So now that you have your services that you’ve decided on offering to your clients you need to think about how are going to price those services. Let’s look at how you will set your virtual assistant rate.
Now I’m probably in a different school of thought than most and some people are going to tell you that you should think about how much you want to make make divided by how many hours you want work. Here is how I have seen it taught before:
How many hours do you want to work per week? _______
Hours per week _______ x 4 = _______ hours per month
How much money do you need to make per month? ________
Required income ________ / Hours per month ________ = Minimum hourly rate _________
Look your needed income doesn’t dictate what the cost of the job is that is just silly. Unless you are a guru who has super stylized skill set and you are turning away work this is just not accurate. You may want to work 4 hours a week and earn $400 but if you don’t have services or skill set this is not realistic. Someone isn’t going to pay you 100$/hr to work and inbox.
TRUTH- Have realistic expectations.
There are a couple of things that come into play when thinking about pricing. Your skill set and the degree of difficulty of the task. I’m not going to charge somebody to same amount of money to do a simple data entry research project that I would to set up an Infusionsoft marketing campaign. So really think about what you’ve done how long you’ve done it and what is the skill set required to do these things.
A good measuring stick that I used when I started was I thought about the services that I was going to offer clients and if I had done those services previously in a traditional setting what would I have expected to have gotten paid so if I was an accounts payable clerk and I was going to interview for that job what would I be telling them I expect for my salary. So, let’s say you’re going to interview for an entry office clerk position are you really going to ask them for $25 an hour? No, you’re not, it’s not realistic.
Part of the whole concept of a virtual assistant is really making labor accessible for solo entrepreneurs and small business to keep costs lower and to help them accomplish tasks they can no longer handle. Does that make sense?
So, let’s look at it this way. If you were an executive assistant for a high-level executive and you have 5 years of experience and you were making 20$/hr at that job and you have a proven history I would take that 25$ and add 30% to it and start there.
Here is a good example of setting your virtual assistant rate:
25×30% = 7.5 25+7.5 = 32.50 this could be your preferred hourly rate
If you have little or no proven experience, let’s say 12$ and hour for a good entry level job
12×30% = 3.6 15+3.6 = 18.60
You really need to consider all the aspects/perks of each job. I have worked for as low as 10$ an hour on jobs that were fairly straight forward, allowed tons of flexibility and over all was a win win for me.
I once took a job at a lower rate ( I had no direct medical billing experience but a lot of accounting and billing experice so they were willing to train me. They were originally offering 15$/hr ( 20$ is my lowest rate ) we split the difference and started the position at 17.50$ this worked for me because I was gaining a skill that I could use later with a proven history. Within a year I was making 25$/hr in that post because I had proven that was a true asset to the company and not only had I learned the medical billing side, I helped them restructure their client tracking process. When you offer value, you are going to see your clients pay what you are worth.
If you work hard and earn a great reputation you can also start to increase your prices due to being in high demand, right? I mean If I was going to hire Gary Vee he would charge me A LOT more than me hiring Chad Grey ( Who is Chad Grey? ). Build your knowledge, deliver unbeatable service and earn your reputation as the best in the biz. This might mean busting your hump in the beginning, but it will pay off.