Whne you sign an agreement with a subcontractor, do you ask for a reduced rate covering a specific time period? For example, when I respond to an RFP, I generally provide a rate for that client knowing that the rate will be fixed for the term of the contract. If that contract is a year, then that's what my rate for them for that year will be.

Great forum as I recently hired two subcontractors!

This is how I've worked it out:

1) A CONTRACT including a NDA and non-compete clause. (Jean Mejia of Your Virtual Office Assistant (virtualpensacola@gmail.com) has a great contract one, my lawyer had me change a few things but mine is basically like hers.)

2) You need a system to track documents, who's doing what project and all the details of each project; we use Google Docs. (I have a Projects & Task page that lists each project, the client, their contact details, when project assigned, when projects or milestones are due, and a comments column. I use different colors so I can see at a glance who has what project.)

3) You need to discuss details that may or may not be in your contract. I think these should be in the contract but lawyer says not, it's in a addendum: Hourly/project rate, exact duties, learning curve pay, pay dates, etc. (I do NOT pay for learning time as it's a skill the sub will take with them when they leave. Notice I said 'when' not 'if'. Subcontractors will eventually leave your practice when they decide they've learned enough from you or they want to make more money, or the two of you have 'creative differences'.)

Both of my subs have a minimum hourly rate (which is what they offered when they contacted me) and I bill the client my regular rate, Both of of us make money and more importantly; my clients are happy and our reputation is growing...

I built a Google spreadsheet that lists each person's skills, software they own, online programs they know, and other skills they have such as typing WPM, or 10-key expertise. I also have a time sheet for each sub that shows the days & dates of the week worked, the client's name, project, billable hours, total hours, and date paid. I pay through Pay Pal and their fees are built into my rates as I consider that part of 'doing business'. I know some VA's charge for everything from stamps to envelops, but I can write those items off my taxes.

I hope this helps!

Viki

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Need Help? Ask Viki!

Viki,

Thank you so much for the detailed answer. It was extremely insightful. I am looking to open my virtual doors next month however I have considered subcontracting to gain experience and learn from the VA I am subcontracting from. I think it is a great opportunity to "get your feet wet".

I definitely agree that the VA who secures the client and manages them should get a portion of the payments from the client. I personally like the idea of doing a percentage of my rate.

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Amy
TAG Virtual Office, LLC

good info Vikki! Thanks for sharing. I didn't know google docs would allow me to manage all that. That's cool !!! I'm all about saving money.Good to know!

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Dymin Services
www.dyminservices.com

Google Docs is awesome, you can even download some of them to Open Office, text Word, etc. and best of alll, IT'S FREE!

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Need Help? Ask Viki!

I also have a sub rate that I use as a professional courtesy when subbing for fellow VAs. I feel the difference compensates the other VA for their time dealing directly with the client.

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Kathy
www.theofficevirtuoso.com

I have my own clients and I also do lots of subcontracting. I don't intend to give up either. Sure, I make more working with my own clients, but I love subcontracting because, let's face it--seeking out those new clients, screening which ones are duds and which are gems, marketing in all the right places, etc. is a whole lot of work that, in my part-time schedule, I just don't always have time to do. Plus I like having the chance to work with peers--it's a relationship a little different than any other kind of client. I like the variety.

I agree with most of the others that a lower rate is appropriate for sub work. I offer a 30% discount on subcontract work. I also offer that rate when it's NOT a subcontract job but a job I'm doing directly for a VA I met on this forum or one of my other associations. Like someone else said, it's a professional courtesy.

When I've worked as a sub on a multi-VA team, I've found things are slightly different than they are for a single sub. The contracts are often closer to uniform from one team member to another, regardless of role. And you may report to a separate project manager (who's also a sub) rather than the business owner. But many of the things that usually apply to subs will apply to team members also: noncompete agreements, confidentiality agreements, uniform procedures, shared messaging/file exchange/calendar system (like BaseCamp or Central Desktop), separate email accounts from your own, etc.

But all that's a little beyond what your question asked, isn't it!

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AnnaLisa Michalski, Sunny Words Writing Services

I usually charge about $12-$15 an hour for subcontracting work. I find that the point for other VA's to offer subcontracting work is to make some money themselves, if they pay the same fees, they're actually losing money.
For me, I get to provide my expertise and learn my way as I'm new to VA, although I have the education, degrees and experience in the field, just not on the virtual world.
When I started I applied to VA Companies and places that hired contractors as secretaries and their pay is about $10- $14 an hour. It makes sense, if someone wants to build a business they have to make a profit and therefore charge more and pay less. Is the same way in any other job, employees don't get paid what the company charges...even if you are a CPA with a Bachelor working for the best company, you earn good money but they always earn more.

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Your Virtual Assistant--Bilingual
www.AssistantOffice.com

This is very interesting to read. I often see on here "subcontracting rates," and wondered how to arrive at that figure for myself. This thread has helped a lot! I agree, it should be less than what the VA is charging the client. I know if I were subcontracting to someone, I would like to make at least a little something.

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Pam Deyerle - Transcriptionist in the Richmond, Virginia area
The Perfect Word Transcription Services

wow! As someone who is on the verge of starting to contract out I can't tell you how helpful this post was.

I appreciate all of you who shared you experiences and opinions!