79. Beyond Retainers: How Service Providers Can Double Profits While Working Less Hours

Ever feel like your business is running you instead of the other way around? You're not alone.

If you've been stuck at the same income level despite working more hours, constantly switching between different client tasks, or feeling like there's a ceiling to your growth, this episode is for you. 

Most online service providers think that adding more clients or working more hours is the path to growth, but in reality, that approach is what's keeping them trapped. The retainer model itself creates an inevitable income ceiling that no amount of hustle can break through.

In this episode, I share my personal journey from VA to OBM and the surprising realization that changed everything: your income shouldn't be tied to how much you work, but to how well your business is structured. I break down why most VAs and OBMs hit income ceilings despite working harder, and reveal a practical approach to doubling your profits while working fewer hours.

Key Points Covered:

✨ Why adding more clients actually decreases your effective hourly rate (with the exact math)

✨ The hidden cost of context switching between different clients and tasks

✨ How to transition from selling time to selling expertise through a structured framework

✨ The three key shifts that allow service providers to scale without burnout

✨ A practical audit to help you start implementing these changes immediately

If you're tired of the constant hustle, client overwhelm, and feeling stuck at the same income level despite working harder, this episode will transform how you approach your business. It's time to structure your business around a framework that positions you as the expert and allows you to charge for transformation, not time.

⚡️Want to break free from the time-for-money trap? Check out EXPANSION, my 3-month 1:1 coaching program designed specifically to help service providers create a business that scales peacefully. DM me "EXPANSION" on Instagram to learn more.

Thank you for being a part of the Soulpreneur Scaling Stories community!

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Transcript

[00:00:00] Andrea Elibero: Andrea here, your host and passionate business coach and scaling strategist for soulful service providers and coaches. Welcome to another episode of Solepreneur Scaling Stories. Have you ever wanted to look behind the curtain of your fellow entrepreneur's business to see what actually went into scaling it?

[00:00:22] Well, you are in for a treat 'cause that's exactly what we are doing here. In each episode, we will be uncovering the truth of the lessons and the stories behind what it truly takes for sold entrepreneurs to scale their businesses intentionally. I'm hoping that their stories will help you to unlock the true potential of your business so you can create your own soulful, abundant, and aligned laptop lifestyle through intentional scaling.

[00:00:46] So whether you're just starting out on your scaling journey or you're a seasoned entrepreneur seeking inspiration, this episode has something incredible in store for you. Are you ready to rise, grow, and create a business that fully supports your dream life? Well, let's [00:01:00] dive in. Before we begin, make sure to hit that subscribe buttons.

[00:01:03] You never miss an empowering episode filled with real stories and soulful insights.

[00:01:10] Welcome to Solepreneur Scaling Stories.

[00:01:14] Today I am excited to talk about the systems and strategy to break through your income ceiling. Whether it is you're stuck at three K, 5K, seven K, 10 K, we're going to break through that. So here's what we're gonna do today. So hopefully at the end of this, you're really gonna understand why most VAs ubms online service providers hit this ceiling despite working harder and harder.

[00:01:40] We're going to also talk about the unexpected reason why adding more clients might actually decrease your. Pay

[00:01:46] and

[00:01:47] also your hourly rate, how to structure your business for more growth without sacrificing your freedom.

[00:01:54] And

[00:01:54] a very practical and unique approach that allows you the peaceful profits that you have been [00:02:00] looking for

[00:02:00] while you get to work fewer hours.

[00:02:03] And now this is not about small tweaks or working harder, it's really about a fundamental shift in how you approach your business.

[00:02:11] So.

[00:02:12] Let's dive into this, and I want to share a personal story about my own business structure and business growth

[00:02:20] because it really illustrates what I see so much. Well, what's going on with so many of you right now?

