How to Raise Your Rates the Right Way
By Jena Kroeker
Once upon a time, there was a freelancer who loved the ‘90s. She listened to ‘90s music, watched ‘90s television shows, and priced her freelance services like it was 1999… even though it was 2021. When asked why, she said she simply didn’t know how to raise her rates. Consequently, as time passed, her business became less profitable and more frustrating.
Although an exaggerated example, many of us can relate to the story above. If you’ve been a freelancer or virtual assistant for a while, you may just lose track of time. Years go by, and in the busyness of serving clients, you don’t realize it’s time to raise your rates.
But sadly, some freelancers don’t think they’re worth a rate increase. They underestimate their worth and the value they bring clients.
That’s a topic Freelance University co-founder Craig Cannings tackled in a previous Facebook Friday session on “How to Raise Your Rates.” He asked FreeU students two compelling questions:
• “Are you settling for less than what you deserve with your clients right now?”
• “Are you getting paid less than what you’re worth?”
As Craig says, you might be nervous about raising your rates because there’s a chance you could lose a client or make a client angry. However, the truth is we live in an inflationary world. Inflation is a part of our economy and culture, as well as freelancing. You’re not expected to charge the same amount for years because inflation happens.
In every part of business, we’re going to have to raise our rates, and there’ll be an impact. So, in this blog post, we’ll discuss how to raise your rates with new clients and existing clients the right way — with integrity.
Reasons to Raise Your Rates
In a recent FreeU blog post, “Five Mistakes to Avoid When Pricing Your Freelance Services,” we recommend reviewing and revising your rates at regular intervals to avoid pricing too low.
As you do so, consider these important reasons:
1. Inflation
Have you been paid the same rate for a long time? If so, you might have trouble covering your expenses because your income isn’t keeping pace with inflation.
2. Expanded skill sets
As time goes on, you’re providing more value to your client because you’re more skilled and experienced than when you first started. And maybe you’ve specialized in areas you weren’t working in before. You’ve expanded your scope of services and are offering clients a complementary suite of skill sets that are more niche and in-demand.
3. Busyness
Have you gotten busier over time? If you have a waiting list or are turning away business, consider the principles of microeconomics. When you have specialized services and the supply of people like you is smaller, the demand for your skills will go higher. Hence, a higher rate.
An article titled “How To Raise Your Freelance Rates So Clients Happily Say Yes To A Fee Increase” suggests some additional signals that you may be undercharging for your services as you become busier. For example, “Everyone says yes and you have nearly a 100% close rate,” and “Your hourly rate per project is decreasing.”
You may also find that “certain high-maintenance clients feel less worth the hassle because of their low-profit margin and your own daydreams of working with fewer clients that have larger budgets show up more often.”
How Do You Charge What You’re Worth?
Charging what we’re worth is an Achilles heel for many of us. We don’t know how to charge what we’re worth because we devalue what we bring to the table. We’re hard on ourselves. Maybe others have said we’re not good enough. Or we experience imposter syndrome. Negative thought patterns make us doubt our abilities.
But rest assured, you are more talented than you think. Remind yourself of that, because if you don’t believe in yourself, you’ll never charge what you’re worth.
And think of rate increases as a natural evolution in your pricing structure. It’s like an apprenticeship model in the trades. When you begin, you’ll start at a rate that’s more consistent with your skills and experience. Then, as you become more proficient, your rates will have to catch up.
For specific examples and ideas, consult resources like the Freelance Pricing Guide we provide in our “Pricing Your Freelance Services” course. It outlines a range of average rates that can be adapted to your particular clients and services as you gain experience in various niches.
Above all, you have to trust that you’re providing so much value to your client, they’d be crazy to send you on your way. Instead, they should accept that an increase will happen from time to time. Indeed, in an article titled “How (and Why) to Raise Your Freelance Rates,” Rachel Pelta says, “While nothing is guaranteed, raising your rates may not scare off your clients as much as you fear, because they don’t want to have to deal with replacing you.”
With that in mind, let’s explore some strategies for raising your rates.
How to Raise Your Rates with Existing Clients
1. Start by increasing your rates with brand-new clients.
This is an easier way to introduce new rates. For the time being, you can grandfather your old clients and only offer the increased rate to newly onboarded clients. Then, three to six months later, present the new rate to existing clients.
This strategy will build your confidence as you become accustomed to your new rate. And seeing people accept your rate will reassure you that it’s okay, and you’re indeed worth it. You’ll also feel more adequately compensated for your work. Soon, quoting the new rate won’t feel unnatural or awkward. That’s when you can think about applying it to existing clients.
2. Inform your clients well in advance.
You never want to shock your clients by saying, “Effective immediately, rates will be raised.” This is especially important with clients you’re concerned about. Don’t blindside them. Instead, give them a date when the increase will happen, for example, within the next 60 days. Let them know you’ve waited a little longer to raise their rates because of the relationship you’ve developed with them over a period of time.
