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I'm a lower T14 student above-median, with pre-law work experience, who struck out during OCI. I had about 5 CBs and none of them panned out. After a pretty frustrating search, I finally managed to land an SA with a 15-20 person firm in a smaller market outside my target market. The pay is about half as much, but I'll be doing commercial lit work, albeit for smaller clients. The attorneys also seem very nice and well-credentialed.

One the one hand, I could have a future at this firm and would be making 6 figures in a market that's very cheap and affordable to live in after law school if I work hard and secure an offer. However, I'm still interested in transitioning to big law in my major target market where I'm from. What is the best way for me to get there from my current situation? Is 3L hiring a realistic pathway into a big law-lit position or is it only feasible way for me to land a clerkship at this point? Any advice would be enormously appreciated or anyone with similar stories.

I think either could work, though for lit clerking is the ideal route, as it's also independently valuable.

I also wouldn't count out staying at the smaller firm, especially if debt servicing isn't a huge issue. Jobs that pay six figures with low cost of living, good hours, and well-credentialed colleagues don't grow on trees and are often at least as competitive as generic biglaw jobs. The firms like that in my home market hire laterals from V10s, federal clerks, etc. It would also probably put you in a position to lateral to a conventional biglaw firm in that market if you want to later, especially with your credentials. But it ultimately depends on whether you want to live there, in small markets the expectation is generally that you're a lifer.