[00:02:26] So I started as a VA in 2019, and at that time I was charging $37 an hour,

[00:02:32] which really felt like the ceiling of what I could charge as somebody who just does all of the things,

[00:02:37] right? So I was juggling. I don't know, somewhere around eight clients. And even when I, at one point, I grew beyond that and hired subcontractors,

[00:02:48] and I was making maybe around seven K per month,

[00:02:51] which really sounds impressive on paper, right?

[00:02:52] Like I replaced my income that I was making a my nine to five.

[00:02:56] Amazing. But the reality [00:03:00] was, was that. On the back end, day to day, I was constantly switching between different tasks, managing all these different systems, having different expectations with each one of these clients, and doing completely different work for everybody.

[00:03:15] I was saying yes to all the things that anybody needed, right? So I was doing. Emails, podcasting, project, co coordination, social media, like I was doing all of the things, which is fine, especially for me, and depending on your personality, how you like to learn things. That's how I learned and that's how I figured out what I wanted to do.

[00:03:35] However, there came a point, and it wasn't very long after I started,

[00:03:39] whereas I gained more experience, I. Quickly outgrew a lot of what I was doing.

[00:03:46] I was really bored with some things. I was overwhelmed by others.

[00:03:49] There were things that were just didn't fit well. And I'll give you an example. So at one point at the beginning I worked for an agency

[00:03:58] and [00:04:00] I had this client who was not at all like my niche or like people that I like to work with, which at that point were like health and wellness

[00:04:07] and um.

[00:04:09] The spiritual type clients, he like made apps or something, I don't know. But I was doing like regular, like I was managing his life basically. And can I tell you that I made so many really stupid mistakes, like things that I a hundred percent knew how to do. Because I was just like, why am I scheduling this men's haircuts?

[00:04:31] Like it was just not for me.

[00:04:32] You know? If that's the thing that you are like love to do, then great. Like, but it was not for me. Then I was, I really, really like, oh, it was terrible. So

[00:04:43] just an example of that. But within all of this, I had no clear specialty. I did all the things. There was no structure. I was just doing the things charging money per hour.

[00:04:54] So, and in that there was no real way for me to grow

[00:04:58] without just working more [00:05:00] hours.

[00:05:01] And again, even with a little boutique agency that I randomly created,

[00:05:06] I, it was still the same in terms of how I had it set up.

[00:05:10] So I was like, okay, I need to, this isn't for me anymore. Let me go on to the next thing. So I thought that I'd solved this problem

[00:05:18] when less than a year later I became a certified online business manager.

[00:05:23] So my income did jump right. I did increase to somewhere on average, maybe say 10 K per month with just three to four clients.

[00:05:31] That sounds great, right? But guess what? The exact same problems came back and they were even intensified because now with these few clients, it was more high stakes. I was the second in command. I was the one in charge. I was putting out endless fires. I was working a lot and I was doing all the things, managing them, managing the teams, doing, you know, all the things that OBMs do, working all of the hours and.[00:06:00] 

[00:06:00] Again, still switching between completely different responsibilities, different businesses, different everything.

[00:06:06] And although I really liked the strategic aspect a lot more than before, eventually I also hit a wall doing this. So as an OBM with, with a retainer based client business model, I hit a wall and I burnt out hard.

[00:06:27] It was so interesting because there was one point where two of my clients, uh, they didn't need my services anymore around the same time, and so that's when I would normally

[00:06:39] go and find a new client, but I could not bring my fingers to the keyboard and will myself to do this, and that burnout lasted for nearly a year.

[00:06:51] Here is what I found so interesting and I think that. It is not spoken enough about [00:07:00] in this community, in the online service provider industry. It wasn't just me. The more I talked to other VAs, other OBMs on other service providers, I realized that I. Everybody was suffering with the exact same issues.

[00:07:15] These people were smart, they were talented, they had their shit together,

[00:07:20] and it was, wasn't any of that, that they were stressed out? They were overwhelmed, they were suffering, and it wasn't because of them, it was because of the business model that they thought would bring them freedom. Just like I thought the same thing.

