This is a guest post by James Adams. James has been a tremendous help to me so far, and I think all freelance writers hesitant about increasing their rates should give this article a read. I hope you enjoy this guest post as much as I enjoyed reading it. As always, thanks for contributing James. 
When you’re doing work as a freelancer, there are a number of considerations that go into determining your rates. Will you charge by hour or by project? Should you start out charging less in order to create a portfolio? After you’ve built a name for yourself, when is it okay to raise your rates? You may be concerned about losing clients with higher rates, but in many cases, you can successfully make the switch if you go about it in the right way. Here are the top five ways to increase your freelance rates and to start earning more money.
1. Inform clients that your rates may change in the future
One of the best ways to set yourself up to increase your rates is to let clients know when you begin working with them. This strategy is particularly effective for freelance workers who are just starting out and who may be willing to accept less than their ideal rates in order to get work. If you’re in this situation, you can simply inform clients at the beginning of a project that you’re willing to offer them a discount in exchange for the opportunity to build your portfolio. When you’re ready to increase your rates later on and provided you’ve proven yourself with good work, clients will be prepared for the rate increase. This will also help you lead up to the conversation about your increase and give you the chance to justify your increases by pointing to earlier work you did for them.
2. When it’s time for a change, explain your reasoning
Once you’ve decided that it is time for you to increase your rates, feel free to explain the reasoning behind the increase directly to your clients. By leveling with them in an authentic manner about the increase, they will be more receptive to it and more willing to stick around with you. It will be especially beneficial to you if you can give concrete examples of additional training or certifications you’ve received, or some other reason that gives light to why you are in higher demand and deserve more. Additionally, you should be prepared to lose some of your clients who simply won’t be able to work with your higher prices. You should consider which clients you’re willing to lose and who you could negotiate with before sitting down to have a discussion about your new prices.
3. Stick to your decision
Though it may be tempting to work for less if you’re having difficulty with clients who weren’t prepared for a rate increase, be sure to stick to your decision. When you’re confident in your new rates and believe that you deserve to receive what you’re asking for, the client will see that the increase is legitimate. For clients who try to underscore your value and question your decision to increase your rates, don’t be afraid to justify your decision to them through examples. You can let clients know why you deserve more – however, you should also be careful to thoroughly examine your work to make certain you’re giving your clients top quality copy.
4. Offer incentives for existing clients
You may come across some clients who believe your rate increases are justified, yet are still reluctant to start paying you more when they’ve already been receiving your services for less. If a client is feeling tempted to shop around for a lower price or is simply unsure if they will continue to work with you, it may be a good idea to offer him or her an extra incentive as a show of good will. You could offer to give the client an update for a project you did previously, a complimentary consultation, or a free service for them to gift to a friend or family member. Some freelancers even use this strategy as a way to start the conversation about rate increases. Explain that your rates are going up, but you want to offer them a deal in appreciation for their loyalty.
5. Hold a flexible rate schedule
Another great way to plan for increasing rates is to simply keep your prices at a variable. Many freelancers perform estimates before beginning any new project or work with a client, which is a great way to allow yourself the flexibility to set new rates from time to time. You may also want to consider setting higher rates for busy times of the year or premium seasons. This could create greater demand for your services, bring you more work at higher pay, and can also help you transition into charging higher rates in the future. By keeping your rates fluctuating, clients will understand that prices can differ depending on the type of project, time of year, and your demand.
James is a writer and blogger who works at Cartridge Save, independently ranked as one of the UK’s biggest online specialists for cheap ink cartridges according to Hitwise.
Hi James – great post. I’m not a freelance writer, but I find this pertinent to business in general…for anyone who wants to be successful!
I actually owe you an email don’t I. I haven’t forgotten about you…I think Feb will be our month!
Anyhow, great article!
Hi Christina – I hope life is treating you well. vacation coming up soon, right?
