community to see what other paralegals earn as freelance paralegals. Unless you have exceptional experience or expertise, charge accordingly. You can bill on either an hourly basis, or you can charge a flat fee per project. For research work, an hourly fee is advised; it's hard to tell, until you're well underway, how long a project will take. For a standard assignment, like drafting a will or filing a form, a flat rate is acceptable. With experience, you'll know how long it should take and you'll charge accordingly.
Always bill your clients promptly. If it's a short project, have your bill mailed within two weeks of completion. For a lengthy, ongoing assignment, bill on a regular basis: every one or two weeks, for example.
Although most of your clients will be honest and pay their bills on time, you'll probably confront a few tough cases. Be persistent and keep after them, but don't lose your sense of humor or your cool. It's not worth alienating a client and his or her colleagues just because payment is a few days late. You should probably avoid working for lawyers who only pay on consignment: i.e. you only earn a fee when they win a case. If they lose, you might lose too.
