Realistic Thoughts For Paying Your Subcontractor

You can add a whole new dimension to your organization by taking on subcontractors. Your clients will pay you and in turn you will pay your subcontractors. This administrative work is additional of course, for you or your bookkeeper, but you will more than pay for this hassle due to the additional productivity gain. You do have to bear certain elements in mind in order to make it all work, though.

Pay Per Hour or Per Project

First, you need to determine how you’re going to charge for a project. Will it be per project or based on an hourly figure? At the same time, ask your subcontractor how they will charge you for the work.

Second, you’ll need to find out how much your subcontractors charge for the work you need them to do. Armed with this information, you can work out how much you will quote for your services to manage these projects, edit everything and communicate with the customer. Add these two numbers together, along with any other necessary fees, and you’ll have the amount you need to quote the client (although I recommend adding a small contingency fee as well).

In every eventuality, you need to be sure that you are making enough to cover what your virtual assistant subcontractor will charge you, your involved time and of course your overheads linked to that project. With all these calculations completed, get ready to sign contracts with the subcontractor and the clients before anything is done. Check with your lawyer to find out what needs to go in the contract.


Once the project is completed, some virtual assistants which are subcontractors invoice immediately. Other subcontractors invoice monthly or even weekly. Determine the particular policies associated with your subcontractor before you start. In some circumstances, a subcontractor will allocate a certain number of hours or tasks over a particular time period, in return for a specific amount. She works until you have used up your hours. This is a good arrangement if your subcontractor is completing tasks that aren’t directly related to specific clients or projects.

Check with your subcontractor ahead of time about specific payment arrangements. PayPal is a very common way of handling online subcontractors. In some cases, you may be able to pay via credit card, or the subcontractor may accept checks. In the case of a small subcontractor, you will more than likely be expected to handle the invoice right away. Some larger operations though may allow you to pay your invoices 10 to 30 days after receipt. Find out for sure what your subcontractor’s polices are.

What If the Client Doesn’t Pay?

When the subcontractor charges you for a project related to a certain client and the client won’t fork up, you might consider delaying the payment to the subcontractor. You must make sure that you cover this kind of eventuality with your virtual assistance subcontractor in the contract. But even if it’s not, as the project manager, it’s your responsibility to make sure those working under you get paid, even if you don’t. It will also be your responsibility to seek payment from the client.

If you look after your subcontractors and pay them on time, while also ensuring that you get an adequate amount of money from your clients for the work completed, you will build a successful business.

Contact HeyGoTo at (702) 475-4227 or go to today to find out how we can help you! To read more industry information go to the HeyGoTo Blog at

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