I’m still in the market research phase of starting my administrative support practice. Recently, a colleague and I were discussing yearly salary and work hours with her practice, and I was wondering if your experience has been similar to what she’s explained, before you got into training and from what you know of others in this business. Here’s what she said:
“I consider myself well established now. Despite this, I work between 15-25 billable hours a week and another 20-40 non-billable hours each week (on marketing, accounting, non-billable matter, etc.).”
My research suggests that someone who’s been in business for five years could anticipate gross earnings of approximately $30,000 per year. However, very specialized people make far more (in the range of $40,000 to $55,000).” –RD
If after 5 years someone is still only making $30,000 a year, there is a something seriously wrong in their business. They haven’t done proper business planning, are not charging appropriately and most like are charging hourly rates (selling hours/time) instead of setting fees based on value and results.
If you base your income on how many hours you have to sell, you will always limit your earning potential. I teach people how to use value-based pricing methodologies instead. Once you increase your business knowledge around pricing and how to price, package and present your fees and support plans, your earning ability goes up dramatically. In fact, you can earn more working with fewer clients that way.
Before we talk about what you can expect to make, I want to first make sure we are on the same page about what this business is about. This is important because your understanding of this will directly impact the profitability of your practice.
You mention the word “specialize.” What this usually indicates is a fundamental lack of understanding about what administrative support is.
Administrative support is already a specialty in and of itself. An Administrative Consultant is someone who specializes in providing ongoing, right-hand, across-the-board style administrative support. That’s an important distinction to understand for a few reasons.
For one thing, it’s a completely different business model from, say, a secretarial service, which is in the business of providing individual, transactional, project-based secretarial services.
They’re the Kinko’s, so to speak, of the administrative world. And the reason it’s important to understand the difference in these business models is because the businesses earn money in very different ways, they operate very differently, they have very different labor and administration needs, expenses and operating costs, and they market very differently and attract a completely different kind of clientele.
However, the very most important reason to understand the distinction is that these two business models deliver completely different solutions.
Administrative support is a relationship, one where you’re providing a long-term, more impactful and integral solution that supports the client’s business as a whole and where the focus is the ongoing dynamic and evolving work relationship.
A secretarial service is more like a one-night stand, where what is provided is a quick transaction where the focus and sole purpose is the completion of a single project or task at hand.
As you can see, then, administration is a specialized function already. It’s also work that is inherently ongoing. So going back to what it means to specialize, we already have a specialty: ongoing administrative support for clients we work with in continuous, collaborative relationship.
If someone specializes in some other function, then they are something else completely. For example:
- If someone specializes in marketing, they are a marketing professional.
- If they specialize in web design/development, they are a web designer/developer.
- If they specialize in bookkeeping or accounting, they are a bookkeeper or accountant.
Your colleague is confusing specialization with categories of business. What you specialize in IS the business. If you specialize in administrative support, you’re an Administrative Consultant.
People in our industry also commonly confuse specializing with the tasks involved.
When we talk about specialization, what that really refers to is not the work or tasks, but rather a target market.
Those who specialize in a target market (which is simply a field/industry/profession you cater your administrative support to) have a much easier, quicker time getting started and gaining clients. That’s because it provides them with greater focus and direction.
Now, that’s not to say that you can’t offer additional related services and support. The point I’m making is just because you offer something else doesn’t make it all administrative support. Web design is web design. Bookkeeping is bookkeeping. Marketing is marketing, and so on. These are each their own separate and distinct professions and categories of business.
There are lots of folks who offer creative and technical services in addition to their administrative support. But that doesn’t make those additional services or divisions or specialties in their practice the same things as administrative support.
They are still distinct from one another.
This is all very important because your understanding of these distinctions will directly impact how you structure and charge your fees to earn well.
Is this becoming clearer to you?
If so, you can begin to see that your ability to charge well doesn’t have to do with specializing in any one task.
As an Administrative Consultant, you already have a specialty (that of ongoing administrative support).
What earning well in this industry has to do with is your view and understanding of your value and the solution you are in business to provide, how you frame and portray yourself as a professional, how you effectively articulate your value to your desired clientele in the context of their needs, goals and challenges, and the pricing strategies you employ to focus them on the value and benefits rather than hours.
Earning well also doesn’t have to do with how long you’ve been in business or how many billable hours you have at their disposal.
(And if after five years someone is still only earning $30,000 a year, there is something seriously wrong and need to get the help of someone like me).
Those who intimately and more deeply understand the solution they provide and its value to their target market have much more confidence.
This understanding, in turn, allows them to have more effective, resonate, compelling conversations with clients and command professional fees.
Those fees can earn them well into six figures, but you only get there by doing things smartly and strategically. It will require some shifts in thinking about the pricing you offer clients. People who are still stuck selling hours in their retainers don’t commonly earn into six figures.
I really recommend you get my marketing guide. It will walk you through a systematic, step-by-step process of understanding more deeply and clearly the solution and value you provide to clients, choosing a target market, profiling your ideal client, and then putting it all together to come up with your own unique value proposition.
You can also get off the hourly rate merry-go-round (which drastically limits your earning potential) by learning how to implement value-based pricing and how to focus clients on value and results rather than selling hours.