Episode Summary

Tune into this week’s episode of the Make Space for More podcast as Melissa Swink discusses the essential factors influencing the cost of hiring virtual assistants (VAs). Learn how to frame your new hire as an investment in the long-term growth of your business rather than just an expense. Areas influencing the VA’s rates include experience level, skill set, professionalism, location, and whether you’re hiring an individual or a team of VAs. Melissa also shares strategies for maximizing return on investment and managing costs effectively when working with VAs.

Key Highlights:

• The cost of a virtual assistant can range from $15 to $50 per hour, or more depending on the expertise and skills required.
• Hiring a VA should be viewed as an investment in business growth.
• Experience and specialized skill sets are key factors that influence the cost of a VA.
• Professionalism and self-investment are indicators of a good VA.
• Location affects the pricing of virtual assistant services.
• Working with a team of VAs offers more flexibility and backup support.
• Consider the ROI when hiring a virtual assistant.
• Start with small tasks and gradually increase responsibilities.
• Clear communication about budget and expectations is crucial.

About Melissa:

Melissa Swink, Founder & CEO of Melissa Swink & Co., has a team of virtual assistants who provide administrative and marketing support for small businesses and non-profits.

Since 2012, Melissa and her team have helped more than 100 businesses grow through the services they offer, and she is dedicated to helping entrepreneurs create profitable, scalable businesses they love.

Her work is all about doing what works (and eliminating what doesn’t) and driving real, measurable results. Visit www.melissaswink.com to learn more! 

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Hi everyone, welcome to the Make Space for More podcast where we talk strategies for growing and scaling your business in a way that's authentic and aligned for you. I'm your host, Melissa Swink, and I just wanna welcome you to the show today. Thank you so much for taking the time to listen in and I hope that you are receiving wonderful information from this podcast, particularly in terms of how you can make your business easier and more enjoyable to run.

while you're growing and scaling that beyond you. So just wanted to acknowledge you today. If you're tuning in on YouTube and you're watching on YouTube, you may have noticed that I am in a different location. You're like, wait a second, something is different. Yes, I recently moved and being fully transparent behind the scenes, not all of my stuff is here quite yet. So we're kind of in a space where we've got a little bit of furniture, but not all of it. And there's...

boxes and piles and all sorts of things happening behind the scenes. So I am comfy cozy here in my room and recording this for you today where there's not a lot of echo from big open spaces. So just wanted to acknowledge that if you are watching on YouTube, but Today is going to be a fantastic show. I am going to be diving into the world of pricing for virtual assistant services. We're going to talk about how much a VA costs.

and the factors that determine some of those costs, what you might expect in different levels of those costs and things like that. So, and I wanted to bring this to light today because the number one question that I get asked when a business owner or an executive is exploring the possibility of hiring a virtual assistant, that's one of the first questions they ask. Or maybe they don't necessarily ask that right away, but it's definitely something that is on their mind and they wanna know, like how much is this gonna cost?

So we're gonna break all of that down in today's episode. But first, I thought it would just be fun to share my Google search results. So I literally typed in, how much does a virtual assistant cost? And according to myoutdesk .com, it ranges really from about $15 to $50 per hour, or higher for specialized skills or industry specific expertise. And in my experience, not only as the owner of a virtual assistant services company,

But also in my experience with interviewing and hiring team members to support our clients, I would agree with this range. I think this range is pretty well spot on with what I'm seeing out there in the marketplace right now. Before we dive into exploring a little bit more about what determines the cost of a VA and what you might be able to expect and different ranges of that end of virtual assistant pricing, I want to take a minute to remind you all

that anytime you're hiring a team member, whether it be a virtual assistant, whether it be a bookkeeper, whether it be a web designer, or even your own employees, it is meant to be an investment in the long -term growth of your business. And when I say the word investment, investment in that there should be a return on that investment in the future, and it's not necessarily simply an expense.

