3 Ways to Raise Your Freelance Rates

With the end of the year approaching, many freelancers are thinking about raising their rates in 2021. I often see advice that basically amounts to raising your freelance rates 10% (or whatever) each and every year, which is fine as far as it goes. If you underpriced yourself when you were starting out, it might make sense; in some cases, you might be able to double or triple your rates and still get projects. Once you’ve been in the business for some time, however, you probably can’t get away with large, frequent increases.

The key is to find your sweet spot, and that requires a strategic approach to raising your freelance rates.

As you gain experience and expertise, your work is more valuable to clients—and no doubt you’re faster and more efficient. To me, there’s no reason to wait till the end of the year to bump your rates. If you’re so busy you can’t remember the last time you needed to market yourself, raise them now. Maybe you’ve discovered peers who are charging a lot more for similar projects and clients, or perhaps you’ve acquired a new skill or certification. The raise-your-rates alarm should really be screaming if you can’t remember the last time you got turned down for a project based on price.

Suffice it to say, there’s a long list of reasons to consider raising your freelance rates. So how do you do it without creating client pushback?

1. The Grandfather Clause. This one’s simple: Keep existing clients at their current rate, while quoting new prospects at a 10–20% higher fee. That way, you can test the market, while eliminating the concern about losing loyal clients who’d react poorly to a price hike. (If you’re freelancing for the long haul, of course, you’ll eventually need to raise prices for loyal clients, too—a much easier conversation if you have a strong relationship and deliver results.) 

2. The Stealth Raise. I’ll be honest: I’ve never understood why some freelancers feel obligated to make a big deal about a price increase. The stealth raise works exactly like it sounds: Build in another 10% in every new quote, including new and existing clients. Or if you do estimated ranges, which is my favorite approach, nudge the higher end a bit higher. No one needs to know but you. 

3. The Circumstantial Increase. There’s no reason you shouldn’t raise your fees during busy times or during the holidays. Think of it as a broad application of minor rush fees during a period of high demand (i.e., when you want to carve out some personal time away from the desk).

Note that all three of these are easier to execute if you generally provide project estimates. Indeed, I believe the ability to seamlessly raise rates is one of the best arguments in favor of using estimates whenever you can, rather than an hourly rate or publishing a rate sheet.

Two final thoughts on why there’s no wrong time to consider a fee increase: (1) Pricing serves as a market signal of your value, whether it’s high or low. (2) One of the strangest dynamics in the freelancing world is that, in most cases, higher-paying clients are better clients. That’s a pretty sweet side benefit in addition to the extra income.

 

Jake Poinier made the leap into freelance writing and editing in 1999 after a decade of positions in the publishing industry, giving him key insights from both sides of the desk. As the founder and owner of Boomvang Creative Group, he has worked with a diverse array of Fortune 500 and small businesses, consumer and trade magazines, and independent authors. Jake is committed to helping freelancers improve their businesses and shares his knowledge and experiences frequently as a speaker at industry conferences, through webinars, and on his blog.