What Should You Budget for a Virtual Assistant? Comparing Options for Small Business Leaders
If you’ve done some research on hiring a human virtual assistant (VA), you may feel overwhelmed by the range of options and price points available. From offshore VAs to US-based virtual assistants, direct hires, and agencies, the choices can seem daunting. Whether you’re in the early stages of scaling your business or looking to delegate more efficiently, understanding the value behind each type of VA is key to making a well-informed decision.
Let’s break down your options and establish a budget that works for you.
Step 1: Determine Your Budget
As the founder of a US-based virtual assistant agency, you might think I’d simply recommend going with a US-based agency, but the truth is that sometimes there are better options, depending on your goals. This is why I recommend that business owners first consider their budget. This will allow them to choose the right solution based on their financial capacity and needs without sacrificing profitability or growth. Every leader who wants to optimize their impact and avoid potential burnout can benefit from delegation, so options are available to you, no matter your current budget.
A practical approach to determining your budget is to allocate a percentage of your monthly revenue for admin support. In different phases of your business (seed, startup, growth, maturity), your needs and demands will vary. Trying to handle every task yourself might feel cost-effective, but in reality, it’s often not the best use of your time and energy.
According to Oracle, businesses typically allocate 15-30% of their revenue to payroll, although labor-intensive industries may dedicate as much as 50%. However, virtual assistants are more cost-efficient than traditional employees, allowing you to budget less for their services. I recommend setting aside 5-8% of your monthly revenue for virtual assistant support.
For example, if your business generates $10,000 per month, a budget of $500-$800 would be appropriate for your VA needs. But if you are just starting out and only generating $6,000 monthly, set a budget of $300-$480 per month. Start where you are, and as your business grows, increase your budget and delegate more tasks.
Step 2: Explore the Types of Virtual Assistants
With your budget in mind, it’s time to consider the available options. Virtual assistant rates can range anywhere from $10 to $65 per hour, depending on where the VA is located and how they’re hired.
Filipino VAs
Starting at the most budget-friendly end of the spectrum, Filipino VAs are increasingly popular due to their affordability. You can find VAs for as little as $5 per hour or $1,600-$2,000 per month for full-time assistance. The Philippines has a large, educated workforce with a strong command of English and an understanding of Western culture.
However, despite high English proficiency, cultural misunderstandings or language barriers can still occasionally arise. Additionally, Filipino VAs are often praised for their strong work ethic, loyalty, and dependability, but they may require more oversight for higher-level tasks. Time zone differences can also pose a challenge for real-time collaboration, making this option ideal for more repetitive, back-office tasks such as data entry.
South American Agency VAs
A middle ground between offshore and US-based VAs, a South American agency typically charges $25-$35 per hour. The benefit here is cost savings compared to US-based VAs while still having the advantage of overlapping time zones for easier communication and real-time collaboration.
Agencies with a workforce in South America often ensure that their VAs are well-trained and skilled, but the quality and reliability can vary depending on the agency’s vetting and training processes, so do your research first.
US-Based Direct Hire VAs
If you prefer to be more hands-on with the hiring process, you may post your own job online and vet applicants personally. When hiring a VA directly in the United States, you can expect to pay between $20 and $45 per hour. This option offers cultural and language alignment, making it easier to collaborate seamlessly with no concerns about communication barriers. Additionally, being in the same time zone allows for more flexible, real-time collaboration.
However, the direct-hire route can be much more time-consuming, requiring you to sift through literally hundreds of applications and resumes and spend hours in interviews. This approach requires a full job description before you start the hiring process. Once you hire someone, you will be limited to their particular skillset and availability, even if your needs evolve as you continue to grow. This option allows you to really customize a role and find a great fit, but when you need something different, you are back to the drawing board again.
One last thing to remember when hiring US-based VAs directly is that you’ll need to navigate employment laws and tax compliance, which varies from state to state.
US-Based Agency VAs
If you’re looking for the most seamless experience, US-based virtual assistant agencies provide white-glove service and support but come at a premium price, typically ranging from $45 to $65 per hour. While this option costs more than others, it also offers the highest level of reliability and flexibility. Agencies like Trusty Oak rigorously vet their VAs, ensuring a high standard of service and providing backup support in case your primary VA is unavailable or your needs change due to success and growth. Most agencies also can match you with a VA without a job description, removing one more hurdle to help you get started quickly.
Additionally, working with an agency takes the hassle out of the hiring and onboarding process, freeing up your time to focus on more critical tasks. Agencies are also well-equipped to help you scale, allowing you to increase or decrease your VA support as your business needs change.
Step 3: Weighing Your Options
As you decide which type of VA is the best fit for your business, it’s essential to weigh the costs against the benefits. Here’s a quick summary of the differences between the options:
- Filipino VAs: Most affordable, great for repetitive tasks, but time zone differences may complicate real-time collaboration.
- South American Agency VAs: More affordable than US-based VAs, and agencies often ensure training and skill, with easier communication due to overlapping time zones.
- US-Based Direct Hire VAs: Culturally aligned and easy to communicate with, but the hiring process can be more complex and time-consuming.
- US-Based Agency VAs: Costs more than other options, but agencies handle all the hiring, vetting, and onboarding, providing top-tier service and reliability. You can also easily add additional VAs as needs evolve.
Choose the Best Fit for Your Business
There is no one-size-fits-all answer when it comes to hiring a virtual assistant. The best option for your business will depend on your budget, the type of tasks you need help with, and the level of oversight and collaboration required. By understanding the pros and cons of each option, you can make an informed decision that maximizes value while supporting your business’s growth.
Want to learn more about the process with a US-based agency?
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Before founding Trusty Oak, Amber spent five years at a rapidly growing digital agency based in Austin, TX. Four of those years, she was responsible for hiring and leading both local and virtual teams while working closely with clients ranging from CEOs to bestselling authors to build their brand online. As VP of Operations, Amber helped lead the company’s growth to #15 on Austin Business Journal’s Fast50 List in 2014.
As a female founder and leader of a company that has quickly established a recognizably special culture within a non-traditional workforce, Amber has energized and empowered women from diverse professional and personal backgrounds to go against the grain of historically standard female roles in business, technology, and leadership. Trusty Oak provides an opportunity for experienced admin and marketing professionals to work independently as freelancers, but with a supportive internal network consisting of other ambitious and resourceful remote workers.