Hi all! I'm new and hoping for some advice. I got my first call from a prospect and he's not even offering me 1/2 of my posted rate to make cold calls for him (realtor services). Part of me wants to take the job to get a client on my books and the other half wants to tell him I'm worth much more than his offer. Any advice, suggestions or comments are much appreciated!

Well, you *ARE* worth more than this!
If you really want the client you might offer him an X% discount when he purchases his first block of X number of hours, or similar (ie - some incentive to give your services a trial run) but don't sell yourself too short...

If you have the experience, skills, and talent to back up your rates then you certainly don't need to compromise an entire 50%.

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I know it's hard to say no, especially when it's your first client, but I still recommend saying no. Don't compromise on your rate, because clients will come that are willing to pay your rate, but if you fill your schedule with low-paying clients then you won't have the time available to take the good paying clients.

I went through the same thing, but I stuck to my guns and the good paying clients did come.

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Rebecka Melson ~ Virtual Business Services

Even as a newbie I will not slash my prices by 50%. Prices are negotiable, but not by that much. Maybe offer to give him a couple of hours at a reduced rate and then go to the full rate when he sees what excellent service you provide. Good luck!

-Kellie

I may not be popular for saying this but I think you have to decide what your break even point is and if you'll be making enough money to make you happy. Cutting your rates isn't always such a bad idea. Especially to get that first client. I've done it before. I don't regret it one bit. I learned more than I ever would have otherwise.

You *could* make a deal with him that is mutually beneficial to both of you. You'll gain experience and a testimonial. Just because you cut your rate for one client doesn't mean you have to do it with all of them. If you do decide to cut your rate I would make it perfectly clear that you are doing this *for him* and that you don't this for other clients. That way, he can't go and tell all of his friends to *go see Liz, her rates are dirt cheap".

Or you could do as Tess suggests and give him a cut rate for X hours. After that, the rate goes up.

Ultimately, you'll make the right decision for you. No matter whether its to cut your rates or not. Your gut instinct will tell you what's right for you.

Just my 2 cents.

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Shari Sultana
Online Business Manager (marketing for retail ecommerce)

Shari, I think you have a really good point actually - and it's basically where I was coming from....I think offering a discounted rate for a set period of time makes alot of sense especially for a new VA who wants to land a client. The problem comes when you cut your rate without that qualifier of just how long the discount applies - then the discounted client will expect the reduced rate even when you've finally got a full house of regularly paying clients six months or a year down the road.

And "break even" as Shari suggests is a good measuring stick but I doubt that's at 50% of whatever your regular rates are.

I've said it before on here that I did cut my rates, drastically in some cases, when I was starting out and I gained a ton of what I call 'paid training' not to mention a ton of referrals (who paid higher rates!)

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Yes I agree with you Tess that putting a cap on how long the cut rate applies is a good idea. That lays it all out there upfront and doesn't leave you stuck with a low paying client months later.

Liz, I think as long as you accept a rate you can live with (no matter what it is) you'll come out the winner. You can't know the kinds of situations that arise as a VA unless you live them. And, the only way to live them is to have a paying client. There is value in providing volunteer work to gain experience but there is also value in taking on a client at a lower rate if you must. The latter will enable you to gain experience in running a business and in dealing with the inevitable pitfalls that come with it. Those pitfalls are best dealt with when times are lean rather than when you're so far stuck in the weeds you can't get out. I've been building my business slowly on purpose. I do this so that I can deal with the unexpected as it arises and learn from it. Once I've got the bugs worked out then I'll take on more clients. (Whether the bugs will ever be completely worked out remains to be seen.) Others will see this differently and have a different opinion. But, that's the beauty of this forum. You're bound to get so many opinions that one of them will be the right solution for you! Good luck with whatever you decide.

