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

__________________
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.

__________________
Sue L Canfield
AwesomeAssistant.info
My Blog

I so agree with this, Tess. Even in splitting in favor of the sub, you as the hiring VA has much to gain in terms of resources (in your sub as far as future assistance), reputation (also with your sub); but also you are gaining favor with your client simply by taking on the task and potentially gaining a good referral. It's a win/win situation, even if your monetary compensation is little or nothing!

I have worked for a variety of other VA's and with different payment arrangements. Some have paid hourly, some have paid per project with a split, etc. I have also seen huge differences in what other's are willing to pay. I no longer just take what they offer. I tell them what I expect to make. I have learned that other VA's are just as likely to take advantage of you as any other client if you let them.

Being on the flip side and contracting with other VA's I have also learned that I need to be fair to the other side. So I have changed my way of paying them as well. It all depends on the circumstances, but the way I see it if we are the contractor regardless of it's sub work or not we are the business owner and we call the shots. That being said I think its nice to give a fellow VA a discount in one way or another as a professional courtesy.

I think a fair way to assess how much you should pay would be to base it off what the VA who is to subcontract charges. Then go from there. If you're rates are wildly different it may be difficult to ascertain a fair arrangement for both sides. The one who is actually doing the work though is the one who should get the majority of the payment.

There are also situations where you are splitting the job in those cases an even exchange of payment for labor might be best served if that makes sense. I have done jobs where I split it with another VA and just did a 50/50 split but the work was spread fairly evenly. So it would depend on how the work itself was split.

__________________

Sometimes I think new VAs get so focused on gaining experience they charge way too low. I like to make sure I charge a percentage to cover another VAS overhead expenses for finding the clients.

I haven't had the privilege to sub yet either, however subbing is usually done at a 10 dollar reduction price. I would like to be able to subcontract some work at some point, but I need to get some clients first.

__________________
FREE Ebook and Report from LDA

The subcontractors I have used with my medical indexing business get a 60/40 split, mainly because all work has to come back through me to be proofed and sent to the client. If there is ever a question on hours, I always round up rather than down. I respect them and want them to treat me with respect as well.

__________________
Jill Alward
Administrative Expertise

Do you mean pay the sub VA the $10.50 or the VA that hires the subcontractor gets the $10.50?

If it's the former, then that's an insult...

__________________
Bridie's Typing Services
Celebrating 10 years in biz

Originally Posted by bridiej

Do you mean pay the sub VA the $10.50 or the VA that hires the subcontractor gets the $10.50? If it's the former, then that's an insult...

Right, the $10.50 to the hiring VA.

__________________
Penny Fant
www.pennyfant.com

I've hired a subcontractor at the rate of 75/25. However, this subcontractor wants to eventually be part of the business so all of the fees received for service are reinvested and used as a "buy in." The goal is to have enough funds to move from a proprietorship into a Limited Liability Partnership.

My current thoughts on hiring subcontractors is that I'd feel more comfortable making it equitable and worthwhile for both of us. If I'm hiring a subcontractor, it's going to be for some significant work and they will deserve a large chunk of the fees received.

__________________
Vickie, E-volution Administrative Services (EAS)
https://evolutionadminservices.wordpress.com/