How to calculate virtual assistants
What does a virtual assistant cost [and when can you afford a VA]?
"I urgently need the support of a virtual assistant SO urgently, but I just can't afford it at the moment".
This is a common complaint from entrepreneurs - but based on a completely wrong view and approach. Because in this statement you only take into account the costs that a virtual assistant incurs - not the added value that it brings.
Entrepreneurs who want to grow their business in the long term cannot afford to do everything on their own. There are not enough hours a day for directly billable customer work and Do the administrative work that goes with every company.
Once you've gotten to this point as an entrepreneur and still think you can't afford a VA, all you need is a little nudge to understand that you can probably afford a VA without any problems - and always have been able to. In the following we will calculate exactly why, why, why this is so.
The simple formula of when it is worthwhile to hire a virtual assistant
In every company there are administrative tasks that you cannot bill your customers; For example, research, customer support, data collection and maintenance, appointments and support for your social media. So you don't make any money for the time you do these tasks. They have to be done, however, and regularly - but why should you pay your own (hopefully) high hourly wages for them?
Because think about the following: How much do you cost per hour? What are you worth to your customers?
Let's say you estimate your time at $ 100 / hour. If you spend an hour doing administrative or technical tasks every day, you “lose” € 100. Because that's an hour that you can't bill your customers for.
Even if a virtual assistant would need the same time, i.e. an hour, to do the same tasks, and even if they charged 50 € / hour for this, you would pay 50 € for these administrative activities while doing this hour with billable Doing work for your customers and billing $ 100. So you could earn € 50 more per day if you used your time for billable activities and paid a VA for administrative activities - with 20 working days that is € 1,000 more per month.
And we exaggerated with 50 € / hour, because at MyTalent you can hire good VAs from € 3.50 / hour.
Do you see the potential of a VA now? And why is it not true to say “I can't afford VA”?
What determines the cost of virtual assistants?
There are a few things that VAs use to set their prices.
type of work
Different jobs require different prices. For example, data collection is easier to do than creating and optimizing social media ads on Facebook. While data collection is mostly a purely manual work, Facebook ads require certain technical skills and at least a basic understanding of marketing.
An experienced VA can ask for more than an inexperienced VA. So who should you hire? This is where most business owners make the mistake of going with the cheaper price. But also applies to VAs you get what you pay for. Because an experienced virtual assistant completes a task faster and more reliably than an inexperienced one.
example: Imagine receiving offers from two virtual assistants (one experienced and one inexperienced). The experienced charges 15 € / hour, but only needs half the time to complete the task than the inexperienced at 10 € / hour. The final calculation then comes down to the following result:
Experienced virtual assistance: 15 € x 10 hours = 150 €
Inexperienced virtual assistance: € 10 x 20 hours = € 200
Complexity of the project
There are certain types of projects that require a lot of planning, thought, and understanding - that is, “complex” projects. It goes without saying that complex projects cost more compared to simple projects.
If you hire a VA on a long-term basis, you will usually be charged less than if you hire a VA for a one-time project.
example: If you hire a virtual assistant for a recurring job, such as the daily maintenance of your Facebook and Instagram accounts, you will be billed, for example, 10 € / hour. On the other hand, if you hire the same VA for a one-time job as the one-time creation of a database, you will be billed € 15 / hour from the same VA.
Are there any short-term deadlines associated with your activities? If so, it can have an impact on pricing. Most virtual assistants charge more for work that needs to be delivered urgently.
However, if you work with a virtual assistant on a long-term, recurring basis, they can meet urgent needs at normal rates.
The cost of living varies greatly from country to country. While a cup of coffee in Germany costs € 2.50, the same cup of coffee in China or India costs € 1.00. This difference is mainly due to the different costs of running a business and personal expenses. In fact, this is exactly the reason why many German companies have outsourced their production and support activities to countries like China or India. The idea is simple - outsource, save costs, make more money.
The same concept also applies to virtual assistants. If you hire someone from Germany or from countries with similarly high living costs, the costs for a virtual employee are relatively expensive. On the other hand, if you hire someone from countries with low cost of living, you can get a cheap price - and still pay your VA more than their national average salary at the same time.
€ 2.50 for clients means 30% above the average salary for our Georgian VAs
At MyTalent, we recruit virtual assistants exclusively in Georgia. The average Georgian income is € 370 / month. For a 40-hour week, this corresponds to an hourly wage of around € 1.90. We recommend paying € 2.50 as an entry-level wage, i.e. more than 30% above the average hourly wage. With good performance, this hourly rate can of course be increased accordingly. For you this is a bargain, but for your Georgian VA it is a good living - far from dumping prices.
Successful people have a secret; they don't do everything themselves. We all have the same 24 hours in a day - we just have to make the most of that time.
That's how much companies save when they recruit abroad
With the scenario simulation, different wage costs and working hours can be compared with one another.
Find virtual employees
We have been represented with our own office in Georgia since September 2017 and thus have optimal access to local German-speaking talents. We place German-speaking employees from € 3.50 / hour. Find virtual assistants now
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