How Much Does It Typically Cost to Hire an Online Business Manager (OBM)?

Factors Influencing the Cost of Hiring an OBM

Several factors can influence the cost of hiring an OBM. Understanding these factors can help you determine what to expect and how to budget effectively.

1. Experience and Expertise

Experienced and qualified OBMs with a proven track record typically charge more for their services. Their expertise, industry knowledge, and ability to handle complex projects justify the higher rates.

2. Scope of Work

The breadth and depth of the tasks you need the OBM to handle will also affect the cost. A more extensive scope of work, requiring more hours and diverse skills, will naturally cost more.

3. Industry

Certain industries may require specialised knowledge or skills, which can influence the cost. For example, an OBM with experience in tech might charge differently than one specialising in general management.

4. Location

Geographical location can impact pricing. OBMs based in regions with a higher cost of living or where demand is high may charge more. Conversely, OBMs in areas with a lower cost of living might offer lower rates rates.

5. Engagement Model

The type of engagement you choose—whether it’s a full-time hire, part-time, or project-based—will significantly influence the cost.

Typical Pricing Models for OBMs

OBMs typically offer different pricing models to suit various business needs. Here are the most common ones:

1. Hourly Rate

Some OBMs charge an hourly rate, which can range from £55 to £200 or more, depending on their experience and the complexity of the tasks. This model is suitable for businesses needing occasional support or specific tasks completed.

2. Monthly Retainer

A monthly retainer is a fixed fee paid each month for a set number of hours or services. This model is ideal for businesses requiring ongoing support. Retainers can range from approximately £2,000 to £10,000+ per month depending on hours or services required.

3. Project-Based Fee

For specific projects, some OBMs charge a flat fee. This is common for short-term engagements or well-defined projects with clear deliverables. The cost can vary widely based on the project’s scope and duration.

4. Percentage of Revenue

In some cases, OBMs might work on a performance-based model, where they charge a lower base fee plus a percentage of the revenue generated. This model aligns the OBM’s incentives with the business’s success but is less common due to the inherent risks.

Tips for Hiring an OBM

Hiring the right OBM can transform your business and relieve you from overwhelm. Here are some tips to ensure you make the right choice:

1. Define Your Needs Clearly

Before starting your search, clearly outline what you need from an OBM. Define the scope of work, desired outcomes, and the skills required. This will help you find a candidate who aligns with your business goals.

2. Check References and Reviews

Ask for references and read reviews or testimonials from previous clients. This can provide insights into the OBM’s work ethic, reliability, and effectiveness.

3. Consider a Trial Period

If possible, start with a trial period to assess the OBM’s fit with your business. It is normal to have the first 90 days as a trial period to give the OBM a chance to make a difference in your business. This can help you determine if they are the right match before committing to a longer-term contract.

4. Evaluate Communication Skills

Effective communication is crucial for a successful OBM-client relationship. Ensure the OBM is responsive, understands your business language, and can convey ideas clearly.

5. Discuss Pricing and Expectations Upfront

Have an open discussion about pricing, payment terms, and expectations right from the start. This transparency can prevent misunderstandings and ensure a smooth working relationship.

Hiring an OBM in your business is an investment in your business and this can vary widely based on several factors, as discussed above, including experience, scope of work, and engagement model. By understanding these factors and following the tips provided, you can make an informed decision that aligns with your business stage, needs and budget.

Investing in an OBM can yield significant returns by improving your business operations, driving growth, allowing you to focus on being the CEO of your business and doing what you do best. Whether you opt for an hourly rate, a monthly retainer, or a project-based fee, the right OBM will be an invaluable partner in your business journey.

Until next time,

Ruth