So just wanna make sure that we're clear on the intention here isn't so much to have you thinking, I'm gonna bring on an employee or I'm gonna bring on a team member or a virtual assistant, it's gonna cost me X number of dollars. And then you feel like that is coming off of your bottom line or your own pocket, depending on kind of where you're at in business. That is not meant to be the case. That is meant to be an investment that will...

continue to multiply as time goes on for the benefit of your business. So all of that being said, I wanna talk about five primary factors that determine the cost of a virtual assistant specifically. So the number one thing that determines the cost, frankly, is the level of experience. So of course, if you are working with a virtual assistant who's just starting out, which I was once a...

brand new virtual assistant, and I'm so grateful for the clients who took a chance on me and hired me to help them. But of course, when you are new, you are looking to gain experience and there are lessons learned along the way. You're figuring it out. And so therefore, the rate for a newer virtual assistant is going to be lower than someone who has many, many years of experience, has worked with a lot of clients, has a lot of

I would say reviews, testimonials underneath their belt, there's going to be a pricing difference between the two. I would also venture to say that depending on your budget, wherever you're at in the hiring process, it's not necessarily cause for concern to hire somebody who's brand new to the VA space, but also just acknowledge that you may need to do a little bit more onboarding and training of

front because it's something that they haven't done before. They haven't done that for you or any other clients for that matter. It can also take a little bit to gain some efficiencies, you know, because there is a sharper learning curve to the tasks that you're going to be sending their way. On the flip side, if you're hiring somebody with a lot more experience, you're going to see less of your time invested in training and onboarding.

you're going to see efficiencies gain more quickly. So you're getting that return on investment more quickly. And I would even venture to say fewer onboarding headaches. And what I mean by that is a seasoned virtual assistant is going to have an onboarding process. They know the questions to ask you. They know what they're going to need in order to best serve you and get your tasks and projects done. And so the less of that will be depending on you.

in order to lead that process and guide that process, they're going to be asking you good questions and get the answers that they need to hit the ground running for you. So experience definitely impacts the rate, I would say even more than some of the other factors that are on this list. The second primary factor that determines the cost of a virtual assistant is going to be skill set.

So of course, if you're looking for a virtual assistant who can just do some basic admin, maybe you need some help with getting your CRM updated, or maybe you need some help with sending out an email newsletter or things like that, not necessarily creating the content, but just getting that content out there and into the hands of the masses. Those are some, I would consider basic admin types of things versus somebody who is much more specialized. And that is certainly,

resident of the Google search results I shared with you earlier. Of course, if you're looking for somebody who has advanced accounting knowledge because you need them to be doing your day -to -day books in addition to other admin support types of things that you need help with, there's going to be a cost difference there between the tasks that you're looking for that support on. The third thing that

determines the cost of a virtual assistant is going to be, I consider this in the word professionalism. That's the word that I'm going to go ahead and call this. So, and this might be something that you may not have considered off the top of your head, but I want to explore this a little bit more. Virtual assistants essentially are in business themselves in that they

are freelancers, are looking for their independent contractors, they are looking for clients to support. And so one thing that I pay attention to, which gives me a determining factor of, I don't want to say how seriously they're taking themselves, but how committed they are to

contributing and increasing their level of support that they can offer and elevating their own career. I'll go ahead and say it like that. So some indicators that I'm looking for, are they investing in themselves? So are they learning new skills? Are they receiving certifications? Now, I don't wanna go down the rabbit hole of certifications. I can tell you that there's many great virtual assistant certification programs out there.

I personally, I've been in business for 12 years. I have not completed those certification programs. Now I do have a business management degree, which certainly helps me in my work. But the best way I think that you can get experience as a virtual assistant, again, is just time and working with a variety of clients. So I'm not knocking the certification. I'm saying that's not necessarily something that I personally look for.

when I'm looking for team members, but I do look for team members who are investing in themselves. They're learning new skills, they're learning new software. Of course, as many of you know, AI is a huge thing in our business world right now. Are they learning different AI tools? Are they learning how to incorporate them with the work that they're doing with their clients? You know, different things like that. Are they investing in themselves? Do they have a website?

or a professional LinkedIn page or something like that? Are they putting themselves out there in order to say, yes, I can help you grow your business. I'm here to grow my business as well, sort of a thing. The other thing is do they have systems in place? And this goes hand in hand with experience a little bit, but their level of professionalism. Do they have an onboarding process or an intake process for working with new clients?

that is a really good indicator that they have invested the time in mapping out what their client journey needs to look like, aka the experience that you are going to receive as you are getting started with working with them. Do they have those processes in place? So I like to look at the level of professionalism. Of course, if we have people who are out there networking and they're learning and they're trying to improve upon their own processes,

and the support that they receive, that they give to their clients, I should say, the support their clients receive, I think that speaks volumes. And that's something that I look for. And I definitely can say that helps determine the rate that they're going to be charging for their services and their support. Okay, the fourth primary factor that determines the cost of a virtual assistant is going to be location.

