As you start to build your virtual assistant business, you need to make a few important decisions. How do you bill a client? How will you get paid? You have two options: 1. Bill hourly, after you complete the work 2. Set up a prepaid retainer package with a set fee Why would you choose [...] ...Read the rest of this post at the Start a Virtual Assistant Business Blog.

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This a great article, I am just setting up and was just wondering if a retainer is better than charging by the hour.

Thanks for sharing

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Celeste Johnson

I've been going back and forth on this myself. On the one hand, if I charge by the hour and I am proficient and quick, I lose money because it doesn't take me as long. On the other hand, I don't want to underestimate a monthly rate/hours and end up working hours for free.

I had a client who said I would be working a certain number of hours consistently every week. She overestimated her business flow, and underestimated my expertise, and the actual hours for me was grossly less than her projection. At my busiest, I worked less than half the hours she projected, and that was only during the busiest months, which weren't consistent. I'm not sure how to set it up so that I'm adequately compensated without charging for hours I'm not actually working.

Patti, you bring up a very valid point. I guess my question is do you set up the retainer pricing and say its 20 hours at a certain amount then if the client goes over can you start charging at the normal hourly rate? Any advice would be great

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Celeste Johnson

I offer both hourly billing and retainer packages. The advantage of the retainer package to the client is a discounted price.

I do, however, offer some hourly clients, who have been with me for a long time and have steady work, my top discount tiers (billed over 20 hours a month).

Julie

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Julie | Virtual Resource Services, Inc (VRSI)
http://www.vrsioffice.com