Let’s break down each model and then compare them in terms of which might be best for you as a VA.

1. Employer of Record (EOR)  
   • What it is: A third-party company that legally employs workers on behalf of another business.
   • How it works: The EOR handles payroll, taxes, benefits, compliance, and HR tasks, but does not manage day-to-day work.
   • Example: You work for Client A as their VA, but your official employer is EOR Company B.
   • Handles legal compliance, especially across borders
   • Access to benefits like health insurance or paid time off is typically offered
   • Reduces administrative burden on both client and VA
   • Limited control over employment terms
   • May have limited support beyond payroll
   • Fewer career development opportunities
2. Staffing Agency  
   • What it is: A company that matches independent workers with businesses needing temporary or contract labor.
   • How it works: You apply to the agency, they place you with clients, and take a cut of your pay.
   • Example: You register with VA staffing agency "X" and get matched with small business owners needing help.
   • Can provide steady stream of clients
   • May offer training or onboarding support
   • Some agencies handle contracts and payment collection
   • Typically take a significant commission (20% to 50% of what the small business owner pays)
   • Less flexibility in choosing clients or rates
   • Can be competitive, not all placements are high quality
3. Business Process Outsourcing (BPO)  
   • What it is: A company that provides outsourced services to other businesses, often hiring people to perform specific roles in-house or remotely.
   • How it works: You are employed directly by the BPO company and assigned to work for one of their clients.
   • Example: You're hired by BPO firm “Y” to act as a VA for multiple clients under their umbrella.
   • Often more structure and support (training, tools, team)
   • Potential for long-term roles and career growth
   • More predictable workflow and hours
   • Less autonomy - you work for the BPO, not directly for yourself
   • Rates set by the BPO, not by you
   • Can feel more like a traditional job than freelance work

But, there is another… Freelance  

• Work independently
• Use tools like FilipinoContractors.com, Upwork, or Fiverr - and build your own brand via social media (e.g. LinkedIn) and a website
• Handle your own contracts, invoices, and taxes
• You keep all of the money you earn (but, please pay your PH taxes)
• You choose your clients and set your own rates
• You negotiate with your clients to set your own work hours
• You are a business owner and must do all of the paperwork and administration (or you can hire a VA to do those things if you are wildly successful)
• You have to keep hustling to get new clients - or go broke
• If you use Fiverr or Upwork, they will take a cut of your earnings (so, use FilipinoContractors.com instead)

The path many virtual assistants take is to get a job with a BPO to learn how things work, get basic training, and not have to hassle with finding clients or filing paperwork with the government. Once a VA feels confident and wants to earn all the money, they often move into getting their own clients on sites like FilipinoContractors.com. After a few years, some virtual assistants even open their own agency and start managing a team of VAs to make the big bucks!

If you are not a virtual assistant, the above can still apply to your area of expertise/professional field. However, you might start off working for a foreign company through an EOR for the benefits and work-from-home perks.

We hope you found this helpful as you navigate through the various types of positions available on our job board. Please let us know if there is another topic that you want us to cover in a future newsletter!

Have a great week,

Coleen & Darin