Freelancers often struggle with raising their rates. Fear of losing clients, lack of confidence, or uncertainty about timing can make it difficult to ask for more money. But if you want to grow your income and be fairly compensated, increasing your rates is necessary.
Here’s how you can boost your rates without scaring off your clients.
Understand Your Value
Many freelancers undercharge. They base their prices on what they think clients will pay rather than the actual value of their work.
To set a fair rate, consider:
- Your experience and skills
- Industry standards for similar work
- The unique value you bring to clients
For example, a designer with five years of experience should not charge the same as someone just starting. Research rates in your industry and adjust accordingly.
Assess Your Current Clients
Before raising rates, evaluate your client list. Not all clients will accept a price increase, and some may not be worth keeping. Look for:
- Clients who respect your work and pay on time
- Clients who often demand extra work without extra pay
- Clients who are difficult to work with
Prioritize those who see your value. If a client consistently undervalues your work, they may not be a good fit long-term.
Time Your Rate Increase Strategically
Timing matters when raising rates. You’ll have a better chance of success if you:
- Increase rates at the start of a new project or contract
- Raise prices when demand for your services is high
- Adjust rates at the start of a new year or quarter
Avoid sudden increases without notice. Give existing clients advanced warning to maintain trust.
Frame Your Rate Increase Properly
How you present a rate increase affects how clients react. Keep your message clear and professional. Instead of just saying, “I’m raising my rates,” explain the value behind the change.
Example email:
“Hi [Client Name],
I appreciate working with you and value our partnership. As my business grows, I’m adjusting my rates to reflect the expertise and quality I bring to each project. Starting [date], my new rate will be [new rate].
I’d love to continue working with you. Please let me know if you have any questions.”
This approach is firm but respectful, making it easier for clients to accept.
Be Confident in Your Decision
Clients may push back on a rate increase. Be prepared to stand by your decision.
Responses to objections:
- If a client asks why: Emphasize your experience, results, and increased demand for your work.
- If a client can’t afford the new rate: Offer a revised scope of work to fit their budget.
- If a client leaves: Accept it. Some clients will move on, but higher-paying ones will replace them.
Confidence is key. If you believe in your value, clients will too.
Offer New Services
One way to justify a higher rate is by adding new services. Expanding what you offer makes your work more valuable.
Consider:
- Adding consulting or strategy sessions
- Offering a faster turnaround option for premium pricing
- Bundling services for more comprehensive packages
Clients are more likely to accept a rate increase if they feel they’re getting more for their money.
Negotiate Without Discounting
Some clients will try to negotiate. Instead of lowering your rate, adjust other factors.
Ways to negotiate:
- Reduce project scope instead of price
- Adjust payment terms to make it more manageable
- Offer a package deal with a clear value proposition
Lowering rates sets a bad precedent. Always negotiate in a way that respects your worth.
Improve Your Skills to Justify Higher Rates
Higher rates must be backed by improved skills. Investing time in learning new tools or techniques can help you command better pay.
Ways to upgrade your skills:
- Take online courses in advanced techniques
- Attend industry conferences or workshops
- Learn skills that complement your current services
Clients are willing to pay more for top-tier expertise.
Find Better-Paying Clients
Some clients will never pay more. If your current ones resist higher rates, look for new opportunities.
How to attract better-paying clients:
- Update your portfolio with high-quality work
- Network with decision-makers in your field
- Market yourself as an expert with blog posts or case studies
Charging more is easier when you work with clients who value your skills.
Charge Based on Value, Not Just Time
Hourly rates limit your earning potential. Instead of charging based on time, consider value-based pricing.
Example:
- A website that increases a client’s sales by 20% is worth more than just the hours spent building it.
- A copywriter who boosts conversion rates can charge more for results, not just words written.
When clients see the direct benefits of your work, they’re more likely to accept higher prices.
Test Small Increases First
If you’re nervous about raising rates, test small increases with new clients. Starting at a higher rate with fresh projects helps ease the transition.
Ways to test:
- Increase rates slightly for new projects
- Offer premium service tiers
- Compare client responses to different price points
Once you see positive results, apply the new rates across your business.
Reevaluate Your Rates Regularly
Freelancers should adjust rates regularly, not just once. Markets change, and your skills grow. Revisit your pricing at least once a year.
Ask yourself:
- Are your rates competitive with industry standards?
- Have you gained experience that justifies an increase?
- Are you working too much for too little pay?
Ongoing adjustments ensure you continue to earn what you’re worth.
Raise Your Rates With Confidence
Asking for more money can feel uncomfortable, but sticking with low rates limits your growth. Clients who appreciate your work understand that quality comes at a cost.
Set a price that reflects your value. Find clients willing to pay for the skills you bring. Invest in your continued growth to keep increasing your worth.
