Comparison
Direct Hire vs. Agency VA: What Each Really Costs
A monthly VA agency bills you every month for as long as the person works for you. A direct hire costs one placement fee, then only the person's pay. Here is how the two models compare in year one, year two and beyond, with worked USD examples.
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Two ways to get a full-time remote VA
The monthly agency model
The agency recruits the VA, keeps the working relationship, and bills you a monthly rate. The VA's pay comes out of that rate, and the agency keeps the difference. You get one invoice, and the agency stays between you and the person doing your work.
The direct-hire model
A placement partner recruits and vets candidates, and you hire your chosen person directly. You pay them yourself, and the partner charges a one-time fee. That is how Online Team Member works: 30% of the VA's annual salary, once. No monthly fee, no markup, and your VA keeps 100% of their pay.
The cost over two years
Example
These numbers are illustrations. Agency rates vary widely, so replace the agency column with a real written quote before you decide. We assume a VA paid $1,200 a month in the direct-hire model and an agency billing $1,800 a month for a comparable full-time VA.
| Example (USD) | Monthly agency | Direct hire with OTM |
|---|---|---|
| Monthly cost after hire | $1,800 to the agency | $1,200 to your VA |
| One-time fee | None in this example | $4,320 (30% of $14,400) |
| Year 1 total | $21,600 | $18,720 |
| Year 2 total | $21,600 | $14,400 |
| Two-year total | $43,200 | $33,120 |
Example only. Agency rate is hypothetical. Some agencies also charge setup fees or minimum terms, which would change the agency column. Direct-hire figures use OTM's published fee: $500 deposit plus a $3,820 balance after day 100.
The pattern holds at most rates: the direct-hire fee is front-loaded, and the agency margin repeats every month. The longer you keep a good person, the wider the gap gets. Run your own numbers with the examples on our pricing page.
Beyond price: how the models differ
| Question | Monthly agency | Direct hire with OTM |
|---|---|---|
| Who hires the VA? | Usually the agency | You do |
| Who pays the VA? | The agency, from your fee | You, directly |
| Does the VA see your full spend? | Usually not | Yes, they keep 100% |
| Ongoing fees | Every month | None |
| How candidates are shown | Varies, often resumes | Endorsement Packet with a recorded interview |
| Guarantee | Varies by agency | 100 days, up to two replacements |
| Day-to-day management | Some agencies supervise | You manage; we help onboard, then step back |
When an agency may suit you better
Direct hire is not for everyone, and we would rather say so. A monthly agency can make sense if:
- You need someone for a few months, not years, so a placement fee will not pay off.
- You want a third party to supervise the VA day to day, and you are happy to pay for that every month.
Direct hire tends to fit owners who want a long-term, full-time person, are willing to treat the VA like any other member of your team, and would rather pay once than pay an agency every month. Our best fit is a service business doing about $1M-$5M a year.
Five questions to ask any VA provider
- How much of my monthly payment does the VA actually receive?
- Is there a setup fee, a minimum term or a buyout fee if I want to hire the person myself?
- Can I watch or listen to a real interview before I meet the candidate?
- What exactly does the guarantee cover, and for how long?
- Who does the VA work for, and what happens to them if I leave?
Our answers: your VA receives 100% of what you pay them. No monthly fees. Every finalist comes with a recorded interview. The guarantee runs 100 days from hire, with up to two replacements. And the VA works for you from day one.
What direct hire looked like for one client
Pride Painting in Canada had tried hiring on its own and through another agency before coming to us. It hired its first VA directly through OTM and has since grown to seven, all hired directly and all still on the team. Read the case study, see the steps on how it works, or read more for US and Canadian businesses.
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