| Most virtual assistants start their business with a | | | | If you are offering a lower introductory rate do |
| picture-perfect idea of flexible hours spent | | | | you make it crystal clear to your new clients that |
| working with long-term clients on interesting and | | | | this is a temporary rate and you will be charging |
| well-paid projects. Fast forward a few months | | | | them your regular rate after a specified number |
| and what many virtual assistants end up with are | | | | of hours? If not, beware! It's not even that raising |
| long hours, clients from hell and income that is | | | | the rates for existing clients is one of the hardest |
| barely enough to pay the bills. So what happens | | | | things to do. |
| within the first few months of starting a virtual | | | | Here's the real problem with this plan - cheap |
| assistant business that separates successful VAs | | | | products attract cheap buyers. And cheap buyers |
| from the ones that are barely making it? It all | | | | or clients are notoriously difficult to deal with. |
| starts with determining what your skill sets, core | | | | They set unrealistic expectations, demand |
| competencies are and then setting your | | | | additional discounts, request countless reviews and |
| professional rates. | | | | revisions of deliverables and oftentimes do their |
| Search for the phrase "virtual assistant rates" on | | | | level best to barter you out of your hard earned |
| Google and you get over 700,000 results. Reading | | | | cash. These are also people who will not be |
| through just the first few links is enough to get | | | | satisfied no matter how hard you work and may |
| the general idea. Most virtual assistants, regardless | | | | even post miserable things about you on the |
| of the types of services they offer, charge | | | | internet. You don't need these, nor do they. Not |
| between $25 and $50 per hour. Or at least that's | | | | everybody is suited to have a virtual assistant |
| what they report in surveys, on discussion boards | | | | working with them. If your "spidey sense" is |
| and in comments on blogs. | | | | raising alarms during the initial interview call, use |
| But the truth about virtual assistant rates is a lot | | | | your instincts to avoid this type of client and |
| more complicated. It seems there is a vast | | | | politely decline to take on the project or retainer. |
| difference between the rates new virtual | | | | As much as you may need the money now, you |
| assistants would like to charge and the rates they | | | | don't need the tears, angst, and potential damage |
| end up charging their clients. | | | | to your professional relationship that this can |
| Dig deeper into the message boards | | | | cause. |
| conversations and blog comments about virtual | | | | I need the money! Desperate times call for |
| assistant rates and you're sure to come across a | | | | desperate measures. |
| message such as "I know, I should be charging | | | | Life throws curve balls all the time. Bad things |
| more than I do now, but...". The author then | | | | happen, whether it's unexpected medical expense |
| proceeds to explain her reasons for lowering the | | | | or your significant other getting laid off or major |
| rates and concludes with a promise that at some | | | | urgent repairs to your car or your house. |
| unspecified later date, when business gets better, | | | | However, lowering the rates for your services in |
| she will raise her rates. | | | | order to quickly raise money is entirely |
| Unfortunately, in most cases the business doesn't | | | | counterproductive. Letting potential clients know |
| get better. Instead, it gets worse and worse | | | | that you are desperate will send many running in |
| leaving the virtual assistant wondering what it is | | | | the opposite direction. After all, clients are looking |
| that she's doing wrong. The answer is simple - | | | | for a virtual assistant who is dependable and fully |
| lowering rates and under-pricing oneself is exactly | | | | vested in their projects. Your clients need to |
| the wrong thing to do regardless of the reasons | | | | know that your business is running smoothly and |
| for the rate drop. | | | | effortlessly at all times. |
| But I'm new to this business and I have to prove | | | | The few clients that will jump at the opportunity |
| myself first before I can charge higher rates. | | | | are not the kind of clients you want, especially |
| The problem here is not lack of experience, but | | | | given your situation. They will prey on your |
| lack of confidence. You might be new to running a | | | | desperation, pushing for ever lower rates and |
| business and being your own boss. But, unless you | | | | ever worse payment terms. It is not uncommon |
| start your virtual assistant business straight out of | | | | for these types of clients to not pay at all, and if |
| college, you do have years of experience in | | | | they do, it is grudgingly and contentious. |
| whatever services you offer. I advise that you | | | | A much better option, in this case, would be to |
| "follow" yourself around for a few days with a | | | | seek temporary part-time or full-time |
| piece of paper and a pen and determine just | | | | employment and run your business part-time until |
| what your core competencies and skills are. You | | | | your finances are more stable. |
| will be surprised at what you know and have | | | | I know that I'm making less per hour now than |
| forgotten, or simply overlooked. Are you | | | | when I was at my last employer. But I save |
| absolutely brilliant with Excel spreadsheets and | | | | money working from home. So overall I feel that |
| macros? Write it down. Are your interpersonal | | | | it's a good trade off. |
| phone skills off the charts? Write it down. Even if | | | | Sure, you no longer have to commute to work, |
| you think a soft skill is not something that you | | | | buy work clothes or lunches. But that doesn't |
| should be listing, write it down. Once you have a | | | | mean you are saving money. Your previous salary |
| clear picture of your skills, hard and soft, you will | | | | was only a part of the total compensation |
| be able to determine what works with what and | | | | package that included paid sick days and vacation |
| present a list of skill sets that you are proud to | | | | days, health insurance, and taxes. |
| discuss with potential clients. | | | | Now that you are self-employed you have to pay |
| Actually, low rates will be a turn-off to many | | | | your own taxes and health insurance in addition to |
| business owners who rightfully believe in the "you | | | | the regular business expenses. If you've never |
| get what you pay for" principle. Undervaluing | | | | calculated your real rates - after all the expenses |
| yourself by setting low rates screams "I'm not | | | | - you're in for an unpleasant surprise. In some |
| good enough and I know it". This has nothing to | | | | cases you might find out that you work for less |
| do with proving yourself, but everything with | | | | than the minimum wage and are very likely |
| holding up a big sign that says "I'm not your best | | | | working harder than you ever have before. |
| choice. Now feel free to denigrate my rates, | | | | This last excuse is a good example of the real |
| offer to barter my time and hours for your | | | | reason behind a virtual assistant's decision to |
| program or service and just generally make me | | | | lower her rates. This reason has little to do with |
| feel unworthy." | | | | finding new clients or having to prove oneself. |
| I'm lowering my rates because I need to attract | | | | Instead it is the inability or unwillingness to go |
| more clients. When my practice is full... | | | | through a paradigm shift. |
| Excuse me for interrupting, but I have to jump in | | | | Virtual assistants are not employees. They are |
| on this classic. What you really need is not more | | | | business owners. Consequently your client is not |
| clients, but more income. Sure, getting more | | | | your boss; you are. When a virtual assistant uses |
| clients or working more hours for existing clients | | | | low rates as a cure for all her business problems |
| will help you make more money. Another option is | | | | or as a kind of a business Miracle-Gro, she misses |
| to not lower your rates and still make more | | | | all the other opportunities and jeopardizes her |
| money. If you are still undervaluing your skills you | | | | long-term goals. |
| are still setting ridiculously low professional fees. | | | | Action Steps |
| It is simple math. If a virtual assistant charges $20 | | | | |
| per hour, she needs to put in 50 billable hours to | | | | 1. Determine your core competencies, hard and |
| earn $1000. If she charges $40 per hour, she only | | | | soft skill sets |
| needs to work 25 hours for the same $1000. It is | | | | 2. Sit down with an accountant or CPA to |
| the quality of support that you provide, not the | | | | determine how and when to pay your taxes. |
| quantity that makes the difference here. | | | | 3. Create your business model and stick to it! |
| Once I get the client, I will raise my rates... | | | | 4. |
| eventually. | | | | |