Ok, I know many of you have been waiting for this.
I believe it to be setting rates that are too low. This also includes allowing clients to tell you what you should be charging.
Many VAs, particularly in the first year or two of their businesses, mistakenly think they should charge low to get the clients. What happens is a number of things:
- They find quickly that they’re not making much money and have difficulty covering all their overheads and have some left over for themselves.
- They feel used and abused after a period of time and consider giving it up as a lost cause.
- They lose confidence in their abilities and wonder what is wrong with themselves as they know others are successful at this.
- They return to a job dissatisfied, knowing that’s not where they want to be but what choice do they have?
- It undermines the industry and their perception of it, and also the clients’ perceptions.
Doing the research and making sure you work out the figures is most important. If you see a VA is charging a rate that appears lower than yours then you need to consider whether it’s the same currency, do they live in the same region or elsewhere, does their cost of living compare with yours? And don’t make the assumption that all ‘offshore’ VAs charge lower than you do. Offshore extends to many countries and some have higher costs of living than others and their currencies vary considerably.
Another part of this ‘mistake’ is that many don’t think they need an accountant as they see that as an added expense. The reality is if you don’t have an accountant you’ll miss out on information that is important to the running of your business. Only your accountant knows the facts and figures relevant to your situation, and your tax obligations. It doesn’t matter if you have the same years of experience as the next VA, your location, cost of living, and other things will differ and what one person charges may not be the right thing for you.
So, when starting your business do the homework and work out rates that are right for you. There are formulas available online and also through various VA books, including the one I have linked on this blog in the right-hand menu.
Mistakes VAs make, low rates, wrong rates, offshore VAs
Kathie is the former owner of VA Directory and is former past President of the Australian VA Association. She founded the Virtual Assistant industry in Australia in the mid 90s, having already been operating a home-based secretarial service. Today the VA industry covers a multitude of office-based services for clients worldwide.
Monique Terrell says
Kathie, you hit another one out of the park. You are right on and I especially like the point about the hiring an accountant. I talked about this every thing in my 5-day telecourse I did a few weeks ago.
VA’s must remember that we are running a business and need to have experts help us in the foundational areas such accounting to ensure a healthy and long lasting VA business.
Can’t wait for #3.
Monique Terrell
Michelle Mangen says
I agree, wholeheartedly and have found that some VA’s are doing work for what seems to be an incredibly low price.
If the lady who cleans your house gets $20/hr….don’t we deserve more than that for the expertise and solutions we provide to our clients?
Additionally if we charge $20/hr it isn’t really $20/hr after taxes….most housekeepers may not report their income to the IRS.
Charge what you truly believe you are worth! If a client passes you up because they believe you charge “too much” take it as a blessing and realize that frees up your time to attract clients willing to pay you on your worth!
Waqas Ahmed says
I believe that one should be a bit flexible when quoting a rate. You should bear in mind that when you start out fresh you do not have the expertise level of an experienced VA. your rates should therefore also be reflect that. This may mean charging a bit lesser when you start out as a newbie is bound to take more time to do the same job than a VA guru!
Pricing is by no means an easy job and I think that its something that every business take time to figure out.
Walethia says
I would like to add some VAs see money when you contact them, I’m a new start up business, and cannot afford some of the rates I’ve received from some VA’s. Do VAs assume you are making lots of money because your an internet marketer?
I thought if I could find a VA that would do quality work, don’t short change me, but would work with me as needed, I’m more than willing to pay. I don’t at the point in my business want to commit to a six-month contract. Pay a retainer up front and we have not even worked together.
So I really appreciate the information I’ve gained a lot of knowledge.
With Grace and Charm,
Walethia
Kathie Thomas says
Hello Walethia, thanks for your comment.
VAs are business owners, just like internet marketers. And they have skills that need to be appropriately charged for and appreciated.
If you’re engaging a true professional VA you will get quality work that is only charged according to the amount of time and effort they put in. Not all VAs work on retainers and if you place a request at my site I can guarantee you’ll get several responses from very capable VAs who don’t charge the earth and will definitely give you value for money.