If a task takes longer than anticipated, you could lose money if you don’t protect yourself adequately in the contract.Allows you to accurately predict your monthly income.Rewards you for getting better and faster at your job.
(for example, you could charge a lower fixed amount for inbox management, but a higher fixed amount for email marketing management – all within the same contract) Allows you to charge different “rates” for tasks of varying complexity and skill.Allows you to charge appropriately for advanced skills.In this example, for those two tasks, your total monthly rate would be $1,100 for this client. The client does NOT see your internal hourly rate, nor your time estimates. You estimate that you’ll spend 10 hours a month on this task, and so your package rate is $500/month. In the same contract, a client has you creating sales copy for their website, which is an advanced skill, and your internal rate for that service is $50/hour. You estimate that you’ll spend 20 hours a month for this client, so you charge a package price of $600/month. It is still totally appropriate for you to use an internal hourly rate to determine your package pricing, but you will charge the client one fixed amount.įor example, you might have an internal rate for social media management of $30/hour. This works really well for most services and allows you to separate your proposals into separate fixed rates for each individual task. Package pricing is where a client pays a predetermined rate for a specific task, regardless of how long that task takes you.
It only measures time spent, and not the value of the service. Hourly pricing makes it difficult to grow and scale, because it does not accurately reflect the value you are providing to the client.You will make less when you become faster and better at your job because you are paid based on hours worked, not work completed.Client’s will try to micromanage your time or questioning time spent on tasks.You have to track your time and often create custom invoices for each client each month, effectively lowering your hourly wage.Hourly pricing makes it hard to predict your monthly income, because each client is billed a different amount each month.This may be a perceived as a benefit to some clients. Hourly pricing works well for a predetermined number of flexible hours to complete various admin tasks.It also protects you from underestimating the time you’ll spend. Hourly pricing works well for tasks where there is difficulty determining the amount of time a task will take.If you have a task that varies in volume each month, hourly pricing allows a flexible way for the client to pay you.Hourly pricing allows you to be paid for exactly the number of hours you work, with very few exceptions.If you’re wondering what you should be charging, check out this blog on that topic here. If you want to be paid hourly, estimate the time that it is going to take you to complete the task(s) and invoice a certain amount of hours up front, and bill them for any additional hours used after you have completed the task, or at the end of the month.
You should always get paid up front for your work. Many Virtual Assistants bill for the hours they’ve worked at the end of the month, but I don’t teach or recommend that practice. Hourly pricing is when you charge your clients a predetermined hourly rate. I’ll even offer suggestions about what type of services work well with each type of structure. In each section, we’ll look at how each pricing structure works, and discuss the pros and cons of each type. You can then determine which one fits your services, your clients, and your business best. This blog is will give you a basic understanding of each type of pricing structure. I’ll start by saying this: You are allowed to choose what pricing structure works best for your business. What’s the difference between hourly pricing, package pricing, and project pricing? Which one should I be using? Here are the two questions I’m going to be answering today: package pricing structure, you’ve come to the right place. If you’re a Virtual Assistant who needs help deciding on a hourly vs.
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