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If you're ready to raise your freelance rates but you're not sure how to break the news to your clients
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then keep watching because I'm going to break down exactly what to say
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and what you should consider when raising your rates. Hey guys, Josh here with Millo.co where freelancers come to level up their business
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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
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Good question. Telling a client that you're raising your rates can be especially nerve-wracking
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when you're wondering how to reach out to your biggest clients like Anna
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She went on, this client is bigger than any of my other clients
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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
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with important clients, this video is for you. This video is sponsored by Hectic, more about them later on in this video
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To raise your rates, you may choose to send an official email or call your client on the phone
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Regardless of which you choose, the following ideas will help you send the right message
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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
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that you've done whilst working with them. If you're seriously considering how to tell your client about raising your rates
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you've probably been with them for a while and have done some great things
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Try saying something like, I've loved working with you over the last three years
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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
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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
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For example, offer a free strategy session each month to review their business
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and find areas where you can make improvements. You might say something like, I was reviewing your website and realised there are still
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quite a few articles that aren't getting much search traffic. I bet we can fix that and increase your monthly traffic
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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
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after five years without an increase, I'll be raising my prices on June 7th
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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
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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
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From there, it's time for step four. You'll want to quickly explain why you're raising your prices
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But before we get into that, I want to thank Hectic for sponsoring this video
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Hectic is an all-in-one suite of tools for freelancers. Hectic can help you get a handle on proposals, contracts
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invoicing, project management, client management and a ton more. And the best part is, Hectic is completely free to use
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With their free forever plan, you can use some of the best tools on the market to start
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run and grow your freelance business. Then, if you need premium features later on, Hectic is one of the most affordable choices out there
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Visit millow.co forward slash hectic or visit the link in our description to sign up 100% free
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Thanks to Hectic for supporting Millow and freelancers everywhere. All right, back to step four, explaining why you're raising your rates
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Many freelancers mess up in this step, citing reasons like, my team is growing and I need to pay them
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Or, we've purchased new equipment and rented an office space. While these might be very good reasons for raising your rates
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your clients don't want to hear about your expenses. Instead, flip these around and focus on the extra value
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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
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Or, we've upgraded some of our equipment so your projects come out faster and better every time
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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
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Remember, the key to doing this right is showing how higher rates will benefit your clients
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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
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90 days would be ideal, but 60 or 30 days are acceptable too
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Letting them know that you're raising your rates in advance will help set their expectations so they are not caught off guard
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This can also present a great opportunity to get some extra business
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Assuming prices are going up may incentivise clients to book projects at your lower rate
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now to lock in a better price. Finally, remember that you do add value
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Many freelancers have never experienced what it's like to hire a contractor
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It can be very difficult to find competent people that can actually do a job well
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And since firing you and hiring a different freelancer represents extra work and risk
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your client is likely to simply pay the new prices to avoid those challenges
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Of course, there are still plenty of people out there that could fill your spot
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so don't get too arrogant. But do keep in mind that it takes time, energy and sometimes money
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for companies to interview new freelancers, get them in the system and bring them up to speed with their workflow
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It's often just easier to keep a good freelancer at a higher rate
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than to find a new one at a lower rate. Hey, before we end, we've got a quick question for you
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When was the last time you raised your freelance rates and how did you do it
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Leave us a comment on this video and let us know. If you've got more questions about raising your prices
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then you can join our free Facebook group at millo.co forward slash mastermind
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And thanks again to Hectic for supporting today's video. Click the link in our description to use Hectic for free
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For now, I've been Josh with millo.co. Thanks for watching. And I'll see you in the next video
