One-Time Placement Fee vs Monthly Agency Retainer: The Real Math
Traditional VA agencies charge a monthly markup for the life of the relationship. Over three years, that structure costs more than the salary itself.
There are two ways to buy offshore staffing. In the retainer model, an agency employs the VA and bills you a blended monthly rate. In the placement model, the agency finds and vets the person, you pay once, and from month two the VA is paid directly by you. The monthly invoice looks smaller in the first model. Over three years it is dramatically larger.
The retainer model, priced out
A typical managed VA agency charges $2,400 to $3,200 a month for a full-time assistant. The VA sees somewhere between $700 and $1,300 of that. The rest is agency margin, and it recurs every single month for as long as the person works for you.
- Year 1 at $2,800/mo: $33,600
- Year 2: $33,600 (usually more, after an annual uplift)
- Year 3: $33,600
- Three-year total: roughly $100,800 for one seat
The placement model, priced out
Say the same calibre of VA agrees to $1,500 a month directly with you. ARI Talents charges 80% of that first-month salary as a one-time placement fee: $1,200. You pay it once, at the start, and never again.
- Placement fee: $1,200, once
- Year 1 salary: $18,000
- Years 2 and 3 salary: $36,000
- Three-year total: roughly $55,200 for the same seat
Same person, same hours, same work. The structure alone accounts for a $45,000 difference over three years.
What you give up — and what you gain
The honest trade-off: in a retainer model, the agency handles payroll and day-to-day management. In a placement model, you pay your VA directly and manage them like any other member of your team. For most owners that is a feature, not a cost. Your VA reports to you, is loyal to you, and takes direction from you without an account manager in between.
The retention effect
There is a second-order benefit. When your VA receives their full salary instead of a fraction of a blended rate, they earn substantially more than the agency alternative for the same work. Better pay from a direct employer is the single strongest predictor of long tenure — which means you stop paying for replacement cycles too.
If you plan to keep the role filled for more than six months, the arithmetic points one direction. Retainers only win when you need a seat for a quarter and want someone else to own the admin.