Virtual assistant packages are not the same as virtual assistant retainer packages. When deciding your rates, it’s important to know that the two may sound similar but they are totally different.
Here, we will reveal what virtual assistant retainer packages are and guide you on how to set your packages.
If you’ve been struggling with deciding your rates, this is your chance to finally set the record straight.
What are Virtual Assistant Retainer Packages?
A retainer package is a minimum set of hours that your charge your clients every month. For example, you may set a package of twenty hours a month minimum for a client. That means that whether the client uses the twenty hours or not, they’ll pay you for the twenty-hour package.
In case your client requires you to work thirty hours in a certain month, you then send them an invoice for the extra ten hours.
The difference with packages is that with a package, you don’t need to specify the hours you will work. You charge your clients based on work that you’ve agreed to help them with on a month-to-month basis.
Now that that’s clear and the confusion is out of the way, let’s see the benefits and limitations of virtual assistant retainer packages.
Benefits and Limitations of Retainer Packages
Some of the pros of charging a retainer fee include:
You know your minimum earnings.
It helps you understand how long each task takes.
You get to earn more if you charge a good minimum rate.
With a retainer, you have the opportunity to understand each of your client’s needs.
Retainers are paid before work is done. So, you’re sure that you won’t deal with issues of unpaid invoices.
However, despite all these benefits, retainers have a few limitations that include:
Clients pay you for your time instead of your expertise.
Retainers may limit your earnings to the number of hours you can work in a month.
Clients may be more concerned about the hours you work instead of realizing the value and expertise you bring to the table.
When to Use Retainer Packages
Although retainers have a few limitations stated above, charging these packages is good for your business. When you’re starting a good virtual assistant business, charging a retainer package helps you get the idea of how things work.
You get to know the things that take more time to complete and those that don’t. With this knowledge, you may then shift to package-based pricing.
How to Set Your Virtual Assistant Business Retainer Packages
There are a few factors you should consider when setting your retainer packages. Here are a few that determine your pricing.
Your Availability in a Month
Since we’ve seen that a retainer package is usually based on hours, the first thing you need to check is your availability. Are you available forty hours a week for the four weeks in a month or will this be a part-time gig?
If you have only a few hours available to work for your clients, then your retainer package will only reflect these hours. But if you’re available more hours, you can set retainer packages of ten, twenty, and thirty hours as an example.
Number and Complexity of Tasks
Another way to determine your retainer package is to first analyze the number of tasks you’ll be helping your clients with—and the complexity of each of these tasks.
The more the tasks, the more the hours in your retainer package. The same applies to complexity as you may need more time to complete complex tasks.
Your Hourly Rate
Finally, your hourly rate will determine the total amount you’ll charge for each package. Choose an hourly rate and multiply that by the hourly in each package to get the total value of a package. Then inform your clients about it and start working as soon as you both sign the agreement.
Need More Help Setting Up Your VA Business?
Setting your retainer packages is one of the very first things you need to do when starting your VA business. Other things include learning the systems to organize your business and finding work on the right platforms. Join the Royal VA community and learn all about starting a successful VA business.