Why the Hourly Billing Model Is Broken

Stephen Candelmo is a corporate lawyer turned tech founder who has spent nearly thirty years advising emerging companies and building his own ventures. In this episode, he explains how a recession, a machine learning experiment, and a desire for fairness inspired him to create Paralex, a legal platform that delivers fixed-fee, AI-powered legal services for small businesses and startups. He also shares why he believes the legal profession is on the edge of a major transformation.

Corporate lawyer and founder Stephen Candelmo explains how AI, entrepreneurship, and transparency can change the way lawyers work and the way clients access legal help.

Why the Hourly Billing Model Is Broken

<iframe width="100%" height="180" frameborder="no" scrolling="no" seamless="" src="https://share.transistor.fm/e/301d7fd0"></iframe>

Why the Hourly Billing Model Is BrokenWhy the Hourly Billing Model Is Broken

About This Episode

Background

Stephen Candelmo grew up in an immigrant working-class family in Pennsylvania. His father, who completed college later in life, consistently encouraged education for Stephen and his brothers, and planted the idea that law school could open many doors. Although no one in his immediate family practiced law, Stephen was drawn to the structured thinking and range of opportunities that a legal education offered. After earning his undergraduate degree, he attended the University of Akron School of Law, followed by additional study in Washington, DC.

“You go to law school, it is going to teach you how to think. You can do so many things with that. They can never take that away from you," shares Stephen Candelmo on You Are A Lawyer.

His early career took shape at a national law firm where he handled corporate work ranging from formations to public market transactions. Although he enjoyed the diversity of his practice, he was also fascinated by business and technology. That curiosity eventually pushed him beyond traditional legal paths and into entrepreneurial ventures, each one laying the groundwork for the company he would later build.

Why Law School

Stephen’s choice to attend law school was influenced by two main factors: his father’s advice about the versatility of a law degree and his own early interest in business. His father believed law school would give him a professional foundation strong enough to pursue almost any path, whether in government, business, or private practice. Stephen also discovered he enjoyed negotiation, financial structure, and helping people reach fair outcomes, which made corporate law a natural fit.

“I always had an interest in business. I liked bringing people together and getting to a fair situation, while advocating for my clients when necessary," explains Stephen Candelmo on Episode 222 of You Are a Lawyer.

Although he did not initially see himself as a courtroom lawyer, he embraced the broader possibilities of a legal career. Law school gave him a toolkit for solving problems, improving systems, and navigating complex decisions, all of which later played a significant role in his entrepreneurship journey.

<iframe width="726" height="408" src="https://www.youtube.com/embed/beBfM8y_8nU" title="" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>

What Can You Do With a Law Degree

Stephen’s career is a testament to the flexibility of a legal education. He practiced at a national firm, built a solo practice, and served as a trusted advisor to emerging companies. During the 2009 recession, he launched his first tech company, applying machine learning and sentiment analytics to brand monitoring. That experience taught him how to merge business, law, and innovation.

“Life is uncertain and things will change. The flexibility to go left or right based on the skills you developed as a lawyer will never leave you," shares Stephen Candelmo on Episode 222 of You Are a Lawyer.

He later created Paralex to apply AI to legal work in a way that increases efficiency and reduces cost for founders and small businesses. His law degree did not just provide technical ability. It gave him the confidence to build companies, experiment with technology, and reimagine legal service delivery.

Lawyer Side Hustles

Stephen’s entrepreneurial path began long before Paralex. While still practicing corporate law, he launched a machine learning startup focused on sentiment analytics. The company served well-known customers and gave him a deeper understanding of product design, customer behavior, and the commercial side of technology. Years later, when large language models became available, he immediately began prototyping legal use cases instead of simply experimenting for fun.

“Once you start innovating, you are always on the lookout for the next thing. It becomes a shift in mindset,” Stephen Candelmo expresses in Episode 222 of You Are a Lawyer.

Paralex is the culmination of decades of corporate experience, business curiosity, and belief in legal accessibility. His side ventures were never hobbies. They were stepping stones that helped him create a platform where AI handles routine legal tasks while lawyers provide oversight, judgment, and accountability. For Stephen, entrepreneurship is not separate from being a lawyer. It is an extension of what lawyers can do when they combine their training with creativity.

About Stephen Candelmo

Stephen is not licensed to practice law.

Learn more about Stephen

This episode is produced by Skip The Boring Stuff, a podcast strategy company for business owners and creatives.

<iframe width="644" height="362" src="https://www.youtube.com/embed/YkGBj3Q9GyI" title="" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>

Recent Episodes

How To Promote Your Personal Brand at Work feat. Sara Williams

Sara Williams shares her story of self-discovery and growth in the legal industry, emphasizing the importance of breaking free from traditional norms to find fulfillment and happiness as a lawyer. From teaching at a law school to managing a firm and ultimately branding herself within it, Sara's story highlights the value of exploring different paths and embracing change to create a career that aligns with personal values and aspirations. Join us as Sara inspires law students and young lawyers to prioritize their happiness and forge their unique paths in the legal profession.
Read and listen here

How To Overcome Imposter Syndrome and Manage Stress feat. Lauren Klein

Lauren Klein shares her journey from big law to launching a coaching program for law students and new lawyers in this episode. She discusses the importance of mindset coaching, success coaching, and mindfulness in the legal profession, emphasizing the need for balance, health, and financial well-being. Lauren's insights highlight the versatility of a law degree and the endless possibilities available to young lawyers and law students.
Read and listen here

