Selling Virtual Assistant Packages instead of your time (retainers) is a great way to work less and make more money. For some reason, there is a perception that time is less valuable than expertise. Even though we all know time is extremely valuable.
This post is part of the Ultimate VA Success Guide: How To Calculate Your Virtual Assistant Rates + Create Packages. Each post goes into different aspects of rates, pricing, and packages and shows how interconnected they are. Here is an overview of all 4.
- #1: Know Your Virtual Assistant Baseline Rate So You Don’t Have A Hard Time Paying Your Bills!
- #2: The 3 Virtual Assistant Pricing Methods That Will Help You Start + Grow Your VA Business
- #3: Create Your Virtual Assistant Packages Based On Your Unique Expertise + Earn More $$$
- #4: Are You Solving Problems For Free? Then Create Your Virtual Assistant Audit Packages Now!
One of the things that drive me crazy about the VA Industry is there are no standard definitions and terms. Coming from both the IT and Project Management worlds, I love standards.
I see the use of retainers and Virtual Assistant packages being mixed and I believe it starts to cause some confusion, especially for those new to the industry. So here are my definitions for all of them – the same ones I used in my business.
What Are Retainers?
- They are buckets of hours.
- They are billed prior to the work being started.
- They can be used for any task. They’re getting a blended rate.
- You must track your time.
- They have an expiration date.
- The client pays for your time.
A Retainer is a pre-paid bucket of hours that can be used for any tasks your clients need. The client dictates what the hours are used for and is paying for your time vs. your expertise. They are normally billed at the beginning of the month and have an expiration date of anywhere from 30 to 90 days from the invoice date.
Time is tracked on all the tasks completed against the retainer and the client is given a report showing how the hours were used. Sometimes clients may question why it took so long to complete a specific task when they see your monthly report. Especially if you do a number of different things for them. It’s because they:
- Don’t understand how long it takes to do a specific task.
- Don’t know all the steps involved.
- Are looking at the time involved instead of the expertise.
- Bought your time, not your expertise.
When Does It Make Sense To Use Retainers?
Now, retainers are great if you’re just getting started. They allow you to get a feel for how long it takes to do the work plus all the tasks involved. They’re also great if you only do one type of work for a client (using only one expertise).
When Is It Better To Consider An Alternative To Retainers?
If you’re doing more than one thing, then you’re getting paid one flat rate for doing multiple types of work that could include several different types of expertise. This is known as a blended rate.
I know I don’t want to be paid the same rate I would charge for data entry if I were setting up campaigns in Infusionsoft. They require vastly different skills. Infusionsoft is a beast and takes time to master while data entry is fairly simple and almost anyone can do it.
So if you’re doing a variety of skills for clients and only charging them one rate, say $40 an hour, you’re leaving money on the table. Sure you could charge different hourly rates for different skills but that’s a nightmare to track and manage.
A much easier way is to offer packages based on the expertise provided. This takes the time element out of it and clients have a much better understanding of what they’re getting for their money. Remember, if you’re selling your time then it’s NOT a package, it’s a retainer and you’re tracking billable hours.
What Are Virtual Assistant Packages?
- They deliver a specific set of items or deliverables.
- They have a fixed price.
- They have a specific deadline.
- They don’t require you to track your time.
- They are invoiced 50% upfront and 50% on delivery. Or you can invoice for the whole package upfront – your business so it’s your choice.
- The client pays for your expertise NOT your time.
A package is a set of deliverables (tasks) based on expertise such as creating a WordPress website, implementing 1ShoppingCart, or sending out a monthly e-zine. Clients are paying you for specific expertise.
Virtual Assistant packages are billed either all upfront or 50% prior to the start and then the remaining 50% on delivery. Or 100% upfront. They are for a fixed price and have a specific deadline. Clients understand exactly what they’re getting and what they’re paying for.
Virtual Assistant Packages are based on expertise. For some reason, there is a perception that people who charge by the hour get paid less than those that work with packages. I believe it’s because time seems less valuable than specific expertise. Again, it’s a perception.
The beauty of packages is you can define them by your expertise AND control exactly what is included. If you have several different types of expertise, you can offer several different packages showcasing each and every one. Or you can take one expertise and create several different packages for different audiences. Voila, you now have multiple income streams!
How To Create Virtual Assistant Packages
Keep in mind you can package anything as long as you quantify all the pieces. What do I mean? Let’s say you want to create Virtual Assistant packages for email management. You’d want to quantify the number of emails you would respond to in a specific amount of time. For example:
- Up to 50 emails per day for $25.00 (example rate).
- Up to 100 emails a week for $75.00 (example rate).
- Up to 1,000 emails per month for $150.00 (example rate).
You may have noticed that I said “up to” instead of just a number. It just makes it easier if you only do say 40 in a week, it all works out in the averages.
Here’s another example. Say you create a package for monthly blog posts.
- Up to 4 blog posts per month (content provided by client)
- Proofing of each post
- Adding up to 2 images provided by the client
- Adding up to 5 keywords provided by the client
- Scheduling each post
- Sharing on 3 social media platforms using Buffer App
- The price is $300.00.
Your clients understand what they’re getting and for how much. It’s clear what expertise they’re paying for. It’s very important to be as detailed as possible when putting together your Virtual Assistant packages. You don’t want any grey areas.
Oh, and you can’t package something you’ve never done before. You need to know all the tasks involved and how long it takes to complete them. It’s essential for pricing and delivering your Virtual Assistant packages.
How To Price Virtual Assistant Packages
First, you need to know:
- All the tasks involved in your Virtual Assistant packages.
- How long it takes to complete the package.
That’s why I mentioned that you can’t package something you’ve never done. Pricing is an art and a science. It’s not about taking your hourly rate and multiplying it by the time it takes to complete the package. This is what many people teach. That’s incorrect!
The problem with that method is most Virtual Assistants don’t charge enough and it’s not about time, it’s about delivering expertise and value. I can’t tell you what to charge, that’s why I say it’s an art and a science. But you can start with the hourly rate x amount of time and then add 25% to it.
For example: $30 x 45 hours = $1,350 + 25% = $1,687.50
Why 25%? It’s a place to start to add the value and expertise your package delivers. But you have to believe you’re worth and what you’re charging which is a whole different conversation.
Before you can put a price on your Virtual Assistant packages you need to know how much you need to earn. That is the baseline number you should be starting with. I used both retainers and packages in my business. Remember, your business – your choice. Do what works best for you and your clients.
If you’re looking for an in-depth ‘How-To-Training’ about packaging your unique expertise, setting your rates, VA business skills, and much more, please consider investing in my VA Success System.
What Are Projects?
Projects are very similar to Virtual Assistant packages but the major difference is who determines the scope (what’s included). When you create a service package, you determine the scope of what is included in the package your client is buying.
For a project, the client determines the scope with your help. This is what Project Managers do – they work with their clients to determine what is included in the project and create the project scope. That’s the biggest difference.
Are you ready to create your Virtual Assistant Packages? I’ve created a simple checklist that summarizes everything I talk about in this blog – feel free to download a copy if you’re interested. Just click the button below.
I’d love to hear from you.
Feel free to post below and let me know what action you’re taking today to create your service packages. All comments and questions are welcome.
Thanks for reading – Susan