# VA agency vs marketplace vs freelancer: what is the difference? Three ways to get a virtual assistant, trading off cost, effort and risk. A marketplace like Upwork has the cheapest headline rate but you source, vet and manage it all. A direct freelancer has the lowest ongoing fee and the highest single-point-of-failure risk. A managed agency gives you a vetted hire with payroll, compliance and a replacement handled, for a higher per-hour cost and far less effort. **Marketplace (Upwork, Fiverr):** cheapest headline rate, but you source, vet, manage and cover gaps yourself. **Direct freelancer:** lowest ongoing fee, highest single-point-of-failure risk, you own payroll and continuity. **Managed agency (how VirtuHire works):** a vetted shortlist, a flat retainer, EOR handling payroll and compliance, and a replacement if it is not working. More per hour than a marketplace listing, far less total effort and risk. ## The three models, by how they actually work **Marketplace (Upwork and similar).** You post, sift applicants, interview and manage. Upwork's own guidance puts VA rates around $10 to $20 an hour (median about $13), with specialized VAs higher, plus a 5% client service fee. You own vetting, time-tracking, quality and backup. No one replaces a VA who disappears. **Direct freelancer.** You source and contract directly, often the lowest ongoing fee. You handle payment, any compliance, performance management and continuity yourself. If they stop, you start over. **Managed agency (the VirtuHire model).** A shortlist of pre-vetted candidates with one-way video intros, so you hear English and phone presence before interviewing. A flat monthly retainer (placements $1,200 to $2,800), no placement fee, employment and compliance through an EOR, and a 30-day no-cost replacement. You trade a higher per-hour cost for removed sourcing, management overhead and continuity risk. ## Which to choose | If you want... | Choose | |---|---| | The lowest headline rate and will manage it all yourself | Marketplace | | A direct relationship and will own payroll, management and backup | Freelancer | | A vetted, dedicated hire with payroll, compliance and backup handled | Managed agency | For a direct cost comparison with Upwork specifically, see [VirtuHire vs Upwork](/compare/). ## How hiring works (agency model) A short intake call, a shortlist with one-way video intros, a deposit to confirm, then a flat monthly retainer with no placement fee, full EOR, and a 30-day no-cost replacement. ## Frequently asked questions ### What is the difference between a VA agency, a marketplace, and a freelancer? Marketplace (Upwork): the cheapest headline rate, but you source, vet, manage and cover gaps yourself. Freelancer: a direct hire with the lowest ongoing fee, but you own payroll, management and continuity. Managed agency: a vetted shortlist, a flat retainer, EOR and a replacement handled for you, for a higher per-hour cost and far less effort and risk. ### Which is cheapest? A marketplace or direct freelancer has the lowest headline rate (Upwork lists VAs around $10 to $20 an hour, plus a 5% client fee), but you absorb sourcing, management and backup. A managed agency costs more per hour and removes that overhead. ### What happens if my VA quits? On a marketplace or with a direct freelancer you start over. With a managed agency like VirtuHire there is a 30-day no-cost replacement, and payroll and compliance run through an EOR. ### How is VirtuHire different from Upwork specifically? See the VirtuHire vs Upwork comparison for the direct cost and model breakdown. ## Related reading - [VirtuHire vs Upwork](/compare/): the direct cost and model comparison. - [How to choose an offshore staffing company](/resources/how-to-choose-offshore-staffing-company-2026/): the buyer checklist. - [How much does a virtual assistant cost in 2026](/resources/virtual-assistant-cost-2026/): pricing by model and country. - [VirtuHire US pricing](/pricing/): the full role-by-role rate band. ### Want the managed-agency route without the per-hour guesswork? Get a shortlist of pre-vetted South African VAs on a flat monthly rate, with payroll, compliance and a 30-day replacement handled. Zero recruitment fees. Book a 15-minute call to see how it compares to your current model.