Hourly Rates vs Flat Fees: Why I Don’t Like Package Pricing for Virtual Assistants

Поделиться
HTML-код
  • Опубликовано: 1 фев 2025

Комментарии • 64

  • @gracie1645
    @gracie1645 Год назад +1

    I've downloaded almost all the playlist of your videos so I won't forget and can watch from time to time just in case I missed something important.

    • @ErinBooth
      @ErinBooth  Год назад +1

      Amazing! SO glad you're finding them helpful!

  • @minniem6038
    @minniem6038 2 года назад +4

    I currently offer hourly packages and have even trying to figure out how work around it, so thank you! I love the idea of flat fee packages vs packaging hours. I really appreciate your videos!

  • @TheQueenIsWithin
    @TheQueenIsWithin Год назад +3

    Thanks I was really stuck on this. I saw so many package deals I was wondering if I offered a flat rate per hour only if I was not being competitive enough.

  • @optimizedEA
    @optimizedEA Год назад +10

    Here is the issue with charging a monthly flat fee depending on the amount the client *thinks* they need
    -- the first month ALWAYS utilizes extra hours around onboarding, extra meetings, etc. etc. etc.
    -- clients don't ever know what hours they actually need
    -- often times, clients give more and more tasks as they become more and more comfortable
    The way I do this -- we have a hourly rate -- if they want to pay hourly. For hourly clients, we require a getting started deposit and that deposit is immediately applied to their account.
    For clients that do "packages" -- the set number of hours in that package is a CAP on hours. There is always a flat fee with that cap and it runs on a monthly or bi-monthly autopay cycle, depending on what is best for them. That means a guaranteed income every month. Any unused hours roll over for one cycle, but we almost ALWAYS use the full amount. If the client goes over their cap on hours that is okay, too. We just send an additional invoice for any hours that go over their cap. We only send this once a month so that I am not always sending invoices. This makes life a lot easier for the client and me because I don't ever have to tell my client they don't have any hours left to use and leave them without support and they don't have to carefully watch their tracked hours so that they don't run out of support for the month.
    We do occasionally negotiate rates simply because we have clients who need very difficult and niche services while others need very simple tasks done. Because of this, I never give rates upfront or post them anywhere. I only offer rates during our consultation/discovery call once I know a bit more about what they will need.
    I use to not track hours, but then I realized that I was actually spending more time on client needs than I really realized. Often times it was 5-15minutes here and there in addition to my "allocated" time, but that time adds up and adds up quickly.

    • @ErinBooth
      @ErinBooth  Год назад +2

      I love all of this, thank you for sharing your insights! Something I'll add about letting clients dictate hours is that I'll give them some guidance, like "other CEOs with similar work use about 40 hours a month." I find that my clients almost never use all of their hours, which essentially increases my rate per hour. I love your take on different rates from difficult clients!

  • @DianaWilson
    @DianaWilson 2 года назад +4

    Great advice on pricing. It can be hard when you first start.

  • @valenciaburnette3949
    @valenciaburnette3949 6 месяцев назад

    I agree with your method. My whole confusion with packages is what services do you offer? Some VAs offer ALL of their services for a set number of hours and what if the customer wants 2 or 3 services and how do you track that you're giving them everything you say you're giving them. I like your method better, less confusion.

  • @HH-nv5lb
    @HH-nv5lb 2 года назад +1

    I have found your videos so helpful in starting my own VA business. In this video you mention another video coming soon on how to talk with your clients about switching from an hourly rate to a monthly/flat rate. Did I miss that video or is it still in the works? Thanks so much for your time and great tips.

  • @leguen193
    @leguen193 2 года назад +1

    Thank you!! Great information for us starting VAs 👍🏽

  • @toriambrr
    @toriambrr 2 года назад +8

    i have this fear that a client will think that i’m being dishonest about how long a task took me just to swindle an extra hour or two out of them. is there a way we can both be sure that i’m being honest about my time spent?

    • @optimizedEA
      @optimizedEA Год назад +6

      I use Clockify and send time log reports (there is a great free version that is more than sufficient for a single person business). For any logs over 1hr I always write in the description what I did during that time. I've never had it happen, but I do always strive to be transparent with my clients.

  • @maheaeleneki4291
    @maheaeleneki4291 2 года назад +2

    Do you raise prices for existing clients too? Or just new oncoming clients? And if you raise them for existing, how do you go about advising the client of the rate increase/why you’re raising rates?

    • @ErinBooth
      @ErinBooth  2 года назад +2

      Hi! I do like to do incremental raises for existing clients. In fact, I'm about to do a raise at the end of 2022 to even out old clients on lower rates (and bill them at the same rate as my new clients). I keep my rate increases really, *really* simple. 99.9% of the time, I send an email that says "Dear client, as of January 1, 2023, your new rate for services will be $x.xx, which brings your monthly total to $xxx.xxx." For clients I am particular close with, I call them and tell them via phone.

