How To Upgrade Your Rates And Earn The Freelance Money You Deserve
As a freelancer, you wear many different hats. Not only are you a service provider, but you’re also a customer service rep, marketer, accountant, and everything in between. Juggling so many different roles can be exhausting. That’s why setting your freelance rates at a price that’s more than worthy of your time, energy, and skills is so important.
Working independently and braving the hunt for freelance work can be challenging. Hence, why so many freelancers enter the market with freelance rates far below what they require to live. That can be okay, at first. But, at a certain point, it’s time to upgrade your freelance rates and earn the money you deserve.
If you fail to raise your freelance rates…sure, you may go broke. But worse, you’ll burn out quickly and resent your work as a freelancer – sending you back into the arms of the traditional working world. Raising your freelance rates is entirely possible, even in a tough economy. Use these tips to upgrade your rates and finally earn the freelance money you deserve.
Communicate clearly with current clients.
No, you cannot decide to invoice your client at a higher rate without telling them first. Communication is key, especially when it comes to raising your freelance rates. Tell your clients you are raising your freelance rates and provide them with plenty of notice to prepare accordingly.
For example, the next time you send an invoice, notify them about the upcoming increase. Provide them with a 30 to 60-day notice for necessary budget adjustments. Clear communication will help prevent misunderstandings, show your respect for their business, and convey how much you value their partnership.
Focus on the value you’re adding.
Price increases can be jarring, so focusing on the value you’re adding in coordination with your freelance rate increase is essential. It shifts the conversation from cost-focused to the benefits your clients will receive. By emphasizing the quality of your work, the expertise you bring, and the results you deliver, you can help clients see the rate increase as an investment in their success rather than just an added expense.
Upgrading your freelance rates could mean working with fewer clients to better focus on providing results for the ones you do have. It could also look like hiring a virtual assistant for extra administrative help or upgrading your work tools and resources.
Whether it’s more efficient processes, higher-quality deliverables, or increased ROI, focusing on the value you’re adding reinforces the idea that your freelance services are worth the cost.
Be prepared for pushback and negotiations.
Some of your clients will accept your new freelance rates with zero issues. Other clients will push back and attempt to negotiate. Be prepared for that. Approach these conversations with confidence and a clear understanding of your value. Ultimately, only you can decide what you’re willing to negotiate.
Perhaps, a client needs an extra month or two to prepare for the price increase. Maybe, they can’t pay $1,500 for a monthly service package – but they can pay $1,250. Reflect on any client pushback and establish your individual needs as a freelancer.
Clients may be hesitant to accept the increase, especially if they have budget constraints or have gotten used to your current freelance rates. That doesn’t always mean they don’t value your work. Every case is different, and it’s important to be flexible, yet firm.
Consider offering tiered pricing.
One size does not fit all in the freelancing world, which is why tiered pricing is helpful when increasing your freelance rates. By creating different service levels, you can give clients the flexibility to choose the package that best meets both their needs and budget.
Oftentimes, this can make the transition to higher freelance rates smoother. Plus, it puts the ball in your court for any potential negotiations. Rather than losing a client to a rate increase, you can offer them a lower-tier service.