Hey Jk,
Sorry I couldn’t get back to you sooner. The vacation went very well – with nice weather throughout. In fact, I missed 2 huge snow blizzards that hit Massachusetts while I was gone. That’s something to be thankful for at least.
I agree – some of these tips can be applied in many aspects of life.
As always, I appreciate you dropping by. Take care!
Christina
For a time, I wanted to be a freelance writer, living the dream and making a ton of money to go with it. Unfortunately, I was also very naive at this stage of life, and nothing ever got done about it.
Still, reading this, and thinking about the mistakes I made in the past, it got me hoping once again. I’d still like to ‘go freelance’ to some degree. Perhaps today was the day which kick-started that passion
Thanks for sharing this Christina, good to hear from you again. It’s been too long
Hey Stuart,
Well, if the thought of freelance writing excites you, I say go for it! Stick with your dream! If you’re still unsure about whether or not you want to take the plunge, you can always give it a try, see how you feel about it, and then decide to move forward or stop while you’re ahead.
As always, great to hear from you. Hope life is treating you well!
Christina
Great post, James.. I agree about offering incentives to existing clients.. In fact, I always let potential clients know in my pitches to them that the rates I’m offering right now will go up say, next month or so. Usually, that clinches the deal:-)
Hey Prerna,
Offering an incentive can make a bucket load of a difference in the end, because you’re pushing clients to make immediate action and hire you now while your services are on the cheaper end.
Thanks for your wonderful comments!
Christina
Those were some great tips James. I think the best advice you gave here is to inform your clients that your rates could change in the future.
Also I think it’s a good idea to offer clients a discount in exchange for the opportunity to build a portfolio.Having your clients prepared for a rate increase is best way to go. Thanks for sharing your insights.
Hey John,
Offering a discount is a great way to increase your client base and portfolio, especially if you’re working with a new client. You can offer a discount for the first project only (make sure the client is aware that prices will increase after that initial project) if a client is hesitant about hiring you. Not only will this get you more work, but the client will get a feel of what kind of work you do if you don’t have a portfolio up yet.
Christina
I think you’ve easily pointed out the reason to increase the rates without loosing the clients. Really great post.
Hey Shailender,
Thanks for dropping by! I’m glad this article was helpful to you.
Christina
Hey James,
Thanks for the great post!
I am not a freelance writer, but this applys to more than just freelance writing. You could be selling a muiltude of things, that your post can be applied to. For instance if your were selling your services helping people, then at some point after you gain enough experience it’s time to raise your prices. I mean it’s only right. Every job comes with raises(or should for that matter)
Thanks again!
God bless,
William Veasley
Hey William,
That’s one of the greatest things about freelance writing (or any online business) – you can give yourself promotions by raising your rates. After all, if you feel as though you’ve earned the pay raise, there’s no shame in giving it to yourself.
Thanks for your comment – I always enjoy hearing from you.
Christina
……..The beginning of the year is a great time to increase your freelance writing rates. Of course it is your right as a freelance writer to change your rates when you please.
Hey there,
The start of a new year is definitely a good time to increase your rates. However, don’t be hesitant to change your rates later in the year as well as long as you think you deserve the increase.
Thanks for sharing with us!
Christina
I think freelancing is great. But just thinking about cultivated your own masterpiece. All hours on your book. Blood, sweat and tears in your own work..Ahh the possibilies.. Nice post..i know im late..lol.
Hey Jonathan,
Better late than never! It’s definitely a wonderful experience to see a piece you spent so much time and effort on finally published for all the world to see, especially knowing that you’re the one who made that published work possible. If you’re patient and put the effort in, you can see amazing results – and there’s nothing better than standing behind a quality piece of work that you’re proud of.
Thanks for the comment!
Christina
Thanks! I’ve been writing copy for 7 years and some of my longest clients still get rates close to what I quoted them on day 1. I like to reward their loyalty but it also makes it less profitable to work with them, so I need to do something. Cheers!