  • @GrowEvolve78
    @GrowEvolve78 Год назад

    I like the idea of using a monthly flat fee. Could you do another in-depth video on your flat fee? (If you haven't already)

    • @ErinBooth
      @ErinBooth  Год назад

      Sure, do you have any specific Q's about flat fees?

  • @sinfulbeauty86
    @sinfulbeauty86 9 месяцев назад

    This was awesome! I’m so happy I found this video. We definitely have the same thoughts lol

  • @chocolatesunflower2386
    @chocolatesunflower2386 2 года назад +2

    Awesome video! Im struggling with how i should price or package things like email management/calendar management/scheduling. Ppl need their emails looked at daily so im not sure how to price that?

    • @ErinBooth
      @ErinBooth  2 года назад +3

      I say charge a monthly flat fee based on the number of hours your clients think they need!

    • @CuriousMindsThinkalike
      @CuriousMindsThinkalike 8 месяцев назад

      ​@@ErinBoothCan you give an example for clearer understanding if you don't mind?

    • @CuriousMindsThinkalike
      @CuriousMindsThinkalike 8 месяцев назад

      I like this idea seems suitable for Fiverr and Upwork. I was just trying to figure what I should do. I have a question so do I discount it when it more hours?

  • @ChanelCruz33
    @ChanelCruz33 Год назад +2

    I have a question! I have a long standing client that I have worked with for 3 years now. I work for a VA agency and my client is interested in buying me out from the agency (which is allowed). I was averaging 6 hours a week for him but recently business has grown and I have been doing 10. He’s wants to increase my hours to 15-20 a week once I work directly for him. At the agency I make $22/hour but he gets charged $40/hour. If he buys me out, what do you think I should charge? I don’t want to sell my self short but I also don’t want to overcharge.

    • @ErinBooth
      @ErinBooth  Год назад

      Wow what an AWESOME deal. $40/hour is pretty damn amazing - and if you charged him $40, you'd be doubling your personal rate. Plus you already know that he can comfortably afford the rates. What do you think?

  • @judeabboud
    @judeabboud Год назад

    This is great advice!

  • @lanamiller8934
    @lanamiller8934 2 года назад +3

    Hi Erin! Great video. Do you typically charge clients for a full month upfront? Wondering what the process is for payment.

    • @ErinBooth
      @ErinBooth  2 года назад +4

      Great Q! As the biz owner, you can decide if you want payments upfront or at the end of the month. I opted for payments at the end of each month (so theoretically, I start work on the 1st of the August, and then I receive my first payment on the 1st of September). I prefer direct deposit for payments too, which guarantees payments are sent on time and consistently.

    • @lanamiller8934
      @lanamiller8934 2 года назад

      @@ErinBooth Awesome! Super helpful. I have been looking at using Stripe for invoicing. Do you recommend using another software instead?

    • @ErinBooth
      @ErinBooth  2 года назад +1

      @@lanamiller8934 Stripe is great! Both my spouse and I use Stripe and Paypal. Having said that, if you CAN get direct deposit, do that. There are no fees associated with DD.

    • @lanamiller8934
      @lanamiller8934 2 года назад +1

      @@ErinBooth Makes total sense! I was more thinking that I would send an invoice and have payment through stripe but would rather avoid fees. Sounds like it may make sense to do them separately.

  • @april_help
    @april_help Год назад +1

    This was a very informative video. I'm a VA that also provide social media management services. If working on "flat fee" model, would you include that in the flat fee?

    • @ErinBooth
      @ErinBooth  Год назад +1

      This is a tough one because social media can mean so many different things. If you’re creating strategies, planning the year, running campaigns etc you’re well on the high end - at least $100 / hour and estimate a high number of hours. I have worked with SM managers who charge anywhere from $3 to $5k a month.
      However if it’s more posting content someone else created, scheduling, responding to comments etc it might be in the $50 range.
      Can you tell me more about your specific services and we can try to drill down on rate?

    • @educate.entertainchannel
      @educate.entertainchannel Год назад

      How to apply maam ?

  • @teletahoward3893
    @teletahoward3893 2 года назад +1

    Awesome video. Thank you so much.

    • @ErinBooth
      @ErinBooth  2 года назад

      Glad it was helpful!

  • @jayrock2754
    @jayrock2754 Год назад

    I was wondering what should I start my pricing at is $14 an hour too low.

  • @kerooney
    @kerooney 2 года назад +1

    Thanks for your video, it was very helpful!
    How do you track your hours with a client? For example, if you agree 30hrs for the month with your client how do you show them you have done the 30hrs (or more) for the month? Is there an app, or is it down to trust? I can imagine trust builds as a relationship between VA and Client continues, but how do new VA's combat this? Thanks!