I'm not necessarily just simplifying this as are they US based, are they based overseas, things like that. think most of our primary listeners are here in the US. Welcome to all of those who are around the world. So grateful to have you joining us, but it does determine a little bit based on the location of what the VA is charging. Now, gone are the days of the $4 an hour VA.

Correct me if I'm wrong, I have not seen anything less than $12 an hour in a really long time. I think it was the book, The Four Hour Workweek, that first suggested, many, many years ago now, the $4 virtual assistant from the Philippines, think it was, or India and some of those other countries there. There are phenomenal virtual assistants all around the world. My team personally is,

primarily based in the US. I've got a couple in Canada. I have one in South Africa at the time of this recording, but we are open to working with talented people from all around the world. But I will say that location can sometimes play an impact on what their hourly rates are going to be. Now, the other thing that might not necessarily be as apparent as a

somebody located here in the US versus somebody who is located say again in the Philippines would be, are they living in an urban area? So for example, if I have a potential team member who is located in a more rural area versus somebody who is in a very urban area, let's say like Los Angeles, their cost of living is different to at least some degree. Rent is much higher in a larger city.

than it is somewhere in a more rural area. And so some of those factors determine what they need to charge in order to make ends meet and put food on the table for themselves and their families. So location can certainly impact the rate that you're charging as well. And the last primary factor that determines the cost of a virtual assistant is going to be, this person operating as an individual, solo?

freelancer, virtual assistant, or are they a member of a team? And because I own a virtual assistant services company, I can speak a little bit more to the team side of things and why it's beneficial to look at potentially paying an overall, slightly higher average hourly rate based on the benefits that you receive for doing so. So I'm gonna toot my own horn here a little bit because

And I say this because I started off as an individual virtual assistant, worked that way for the first six years of owning my company. And then about halfway through, I started building the team based on my needs as a business owner, but then also meeting the needs that I saw that my clients had as well. And so some of the things that factor into the team rate that we need to charge is because we provide backups for our clients.

So if they're working with a virtual assistant who goes on vacation or God forbid life happens and that person suddenly needs to take a step back from the work that they're doing, we have others on the team that we can get plugged in and keep the client's work moving forward so that work doesn't stop. They don't have to suddenly go out and hire and find a new VA, retrain them and all of that.

if their VA goes in a different direction, suddenly isn't available, that sort of thing. So we are sourcing backups for them. They're also on the team when you're working with a virtual assistant team, you are not restricted to any one person's availability or skill set. So if you need help with a variety of tasks, such as invoicing, inbox management, but then you also need

help with things like content creation and social media management and graphic design. You know, it's hard to find one person who excels in all of those areas. So we're able to bring in the best person for the job or the project at hand based on the skill set that's required. But then the other thing is, is that let's say one of our clients' businesses is on the fast track to growth and they need additional support from the team.

and their VA is reaching capacity, we have additional team members that we can bring in to continue to support them. So we might have a couple of VAs working with one particular client just based on their needs and the level of growth that they need or even coverage that they need. So you're not restricted by skill set, you're not restricted by availability, but then some of the

biggest differentiators in terms of working with an individual versus a team is that we've done the hiring and the heavy lifting of that process for you. So everyone on the team has already been vetted. Many of them are already working with other clients on the team and getting them results and getting those wins. And so that way through that hiring process, it's less risk for our clients because we have done the heavy lifting of that

hiring, onboarding, training process, if that makes sense. So that does determine the difference between working with an individual versus investing in working with a team. Again, there are so many wonderfully talented virtual assistants who are here to support you and your growing business, who are aligned with your values and your goals. They are located all around the world. They have a variety of experience. There are some

I have hired some virtual assistants in the past who are brand new to the industry and absolutely knocked it out of the park with their very first client and have been excelling ever since. Of course, I've also seen the flip side where we have a brand new virtual assistant and they find after a couple of months, you know what, this line of work isn't quite what they expected. Totally fine. People change careers all the time. You just never know. I don't want it to sound like individual VAs.

not recommended, an inexperienced VA not recommended. I'm not saying that at all. I just want to educate on knowing the benefits and potential risks of going some of these different directions, one direction versus another. The other thing as I'm wrapping up here, just want to mention too is that working with a virtual assistant or even just hiring in general, keep in mind the difference between

the hourly rate that they're charging versus the results that you're going to be getting. And that of course varies depending on number one, how much time they are saving you, what you're doing with that time. Are you saving the time that you were spending on digging through hours of emails a day? And then you're able to do more outreach and networking to gain new clients. Of course, whatever hourly rate that you're paying that VA to manage your inbox while you're out,

but then you're getting large clients, you're getting new contracts for your company, that's a huge return on investment. So I want to encourage you also to not necessarily just look at the VA or VA companies average hourly rate, if you will. Take a look at the bigger picture of, let's say I'm spending $100 a week, and that would be a great starting point for investing and working with a virtual assistant.

