Subcontracting

[MLCBusinessSolutions@live.com 0]

I was just wondering what is the average rate charged to subcontract work from other VA's?

 

Thanks,

[Candy Beauchamp 84]

Hi Michelle,

 

I have several subcontractors. It's generally 25-50% less than their regular rate. Many I know ONLY subcontract, they like not having the ultimate end of the line responsibility to the end client, less overhead, less headache, just less of everything). I'm very lucky and have wonderful subcontractors

[Tawnya Sutherland 1,855]

I agree with Candy...anywhere from 25-50% less your regular rate. The benefit to you is that you don't have to spend any marketing dollars trying to get these clients since the person you are working for does all that work. Which means no administrative hassles for you, you can just do the work.

 

[MLCBusinessSolutions@live.com 0]

Thank you both for this information. I appreciate it.

 

 

[Guest Pat Z.]

I'm one of those that "only subcontract" - I love it and love my clients! I generally charge 25-30% less than my normal rate because I don't have to market or as Candy puts it "not having the ultimate end of the line responsibility to the end client, less overhead, less headache, just less of everything)". Well put Candy!

[Virtuacity 0]

I'm new to sub-contracting, and I'm a little confused here. If I were to sub-contract to another VA, and her subscontractor rate is the same as what my regular rate is to my client, then where is the profit for me? Obviously I wouldn't sub to someone unless they are 25%-50% less than my regular rate. So, what do you do in this instance? Do you charge your client more than what your regular rate is? Do you classify the markup as a Project rate? This is my first time looking at sub-contracting and I do have the need to hire a sub right now for a upcoming project.

 

Any advice is helpful.

 

Renee Cornick

Virtuacity

www.virtuacity.ca

 

 

 

 

[Janet01 5]

Maybe you are misunderstanding . . . the subcontractor you will be hiring will charge you 25%-50% less than their regular rate and you will charge the customer YOUR regular rate, (we all should be in the same ballpark here, no little league!). When you charge your customer, your profit will be the difference between what you are paying your sub and the amount your client pays you!

[maplewoodva 17]

Hi Renee,

 

If you were to sub a job to someone who's rate is already higher than your own (i.e. a web designer often charges a higher rate than a generalist) then adding it as a project fee would make sense.

 

~Ruth

[Guest AngelaGreen]

I'll just add to the mix my own procedure:

I charge the client: $xx/hour

I pay the subcontractor 80% of what I charge the client, so: $xx/hour

So I keep $x/hour for me.

[Guest dawn lane]

Similar to Angela, I pay any one who sub contracts to me, 75% of what I charge the client. If that is lower than their own hourly/prject rate, they can decide whether they want to take the work or not.

 

If I am the sub contractor, again I work on the premis that I will be paid 75% of what the VA outsourcing to me will charge their client. This can sometimes work out even more than my own hourly rate.

 

To make things even more confusing, I do some sub contracting work with an associate where she pays me the whole of the client's rate - this becasue 1) the rate is only 75% of my usualy rate any way; 2) she knows she gets a good job done quickly; 3) she knows she wouldn't be able to get the work done in the time scale the client asks for it so is happy to pay the whole to me to keep her client happy and more work coming in.

 

What I wouldn't do, and see so often, is offer sub contracting work at rates not much higher than that charged by off-shore VA agencies. I have seen some transcription work offered at sub contracting rates of much less than $x.xx per audio minute (my going rate is £x.xx/$x.xx per audio minute) - slave work to me.

 

Dawn

[Dee Bishop 0]

With this being the case, is there a "standard" rate sheet for VA services? Are we all in the same ball park?

[MLCBusinessSolutions@live.com 0]

Similar to Angela, I pay any one who sub contracts to me, 75% of what I charge the client. If that is lower than their own hourly/prject rate, they can decide whether they want to take the work or not.

 

If I am the sub contractor, again I work on the premis that I will be paid 75% of what the VA outsourcing to me will charge their client. This can sometimes work out even more than my own hourly rate.

 

To make things even more confusing, I do some sub contracting work with an associate where she pays me the whole of the client's rate - this becasue 1) the rate is only 75% of my usualy rate any way; 2) she knows she gets a good job done quickly; 3) she knows she wouldn't be able to get the work done in the time scale the client asks for it so is happy to pay the whole to me to keep her client happy and more work coming in.

 

What I wouldn't do, and see so often, is offer sub contracting work at rates not much higher than that charged by off-shore VA agencies. I have seen some transcription work offered at sub contracting rates of much less than $x.xx per audio minute (my going rate is £x.xx/$x.xx per audio minute) - slave work to me.

 

Dawn

 

 

Dawn,

 

So when VA's subcontract with you, you do not ask them how much they charge per hour? You just automatically give them 75% of what you charge your client? So when VA's ask me how much I charge, should I request 75% of the total fee they charge their clients or should I give them a discounted hourly rate? It seems like a percentage my seem more appealing. What do you all think?

[success 0]

Hello, Everyone

 

Iam confused with whole concept of Subcontracting. I received an email from someone in India whom saw my Profile on on Linked/Xing. Anyway he was inquiring about becoming a VA and how to get started, because he would like to Subcontract for me.

 

Now my confusion is: If, I take him on (to subcontract for me,once he gets certified as a VA) how do I go about paying him? Do he tell me how much to pay him? Or am I to assume how much I pay him? What if there is no work to subcontract to the VA, do you still pay them for being on stand by? Do I pay him per assignment he does? How do this subcontracting actually work? Its kind of difficult for me to grasp. I know that I may need assistant in my Business and all, but want to make sure that Iam doing things correctly if I decide to subcontract things out to VA's that are interested and I take on as part of the Team.

 

Please assist if possible on this insight of things.

 

Thanks,

 

Patricia

[Candy Beauchamp 84]

Patricia - I can't help you there. I only subcontract to those in the US and Canada myself... too far away, grammar/language differences - plus I do bookkeeping and I'd want someone that knows it well.

[success 0]

Patricia - I can't help you there. I only subcontract to those in the US and Canada myself... too far away, grammar/language differences - plus I do bookkeeping and I'd want someone that knows it well.

 

 

Thanks Candy I understand completely. However, even just to know a bit for the U.S. and Canada would be great,if you can shed some light on the Subcontracting works.