Virtual Assistant Forums

#1 (**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.

#2 (**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).

#3 (**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.

#4 (**permalink**) 02-10-2009

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

#5 (**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.

#6 (**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

#7 (**permalink**) 04-08-2009

Thank you, thank you, thank you ladies all!

I have been searching high and low for the information that you have been discussing in this thread.

I did some subing for a few Australian VA's a couple of years back (digital transcription) and I must say at the time it wasn't about the rate, rather the experience, so I didn't really question what percentage of the payment was being passed on and what being kept.

Now, I find myself in a similar situation, but this time I am being asked what my subcontractor rates are and I haven't clue what to say as it is something I haven't thought of for a while.

I thank you for your steer and must say that I totally agree with what you have all being saying in this thread - very valuable information and something not often discussed.

Thanks again.

#8 (**permalink**) 06-08-2009

I am so happy that I was able to find this forum. I was on my way to work and I started thinking about subcontracting and how it works. How the rates are worked out? I then thought "The Forum! I bet they have the answers!" And you great VA's had the answers. Thank you. :-)

#9 (**permalink**) 07-01-2009

I have always just given my VAs the regular standard rate. However, I do reduce the rate if there is some shared work, extensive training, etc. Most of my clients are on a flat rate-- this means if I design a website or if I upload contacts to a DB, it is all the same rate. Most everyone has felt this is okay.