A while back, I wrote about my decision to take on a Virtual Assistant for a fixed monthly fee. Previously, I was paying a $10 retainer fee to GetFriday.com to have a VA available for the occasional odd job. Now, I’ve raised my subscription to $120/month for 10 hours of service. I’ll have to figure out how to best use those hours through the month.
When I wrote this, I was not expecting the responses I received on the topic. I’ve had comments from several companies that offer VA services. Some of them seem intriguing. Here is a list of those who have commented thus far:
I’ve also had visits from people who are making it work in the U.S. as VAs.
One thing that has caught my attention regarding VAs in the U.S. vs VAs in foreign countries is the idea that domestic VAs cost more on an hourly basis, but generally charge less per task because it takes them less time to perform it. World Office Support writes that foreign VAs generally take longer to perform a task than their American counterparts. It’s a penny wise, pound foolish argument. They may well have a point; but it is difficult for me to test given that American VAs earn more than I do on an hourly basis. I think we are probably talking about different markets. American VAs are targeting people with more money than time. Foreign VAs seem to be targeting those of us with little of both. I’ve got the pennies, not the pounds.
A good example of the situation has to do with shampoo. Unilever tried selling shampoo in India just like they do in other countries. For some reason, their product was not moving. However, they did notice that travel-size shampoo was selling much better. Why? Well, you do get a better deal by buying shampoo in larger quantities, but often you only have enough money for small quantities, even with the added cost. So, the market could afford shampoo in travel-size containers much better than the standard size containers.
In the end, what you should get out of this is that comes down to arbitrage. One has to be able to buy and sell the same product at a difference in price in order to make a profit. The product in my case is time. At my current rate, there is parity between what I earn at my day job and what GetFriday earns. However, there is a price differential between what I earn in my computer business and what GetFriday earns. It is better for me to use the VA for business-related tasks than personal tasks. It pays for itself, in a way. If I were to move up one tier of monthly service, then it would actually be feasible to give my VA personal assignments as well. I could not do the same with an American VA. I’d operate at a loss whether it’s 1 minute or 60. At this point, I am short on time and money. I need to leverage both. I know I won’t be successful if I am paying my VA more than I earn on an hourly basis. Doing business at a loss is both penny and pound foolish. Maybe once I’m rich I’ll be able to hire an American VA; but not now.
7 Comments
this is a very well written article. I agree with you that offshore and onshore VA’s have different strengths and weaknesses. I really liked the way you wrote it. God bless on your business!
Great insights into the pros and cons of both resource pools.
I haven’t personally used offshore VAs, I currently have a pool of American and Canadian VAs that are well worth my investment.
But I constantly am asked by my virtual team building bootcamp clients about offshore VAs and up till now, couldn’t really give them any feedback about recommending one over the other.
I agree though that you must always be clear about your priorities — time, money or quality. This will lead you to the best type of VA service for you.
Melanie Benson Strick
Million Dollar Lifestyle Business Coach &
Virtual Team Building Expert
Shaine, as a business owner who is outsourcing the workflow that you simply do not have the time, desire, or maybe even knowhow to complete is the first step that all smart entrepreneurs should take towards building a solid foundation for their business. This is a good step forward for you!
There are many very savvy virtual assistant’s who are able to market products and services in ways that some clients never dreamed of. These VAs are always a step ahead of their clients and strive to build long term partnerships.
Because the VA is always going that extra mile, this could be the fire that generates the extra income that will more than pay for their services.
Thank you for the comments. I want to note that I would consider an American or Canadian VA for some tasks that I value highly and I have no idea how to do. However, at my level of learning to delegate, I am assigning simple things that have to get done, but I don’t have the time to do.
Frances is right, highly specialized skills like marketing are better off delegated to domestic VAs. They are better suited to the culture and would in fact prove to be a boost to one’s business.
For things like appointment setting, reminders, invoicing, and similar time consuming and necessary tasks, you can rely on foreign VAs as much as domestic.
Melanie is right. You have to be clear about your priorities. In fact, your decision does not have to be an either/or. You can have a mix of virtual assistants to handle your different needs, which will be dictated by your priorities.
I am really enjoying the discussion on this topic. Thanks for all your input.
Shaine - I’m sure that offshore VA’s are efficient and economical for small business owners. However, there are plenty onshore VA’s that are both also. They may not be charging $10 an hour but some are not too far off from that figure. There is plenty of work to go around for everyone. I would like small business owners try to support other small business owners here first before outsourcing funds overseas.
I just read your blog and you have some well-thought out comments; things that I have heard any number of times. However, I have not been given access to what the other VAs have said or how the company you’re using works. So, please bear with me if I repeat what others say.
First of all, I have been doing this work for over 30 years — putting myself through my PhD program by typing and other secretarial services for others around me. I understand well when you say you don’t have the money … I have wanted in the worst way for someone to clean my house but have said “I don’t have the money.” So, my house stays dusty and laundry piles up because I’m too busy doing other’s work to do my own (and I HATE doing laundry). Finally I realized that I was grumpy and grouchy and hated where I lived and broke down and hired someone once a month. Better to pay $100/month than ruin my marriage and my own mental happiness.
What I think needs to be understood is that with an American VA (like me maybe), you get someone who speaks the same language, “gets” your needs and wants more than someone perhaps from a different culture. You get someone often that has a higher education (a PhD for instance…LOL), and can actually get more work for you because they are “local”, they can sound like they’re a part of your business and more. You set the budget and work out what is the most important thing for them to do. Eventually, you’ll see where you can give them more and more — thus freeing you up more and more. I’d really like to talk to you about this if you’d like. My website is www.workplaceadmin.com and I’ll bet we could come to an arrangement that works for us both.
Take care.
Niki
Hi Shaine:
I just send you email to your gmail account.
Regards,
James
www.bpovia.com
Post a Comment