Here I am with another question :-)

I have experience doing administrative and marketing work, but I haven't worked as a virtual assistant before. I have set my rates at $XX/hr and was wondering if that was too low?

I hadn't questioned it before until I saw a "tweet" saying that if your in North America and your rates are less that $XX/hr, then people aren't going to hire you, or something like that.

Any thoughts?

Hi Stepfanie,
Setting your rates is a individual decision but there are some things to take into consideration when setting them. Remember that you will be responsible for paying your own taxes, so be sure when you're doing the math on what you need to earn you deduct those costs as well as other costs associated with your business. For example if you have a separate phone or utilize a web based phone system, supplies, any software purchases and/or monthly services you will need to pay for.
I personally wouldn't be able to earn enough of a profit after deducting taxes and other business expenses if I were only charging $20 or $25 an hour. I think many new VA's underestimate those expenses or don't figure them into the mix at all, which is why they often advertise low rates. They then realize they have to serve a huge amount of clients to actually earn the money they need. You're then left in a situation where you're overworked and it's hard to get everything accomplished without working constantly.

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~Tina Marie Hilton of Clerical Advantage
& founder of VA Survival School

Stepfanie~

Tina's answer is dead-on. You must consider all your expenses (I know, I didn't think I had any when I started either, but they do start adding up) and what you need to net to be profitable and support yourself. And, as you alluded to in your post, there is the perception created by your rates. Some people look at $XX and will think "Great!, someone I can afford", but others will think "Hmmm, they must not have much experience". Those who are interested in finding the lowest rates are all about the money. I can tell you from experience that working with those who are all about the relationship is much more gratifying, so I encourage you to raise your rates to what you need and what you are worth (yes, you are worth much more than $XX/hour) and work less to make more.

Warmly,

Lorri

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Lorri Morin, CPVA
www.virtualsynergy.net

There are several rate calculators on the forum including this one that may help you to accurately set your rates.

BTW - we are not supposed to publish rates on the VAF...

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Lily Chambers, The Virtual Office Goddess, LLC
Author "How to Do Your Own Small Business Bookkeeping"

Thanks for the info everyone. I'll
Definetly look at all my expenses and refigure my rates. And sorry, didn't realize not to post rates, thanks!

I was referred by a friend to a small business accountant here in town and it was probably the best thing I did. I was worried about how much federal, state and local taxes I would be paying and she helped clear them up for me. You might want to ask around in your area, plus if you need someone to do your taxes come tax time, then you'll already have someone in mind!

When I was charging a lower rate I struggled more with finding clients. As I've increased my rates I found it easier to get clients and everytime I fill my practice I increase my rates. I've got a waiting list right now.

Bonnie

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Bonnie Jo Davis is a marketing VA
http://www.your-marketing-assistant.com

If you really sketch out the amount it takes to operate, plus taxes plus paying yourself, then realistically, it is very hard to make any profit if you are charging under $35 per hour. There are numerous posts and informational sites out there which indicate that most VAs charge between $35 and $75 per hour.

I think it helps if you can think of yourself as a business owner who is looking to make a living and a profit and not just as an assistant who is doing another small business owner a favor. They have their budget in mind when hiring you and you should have yours in mind as well when taking on new clients.

Tina and Lorri's answers were right on. Best of luck.

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Kimberly
Facebook Marketing Magic!

Handy information! Definitely good to know I am in the ballpark, although the rate calculator threw me a bit. Thanks!

This calculator really helped me figure out my expenses, and my fees. Thanks for the information.

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Kriss Johnson, Key Client Services
http://www.krisschele.com