[00:07:40] So. If this is you, stick around 'cause we're going to solve this issue. So what I eventually realized, and what I want to share with you in this episode today, is that the retainer model itself was what was keeping me

[00:07:57] and you potentially really trapped. [00:08:00] So why does this happen? So why, if we kind of peel back the layers, why are there so many talented online service pros?

[00:08:08] VAs, OBM, stuck at this income ceiling again, whether it be three K, 5K, seven K, 10 k.

[00:08:13] There's a ceiling there and it doesn't matter how hard you work, you can't break through it.

[00:08:19] So a common misconception is that a lot of people think like, oh, if I could just lend one or two more clients, I'd finally hit that eight K month, the 10 k, the whatever it is.

[00:08:29] But it's so interesting because that's not actually true. Because what happens is beneath the surface is that one, is that, okay, your income is directly tied to your hours, right? So it's a simple equation. More money equals more work, and you have probably. Or if you haven't, you will maxed out your capacity working close to full-time hours or more than full-time.

[00:08:57] There was a survey I saw a little bit [00:09:00] ago asking people how many client hours they work in a day, how many is possible? And it's something like I. Five, like five or six I think is what I saw. Because you can't work. It's not a typical like nine to five, eight hour schedule, right? Because you have other things to do.

[00:09:14] So it's really difficult to work that many direct client to what you could consider billable hours per day.

[00:09:21] So it's difficult. You get, there is a literal ceiling there. So second,

[00:09:26] every client in your business. Is like a completely different job, right? So when you have this business model, you have different processes for each client, different tasks, different expectations, different communication styles, and all of this combines into the soup that increases the mental load and the time investment required in your business overall.

[00:09:48] So, as an example, right, there are some clients who. They're into the project management. Few and far between, but they exist, right? Some of them are organized. You're like, okay, this one is easy. And then there are other clients, like I've had clients who, [00:10:00] no matter how hard I tried, I would get like 10 minute voice messages on a daily basis or like, or the opposite.

[00:10:07] There would be no communication at all. And then there was expecta, you know? So

[00:10:11] when you have to manage each of these things

[00:10:13] individually, it's fine. But when there's eight people, when there's four people, you know, when there's so much of that,

[00:10:18] it can be very overwhelming. And then third, and this is the part that nobody talks about, is that you are operating your business without a repeatable system.

[00:10:29] So every month it's like you're starting from scratch. You are constantly reacting to client request rather than being proactive and leaning clients through your proven process.

[00:10:40] No matter what stage you are in business right now, you can have a proven process.

[00:10:48] However, what you're doing now is that you are just kind of doing what the client says, right?

[00:10:53] So you're not the one leading your own business. Even at the OBM level, you're being led by your client's businesses.

[00:10:59] [00:11:00] And so let me explain to you why this is so costly.

[00:11:05] So imagine that you have, let's say, four clients and each client pays you 1250 per month, and for that is 10 hours of work. Okay, that sounds great, right?

[00:11:14] 5K per month, not bad. But what if we break this down further? Let's say for client A, you're managing their email, social media, and doing client customer service

[00:11:23] for client B, you're doing project management, team coordination for client C, you're handling tech setup and systems implementation for client D.

[00:11:31] You're doing content planning and marketing support.

[00:11:34] Now think about the, and by the way, even if you are an OBM, you're still doing vastly different things for each client, right? It might not be as varied as that, but some clients need more team stuff. Some clients are more, need more SOPs like, it's very different for each person.

[00:11:48] And so now, if you think about the mental energy required to switch between these completely different roles throughout your day or throughout your week, each. Switch costs you [00:12:00] time and focus as you recalibrate to each different client's needs, systems, expectations, et cetera, et cetera.

[00:12:07] The analogy is that it's like cooking or trying to cook four completely different meals at one time in the same tiny kitchen.