and I'm freeing up all of this time, or they're going to be doing all of this marketing and outreach for me, and then therefore I expect to gain X number of clients or things like that. So just be aware of the hourly rate versus the results that you anticipate getting or that return on investment. Okay, as we're wrapping up here, just want to mention a couple of things for keeping costs in line, because I think that's the other thing.

that is a factor when we're looking at hiring a virtual assistant. Hourly rate is one thing, expect a return on investment, certainly very, very important, but then it's like, do I set that budget? Or what if I'm brand new and I just wanna start with one thing and then continue to build? So that is the first thing that I would say is to start small and grow, but grow consistently. Maybe you take a look at your to -do list or you look at the things that you are

just continuing to put on the back burner in your business because it's not your area of expertise or it's just something that you really hate doing. I'm looking at bookkeeping is a great example of that where it's something that just kind of gets put on the back burner. Like we maybe get a little bit lax on sending client invoices out on time or, know, goodness, we have not...

categorized expenses or transactions in our QuickBooks in a really long time. These are things that can sit on the back burner and then all of a sudden it's time to meet with the accountant to plan for taxes for next year or even file taxes for the previous year and then we're in a panic, right? Using that example. So maybe it's something as small as starting off with having somebody categorize your expenses in QuickBooks, send your invoices to your clients.

follow up when clients aren't paying invoices on time, just gently following up. Something really, really simple, but then grow consistently. So I would love to have you find that low hanging fruit, the things that you just gotta get off your plate, just gotta get done, and then continue to grow the work that you're doing with your virtual assistant from there. The other thing is, communicate your budget and ask for updates. So let's say you decide that you're gonna hire somebody for,

five hours a week, an hour a day. I just need an extra set of hands for an hour a day. Communicate that budget with your VA. Make sure that's included in your contract like, my budget is up to this dollar amount or this level of hours. And then check in with them and ask for updates periodically. Have them update you. When I am about 50 % at hours, can you update me? When I'm about three quarters of the way through my hours, can you update me?

That way there's no surprises and just really spell that out. And of course, an experienced virtual assistant or a company like ours, we're very used to working within clients' budgets and we have ways of keeping you updated regularly. And we don't send surprise bills. And then the other thing is too, for keeping costs in line when you're investing with a VA is to provide examples when assigning new tasks and projects. Now certainly,

This especially applies to things that need more visuals. I know our graphic designer, shout out to Jodi, she is phenomenal. When a client is having a difficulty describing, and this is totally me, I'll throw myself under the bus here. When I want a new flyer created or I want a new handout created for a program that I'm doing and I kind of give her vague direction, it's hard for her to read my mind, right?

So I want to give her some examples of other things that I've seen, or I want it to kind of look and feel like this. I might show her other examples of things that I like the style of. That is of course going to save Jodi a lot of time and a lot of hassle trying to read my mind, but it's also going to save me money because I gave her very clear specific instructions with examples to follow and there's less trial and error in terms of the final product. Same thing goes for

you know, other new tasks and projects that you may be assigning. Here, ultimately, is what I need this to be able to do. Here is ultimately what I would want this to look like and really provide some of those examples that can save everybody a lot of time in terms of expectations of that final result. Okay. Thank you so much for taking the time to tune in today. I hope this gave you something to think about in terms of you're looking at your support needs and as you continue to grow and scale your business.

Who do I need to hire? What does that look like? Where can I start? How much would I expect to pay? How do I make sure that they stay within my budget? All of those things. So if you know someone who needs an assistant, I hear that 100 times a day, I need an assistant. I need to clone myself. I'm so overwhelmed. I don't know how to get all the things done. If you're hearing your business bestie say something about like this or to that line extent,

or if you even are in the process of hiring a VA or you know someone who is, would you please share this episode with them? I would love to just give them a glimpse behind the scenes of what goes into hiring a virtual assistant, what they can expect to pay, and what they might expect in terms of the overall experience of working with that virtual assistant based on the rate that they might be paying. Thank you so much for tuning in. I appreciate you. I cannot wait.

to be back with you next week for another episode of Make Space for More with practical tips and tools and strategies for growing and scaling your business beyond you. Have a wonderful day. I'll see you again soon. Bye -bye.