by Joshua Botello
A Notary Signing Agent or mobile notary is a profitable business that almost anyone can start. Just because it’s easy to start, doesn’t mean it's easy to run. Mobile notaries seem to be popping up everywhere because it's so easy to start but hard to stand out and grow the business. In this video, I'll tell you what you need to know about starting up a notary business to see if it is right for you.
A Notary Signing Agent or mobile notary is a profitable business that almost anyone can start. Just because it’s easy to start, doesn’t mean it's easy to run. Mobile notaries seem to be popping up everywhere because it's so easy to start but hard to stand out and grow the business. In this video, I'll tell you what you need to know about starting up a notary business to see if it is right for you.
Business Concept
If you want to be a Notary, you first need to figure out what services you want to offer. Will you be offering signature verification only or will you expand to include Live Scan or other services? Your next step will be determining who your customers are, such as real estate loan brokers, lawyers, school districts, health care, or other professionals. Finally, you want to determine your type of business mobile or office. Many Notaries are mobile and able to charge for travel but you will need to make that decision based on your clientele.Cost and Revenue
Many notaries forgo this part until they actually start paying all those costs and when they could have just spent a little time to get this done. Let’s start with your cost to get started as a notary:If you haven’t already taken the test and have been commissioned, there is a 1-day 6-hour class that you can take for as low as $50, a passport quality photo for $15, Fingerprinting $80, oath of office for about $40.
There are some ongoing expenses you should understand as well: Printing supplies, scanning equipment, signing supplies, and bonds or insurance that we will cover a little later. If you're a mobile notary, don’t forget to factor in travel and cell phone coverage to set up appointments. You should also factor in some kind of marketing budget to stand out as a notary.
As for Revenue, based on what services are covered in your business concept will determine what you want to charge. In California, there are legal caps on what you can charge like $15 per signature and travel/overhead. When charging your clients you will need to charge something covering your overhead expenses and make a profit. Depending on who your clients are, some signing agents can make $100 dollars or more per session.
If you haven’t been set up as a notary just yet you will need to get commissioned and factor in those costs I mentioned before. Lastly, you will need insurance. In California, you will need to be bonded as a signing agent and you may be required to get errors and omissions insurance to cover yourself financially should you forget a signature or make a mistake on the paperwork. You can check with your insurance agent to see if they offer bonding or E/O insurance or both.
The other type of record-keeping that is unique to notaries is the notary journal. This journal is required by law in all 50 states and notes specific information on the identity of a signer. This is where the signing information like names, addresses, IDs, thumbprints, and even the fee that was charged for signing a document is found. You must keep these notes accurate if there is a legal challenge in court or prevent fraud when signing.
You can also try blogging or educational videos like this one, about industry news or tips for clients who need a notary and what they should be aware of. Social media is also a good way to stay connected with clients, but be sure you pick the right network for your type of clients like Linkedin for the more professional types like lawyers. Setting up a Google My Business listing to get that SEO boost will help if clients need to search for your information or book with you. Having a great website that is easy to schedule an appointment or to view your blog or reviews will also be a great asset for building your business.
Standing out to your client is more than just standing out. Being a successful notary will mean repeat clients who call on your services often. This will mean providing excellent customer service and being responsive when the client needs you. You will also want to make sure you have a great follow-up with thank you messages and even ask for reviews to build your credibility when clients are searching for a notary.
As for Revenue, based on what services are covered in your business concept will determine what you want to charge. In California, there are legal caps on what you can charge like $15 per signature and travel/overhead. When charging your clients you will need to charge something covering your overhead expenses and make a profit. Depending on who your clients are, some signing agents can make $100 dollars or more per session.
Business Planning
Starting a notary business has been pretty easy so far. Now you will have a choice: do you set up as a Sole proprietor or LLC? Considering you have to deal with legal documents, filing an LLC is definitely an advantage should things go south legally. Check with your local SBDC to help file for your LLC online. If you are a mobile notary in a home-based business, do not forget to get a license for your business where you live.If you haven’t been set up as a notary just yet you will need to get commissioned and factor in those costs I mentioned before. Lastly, you will need insurance. In California, you will need to be bonded as a signing agent and you may be required to get errors and omissions insurance to cover yourself financially should you forget a signature or make a mistake on the paperwork. You can check with your insurance agent to see if they offer bonding or E/O insurance or both.
Record Keeping
You started your notary business to be profitable, but how do you keep track of that? Yes, record keeping. If you want to track how well your business is doing you will need some sort of accounting software that you can do yourself or hire an accountant if you can afford it. Software like QuickBooks online will not only allow you to invoice and have clients pay online but you can access it anywhere and even manage yourself on your mobile phone!The other type of record-keeping that is unique to notaries is the notary journal. This journal is required by law in all 50 states and notes specific information on the identity of a signer. This is where the signing information like names, addresses, IDs, thumbprints, and even the fee that was charged for signing a document is found. You must keep these notes accurate if there is a legal challenge in court or prevent fraud when signing.
Marketing
If you look online, you’ll notice there are notaries everywhere. So how can you stand out? Marketing of course! Depending on what services you decided on and what clients you chose to target, you will want to either join trade associations for real estate or even the Bar Association and make some contacts. Beyond that, branding yourself with your website or regular email newsletter will keep you top of mind with clients.You can also try blogging or educational videos like this one, about industry news or tips for clients who need a notary and what they should be aware of. Social media is also a good way to stay connected with clients, but be sure you pick the right network for your type of clients like Linkedin for the more professional types like lawyers. Setting up a Google My Business listing to get that SEO boost will help if clients need to search for your information or book with you. Having a great website that is easy to schedule an appointment or to view your blog or reviews will also be a great asset for building your business.
Standing out to your client is more than just standing out. Being a successful notary will mean repeat clients who call on your services often. This will mean providing excellent customer service and being responsive when the client needs you. You will also want to make sure you have a great follow-up with thank you messages and even ask for reviews to build your credibility when clients are searching for a notary.
Conclusion
Becoming a notary may seem like a cheap, easy way to make a lot of money, but as we have seen, there are several things you need to be aware of to protect yourself and your business. The biggest challenge to being a notary is offering the right services and standing out to the right clients. If you need help setting up your notary business, you can get a free one on one consulting at www.lavernesbdc.org/newclient to schedule an appointment to start your journey as a small business owner.
Funded in part through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, conclusions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.
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