This advance notice gives them time to think, process, and talk to you about it. Otherwise, they might become reactionary. The article above gives the following recommendations on how to raise your rates:
“Make sure the advance notice is in writing and easy to find. While you can put the information on an invoice, make sure you use a large enough font that stands out on an otherwise routine invoice. Consider highlighting the notification, so it’s hard to ignore.
“Also, send a separate email notification to help ensure people receive the notice. Use something obvious in the subject line like ‘Rate Increase Notification’ or ‘Change in Rates,’ to get your client’s attention.”
3. Offer existing clients a loyalty discount.
As Craig Cannings says, “All clients are not created equal.” You have top-tier clients who treat you well and others who aren’t at that level. How much you value a client will determine how you structure their rate increases. Be fair, but if you’ve been working with someone for a while, give them a special rate.
For example, if you’ve been working with a client for the past year, managing their ConvertKit, you’ve become an asset to them. So, after a year, it’s reasonable to raise your email marketing rates from $40 to $50 per hour. But consider giving long-term clients a loyalty discount of $5 per hour by charging $45 per hour. That way, you’re allowing the client to feel valued and special while still moving closer to the rate you should be charging because of your skills, talents, and experience.
The article above summarizes this strategy nicely:
“Loyalty programs are proven to generate more sales and keep customers coming back because special perks and rewards make customers feel valued and appreciated. The same strategy works in client services too. Rewarding existing clients for their loyalty generates positive, warm feelings about your relationship, services, and fees.”
4. Don’t raise your rates too sharply.
If you give a sharp increase, you’ll create greater chaos, angst, anger, and frustration among your clients. This negative backlash has a detrimental impact on the relationship. To preserve your client relationships, Craig suggests starting with a 10%, 15%, or 20% increase for existing clients — no more than 20%. But with new clients, you have a bit more latitude and could raise your rates by 25%.
5. Communicate the value of what you bring.
Now it’s time to create the script you’ll use when asking a client for an increase. This is where you’ll do a three-part recap to communicate the value of what you bring:
a) Value
First, communicate the value that you’ve brought to the existing client relationship:
“We’ve been working together for the last year, and I’ve helped you build your ConvertKit platform and taken over a lot of your email marketing tasks. And I know from what you’ve said that you’ve been happy with the services I’ve been providing so far, and it’s been a great pleasure to serve you and work with you.”
A statement like this recaps the value that you’ve brought. You could also be more specific by providing stats for how you’ve helped them increase their email list size by 50% and raised their income from email marketing efforts. Over time, take note of clients’ compliments so you can bring them back at a strategic time when you’re asking to increase your rates. If a good client has been working with you for a while, they should know your value, and you’re just articulating it and restating it.
b) Skill
Next, highlight your current skill sets, especially if you’ve expanded them:
“Over the last years, I’ve honed my skills and experiences, enabling me to complete projects and tasks more efficiently, and I’m now able to offer way more valuable services to you.”
In essence, you’re saying that you’re faster. You’re more efficient. You’re better at doing your projects and tasks. Your skills are at a higher level. Specifically, you can say,
“I’m a knowledgeable advisor to you now on all things [blank]. I hope you see me now as a trusted advisor who guides you in this area of your business.”
This statement conveys what you bring to the table as a result of skill development and experience.
c) Future Ask
Now you’ll finish with a future ask, after you’ve demonstrated the good work you’ve done with clients and the expanded skill sets you have. This is where you’ll tell them you’re raising your rates in the future:
“I want to let you know that I will be increasing my rates. I have yet to increase my rates with you. My value has been strong, my skills have been growing, and I feel like it’s time for me to do that.”
You’re not starting the increase immediately, but it’s going to happen a month or 60 days down the road. Here you prime the pump and get them ready for the increase. You might do it at set times of the year (e.g. at the beginning of a calendar year or every other year). And you can continue to make clients feel valued and special through honest statements like this:
“I just brought on two new clients who are now billing me at this rate. I’ve held off on you because of the existing relationship we have, but I know that it’s probably time to increase the rates to be consistent with what the industry is saying and with the skills and experience I have.”
Final Thoughts and Encouragement
As you can see, one part of the battle is knowing how to raise your rates. And the other part is having the confidence to do it. As you consider the strategies we’ve discussed, remember this encouragement from The VA Handbook article:
“You shouldn’t feel stressed, embarrassed or scared to raise your rates. Price rises are part of running a business and you need to appear confident about it… even if you feel the opposite.
“Remember, this is not a hobby. You’re a professional business owner.”
Do you struggle to raise your rates? Or have you taken the plunge and realized it’s not as scary as you thought? Please share your thoughts and any additional tips in the comments below!
Other Useful Topics

