Virtual Assistant Rates- An Interesting Debate
A client of mine recently wrote me an e-mail about his position regarding how VAs charge for their services. I, in turn, gave my ideas below. Whether you are a client or a VA I would LOVE to hear your thoughts on this discussion about Virtual Assistant Rates as well.
My Client’s e-mail:
Michelle,
For me, the crux of the issue is that not all tasks/skills are worth $45 an hour. Some tasks require high-level skills while others require![j0408958[1]](http://www.vademogirl.com/wp-content/uploads/2008/10/j04089581.jpg)
low-level skills.
For instance:
Copywriting = $500/hr
SEO = $200/hr
Conducting interviews = $50/hr
Emailing/uploading files = $10/hr
So, if I paid you $50/hr for SEO, you’re actually losing $150/hr. Is that fair to you? The hourly-based billing system that’s so prevalent in the VA industry is flawed. Completely flawed. VA’s are leaving a ton of money on the table by charging a flat hourly fee. And this is a wonderful opportunity for you to revolutionize and dominate the market. Trust me on this. I’m a marketing specialist and pricing is a critical component in marketing. VA’s are NOT pricing their services correctly.
Sincerely,
Client
My Response:
Client,
I see your point and I believe that Virtual Assistant rates and flat price or hourly is an area that could/should be up for debate in the industry but here are a few things that need to be considered.
When you quote a flat fee instead of an hourly rate you need to take much more time up front to scope out the full project and create a set of requirements and let the client know what is in or out of the scope of the work. That means when a client asks for things that are out of scope (such as additional research or changes) it is necessary to revise and renegotiate the price. I prefer to simply do the additional work and let the client know
how much time it took me instead of constantly reworking the bid price.
Yes, of course, there are some parts of anyone’s job that require low level skills and some that require high level skills and I have accounted for this in my hourly rate. Because I am a specialist with audio and video I should be charging closer to $65 or $75/hour for these skills. But since I also
will edit Podcasts or do Usability testing on your Website which are lower level skills (and not ask you to go out and find another VA for that) I feel comfortable quoting an average price of $45-$50.
I do feel that in many cases the flat price per project would work out in my favor but I prefer (and my clients seems to also) the flexibility of changing the project around and adding and deleting tasks as they see fit without having to renegotiate a new price every time.
Michelle
What do you think? Is our pricing model leaving money on the table?
Best,
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15 October 2008, 12:08 am
Michelle,
I whole heartedly agree that VAs are losing money by not charging enough to their clients. Part of that is due to undervaluing their time and knowledge and education can help many VAs overcome that particular problem.
However, the VAs hourly or flat rate is largely driven by the markets each VA serves. What an established marketing expert can pay for copywriting is drastically different from what a new work-at-home mom can pay (as an example).
I’d love to hear more debate on the subject!
18 October 2008, 1:04 pm
I agree that there are cases where VA’s are losing money but I believe that the key is the target audience. Some audiences are not ready for the deep prices and some are.
So I think you have to look at not only what your serving but who your serving when it comes to pricing.
20 October 2008, 1:56 pm
You know, I have to agree with your client but I don’t think the issue is price, I think it’s confidence.
I think as VAs and moms and new entrepreneurs we often think we’re not ‘REAL’ business owners, we’re afraid to charge what we’re worth and we’re not running our businesses like real businesses.
Now of course that doesn’t apply to all VAs but women as a group in general seem to feel really guiltly about actually making GOOD money from their skills!
Here’s another issue I’ve come across for myself. I was trying to be all things to all people. I didn’t want to tell a client ‘I can’t do that’ so I was doing everything and anything internet marketing.
Honestly, though, this was doing a dis-service to my client and also myself. Because we can’t be great at everything.
Michelle, I think it’s really great how you’ve niched yourself in video and are becoming well recognized as the VA expert in that area. I’ve also niched my service into Affiliate Marketing only (which means I’m not really a VA anymore but an Affiliate Manager) and have committed myself to learning everything I can about the industry and bringing that to my clients.
Ok, this is like a novel here but I also see it being a result of the ‘4-Hour Work Week’. A lot of people looking for a VA think they can get all kinds of things they want done for their business for $5 and hour and so I think some VAs who are trying to work for the internet marketer believe they need to compete with that.
Another note about different pricing for different tasks. I think it may help clients really put projects into perspective and allow more time and planning as required for bigger tasks. I mean, you’re not going to pay a copywriter $500/hr unless you REALLY know what you want.
Anyway, very interesting topic and I’d love to hear other opinions too!
Angela
20 October 2008, 4:19 pm
There are VA services, and then there are other services. Sometimes, VAs do a bunch of different things, none of them to an especially high/expert level. And there, I think they’re dead to rights to bundle them all under one roof and fee structure.
But I believe that VAs do themselves a disservice when they bundle their truly advanced skills (like in SEO and copywriting) with their regular VA services.
If VAs would create different “divisions” of their businesses based on the advanced skills (nothing says someone can’t be a VA, and also a copywriter, for instance!), they could have multiple streams of revenue, different markets to serve, and cross-promotion possibilities for their own divisions.
It’s just an example of one smart, clean, clear business model that maximizes skills and revenues!
I wrote a Virtual Moxie post about it that you/your readers might find helpful. That’s here: http://www.virtualmoxie.com/2008/07/more-on-what-a.html
Now, on the lower end (emailing and such), it would seem that paying a VA her regular fee for something like that isn’t “worth it” to some segment of the clients, but that thinking is short-sighted.
What they fail to realize is that partnering with a VA, and letting her handle *everything*–from the tiniest, simplest detail, to the biggest specialized project–is smart, and where the power is. If the VA is allowed deeply into the business, and understands how all the pieces fit together, she’s much faster at the little things, and more helpful with the bigger things. Then, she can either do it all, or get it all handled. Bottom line, things get managed, the client’s needs are met, and he doesn’t have to figure out who to call when he needs something. He has the ultimate resource and support partner—his VA.
If you want, have your client call me. I’ll set him straight
J/k, Michelle… I feel quite certain you took good care of it on your own!
Thanks for a great post, and conversation!
21 November 2008, 5:44 pm
This is an interesting debate and I’m glad I came across it.
My feeling regarding rates is that they should be based on the complexity of the task but also the involvement of the VA from beginning to end. For instance, if your client feels that SEO should be charged at $200 per hour then to me that implies the VA should be responsible for planning and executing the process with little input from the client other than to provide some keyword phrases.
A VA takes instruction from her client and if she is going to charge $200 per hour for SEO services then she is more of a consultant rather than a VA. (That’s my opinion)
I use the example of SEO because that is my niche service and one I excel at, but not enough to set up shop as an SEO expert consultant. Not yet. I am a virtual assistant with the emphasis on “assistant”. I will execute the SEO plan put forth by my clients but I don’t devise their entire SEO strategy from beginning to end. That’s why I only charge $55 per hour right now. My services are all bundled together under one flat fee.
Still, your post has got me thinking Michelle. Thanks.