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How to Raise Your Freelance Rates (w/out Losing Clients)
Jan 17, 2024
If you’re ready to raise your freelance rates, but you’re not sure how to break the news to your clients, then this video is for you. Follow along at https://millo.co/gracefully-tell-client-youre-raising-rates
• • • VIDEO CHAPTERS • • •
0:00 Introduction
0:22 How do I tell a client I'm raising my rates
1:02 Remind them of your value
1:27 Focus on future value
1:59 Be very clear
2:30 Explain why you're raising rates
4:10 Give lots of notice
4:40 Remember your value
• • • MENTIONED IN THIS VIDEO • • •
Use HECTIC to master your freelance business: https://millo.co/hectic
• • • SUBSCRIBE for more freelancing videos • • • https://www.youtube.com/channel/UCHUE7dy9CxjtipQgGVhrNQg
• • • LEARN MORE on the Millo blog or podcast • • •
Blog — https://millo.co/blog
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0:00
If you're ready to raise your freelance rates but you're not sure how to break the news to your clients
0:04
then keep watching because I'm going to break down exactly what to say
0:08
and what you should consider when raising your rates. Hey guys, Josh here with Millo.co where freelancers come to level up their business
0:19
and today we're answering a question from the Facebook group. Anna asks, how do I gracefully tell a client I am increasing my rates
0:27
Good question. Telling a client that you're raising your rates can be especially nerve-wracking
0:32
when you're wondering how to reach out to your biggest clients like Anna
0:35
She went on, this client is bigger than any of my other clients
0:39
and takes up more time so they are important to me. If you found yourself in Anna's position and need to know how to raise your rates
0:46
with important clients, this video is for you. This video is sponsored by Hectic, more about them later on in this video
0:53
To raise your rates, you may choose to send an official email or call your client on the phone
0:58
Regardless of which you choose, the following ideas will help you send the right message
1:02
First, remind them of what value you've brought to their business. You don't have to go into too much detail but remind them about all the great work
1:09
that you've done whilst working with them. If you're seriously considering how to tell your client about raising your rates
1:15
you've probably been with them for a while and have done some great things
1:19
Try saying something like, I've loved working with you over the last three years
1:23
We've done some incredible things together and I appreciate your business. Next, you'll want to focus on future value that you'll be bringing to their business
1:32
To identify potential untapped value that you can offer your clients, consider ways that you can help them reach their business goals on a regular basis
1:40
For example, offer a free strategy session each month to review their business
1:45
and find areas where you can make improvements. You might say something like, I was reviewing your website and realised there are still
1:52
quite a few articles that aren't getting much search traffic. I bet we can fix that and increase your monthly traffic
1:59
Next, it's time to be really clear about raising your rates. You can say something like, as we continue to work together, I want to let you know that
2:08
after five years without an increase, I'll be raising my prices on June 7th
2:12
The key here is to be as clear as possible. Use dates, figures and clear language to make sure there's no confusion about your rate increase
2:21
You could also add more clarity by saying something like, any work we've booked prior to June 7th will be billed at my previous rate
2:29
From there, it's time for step four. You'll want to quickly explain why you're raising your prices
2:34
But before we get into that, I want to thank Hectic for sponsoring this video
2:38
Hectic is an all-in-one suite of tools for freelancers. Hectic can help you get a handle on proposals, contracts
2:45
invoicing, project management, client management and a ton more. And the best part is, Hectic is completely free to use
2:53
With their free forever plan, you can use some of the best tools on the market to start
2:57
run and grow your freelance business. Then, if you need premium features later on, Hectic is one of the most affordable choices out there
3:06
Visit millow.co forward slash hectic or visit the link in our description to sign up 100% free
3:12
Thanks to Hectic for supporting Millow and freelancers everywhere. All right, back to step four, explaining why you're raising your rates
3:20
Many freelancers mess up in this step, citing reasons like, my team is growing and I need to pay them
3:26
Or, we've purchased new equipment and rented an office space. While these might be very good reasons for raising your rates
3:33
your clients don't want to hear about your expenses. Instead, flip these around and focus on the extra value
3:40
that you'll bring to your client with the new higher rate. Try something like, our growing team means quicker turnaround times on your projects
3:50
Or, we've upgraded some of our equipment so your projects come out faster and better every time
3:56
Of course, these are very generic examples. You'll need to tailor them to the specific work you do and reasons for raising your rates
4:04
Remember, the key to doing this right is showing how higher rates will benefit your clients
4:10
Number five, make sure you give lots of notice. When raising your rates, make sure you give your clients plenty of time to plan for it
4:17
90 days would be ideal, but 60 or 30 days are acceptable too
4:22
Letting them know that you're raising your rates in advance will help set their expectations so they are not caught off guard
4:28
This can also present a great opportunity to get some extra business
4:32
Assuming prices are going up may incentivise clients to book projects at your lower rate
4:37
now to lock in a better price. Finally, remember that you do add value
4:42
Many freelancers have never experienced what it's like to hire a contractor
4:46
It can be very difficult to find competent people that can actually do a job well
4:50
And since firing you and hiring a different freelancer represents extra work and risk
4:56
your client is likely to simply pay the new prices to avoid those challenges
5:00
Of course, there are still plenty of people out there that could fill your spot
5:04
so don't get too arrogant. But do keep in mind that it takes time, energy and sometimes money
5:10
for companies to interview new freelancers, get them in the system and bring them up to speed with their workflow
5:16
It's often just easier to keep a good freelancer at a higher rate
5:20
than to find a new one at a lower rate. Hey, before we end, we've got a quick question for you
5:25
When was the last time you raised your freelance rates and how did you do it
5:29
Leave us a comment on this video and let us know. If you've got more questions about raising your prices
5:34
then you can join our free Facebook group at millo.co forward slash mastermind
5:39
And thanks again to Hectic for supporting today's video. Click the link in our description to use Hectic for free
5:45
For now, I've been Josh with millo.co. Thanks for watching. And I'll see you in the next video
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