One of the most important decisions you will make in your business is what you charge.
Revenue is what drives your business. Without money coming in the door, your business can not sustain itself.
But what is the right rate? What is enough, but not too much? What takes into account your value, without being exclusive? What are you and your clients comfortable with?
These are the questions that you need to consider when setting your rates.
But many VAs don’t have the confidence to simply make that decision. They have to ask lots of others what their opinion is.
And that’s okay, don’t get me wrong. Advice is good!
But once you ask around, you still have to be able to decide what is right for you, and what your clients will pay.
This week I have watched on various VA groups as people freak out about someone who is suggesting that VAs average rate is under $5/hr. I haven’t investigated the whole thing because it’s just ludicrous conversation to me, but it’s getting shared and posted everywhere in groups I belong to.
Does this bother you, that someone is recommending this to potential clients?
It doesn’t bother me and I’ll tell you why: because it doesn’t affect my business at all . I am not an offshore VA. They are not my competition or my colleagues. I do not work with clients who use offshore VAs. My clients value my expertise and my work and happily pay my rate.
So whatever this fellow is posting or sharing, simply does not matter to me . It doesn’t affect the part of the (vast!) VA industry that I live in.
But so many of my colleagues are upset about it, that it is tarnishing our industry (how? it’s not affecting my ability to find clients – or yours!). But Tim Ferris started this conversation years ago – before many of us even got started. It’s not a new discussion. That’s why it doesn’t matter to me.
And I have seen many of the offshore VAs that work for this guy posting how much they love working with him. That is their choice. I also know VAs from the Phillippines who are not happy with that rate, so they network in North America. Also totally okay!
You are the only one who knows:
- how much you need to make
- what your experience level is
- what you want to charge
- what your clients will pay
- what your value is
And those are really the only things you need to consider when setting your rates.
Yes, it’s fine to do a competitive analysis and find out what your colleagues are charging, if that makes you feel better. But the VAs that are outside of North America are simply not your competition.
I have never really cared what my colleagues charge anyway – the only thing that matters to me is what my clients will pay. Because if they won’t pay what I want them to, then I don’t have clients or revenue.
I increased my rates from $25/hr to $40/hr overnight about 10 years ago.
I didn’t ask anyone if it was okay. I just did some assessments of my expertise, and I looked at the services I was offering my clients, I realized I had 10 years experience outside of a corporate job, and a whole bunch of new training and experience, and decided my own worth.
And I got three new clients that week.
I developed new packages that included what I wanted to earn, and stopped being a one stop shop for all clients looking for a VA. I specialized in working with business coaches and offered them great packages based on a certain bunch of services, at my new billable rate.
And hey, I am a HUGE advocate of the VA industry. If you have followed me for any length of time, you will know this. So I don’t have my head in the sand about this $5 issue at all.
I just think you have to focus on what makes you successful and happy. And leave the rest for those who just don’t get it.
I’d love to hear your thoughts on this – does it bother you? Leave your comments on my blog post or LinkedIn!