How
To Charge The Right Rate as a Virtual Assistant
by
Lisa Taliga
It’s
that time of the year when I sit down with my accountant
and see how much money I’ve earnt over the past 12
months. It’s been a profitable year - my most profitable
yet. If I had known that I could be making this much money
from the comfort of my own home, I would have started this
business much, much sooner.
Why am I telling you this? Because looking at those figures,
I have something very important to tell you. My business
would not be anywhere near as profitable if I had not set
my rates to the right level. Don’t get me wrong, I
am not overcharging by any means. But what I AM doing is
valuing my time and expertise. And that doesn’t come
cheap!
When you’re starting out in your Virtual Assistant
business it’s tempting to charge a low rate to bring
in business. It’s easy to make the mistake of thinking
that you won’t have many expenses and overheads because
you’re working from home. Plus, you just want to get
some clients, right?
Wrong.
If you engage clients at a rate that is not high enough
to cover your expenses, retirement funds, the time spent
on the project AND make a profit (after all, going into
business is about making a profit), then you may as well
not be in business.
I’m sorry if that sounds a little harsh but I want
you to be successful in your business. In order to be successful
your rate must factor in:
1. Your expenses and overheads
My expenses and overheads cover the whole spectrum of computer
hardware/software, office supplies, utilities, marketing,
insurance, taxes, web hosting, accounting and bookkeeping
fees, phone and internet costs. I also regularly pay money
into a retirement fund so that I will be able to retire
comfortably!
2. Your time
Your time is precious and you need to charge a reasonable
rate to reflect your expertise and the value you’ll
be bringing to your clients.
Of course, there will be times where you’ll be asked
to provide an overall project estimate. You may get this
wrong, underestimate the time you’ll need to spend
on it and end up putting in a few unbillable hours. That’s
OK, just so long as it doesn’t become a habit!
3. Holiday and sick pay
Remember that you won’t be working 52 weeks a year,
every year. As an employee you get paid for sick leave and
annual leave. Now that you’re self-employed, you’ll
need to allow for your own holiday and sick leave. Therefore
you need to charge enough to cover this aspect as well.
These are the main things you must consider when setting
your rates.
If you are looking to work with an already established VA
and have them outsource work to you as a shortcut to working
from home, then remember that you won’t be getting
paid as much as you would if you were working directly with
the client. That’s because the VA that is outsourcing
to you has to cover marketing expenses and client administration,
and so will be paying you less than the full hourly rate.
I recommend checking out other Virtual Assistant websites
and getting a feel for the market rate in your particular
location. Rates will vary according to the individual VA’s
experience, location, and the services being provided. Don’t
feel that you have to charge the same as other VAs, but
realize that if your rates are significantly higher, you
must work on what makes you and your business stand out.
So take a pen and paper, sit down and do some hard thinking
about your rates. It’s vital to your success!
Lisa Taliga is a Virtual Assistant and author of 'Freelance
from Home! The 5 Key Steps to Your Successful Virtual Assistant
Business' and 'The 7 Things You Must Know Before Starting
Your Successful Virtual Assistant Business'. Get your free
eBook and newsletter subscription to find out how
to become a Virtual Assistant.
| How
to Become a Virtual Assistant
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Virtual
Assistance is a rapidly growing industry.
A
Virtual Assistant provides administrative support
to local and long-distance clients via the Internet,
telephone, fax, and email.
This book will give you a roadmap to start your Virtual
Assistant Practice.
Click
here for details.
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How
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