    • @ErinBooth
      @ErinBooth  2 года назад +6

      Good Q! When I start with a new client I track hours used using a tool like Havest or Toggl - something that how much time was spent on a specific task. I send emails every Friday with a quick note like “this week, we used 6 hours - you have 24 remaining.” After 4 weeks, I personally stop tracking hours and move to flat rates, where clients get charged a flat amount no matter how many hours they use (or don’t use)

    • @kerooney
      @kerooney 2 года назад +1

      @@ErinBooth Thanks so much!

  • @gordonlittle5787
    @gordonlittle5787 Месяц назад

    I have a BS degree in science and an MBA, and how much do you think I should charge?

  • @ezennayajuliet8519
    @ezennayajuliet8519 2 года назад +1

    Hi Erin...
    As a beginner in Virtual Assistant (Entry level), how much should I charge per hour.....in other not to be too greedy and not to loose a client 🤭 as a beginner. Since it's more like my trial level.

    • @ErinBooth
      @ErinBooth  2 года назад +3

      Great q! Most newbies are in the $15 to $20 hour range!

  • @Chasslercapri
    @Chasslercapri Год назад

    My question is…when do we charge? Is it a half now half later thing or..

  • @Susa.Wazlawik
    @Susa.Wazlawik 6 месяцев назад

    I started working as VA to be the customer service of a cleaning services company which is owned by a lady who does the majority of the work. I charged by contact that I would attend, either outbound calls or inbound calls, and the time spent with each vary. What is the best practice for VA that will work as customer service answering outbound calls. She had less than 5 calls a week.

    • @ErinBooth
      @ErinBooth  5 месяцев назад +1

      Flat fee based on an hourly rate and how much time you spend calling or fielding calls.

    • @Susa.Wazlawik
      @Susa.Wazlawik 5 месяцев назад

      @@ErinBooth thank you! do you have any preferred timesheet app to suggest?

    • @ErinBooth
      @ErinBooth  5 месяцев назад +1

      @@Susa.Wazlawik I prefer Harvest! Nice reports!

    • @Susa.Wazlawik
      @Susa.Wazlawik 5 месяцев назад

      @@ErinBooth Thank you!

  • @RoyaltyMusicTV
    @RoyaltyMusicTV Год назад

    What about requiring a min number of hours for hire?

    • @ErinBooth
      @ErinBooth  Год назад

      You totally can - I've seen people require min 5 or 10 hours per month. your call!

  • @Mindfulbiz
    @Mindfulbiz 2 года назад

    So, I am struggling with my packages I tried to make admin packages and more creative packages, but I think it's too much since I'm new I haven't niche down yet.

  • @thendosadiki8132
    @thendosadiki8132 2 года назад

    Thank you for this

  • @CuriousMindsThinkalike
    @CuriousMindsThinkalike 7 месяцев назад

    Not sure if I asked this question already but do you think someone new to VA should charge $15 USD hourly or more? Because previously I thought I should charge twice as my old salary. But then I realized that I have to pay fees to receive the money using PayPal, stripe etc then transfer. I also have to consider electricity and internet access that's not even other expenses yet.

  • @lee-uf7vx
    @lee-uf7vx 10 месяцев назад

    Hi, I'm just starting out I did a calculation in AI I saw where it suggested $23-55 hourly because I included what taxes deductions might be and what transaction fees I might pay. Is $15 USD hourly too low if I'm just starting out? Also should I charge hourly rate regardless of the service?

  • @natifhacooper1504
    @natifhacooper1504 2 года назад +1

    If the client states they'll need 30 hours a month, but they don't use the full 30 hours, the fee remains the same? Also, a video didn't pop up about price increases :(

    • @ErinBooth
      @ErinBooth  2 года назад +3

      For me - if clients don’t use all their hours - the price remains the same and hours do not roll over!

    • @natifhacooper1504
      @natifhacooper1504 2 года назад

      @@ErinBooth Thank you!

  • @NicoleGomez-uk4xv
    @NicoleGomez-uk4xv 7 месяцев назад

    Hi - I'm obsessing over how much to charge, can you help? Some background, I have over 15 years of experience working for CEO's and different C-suite executives in Manhattan in 3 different industries. I'm now trying to build my own VA business but since I'm new to VA but not the work, I'm struggling with what my rates should be? I hope you see this, I just realized it's a 2 year old video! :(

  • @RajeevWalve
    @RajeevWalve 9 месяцев назад

    Thanks for your reply,
    I had watched your video's and they are very informative, in one of your video you have mentioned the qualities of VA , and I am very much confident that i have all the said qualities, and in one of your video you have mentioned that VA are providing services as Customers service representative, so we can start VA and we'll provide services as Customer services representative for US clients, can you help us how to start VA, and also can you get US Contract, we are located in Mumbai India

  • @newladyentrepreneur5806
    @newladyentrepreneur5806 2 года назад

    what is the most hours you offer to one client?

  • @mikioni
    @mikioni 2 года назад

    👍👏☺️🤩🙏😃😊😀