Most people say they cannot afford a virtual assistant (VA). Their reasons are varied, but most of them can be summarized as “I don’t have the time to train a VA up to the point that they are useful,” or “I don’t have the money to hire a VA.” In reality, that’s the opposite of what most people actually feel.
There are plenty of advantages to having a virtual assistant on board, such as:
- Assists in earning more in terms of profit on a monthly basis
- Frees up more time
- Gets administrative and communications tasks out of the way
Simply put, the ROI for having a virtual sales assistant is evident almost immediately.
ROI: What Is It?
ROI is an acronym that stands for return on investment. It’s a particular equation that business planners use to determine whether or not something is profitable enough to actually spend resources on in the first place. As a formula, it’s laid out as follows:
Return + Cost = ROI
The return of an investment is the amount of money it will make, while the cost of an investment is the amount of money you will have to pay for the investment. The final answer can either be presented by way of percentage or a whole number.
Let’s take a homemade popsicle stand, for example. If it costs $10 and what it brings in is $15, then the ROI is 15/10 or 150% (1.5). On another note, let’s say you bought collectible merchandise like a pop figure on eBay for $800, then put in another $200 for restoration and advertisement, ending up with $1200 on the resale. The ROI for that would be 150% or 1.2 (1,200/100).
When ROI is higher than 100% or 1, then the investment becomes profitable. The higher ROI gets, the more worthy the initial investment is. When it’s 1 or lower, on the other hand, it’s not really worth it since that means breaking even at best.
Virtual Assistant ROI: Time
When it comes to hiring a virtual assistant, one of the first things that people think about is the amount of money they will save. But to calculate the ROI of an assistant, you need to consider the amount of time the assistant will save you.
For example, if you paid your virtual assistant $40,000 to work 40 hours per week (8 x 40 = $320,000 per year), and that virtual assistant was able to save you 10 hours of work per week (1 x 40 = 40 hours), then the time ROI would be 10 x $40,000 = $400,000!
Many investments have a strong return on investment as time goes on. Buying an annuity for $10,000 that pays out $1,000 each year has a terrible return on investment in year 1: 10%. However, if you keep the annuity 20 years, it has paid out $20,000 with a 200% return on your money.
Virtual assistants are a great help on several levels. One of the most underrated things about them is their return on investment (ROI). Aside from the financial benefits, they’re also great for returns in terms of time.
Are you in need of virtual assistant sales support? Check out RepStack today! We offer sales development and customer service reps on demand.