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Shari Sultana
Online Business Manager (marketing for retail ecommerce)

Hello there,

I am new in the VA industry too and have had a few prospects. One of them wanted me to get out of my house and go do stuff in his office. Another one was on a bid and obviously wanted to pay low, so I said no...Unfortunately another one wanted some kind of a service and he wanted ME to provide them, but it was not my strong so I had to say no...but that is another story.

I had low rates on my site before and wouldn't get any prospects. I decided put higher rates and ironically started getting inquires. I still don’t have my first client…but my point is…

As entrepreneurs and business owners we must believe that we are very valuable. Our services are top-notch services and clients should pay for top quality service. Too much “services” LOL

When I put the higher rate I thought to myself that when a prospect came to me asking for a lower rate I wouldn’t sell myself too short by offering a retainer package with a discount.

If the prospect is offering to pay less than 50% I wouldn’t get it. Believe me it has been hard for me to say no, I’m in a contest and should have 3 clients by Feb 28. I’ve had 3, actually 4 prospects but no clients yet. I do know that If I stay consistent and remind myself of how valuable I am, when I get that client my work is going to excel because I will do it knowing that I getting what I deserve.

I hope this helps. Keep us posted.

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Viviana Robles
www.ocvassistant.com

Something to always consider when working with a real estate client...The one's that do not make much money in the business are always looking for a discount. Those that are producing and are considered Top Producers will not blink to pay your fees.

So, you ask how do I get to the TP? You have to wade through the non-producers. EVERYONE has to experience this in order to appreciate the best of the best with clients.

It's like a high power testing us! LOL

Whenever I am asked to give a discount - I always ask the agent if he would give a discount on his commission? That right there will answer your question.

I also tell each client with confidence that I am the best and I offer the best and therefore I cannot reduce my rates. I have a 100% sucess rate - literally and am have worked hard for this reputation, so I am not about to discount my rates by any means. We are worth every cent and then some.

Something I did when I first started out (8 years ago) was to tell them I was giving them a discount on the retained hours and anything less than that was at $15.00 higher. This way they felt they were getting a discount, but not really. Was I lying or misrepresenting myself or company. No! I truly did and still do charge $15.00 more per hour above retained hours. Anything under 10 hours is $15.00 higher.

You have to get creative and you have to believe in yourself and feel 100% confident you are worth every cent!

I know it is hard starting out, but you wil get there! Just keep doing a great job and you will do just fine.

All the best to you.

Originally Posted by kimhughes

Something to always consider when working with a real estate client...The one's that do not make much money in the business are always looking for a discount. Those that are producing and are considered Top Producers will not blink to pay your fees. So, you ask how do I get to the TP? You have to wade through the non-producers. EVERYONE has to experience this in order to appreciate the best of the best with clients. It's like a high power testing us! LOL Whenever I am asked to give a discount - I always ask the agent if he would give a discount on his commission? That right there will answer your question. I also tell each client with confidence that I am the best and I offer the best and therefore I cannot reduce my rates. I have a 100% sucess rate - literally and am have worked hard for this reputation, so I am not about to discount my rates by any means. We are worth every cent and then some. Something I did when I first started out (8 years ago) was to tell them I was giving them a discount on the retained hours and anything less than that was at $15.00 higher. This way they felt they were getting a discount, but not really. Was I lying or misrepresenting myself or company. No! I truly did and still do charge $15.00 more per hour above retained hours. Anything under 10 hours is $15.00 higher. You have to get creative and you have to believe in yourself and feel 100% confident you are worth every cent! I know it is hard starting out, but you wil get there! Just keep doing a great job and you will do just fine. All the best to you.

You wouldn't get a better advice!!! This is a Real Estate VA talking! Completely right Kim.

I used to work as an Office Manager for a Real Estate development company and the top-notch brokers were always hiring assistants and paying them good money, spoiling them with lunches, etc. The ones that didn't have money would always beg for someone to help them and try to get discounts on everything. Plus... cold calling requires a lot of your time, patience, etc. You should get what you deserve

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Viviana Robles
www.ocvassistant.com