The Differences Between Working for an Agency & Working Independently
We’re diving into an important topic for anyone in the virtual assistant (VA) world or thinking about joining it. We're exploring the differences between being an independent virtual assistant versus a subcontractor for a virtual assistant agency. There are pros and cons to each path, so let's get to it and discuss the good, the bad, the beautiful, the ugly—everything!
What is a Virtual Assistant?
First, let's define what a virtual assistant is. A virtual assistant provides administrative, technical, or creative assistance to clients remotely from a home office.
Independent Virtual Assistant
An independent virtual assistant works for themselves. This means you are responsible for everything:
Networking and marketing your business
Finding clients
Conducting discovery calls
Negotiating terms and pricing
Managing follow-ups and client communications
Subcontractor for a Virtual Assistant Agency
As a subcontractor for an agency, the agency handles most of the legwork:
They network and market to find clients.
They oversee the work, pricing, and negotiations.
They handle client communications and payments.
Your primary role is to complete the tasks assigned to you by the agency.
Pros and Cons of Each Path
Independent Virtual Assistant
Pros:
Higher Rates: You can charge clients directly (e.g., $40/hour).
Full Control: You manage all aspects of your business.
Flexibility: You decide when, where, and how you work.
Cons:
Extensive Legwork: You are responsible for finding clients and managing all business operations.
Financial Management: You handle invoicing, taxes, and other financial aspects.
Time-Consuming: Networking and client acquisition can be time-consuming.
Subcontractor for an Agency
Pros:
Less Administrative Work: The agency finds clients and handles negotiations.
Steady Stream of Tasks: You receive assignments without having to search for them.
Focus on Work: You can focus on completing tasks rather than managing a business.
Cons:
Lower Rates: Agencies may charge clients $40/hour but pay you $20-$30/hour.
Potential Micromanagement: Some agencies may micromanage your work.
Less Control: You have less say in client interactions and business processes.
Pricing Differences
When you're an independent VA, you can set your own rates. If your hourly rate is $40, you charge the client $40/hour. However, as a subcontractor, the agency might charge the client the same rate but pay you less. It’s essential to negotiate your rates with the agency, understanding that they are handling significant aspects of the client relationship.
Micromanagement
Micromanagement can be a significant downside to working with some agencies. Some agencies may closely monitor your work, requiring you to use software that tracks your activity. This can be frustrating, especially if you value your independence and privacy. However, not all agencies are like this. It’s crucial to find an agency with a management style that suits you.
Gaining Experience
For those new to the VA industry, working as a subcontractor can be a valuable experience. You can:
Gain practical experience and build your portfolio.
Earn money while learning the ropes.
Receive testimonials from clients and the agency, which can be beneficial when you decide to work independently.
From my own experience, I've learned a lot about the importance of finding the right fit, whether you’re working independently or with an agency. My agency hires highly competent VAs, so I don't feel the need to micromanage. This approach allows us to work efficiently and happily, ensuring high-quality results for our clients.
The VA industry offers incredible flexibility and opportunities. Whether you choose to work independently or through an agency, the most important thing is finding a path that makes you happy and aligns with your goals. There’s no wrong way to be a virtual assistant.
If you're new and ready to start your VA business, check out Jumpstart 2.0. This comprehensive guide will help you start your VA business in one week or less, including where to find clients and what Facebook groups to join.
For those who are already established and want to scale their business, consider my Scale to Six Figures Mastermind. This six-month coaching program includes one-on-one coaching, Zoom calls, and Slack communication to help you reach $8K months and beyond.
As we move through 2024, take a moment to reflect on where you want to be in 2025. Do you want to look back wishing you had started sooner, or do you want to be six months in, making great money, and achieving your goals?
If I could have started my VA journey sooner, I would have. But now you know it’s a viable path. So, think about that and take action towards your goals.
Until we meet again on Instagram, in the Facebook group, or in the next blog post, here’s to living virtually free!