[00:12:15] So you have like pasta clicking over here. You're trying to do stir fry over here. You're making a cake over there,

[00:12:21] and all while somebody's behind you shouting at changes to each recipe. So it's a lot to manage and the most interesting thing is that there is actual research that shows that context switching like this

[00:12:35] can reduce productivity up to 40%.

[00:12:38] So your 40 hour work week might only yield 24 hours of actual productive work. Now if you add that to the extra admin time for managing different clients, which is maybe about two to three hours per client per month for emails, meetings, invoices, whatever,

[00:12:54] suddenly now you're working much more than what you're billing for,

[00:12:58] and this means that your [00:13:00] effective hourly rate might be like 30 to $40 an hour instead of 65 that you think that you're making.

[00:13:06] And now what happens when you add on another client, that fifth client, now you're at 20, or sorry, now you are at 62 50 per month.

[00:13:13] Okay, well now you're definitely hit a wall with your time. Right now you're working like way beyond.

[00:13:18] Hours that you want to work, or maybe you hire somebody else, right? You, you bring out a subcontractor and then that comes with it, another wave of different challenges.

[00:13:27] Now your hourly rate, your actual hourly rate drops even more because there's even more context switching, more admin, you maybe you even start to overserve and undercharge to keep your clients happy. Your burnout becomes inevitable. Because you just have no breathing room, and this is why taking on more clients is just not the answer.

[00:13:50] The math does not math.

[00:13:53] The key thing out of all this that I want you to walk away with is that the problem is not your work ethic, your [00:14:00] skills, or even your rates.

[00:14:01] It's the structure of your business itself that is not sustainable

[00:14:06] when you have this hourly model or this retainer model.

[00:14:11] It is truly, truly not sustainable in the long run.

[00:14:15] You can do it for a bit, but. Trust me, I have seen it, not just in myself, but in so many others, it gets really, really overwhelming. Okay, so now we know what the problem is. What is the solution,

[00:14:26] right? How do these high income online service pros break through the ceiling without burning out? Here is the shift.

[00:14:32] That is the shift. So your income is not tied, or you do not want your income to be tied to how much you work.

[00:14:42] You want your income tied to how well your business is structured.

[00:14:47] Most VAs and O BMS stay stuck because they operate as a freelancer and not a business owner.

[00:14:53] When you're a business owner, it is a different, you're wearing a different hat, right?

[00:14:57] You're thinking about your business differently

[00:14:59] [00:15:00] than as a freelancer.

[00:15:01] So when you operate as a freelancer, you're saying yes to whatever your client needs.

[00:15:05] You're adapting to every new request. You're not leading any of your own processes,

[00:15:10] and you may even feel like you need to prove your worth by being available all the time, or like a lot of these things come up, right?

[00:15:16] That's where the boundary issues come in and things like this.

[00:15:19] A lot of VAs and OBMs and done for you. Service pros don't have a clear structure,

[00:15:24] so every client engagement feels completely custom.

[00:15:28] No two clients receive the same experience.

[00:15:31] You are reinventing the wheel with every new client that you bring on, and everything really relies on you showing up and figuring it out on the fly.

[00:15:40] So you really have to be on and like show up in your business in order for it to run.

[00:15:46] And then the third thing is that having your pricing based on time and not transformation

[00:15:52] charging hourly or by retainer, literally caps your income

[00:15:57] because there are only so many hours you have available [00:16:00] clients, uh, there shouldn't be paying for hours.

[00:16:06] They should be paying for outcomes. When you are at. When you're doing, like when you're doing it right, paying for outcomes,

[00:16:12] and this disconnect means that you're often undercharging

[00:16:16] for the true value that you provide.

[00:16:19] And the way out of this is not working harder. It's actually easier. It's way easier than that.

[00:16:25] The way out of this is building a business structure

[00:16:28] that lets you charge more for the value you bring while you do less actual work, but you're bringing in a. Bigger transformation.

