When it comes to freelancing, it is inevitable that not only will you be forced to learn new skills, expand your expertise, and work with a variety of clients from different industries, but you’ll also need to increase your rates to excel in your professional life and live a prosperous life.

When Can I Increase It?

1. Every time you finish a certain number of projects and deliver high-quality work.
2. Increased recognition and a good reputation for your brand or business.
3. Developed strong relationships with loyal clients in exchange for more experience and successful transactions.
4. When you are exceeding the current capacity of your services due to high-profit demands, lack of time/staff, and high production costs for high-quality products/services.
5. When you have a better understanding of your production costs, learn new adaptation and negotiation techniques, diversify your clients, and expand your knowledge and expertise. 

How Can I Increase It?

You can increase your pricing from 10% to 25% gradually after finishing successful projects. Could be every X months, every X amount of projects, or annually. One of the best ways to do it is to let your network of clients know about the upgrade with 1 to 3 months of anticipation. This method is considered the most honest and open communication. You do it this way out of respect and courtesy for those who stayed with you, either from the beginning or for a long period.

Some clients have a perception of value for a certain product or service, and if you offer a low rate, chances are they will start to question whether or not you understand the project’s scope and/or vision. Ultimately, they’ll probably find someone who has a similar or greater rate to their perception of value for the desired product or service.

What If My Clients Don’t Like The Idea Of My Increased Rates?

1. Present yourself with confidence, honesty, and an open mind.
2. Demonstrate the benefits of why the client should pay you and stick with you for the long run.
3. Add a description of each product or service in your estimate document. This way, you can provide a clear itemization with accurate pricing after considering work value and expertise. The client may appreciate your transparency.
4. Let them know you care not just for their final products, but also for their vision, choices, and the impact they can create with you for their target audience.
5. And lastly, if nothing works, then don’t take it personally and let the client go. When one door closes, multiple open.

Conclusion

Increasing your rate or prices will definitely limit your clientele pool, either because your prices are no longer attractive or affordable. And even if fewer clients can afford you and this creates long periods of no revenue, remember that this will wear off difficult clients looking for the unicorn (pretty, cheap, and fast). I would rather have a slow, but massive income of 3–5 projects per year, than a long list of cheap projects with an endless headache with problematic clients.

Even though there is no right or wrong time to increase your rates, since this decision will depend on your life circumstances, if you feel confident and recognize you deserve to increase your prices to keep thriving professionally, then do so. It may be well-received or not, and it may work for you now or probably in the next 3 to 5 years.

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