How To Navigate Career Changes and Find Fulfillment feat. Samantha Divine Jallah

Samantha Divine Jallah, an experienced in-house lawyer and life coach at Radical Bench, shares valuable insights on navigating career changes and finding fulfillment in the legal profession. Through her own journey of transitioning through different careers, Samantha emphasizes the importance of starting with oneself, utilizing one's skills and passions to create a fulfilling career path. Her advice resonates with young lawyers and law students, encouraging them to live intentionally and not stay stuck in unfulfilling roles.
Read and listen here

How To Mentor Young Professionals feat. Michael Alder

Michael Alder, a seasoned lawyer and mentor, shares his journey of personal growth and giving back in this episode. From navigating relationships to writing books on life skills for middle schoolers, his experiences during COVID-19 have shaped his perspective on mentorship and philanthropy. Join us as we delve into Michael’s unique approach to helping others and making a difference in the community.
Read and listen here

How To Delegate Tasks and Expand Your Podcasting Reach feat. Kyla Denanyoh

Kyla Denanyoh, host of the You Are a Lawyer podcast, shares three significant leaps she has made in her journey as a business owner, mom, and wife in this special bonus episode for Leap Year 2024. From becoming a boss managing a team of four to creatively launching five new podcasts, Kyla reflects on her personal growth, including navigating motherhood during a global pandemic and embracing the value of seeking help. Tune in to discover how Kyla's experiences can inspire and empower you on your own path.
Read and listen here

How to Improve Productivity in the Legal Field feat. Karl Seelbach

Karl Seelbach, lawyer and the founder of Skribe.ai, a legal tech company joins us for episode 129 of the You Are a Lawyer podcast. Karl explains how Skribe.ai offers attorneys a more efficient and cost-effective way to capture legal testimony, such as depositions, using AI and software solutions. The platform allows attorneys to easily access video synced to the transcript, create video clips, and receive a final proofread and certified transcript within three days. Karl discusses the benefits of this technology for trial lawyers and highlights its potential for transactional law as well. Tune in to learn more about the innovative use of AI in the legal field.
Read and listen here

How to Embrace Creativity as a Lawyer feat. Theresa Phillips

Theresa Phillips is a lawyer and artist who has found a passion for painting and creating vibrant, textured artwork. In this episode of the You Are A Lawyer podcast, Theresa shares her journey of self-discovery, from cutting her hair and embracing her artistic side to starting her own business and taking on commissioned pieces. She discusses the intersection of law and creativity, the importance of following your passions, and the power of manifesting your dreams.
Read and listen here

How Human Design Impacts Career Success feat. Sheila M. Wilkinson (Part II)

Sheila M. Wilkinson is a lawyer, social worker, consultant, and career transition coach. Sheila also talks about her mission to help lawyers make aligned decisions, set boundaries, and focus on what they truly want to do rather than what they think they should do. She believes in reconnecting the intellectual self with the emotional self and offers guidance to lawyers in this process.
Read and listen here

How To Avoid A Boring Legal Career feat. Sheila M. Wilkinson (Part I)

Sheila M. Wilkinson is a social worker, lawyer, career transition coach, and podcaster who spends half the year in Brussels, Belgium, and half the year in New Orleans, Louisiana. Her life is centered on taking risks, rejecting boring careers, and people-pleasing. In this episode, Sheila emphasizes the importance of connecting with people and offers recommendations for books that can help her clients on their personal and professional journeys. Sheila also talks about her mission to help lawyers make aligned decisions, set boundaries, and focus on what they truly want to do rather than what they think they should do. She believes in reconnecting the intellectual self with the emotional self and offers guidance to lawyers in this process. This episode is Part 1 of a two-part series with Sheila M. Wilkinson.
Read and listen here

How To Navigate Risks in Nursing and Law feat. Felicia Luck

Felicia Luck, a registered nurse and CEO of Stars and Stripes Legal Nurse Consulting, joins the podcast to discuss her unique business that serves lawyers and attorneys. With her extensive medical knowledge and experience, Felicia helps attorneys navigate complex medical records, provide expert opinions, and offer valuable insights in cases involving personal injury, medical malpractice, and more. She shares her journey of merging the worlds of nursing and law, her challenges, and the importance of work-life balance.
Read and listen here

How To Sell A Law Firm feat. Victoria Collier

Victoria Collier, a lawyer and founder of Quid Pro Quo, specializes in helping lawyers buy and sell law firms and coaching law firms on building value and becoming sellable in the future. In this conversation, Victoria shares her journey of selling her law firm, the importance of education and options in the legal industry, and the power of niching down and finding your expertise within a niche.
Read and listen here

How To Advertise Your Law Firm (without being cheesy) feat. Keith Ligori

Keith Ligori, managing partner and founder of Ligori & Ligori Law Firm, shares his journey from working in the state attorney's office to building a successful personal injury practice. With a passion for trial advocacy and a dedication to helping clients, Keith discusses the importance of courtroom experience and the value of family in his firm. Keith Ligori advises young lawyers looking to make their mark in the legal profession.
Read and listen here

©2025 You Are A Lawyer LLC.
All rights reserved.