[00:16:38] So what actually scales as a VA or OBM, you're like, okay, that sounds great, but what? Like how do you actually do this?

[00:16:45] So what actually scales One is a repeatable framework that every client goes through, and this is amazing because.

[00:16:54] One is that it makes your work streamlined and efficient.

[00:16:57] So instead of custom work for each [00:17:00] client, instead of letting your client's business lead you, you have a process. You have a proven process that delivers consistent results. And in this way you also get to systematize it. You also get to have help in certain areas of it.

[00:17:16] You get to do so many things. You also, by the way, when you have this, this very. This framework that is very predictable and also lets you sow so much easier. 'cause you're able to really, really articulate the transformation so much better than, oh, I just work, I work hourly and I do all these tasks. Right?

[00:17:36] the second thing to what actually scales in a BA or OBM business

[00:17:40] is leading clients instead of reacting to clients.

[00:17:44] So rather than waiting for clients to dictate what they need. You offer a structured approach that ensures results and this positions you as the expert because now you have your process and this is what you do.

[00:17:59] [00:18:00] The third thing that scales is having pricing based on transformation and not time.

[00:18:05] Because when you focus on the outcome you deliver rather than the hours that it takes, you can charge what that transformation is truly worth. And I'm sure you've heard this before, but as actually on a, coaching call today with one of my clients who is super amazing at what she does.

[00:18:21] So she does things really fast. So. When you are good at things, you are losing out on money by charging hourly

[00:18:29] because it might take somebody else three hours to do it. You can do it in 30 minutes. Why? Should you be penalized for that, right? Like that's crazy.

[00:18:37] So let me share with you a quick example of what this looks like in practice.

[00:18:41] So instead of saying like, I'm a va, I can, I do take over your admin so you get to save time

[00:18:48] and

[00:18:48] I charge $37 an hour. Well what if instead you said, I guide course creators through my client experience elevation framework

[00:18:56] to create seamless systems that convert more customers and generate more [00:19:00] repeat business.

[00:19:01] So this is a. Positioning shift, right? So now you are the expert. You have a proven process. You're not just a pair of hands that do does tasks,

[00:19:10] right? You're not a generalist doing random things. You're a specialist solving a specific. Valuable problem. And by the way, it is not just oh, specialist versus generalist, it's also how you actually set up your offer with a framework.

[00:19:24] So you can be a specialist but not have a framework and it's still, you're still on the same boat.

[00:19:28] And so the best part is that when you lead with your framework, you get to command higher rates. 'cause now you are selling expertise and not time. You get to attract clients who respect your process and boundaries and you get to have better boundaries.

[00:19:41] You work more efficiently because you are not reinventing the wheel. Every time you create more predictable, consistent results for your clients and you free yourself

[00:19:50] from the time for money trap. Imagine finishing work at 2:00 PM Everything is done. No fires to put out, no guilt about how you're spending your time.

[00:19:58] Do you know what I did today? [00:20:00] Today as I record this, I went on a really long walk in the morning on the beach with my dog. I met up with a friend. I brought him, he did very well, um, to at a cafe.

[00:20:12] Um,

[00:20:12] and I was able to do all of my work in about three to four hours today. And that's typical because I have it set up purposely like that without having a ceiling to my income.

[00:20:27] So this. Is what it should be, right? This is why you started your business in the first place. And this is the thing that, the realization that really transformed my own business, as I've just told you, and I've seen it create really incredible results for my clients as well. So the big thing is stop selling your time and start selling your expertise through a structured framework.

[00:20:50] And I wanna do a little audit with you. Do a little exercise to help you kind of make this shift in your business right now. So I invite [00:21:00] you to grab some paper and a pen. Go on your notes, op and complete this little audit. It is how many steps it is, three steps. I'm gonna ask you three questions and it will be really quick.

[00:21:12] So step number one is to list out the last three client requests that you said yes to. The last three client requests. It could be task, project, quick favors, anything a client asked you to do.