Quick Guide to Building an Email List from Scratch!
Discover five ways to build an email list from scratch.

The Fine Art of Asking for a Referral
Discover some key strategies for asking for a referral for your Freelance Services.

7 Online Predictions for 2020
Here are 7 Online Predictions for 2020 that could have a big impact on your Freelance Business!

How to Build a Success Mindset
Here are three key strategies for creating a success mindset in your business for the new year!

Seven Productivity Tools to Add More Time to Your Week!
In this post, we’ll share seven productivity tools and apps that can add more time to your week.

How to Combat Imposter Syndrome in Your Freelance Business
Five ways to overcome the Imposter syndrome in your freelance business... this is a must read!

How to Gain Experience (and Credibility) When You Have None!
Here are four other practical ways to gain experience in order to build credibility with new clients.

Ten Tools to Power Your Dream Virtual Office
What constitutes a dream office for a freelancer or virtual assistant? Check out some ideas here!

The Fine Art of Learning New Skills for Your Freelance Business
As freelancers, we need to update our skills to stay current in today's virtual industry. Here are 7 ways to succeed in the art of ...

Five Ways to Legally Protect Your Freelance Business
Here are five ways you can legally protect your Freelance business, so you can sleep easier at night!

Your Guide to Five Top Marketplaces to Finding Work as a Freelancer
In this guide, we’ll dispel some of those myths and look closer at five top marketplaces where you can start finding work as a f ...

How to Take Time Off in Your Freelance Business!
Discover some helpful strategies for taking time off in your Freelance Business without losing any clients!

A Guide to Writing Business Proposals for Clients
Here's a quick guide to writing business proposals that win new clients... this is a must-read for any Freelancer!

How to Select a Niche Focus for Your Freelance Business
Some get it right the first time; most struggle with finding their freelance niche. And that’s okay. It’s not easy to choose a ...

A Sneak Peek at our New-Look University!
Have a watch of this short "behind-the-scenes" video as I show you some of the exciting changes we have made to the University tha ...

How to Fire a Client the Right Way!
It is never easy to fire a client! In this post, we provide some helpful tips and strategies for ending an unhealthy client relati ...

How to Create Multiple Streams of Income for Your Freelance Business
If you’re exploring new income streams, this “Guide to Creating Multiple Streams of Income for Your Freelance Business” will ...

Freedom Story: The Journey from Vision Loss to a Thriving Freelance Business
Have a watch of this inspiring interview and receive some valuable "nuggets of wisdom" on how to build a thriving freelance busine ...

Facebook Watch Party vs Live: Two Powerful Tools to Build Engagement
Facebook Watch Party vs Live - two powerful tools to build reach & engagement with your target audience.

How to Handle Failure and Success in Your Business!
Have you encountered failure in your work as a freelancer? Discover how to handle failure and success in your business.

An Introvert's Guide to Networking like a Rock Star
Many of us find networking challenging, no matter what our personality may be. Here are 10 strategies you can use as a guide to ne ...

Your Guide to Optimizing Your Daily Productivity
Here are some tips and strategies to help you optimize your daily productivity so you can get more work done in less time!

Four Business Challenges to Overcome in 2019
In this video, I identify the FOUR challenges and offer a practical solution for overcoming them and making this your best year ev ...

Three Stories to Inspire Your Freelance Business in 2019!
I want to share three "Freedom Stories" from students all with a passion to design a flexible and profitable Freelance Lifestyle.

A Freedom Story to Inspire Your Success in 2019!
Here's a success story from one of our students, Renee, who has overcome great challenges to build a profitable freelance business ...

Five Platforms for Sharing Your Services with the World!
Let’s take a look at some of the top content channels for promoting your brand and business to the masses!

How to Embrace Your Laptop Lifestyle!
Here are some other places you can go to embrace your location-independent laptop lifestyle in your own home and beyond:

5 Keys to Finding and Attracting Clients Using Social Media
Here are five useful tips for finding and attracting your ideal clients on Social Media. The tips will help you to discover great ...

Five Ways to Create a Winning Entrepreneurial Mindset
How do you create an entrepreneurial mindset in your freelance business? Do you find it challenging to shed the attitude of an emp ...

How to Find Ideal Clients (in Your Own Backyard)
How did you find your first client? If you’ve been a freelancer for a while, you may look back and see that you have an interest ...

The BEST WAYS to Overcome Your WORST DAYS!
Here are some excellent strategies you can use to overcome your worst days in your freelance business!

Help! My Client Won't Pay Me!
While it’s impossible to predict the future, and even the best clients can fall on hard times, here are some tips you can employ ...
0 Comments