There will come a time in your freelancing career when you have the sobering realization that it’s time to raise your rates. Maybe you’ve gained more experience. Maybe you miscalculated your rates the first time around and realized you need to make more for the amount of work you need to put into a project. Maybe you want to expand and invest in your business by hiring a VA.
There are multiple reasons why you should consider raising your freelancing rates, but if you’ve never done it before there’s a good chance that you’re terrified to do it. I end up walking quite a few freelancers through this process in my coaching practice. Many times they are terrified of losing money or angering a client.
I’m here to tell you how to get over the fear of raising your freelancing rates so that you can begin to increase your revenue.
You literally can’t afford to avoid it.
This is where I put on my personal finance blogger cap and tell you that you literally can’t afford to avoid raising your freelancing rates. You see, there’s this thing called inflation which refers to the rise in the cost of goods and services over time.
One of the beautiful parts about running your own business is that your salary depends on you. You don’t have to wait for someone to approve a raise, you determine what you get paid. In other words, while everyone is griping about the rising cost of living and stagnant wages, you can begin to give yourself a raise immediately by raising your rates.
You have more control than the average employee when it comes to earning potential, and you cannot afford not to take advantage of it.
Know what to expect.
If you’re afraid of raising your freelancing rates, it’s helpful to know what to expect. Will you lose a couple of clients? It’s possible. In fact, don’t be surprised if there’s a short-lived dry spell after raising your freelancing rates. However, it will be a thing of the past once you start landing new clients at your new rates.
I once had an awkward client break-up when I realized they wanted more work for the same pay. I quoted my new rates and they weren’t willing to pay it. I stood my ground, and although they didn’t stay on as a client it worked out because suddenly I had the necessary space in my editorial calendar for the three new clients that were coming on at newer rates. The truth is even if I’d just replaced them with one new client I would have already been making more money which would have made raising my freelancing rates totally worth it.
You don’t want to become resentful.
Here’s what happens when you don’t raise your freelancing rates even though you want to: you begin resenting your clients for not paying you what you think you deserve. This leads to you not wanting to do the work, being annoyed with clients and running the risk of ruining the relationship.
Here’s the thing, it’s not the fault of your clients. It’s actually your fault for settling and not asking for more money.
Raising your freelancing rates can be scary, but take it from someone who’s already done it a few times: Once you see your bank account begin to grow that initial fear will dissapate. Remember, you have control over your earning potential and it’s up to you to exert it.