I do an 80/20 split (pay the subcontractor 80% of what I am billing the client, keep 20% for my administration costs) which is what I originally observed in the consulting world.

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Virtual Assistant 3.0

So Angie and Mary, you pay in favor of your sub VA, which I thought was how most of us did it. Still amazed at some of the conditions subcontractors get sucked into though. I know you 'have to start somewhere' but...

Rebecca, I'm assuming the 90/10 you talked about was in favor of the hiring VA, yes?

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This question varies on what your business is based on. for example a multi va business or business based on subcontracting can not succeed on a 90/10 or a 80/20 split. Because my business is based on subcontracting and I am the project manager/sales/bookkeeper/marketing manger etc. my business would not survive on small percentage. The rule of thumb is double the rate of what your VA sub rate is. However it is not always the case and most of the time it's less than that. so I guess you could say it is more like a 60/40 split 60 being for the VA.

Yes Tess it was. She told me I was crazy for not accepting it that it would eventually be my client...but I just could not see working on Guru for 3 dollars and some change so why would I do it for someone who is in the industry that should value what we do? I don't know. She is nice and all...but no, I could not do it.

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Rebecca Thompson
CLR Virtual Connection * fanTABulous fan pages

$3!!! Are you kidding me? That is nuts. I totally agree.

I've always subcontracted in favor of the subcontractor. I usually only charge the client $5-10 over what I'm paying the subcontractor basically for project management, admin, etc. The way I see it, if I need to hire a subcontractor for assistance, then it's probably work that I wouldn't get done on my own and would risk losing the client all together. I'd rather retain the client for future work even if it means I don't make a huge profit off it currently.

I did talk to a couple of people who approached me for subcontractor work and they indicated they'd work for as low as $5 to 15/hr. I politely told them that I was quite sure they were worth more than that and I will not pay another VA such a low rate when I don't consider that to be a living wage for anyone.

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Kimberly
Facebook Marketing Magic!

Originally Posted by JKVirtualOffice

I did talk to a couple of people who approached me for subcontractor work and they indicated they'd work for as low as $5 to 15/hr. I politely told them that I was quite sure they were worth more than that and I will not pay another VA such a low rate when I don't consider that to be a living wage for anyone.

Kimberly, I have had the exact same experience and have also subcontracted for similar reasons and share your views on payment exactly! Great minds think alike, lol.

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Kate V. Kerans
Kerans Virtual Assistance

I agree with you too Kimberly - that's just too low!

When I have subbed out work I just pay the VA what she asks [because I'm hiring her as an expert, so she deserves her own rate, I feel] - like you Kimberly, it's not about making a profit 'off of' another VAs hard work, but about keeping my clients happy and/or getting something done that I don't otherwise have the time for.

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I always use the 75/25 rule - either for acting as a subcontractor (75% of the VA's rate to me, 25% to them) and offer any subcontractors I use 75% of the rate I charge clients (I would expect them to invoice me when the work is completed satisfactorily and I then pay on their terms even if the client hasn't paid me) and keep the 25% myself.

I have seen some VAs offering subcontracting work (transcription in particular) at $0.60AUS pre audio minute - coverting from $Aus to $US would make that $0.45USS per audio minute!

Dawn

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Dawn Lane, Cornwall
www.your-office-online.co.uk

The subs I have working for me right now get about a 60/40 split as they are new and we're spending a lot of time training them. However, I just did a 50/50 split with a sub on a new project. However, my subs don't work for themselves. I mean they are my team members and aren't out trying to get VA work for themselves.

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Sue L Canfield
AwesomeAssistant.info
My Blog