Subcontracting Rates - Virtual Assistant Forums

D_Victoria_Virtual_Assistance · #1 (**permalink**) 02-09-2009

So, I had a conversation recently with a fellow VA and the topic of subcontracting for other VAs and rates came up. Out of the conversation, we wondered if VA subcontractors provide their services at a smaller rate or charge their regularly hourly rates to the VA they are subbing for?

If faced with this situation, I would think one would charge their regular rates based on the project/task at hand. However, they may be inclined to offer a discounted industry rate.

What do you think and/or what do you do?

ChristinaVOS · #2 (**permalink**) 02-09-2009

I have been offered several sub jobs and I always provide a slightly discounted rate. Basically, I wouldn't have the opportunity if it wasn't for the other VA and they need to be able to make a little something for their efforts is securing the job.

I will soon be looking for subs and I expect to charge the client my normal rates so the sub will be paid slightly less than that.

sharnatlanta · #3 (**permalink**) 02-09-2009

I have been wondering about this lately too! I may be interested in subcontracting for others soon and this seems to be an area that isn't discussed very much.

I have no idea WHAT I would charge, but it would be less than my regular fees. My reasoning is this: I am not the one who had to go find the client, I'm not interfacing with the client (I think?), and I'm not doing the normal client-relationship part that can be very time consuming.

Those are my thoughts at a high level. I guess it depends on the reasoning for the subcontracting because I can also see where it could be appropriate to charge the normal fee.

Also, in semi-related thoughts, are there areas of forum that can be either password protected or not open to Google?

Thanks Darlene for asking this question!!

lanelt · #4 (**permalink**) 02-09-2009

I've done and do both (regular rate or lowered subcontract rate). It all depends on the agreement between me and the company I'm subcontracting for. If the company I'm subcontracting for deals with the client relations/problems/payment issues/etc. then I'm willing to give a discount on some occasions. It really depends on what this relationship brings me. If it's a matter of working with someone who doesn't not have an extensive bookkeeping knowledge and I'd have to deal with the issues that come up then no, it's just like another client. For the most part, I don't necessarily discount my rate.

Virtually Assisting You · #5 (**permalink**) 02-09-2009

I do both as well. I try to offer a discounted rate to all inquiries, but depending on the situation will be the deciding factor for my rates. Like Lanel said if the VA Company handles the billing and so forth, I will offer a lower rate. But, I try to offer a discounted rate to all fellow VA's

dawnjlane · #6 (**permalink**) 02-10-2009

I have done both also and normally pay/ask for 75% of my normal rate ie if my hourly rate is £20 (GBP) and I am subcontracting out, I pay the person doing the job £15 GBP but ask my client for £20. I would hope that anyone asking me to do the work as a subcontractor would also honour this structure.

However, I have turned down subcontracting jobs where the person asking for the work to be done is only offering rates that I would class as 'slave labour' - eg digital transcription offered at AUS$1.4 per audio minute (US$1.0) - my normal rate for transcription is £1.50 or US$2.24. My subcontracting rate at 75% would have equalled US$1.65 - doesn't sound much of a difference but if there is 6 hours of recording to transcribe makes a big difference to the total invoiced!

Dawn

leedrozak · #7 (**permalink**) 02-10-2009

I don't do either but this is great information to know. I am thinking of subcontracting as my client list continues to grow. And know I have the information I need to decide if I want to go this route.

Missbookkeeping · #8 (**permalink**) 02-10-2009

Hi Everyone- I am glad this subject has come up. I too want to start subcontracting for others and was contemplating on a rate structure. I feel that if they are going to deal with the client etc. then I would be willing to do a discounted rate so that they can make a little as well. If not then I think that it is fair to charge your regular rate. IMO

Office Goddess · #9 (**permalink**) 02-10-2009

I like the idea of a 75% rate as a sub if, as Lanel says, I don't have the 'hassles' involved w/direct contact w/the client. I haven't subbed yet but... (spirit's willing)

JKVirtualOffice · #10 (**permalink**) 02-10-2009

I believe in paying subcontractors a fair wage, but I also believe in getting paid for securing the client and for managing the client as well as managing the subcontractor. So, that being said, I do expect for VA subcontractors to discount off their normal rate. I recently had a conversation about this with a VA industry veteran who basically said that if you are not making some money for yourself when you subcontract then you are actually losing money.

However, I also keep in mind the type and level of work I'd be wanting a subcontractor to do and if they are an expert in that field or have years of experience in that area, then I'd want to compensate them for that skill level.

Hettwer_Virtual_Office · #11 (**permalink**) 02-10-2009

I have subcontracted myself out and have also subcontracted VAs to assist me. When I have subcontracted myself out, I charge 75% of the rate to the VA the client is being billed for my services.

When I subcontract VAs for my clients, I typically will keep 25% of the fee due to the administration part necessary on my part. There have been a few times where I don't have the expertise the client needs and have them contract directly with a VA I have recommended (hence they get the full rate then).

hbplifestyle · #12 (**permalink**) 02-10-2009

As a subcontractor myself, I would have to say it's not so much a discounted rate but a standard percentage charged. This way the higher the skill set I'm still receiving what I'm worth since it's based on percentage.

The biggest reason being that if my contractor is taking the time and expense for marketing, communicating and finding the clients they should definitly receive a portion of the normal fee.

vainparadise · #13 (**permalink**) 02-10-2009

As a professional courtesy I always offer a reduced rate to fellow VAs.

AwesomeAssistant · #14 (**permalink**) 02-11-2009

This year I've used three subcontractors and have signed agreements with them all regarding their rates. Since I'm getting the work, managing it and doing the billing and thus far they have no direct contact with the client, the rate they receive is substantially less.

I also have taken on work as a subcontractor and do offer a discounted rate since obviously the VA getting the work and managing it must get paid for their part in managing the project.

peales23 · #15 (**permalink**) 02-14-2009

I'm not at the point yet where I have to subcontract, but hopefully soon, and this discussion has certainly helped me consider my options.

Thanks