An excellent method to work less and earn more money is to offer Virtual Assistant Packages rather than your time (retainers). There seems to be a misconception that time is less important than competence. Even though everyone agrees that time is money.
BENEFITS OF HOURLY PRICING IN YOUR VIRTUAL ASSISTANT BUSINESS
Some individuals might not even know what a virtual assistant is or what they do when they initially start their virtual assistant business. When using virtual help for the first time, you have NO IDEA how particular long chores will take you. Even if you have experience with that type of work, the time it takes might vary greatly depending on the customer you are working with.
How much time do you usually need to compose 500 words on a subject you are skilled in? How much time is required to produce a blog article about a subject you need to research using SEO keywords appropriate to your industry? We advise virtual assistants starting their businesses to set their price structure at an hourly cost of Virtual Assistant Packages.
The only time this rule will not apply is if you possess a certain skill with which you are confident and are aware of the time needed to complete it. Because there is no misunderstanding on the customer's end as to what they are paying for, an hourly fee is straightforward for you and the client. They know they are paying X dollars for X hours that you worked.
You should have an internal hourly fee for your many tasks, even if you initially just sell flat-cost packages for your services.
The internal hourly rate refers to the lowest price you would set for that specific service. Even though you might not tell the client about that hourly pricing, it is your guide when figuring out your bundles. Taking that internal hourly rate, you will multiply it by how long you anticipate the task taking. After that, you might raise the fee a little, considering things like taxes, the time you spent speaking with your customer or any adjustments they might ask you to make Virtual Assistant Packages.
What Structure is Best for Your Virtual Assistant Business?
When they first start their businesses, many VAs tend to reduce their services seriously. They believe that high hourly fees or expensive bundles will deter potential customers. Let's face it: asking for the prices you need and deserve may be frightening. You must keep the following in mind: Clients will employ you because they need you and because you have the skills to do things that can't or don't want to do. This makes you extremely valuable.
You must establish your professional credentials right away. If you set your prices too cheap, your firm will not be profitable. You'll have to accept a large number of poor-quality clients. You won't have the money to put money back into your company. The worst part is that you will send your clients a message that you don't deserve the payment you receive.
Consider your motivation for launching this business. Is it because you want to be at your desk all the time? Or is it that you desire to be financially and time free? Do you want to put in long hours for unreliable clients? Or would you like to be able to give your all to clients you admire?
The moment has come to establish your standards. Now that you're a boss chick, you ought to charge a fair sum for your services.
Now that we have the appropriate frame of mind let's begin. The fact that there are several costs associated with operating a business is one of the primary reasons why setting your prices correctly is crucial. Your take-home income is not based on your hourly rate.
All the responsibilities that an employer would typically handle for you as an independent contractor, such as taxes, insurance, sick days, and retirement savings, fall on your shoulders.
Let's discuss some more factors to take into account when determining an hourly fee. Your area of expertise and level play a part. Your worth as a virtual assistant can increase if you have a clearly defined specialty or talent. Therefore, a virtual assistant who specializes in Pinterest would charge $40–50 per hour, as opposed to a generic virtual assistant who might price $30 per hour to maintain a Pinterest account. A customer that requires a specialist with extensive knowledge and the ability to provide results quickly would gladly pay more.
Additionally, examine the prices other VAs in your business and specialty are charging. Consider looking for seasoned virtual assistants who have been in operation for a while. See how they display and organise their prices by visiting their websites. Please don't copy and paste that word for word; just use it as inspiration. That is simply disrespectful!
You can choose how to bundle or offer your services now that you know how much you must earn every hour. I'm going to discuss four distinct price structures, along with the benefits and drawbacks of each.
This pricing structure is excellent for newbies, administrative VAs, and customer service VAs. Most new virtual assistants go this route when first offering services to clients. While setting an hourly fee can seem uncomplicated, there are a few things to keep in mind: First, you must be meticulous in keeping track of your working hours.
Also, bear in mind that your monthly revenue is not guaranteed. If you bill by the hour, a customer may not consistently require you for the same number of hours each month. The management of your schedule may become challenging as a result. That said, clients like paying their virtual assistants hourly since it's an easy system to comprehend,d and they know precisely how many hours of labor are being put in.
This is a great organizational structure for virtual assistants that specialize in social networking, email marketing, copy writing, or any other skills that make good service bundles. Make sure you double your hourly fee by the time you anticipate it taking for each delivery to arrive. Customers prefer packages because they can clearly see what they will get. A social media VA may, for instance, provide a weekly package that includes 5 Instagram posts, 2 hours of interacting with followers and other accounts, and 1 unique Instagram story.
For virtual assistants who specialize in social networking, email marketing, copy writing, or any other abilities that make ideal service bundles, this is a terrific organizational structure. Make sure to double your hourly rate by the amount of time you anticipate each delivery taking to arrive. Because they can see exactly what they will receive, customers prefer packages. An example of a weekly package from a social media VA may include 5 Instagram posts, 2 hours of connecting with followers and other accounts, and 1 original Instagram story.
Project Based -
Website developers, Pinterest VAs, project managers, or any other VAs who handle a client's project from beginning to end might benefit from this approach. You could occasionally just be required by a customer for a single assignment. This is particularly true for web designers. When it comes to this type of construction, there are a few things you should take into account. First, you should be aware that it is customary to demand upfront payment of 50% of the project's cost. If a client chooses to cancel the project after you have already put in some labour hours, this will secure you.
As you decide the pricing for the job, remember to be realistic about how long it will take you to do it and include it in your hourly rate. With this kind of structure, contracts are crucial since you must be protected in case the project's scope changes. To ensure you're fully protected when working on massive projects, it can be worthwhile to speak with a lawyer.
This structure is ideal for VAs that work for the same customers for around the same number of hours each month. In other words, a retainer is when a client pays you in advance for a specific amount of hours each month. This is a fantastic option for freelancers to receive a monthly guaranteed income. This is an excellent choice if you operate an internet business or are an executive assistant. Since we both know how much money I'll be generating each month thanks to working on retainer, this arrangement between my clients and me makes us both feel at ease. Every six months or so, I attempt to assess the retainer to make sure it's suitable for the amount of work I'm performing.
Okay, so we've covered how to calculate your hourly fee and the various service packages you might provide. And here's a hint if you're still having trouble with pricing: $25/hour is a reasonable hourly cost to charge if you want to get started, you have some financial flexibility, and you haven't yet identified a specialized specialization. The low-quality clients searching for the lowest price and the high-quality clients who are employing a VA for the first time won't be drawn to you. Just a piece of quick advice if you're feeling unmotivated.