This is a reprint of an article I wrote in September 2004. I feel it’s important to bring this topic back up since there are new VAs on the scene all the time, and new clients.
The team and I had an interesting discussion online the other day, which resulted from a client and team member having a different understanding about something. And that something was the time involved, and related costs, in transcribing a recording. What the client hadn’t understood was that there is a difference between an audio hour and a transcription hour, and therefore the fee he thought he’d accepted ended up being considerably more and he and the team member had to negotiate for something that was acceptable to both. After all she’d put in a lot of hours, but he wasn’t expecting to pay as much. Which brings me to the point of this article.
We always try to explain as best we can what is entailed in any job we take on for our clients, but on occasion that may fail because we haven’t asked you (the client) enough questions or perhaps the other way around.
In transcription work there is a vast difference between the audio hour (the recording) and the transcription hour (the typed manuscript) because the ratio between the two can be anywhere between 1:3 – 1:6, i.e. it could take up to 6 hours to type one hour of recording (worst scenario). The reasons for this are many and include:
* Speed and clarity of speech
* Background noise
* More than one voice speaking
* Terminologies
* Accents
* Poor quality recording.
Experienced transcriptionists who are also fast typists may charge somewhat more per transcription hour than another who types slower, but it usually works out much the same in cost to the client. If you (the client) get quotes for transcription work that vary vastly however, then it is worth asking questions why – the difference may well be that some transcriptionists charge by the audio hour (much higher rate) than by the transcription hour. The first gives you a guaranteed price; the second gives you an approximate price for the completed job, however if the work took fewer hours than more, you could end up with change in your pocket.
Perhaps in your own industry you find client understanding of what you do may also differ considerably and it is important that we all help to educate each other in our particular specialties. There have been times when I’ve spoken to people on the phone about something I didn’t understand and I’ve had to remind them that they know their own business, and I don’t and they need to explain it to me in a way that helps me to understand. Unfortunately often these people are new staff, or in a role that has vast turnovers of staff with hurried training, and therefore seem to be inexperienced or untrained in explaining properly how something works or worse, they assume the customer knows. The customer doesn’t always know and we should never assume they do. That doesn’t mean we treat them like they’re simple or an idiot, but rather we should take time to ask them do they understand that………..and quickly and clearly explain what is involved. It makes for a happier life all round for everyone involved. KMT
audio transcription, transcribing, digital transcription, audio hour
Heather McMillan says
Hello! This is a problem that happens a great deal, particularly on the freelance sites. People simply don’t understand the length of time it takes to transcribe word for word an hour of audio. I’ve been doing transcription for the last two years in my business, and the industry standard is always to charge by audio hour unless legal or medical. I do have one client that pays me per word, which is fine too. But I prefer to quote clients by audio hour, and I always make it very clear to the person I give the quote to that this is a flat rate for the entire transcription and not a rate per hour. It’s important to never assume your client knows it all, yet at the same time word the information in a way so you’re not insulting their intelligence. Good topic.
Kathie Thomas says
Thanks Heather, good to hear from you. You mention that it’s the industry standard to charge by the audio hour but I wonder if perhaps that more relates to your location (or country), rather than a global standard? Many transcriptionists I know charge by the transcribed hour and some by the audio hour. But then, it may be that’s because the majority of those I know are doing legal and medical work and others are doing conferencing work and memoirs. Thanks for sharing on this topic.
Heather McMillan says
Thanks, Katie. I enjoy your blog. Well, from the amount of transcription companies that I’ve contracted with and the amount of transcription clients that I’ve worked directly for, 90% have been per audio hour. The rest have been a per word rate. Now keep in mind this is for corporate or general transcription, not legal or medical.
Also, internationally, I can’t be certain as I only contract with United States clients and companies. So that too could have a different industry standard. But I work with clients in California, New York, Texas, Georgia, Missouri, and Illinois, and all of those go by audio hour rates.
Further, the transcription forums that I’m involved with online also appear to have the majority charging and being paid per audio hour as well. So that’s what led me to believe it must be the industry standard to see it so predominantly. Some days I wish it were per transcription hour instead of per audio hour, because some jobs I’ve done in the past were pretty crummy! 😉
Kathie Thomas says
Thanks for explaining. Here in Australia we have a conference transcription company that outsources to over 20 members of our team – they pay by the transcription hour. And a good number of our team also quote this way too, although some charge by the audio hour, e.g. one of our UK members does this.
Perhaps it is different in different regions of the world and/or wherever you did you training? But it’s good to know about the differences at any rate.
I always tell prospective clients when they contact me that it also depends on the speed and experience of the transcriptionist and their cost of living – rates will vary from state to state and country to country, not to mention the differences in currencies too.
Lynda Nurenberg says
Is it true that an Audio Hour is considered 1 Aduio Hour equals 5 hours of real time?
Kathie Thomas says
Yes, Lynda, that can be very true but is not hard and fast as it can depend on a number of things. The ratio is 1:3-6, meaning one hour of recording could take between 3-6 hour’s typing time as mentioned in my article above. The reasons have been given there.