In the Virtual Assistant industry, how you charge clients is a critical decision. While many stick with hourly rates or retainers, from our experience of years of dealing with the pros and cons of different charging methodologies and all the things that can go wrong, we believe that outcomes-based pricing is the game-changer every Australian VA should consider.
If this is a whole new concept to you, please… hear me out!!
While it’s definitely true that hourly rates are a common starting point, the reality is that they’re far from perfect.
Why? They limit your income because there are only so many hours in a day, and they misalign incentives with your clients. The longer a task takes, the more you earn, but your client ends up paying more, which can strain trust. To top it off, there’s absolutely no reward for working smarter or faster. In fact, the better you get at your job, the less you effectively earn. It’s a model that caps your potential, and seriously, who wants that?
Retainer packages seem like an improvement, largely because they bring the promise of upfront payments and predictable income, which is very appealing. However, much like charging an hourly rate, they come with their own set of issues.
What issues? Probably the biggest issue in our book is the simple fact that most clients don’t know how many hours their tasks will take, making it tricky for them to choose the right package (and potentially a recipe for disaster in the long run). Plus, the common practice of discounting rates for larger retainers which is common practice in the VA Industry actually only serves to unfairly penalise you for working more hours. On top of that, there’s the sometimes difficult issue of unused hours expiring, which could ultimately be an issue between you and your client.
Which leads us to the outcomes-based pricing model… and why it really shines!! You see, the long and the short of it is that above all, your clients care about results, not how long it takes you to deliver them…
With an outcomes-based pricing model, you set a fixed price for a specific outcome, whether that’s managing emails, building a website, or creating a month’s worth of social media content. And the benefits are huge because it’s transparent, straightforward, and, most importantly, rewarding.
It’s a win-win for everyone!
Take the example of managing a client’s email, calendar, and travel for a fixed weekly fee. Whether it takes you three hours or six, you still earn the same amount. Over time, as you streamline your processes, you’re effectively earning more per hour while delivering the same results.
Similarly, for a project like building a website, your client is paying for the finished product, not how much time you spend on it. This approach rewards your expertise, efficiency, and ability to deliver quality outcomes.
When it’s all boiled down, outcomes-based pricing isn’t just about earning more—it’s about working smarter and creating a business model that reflects the true value you bring to your clients.
For Australian Virtual Assistants, this method aligns with the flexibility and professionalism our industry embodies. It builds trust, eliminates ambiguity, and positions you as a true expert in your field.
It’s time to think beyond hours or retainers. Outcomes-based pricing isn’t just the future—it’s the now.
-------------------------------------
If you're confused about pricing correctly, and need support to get it right - just reach out to us here at VA Institute. Together we can help you come up with a strategy that works for you.
Great read for the future, thanks Raima