It's never fun to increase rates on current clients, but sometimes, it has to be done.
Freelancers face an eternal question: how to increase rates. The easiest way to raise your rates is to simply charge the next client more money. Boosting your current clients' rates is much harder.
I've had to do it, and it's never a good time.
In some cases, the client has been fine with the rate increase. But you also run the risk that the client won't move forward with you. It's happened to me, and it'll happen to you eventually.
Set expectations upfront
One of the best ways to get higher rates when working with clients is to set upfront expectations for rate increases.
When onboarding a new freelance client, let them know you periodically review and adjust rates. You can even bake it into your agreement. For example, you might say:
Every six months we will review our working relationship and consider a 3% rate increase.
Others review their working relationships every year and might build in a 5% to 10% rate hike. Setting this expectation upfront prepares the client to expect higher rates. Just like the price of every other product or service they use, higher prices are part of the deal.
If you're writing for some clients that churn out a lot of content, such as a major website that hires several freelancers, this might not work. When you're writing for big websites that rely on traffic and affiliate income, they often have standard rates they pay across the board. Negotiation isn't likely to work in this case, and you might be unable to increase rates.
Increasing rates on long-time clients
When you're ready to increase rates on long-time clients, it gets harder. After all, you've worked with them, and you enjoy it. You don't want to ruin a good thing.
I remember the first time I did it. I'd been working with a client for three years and realized they were the only client with such a low rate. At the time, they were paying $300, while other clients were paying half again as much ($450). Sticker shock is real, so I knew I couldn't just boost the rate by 50%—or even a more modest 25%—overnight.
Here's what I sent:
Hey [Client],
I've enjoyed working with you for the last few years. I feel like we work well together and that I've been able to provide you with good value. It's occurred to me that we haven't revisited our arrangement in quite some time, and my rates with other clients have gone up. I would like to continue tailoring content to your specific needs and prioritizing you.
I suggest a stepped approach to a rate increase to $425 per article. That rate, while still lower than my current rate with other clients, would enable me to continue working with you. The rate will remain the same this month, but next month, my rate will be $330. Two more increases will follow to $365 and $400, with a final increase to $425. Moving forward, I suggest we evaluate rates once a year.
I want to ensure that you continue to get me at my best since I enjoy working with you and would like to keep this relationship in the future.
Best,
Miranda
The client came back with a positive attitude. We negotiated a little more than 30% increase in my rate to $400, stepped up over the following three months. I worked with that client for another four years until they sold their business. We negotiated a rate increase each year.
Consider what a price increase might mean to your client, and look for ways to make it easier. Perhaps you can add some value, tout a new service, or point to increased efficiencies. My client's business had been growing, and they recognized that I provided good service, took a necessary task off their plate, and made their life easier. Even with regular rate increases, they appreciated that I gave them a heads-up and started putting regular reviews on the schedule so we could plan for an increase each year.
Tips for writing an email to increase rates on current clients
When writing an email designed to let existing clients know you're increasing your rates, here are some things to keep in mind:
- Keep it concise but approachable
- Express gratitude for the relationship
- Explain the reason for the increase/value that will come from the increase
- Provide a timetable
- End on a grateful note and reiterate that you’re committed
Other examples of an email to increase rates
Below are some different options you can tweak to fit your needs. They have different styles, representing various relationships and communication styles. Think about how you interact with your clients and what makes sense for both of you.
Option 1
Hi [Client],
Starting on [date], my rate will rise to [new rate] for [type of work/article]. Over the past year, I've made an effort to improve my process and quality of writing and research. My commitment to continuous improvement adds value and efficiency for my clients, and I want to continue to prioritize your projects.
Any projects I do prior to [date] will be billed at the current rate. I understand this increase might be difficult immediately, so I propose a stepped approach over the coming months. Reply to discuss an implementation schedule that works for you.
I value working with you and am committed to providing you with the best service. If this works, I can send an updated contract.
Best,
[Your name]
Option 2
Dear [Client],
I hope you know how much I enjoy working with you and helping you produce results that benefit your business. You're one of the best parts of my freelance career.
Reviewing our agreement, I realize we haven't recently touched base about my rate. While I love that I've been able to keep rates low for you, my services are in demand, so it's time to consider a rate increase. I continue to improve, offer more services, and upgrade my processes, which allows me to serve you better.
My new rate will be [$X], effective [date]. I'm happy to discuss a gradual increase or make other arrangements.
Thank you for being a top client and someone I genuinely enjoy working with. Don't hesitate to ask if you have any questions about this change or any of my additional offerings—[list them here]. I'd love to create a custom package tailored to your needs.
Sincerely,
[Your name]
Option 3
Hi [Client],
I hope things are going well for you. [Add a little something about holidays, recent news you share, whatever chit-chat.]
This is a heads-up that my freelance rate for [service] will go up on [date].
My current rate is [$X] per [word/article/project/hour]. However, to ensure the [projects/work] I do for you is competitive with the services I perform for other clients, I need to increase your rate to [$X].
As a result, the invoice I send on [date] will include the higher rate. You'll receive a contract update by [date] that you'll need to sign before I complete more work on your behalf after [date of price increase].
I'm happy to talk through this with you and discuss ways to ease this transition.
Best,
[Your name]
What if the client declines?
As always, the client might decline the rate increase. What you do next depends on how much you want to retain the client and your other options.
If you like working with the client and you think they're worth keeping, here are some ideas:
- Negotiate the rate as I did with my client because I was willing to accept a smaller price increase. The client was easy to work with and offered a steady income, so I found it a good trade-off. I got more money and retained a star client.
- Adjust the scope of work if any rate increase isn't feasible. Tell them you need to work less, or the word count will be smaller.
- Maintain the status quo while looking for other clients that pay better. Now that you know it won't work, you can actively look for other gigs. It's up to you whether you let them know you'll stick with them for the time-being, but you'll focus more on other clients until you eventually replace them.
And, of course, you can always part ways immediately. If you have enough other work and prospects, you can move on as soon as you wrap up your current obligations.
