Understanding the ways you can set up your Virtual Assistant pricing can be confusing, especially when you’re just getting started. Don’t worry, simply begin with the one that feels the easiest to you and then change it as you grow your business and become more experienced.
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!
It All Depends On How You Bill For Your Services
A common question I see asked in both my Free VA Training Vault and on Social Media: “How Many Clients Do I Need?” First, it’s not about the number of clients you need; instead, you should be focusing on:
- Billable hours
- Packages sold
- Projects sold
It’s about how you bill for your services. If you’re not sure, this is your first step: decide.
Virtual Assistant Pricing Method #1 – Billing By The Hour
It usually means you’re tracking your time and using retainers to bill your clients. If you’re tracking your time, then your way of Virtual Assistant pricing is about billable hours. These are the hours you bill your clients to make money.
When and how your bill is up to you, you must know your minimum billable hours depending on the frequency you bill. For example, I know I need to bill a minimum of 40 hours a week to earn the minimum income I need to keep the lights on.
Determine The Minimum Hours You Need To Work
To do that you need to know what your baseline rate is. What’s that? It’s the minimum you can charge for your services and still pay your bills. If you charge less than that, you’re losing money, which is not a long-term strategy for staying in business. Actually, it would be better invoicing more than that because who wants to make the bare minimum.
So there are two numbers that you need to know. You need to know your baseline rate, and you need to know how much you want to make, which is your goal. Those numbers should be vastly different. They should not be the same number.
If you’re billing by the hour, your baseline number tells you how much you need to charge per hour. If you don’t know your baseline rate – watch my YouTube series on how to find it and download my free rate calculation sheet right here.
Tip #1 – Stick With Your Prices
Pricing is a sticky subject. It’s both an art and a science. The best thing I can tell you is never to charge less than you need to make because then you’re not going to stay in business for long.
And your pricing attracts your audience. Never lower your rate to get a client. They’re just not the right client for you – let them go. Stick to your rates and attract the right people for you.
Tip #2 – Don’t Ask Others What To Charge
Please don’t price by committee; in other words, don’t ask people what you should be charging for anything. They, first of all, don’t know what your baseline rate is. So they could be telling you to set a number way less than you can make.
For example, there are VA coaches and trainers who will say that if you don’t know what to charge, charge $35 an hour. Sorry, awful advice. Why? What if you need to make more than $35 an hour to keep the lights on? It’s not a one size fits all industry; it’s not one-size-fits-all for rates or pricing. If I just started at $35 an hour, I’d have gone out of business quickly.
Each person has their baseline number depending on their needs, bills, what they want to earn, what they’re offering, etc. Do the work to figure out what yours is. Price based on what lifestyle you want to have. Don’t worry about anybody else, and I know that’s hard to do, but you need to think about that.
Virtual Assistant Pricing Method #2 – Charge By Package
If your Virtual Assistant pricing method is charging by the hour, I highly recommend you start thinking about moving to packages instead, except if you’re doing admin-type work. It’s tough to package admin work because it’s not specialized; it’s very generalized.
It might be time to look into learning new in-demand skills, such as the tools that your clients would use. For example, MailChimp, WordPress, or any social media tool because it will allow you to create service packages.
This type of Virtual Assistant pricing is also going to allow you to scale faster. When you’re selling your time, sooner or later, you’re going to run out of time to sell. So the next step would be going from billable hours to selling packages.
You can charge more for your expertise than your time. Because for some reason, the perception is time is worth less than expertise, even though it’s not the truth.
Package Price Calculation
If you’re selling packages, you need to take your baseline number and figure out how long it takes you to deliver each package to help you decide how you will price it. It’s not a simple A x B = C. You need to price based on your years of experience and expertise too!
Real quick – a package is an off-the-shelf package that is done for you. Clients are not buying your time; they’re buying a package based on your expertise. For example, it could be a WordPress or MailChimp package. A copywriting package or a social media package. Packages are:
- Not based on time.
- They’re expertise-based.
- A bucket of hours is NOT a package – it’s a retainer.
Virtual Assistant Pricing Method #3 – Invoice By Project
A project is a planned piece of work that has a defined start and end date—for example, a product launch or website build.
The difference between a package and a project is, for a package, you define what the client’s getting. A project is where the client tells you what they want and you provide a proposal. Simply put:
- For a package, you define the scope,
- For a project, the client determines the scope.
You would use the same formula to figure out how much to charge for a project based on your baseline number and the hours involved PLUS your expertise.
So remember when it comes to how many clients you need, it’s not the number of clients.
- It’s either the number of hours you bill if you’re charging hourly.
- Or the number of packages you sell.
- Or the number of projects you’re working on and selling.
That number needs to come from your baseline rate, which is the minimum you can charge for a retainer (number of hours) or a package or a project to keep the lights on. You need to have two numbers in mind at all times.
- How much you NEED to make!
- How much you WANT to make!
Strive to start making the money that you want to leave your soul-sucking job, or to go on vacation, or to buy an RV. There is no cap to what you can earn in this industry, except for the ones you set yourself; it’s all mindset.
If you’re looking for an in-depth ‘How-To-Training’ about packaging your unique expertise, setting your rates, and more – don’t miss having a look at my VA Success System.
I’d love to hear your comments and questions, please take a moment to leave them for me below.
Enjoy your day – Susan