Factors Affecting Virtual Assistant Rates

Most virtual assistants who are starting up in the industry are tempted to charge low for they fear that they might not be able to find clients if they charge high. Some VA’s charge even as low as $15 an hour, which is apparently inappropriate. Although there is no standard rate applicable worldwide there are still factors that can affect the rate a virtual assistant may charge his client.

If you are one of those who are starting a virtual assistant business you need to look into the following factors that might affect how you will price your services online.

VA Experience

It is self explanatory that a virtual assistant who has been in the industry longer will command higher rates compare to someone who just put up his own business.

VA Specialization

There are various type of virtual assistants and each type has its own prescribed rates. A virtual assistant who specializes on a particular niche or service may demand higher rates compare to generalists.

Location

VA rates vary per location because each country has its own standard or cost of living. The cost of living of each country reflects the economic status of that country which in turn affect the rates of services. Virtual assistant companies or freelancers may charge lower when they are located in developing countries whereas those that are in first world countries may charge higher.

Cost of Self-employment

Virtual assistants are entrepreneurs who work on their own. They get to pay all the expenses related to maintaining their own business and other benefits. These are the costs of self employment that affects the price of services:

a. Overhead Expenses

The cost of running the entire business is a factor in the pricing of the services of a virtual assistant. The prices of utilities such as electricity, gas, telephone, water etc. may affect the rate. Likewise office supplies, equipment and software as well as the rent and mortgage can affect the pricing of rates. Furthermore, taxes will greatly affect the pricing scheme of a virtual assistant.

b. Health and Medical Insurance

For their health security since they are working on their own, insurance will be a big factor in the rates of their services.

c. Training

For their continuing education, some VA’s enroll themselves in training and seminars and to also add to their current skill set.

d. Marketing

In order for clients to know that their business is existing they need to market it both online and offline. Business marketing requires a good deal of money.

If you have been in the business for so long and never thought about these things before, its not too late for you to look into your rates. Whereas if you are starting up in the industry you must consider the aforementioned before you pen down your rates. It is also advisable that you talk with an accountant so that everything will be placed in the right perspective prior to revving the business.

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