[00:21:26] So take a moment to do that. And then step number two, for each request, I invite you to ask yourself,

[00:21:34] did I say yes because

[00:21:36] this fits into a clear process that I have?

[00:21:39] Or did I say yes because I didn't know how to say no.

[00:21:44] Why did I say yes to this? What would it look like if I had a framework that addressed this need proactively? So for each of these last three tasks, why did you say yes and what would it look like if it wasn't something that [00:22:00] just came up? If it was something that was planned for proactively?

[00:22:04] And then step three is imagine what it would feel like to say, oh, that's a great question. In phase two of my framework, we're going to address that exact thing through whatever process.

[00:22:14] Let me note, make note of that for our next call together. What would that feel like? So take a moment and write that down.

[00:22:25] What it feels like having the confidence to lead your clients through your process instead of constantly reacting to their requests.

[00:22:35] For most online service providers, this little quick exercise is really eye-opening because it really shows how much of their current work is reactive

[00:22:43] rather than proactive,

[00:22:45] and how much is really out of their control. Versus really being a leader and being in charge of their own business.

[00:22:53] Imagine how your business would feel

[00:22:55] if you are confidently guiding clients through your proven process

[00:22:59] that you [00:23:00] created, that you designed

[00:23:01] rather than scrambling to meet their ever changing demands.

[00:23:05] This is the power of leading with a framework. So hopefully through this you have gotten to see how having this signature core framework makes it so much easier for you to set boundaries without feeling guilty.

[00:23:20] How it makes it so much easier to command higher rates with confidence, how it helps you to grow and scale your business without working more and actually giving you space for peaceful prophets

[00:23:31] and how.

[00:23:32] It, it makes it easier to create consistent results for your clients. So you're doing this really amazing work.

[00:23:39] And if you are ready to break free from this ceiling, of course

[00:23:45] I am here to help you.

[00:23:47] So I love helping my VAs and OBMs and Service Pros create a business that scales. Peacefully,

[00:23:56] and the number one way I do that right now is through my program [00:24:00] expansion.

[00:24:00] It is three months of one-on-one coaching

[00:24:02] designed specifically to help

[00:24:04] service providers like you create peaceful profits without the burnout or the hustle.

[00:24:09] So what we do is we uncover your unique magic, which is that specialized expertise that you have. We all have it inside of us. That really makes you exceptional.

[00:24:19] I have a really cool process for doing this that I love doing,

[00:24:22] and we create. A signature framework, your core offer that positions you as the expert. We design this premium offer that breaks you free from this time For money trap. We develop magnetic messaging that attracts high value clients and build the systems that allow you to scale and grow your business with ease and grace.

[00:24:41] So now you have a business that gives you both financial freedom and the lifestyle that you actually started your business for in the first place.

[00:24:49] Imagine having a business that actually runs smoothly, brings inconsistent income. From your dream clients and gives you your time and peace back.

[00:24:58] So if this is something that you are [00:25:00] interested in,

[00:25:01] please let me know.

[00:25:02] You have all of my links below

[00:25:05] and you can connect with me, on Instagram, on threads, on LinkedIn. If you just DM me expansion, my website, whatever. There are like 1000 ways to connect with me. I will send you all of the details and thank you so much for listening to. Day, and please feel free like to reach out to me.

[00:25:21] I'm always excited to talk to you guys and see where you are at, what you took away from this and all of that good stuff. So I will see you on the next one. 

[00:25:30] Andrea Elibero: Thank you so much for joining us today. I really hope you found inspiration and insights from today's episode. You know, scaling your business intentionally and from the inside out is a transformational process, but I'm here to support you every step of the way. Head on over to dancing leaf solutions.com/resources for free tools to help you do just that.

[00:25:55] And thank you again for being a part of the Solepreneur Scaling Stories community. [00:26:00] Your presence and dedication to growth inspiring me every day.