How to Increase Your Freelance Writing Rates for Existing Clients

I don't know about you but every year around this time, I start thinking about clients who are ready for a price increase. Of course, you don't just go around charging extra rates whenever you feel like it (well, you don't if you want to keep your clients) so there have to be some rules to play by, don't there?

Criteria that Justifies a Rate Increase

There are a few different criteria to consider before you raise rates.

1. Are there any additional services the client has been receiving that were not accounted for on the initial quote and are, therefore, not really being charged for? Examples include extra editing, keyword research, coming up with topic ideas, the Digging, Stumbling, or Tweeting of posts, interviewing, etc.

2. Is the client being charged AT LEAST the low end of your current rates? Some clients we keep for so long that they end up paying an unheard of rate.

3. Have you improved your skills, knowledge or industry value with additional certificates, classes, or licenses?

4. If you increase rates for a client, are you still offering a competitive rate that your service is worth?

5. Has it been a year or longer since you began working with the client or since you last raised his or her rates? I don't like to increase rates on a client more than annually. I'm not saying it's wrong to, this is just a personal preference. Of course, I have made exceptions to this.

Determining How Much to Increase

Once you've looked at each of your clients with the above criteria in mind, start to consider what an appropriate increase amount would be. This is difficult because you have to think about your own valuation of your time, skill, ability and knowledge AND you have to consider the client's budget and their appreciation for your work.

1. Okay, so client is getting additional services (see #1 above). For this client, add an extra fee based on the amount of time these extra services cost. Figure out how long the extra duties take, determine what portion of your hourly rate that is (extra duties take 15 minutes per article. With an hourly fee of $50 that means you need to add about $13 to the price of an article) and then decide whether to do that as an extra charge per word or a flat fee.

2. This client is well below your minimum price for new clients. This is a difficult one because depending on how fast your company has grown, this client could be really, really, really below your lowest new client price. If you are willing to lose the client, you can let him or her know how far out of pace their quote is and let them know that you are increasing them to your normal rates. If this is a big client this could be a good move because you are losing a lot of money with them as it is-but you need to be prepared to lose this client. Most clients don't react well to 500% rate increases. The other option is just to increase them a little and keep doing so year after year accepting the fact that they may never be on par with new clients rate-wise.

3. This one (improved knowledge and licenses) is best used on those clients who are going to benefit from the knowledge either because they have given you a byline as a means to adding authority to their site or because you are helping them to become more sophisticated, legally compliant or authoritative. #3 can have the most value in terms of raising rates and you can often get away with dramatic rate increases. It is important that you really explore the value of the knowledge/ license to your clients so you can justify the increase.

4. Number 4 should be considered with each of the above criteria. Remember, just because you think more highly of yourself this year than you did last year, that doesn't mean you are worth more to your clients.

Announcing the Change

It is important to discuss this rate change over the phone. If you have a really good relationship with the client, you can do it via email, but a personal phone conversation will offer you the best chance at successfully communicating your increase and the reason for it.

1. No matter how you announce the change, make sure that you tell the client why you are charging more. Clients are not going to want to hear "cost of living" or "home renovations" as a reason. They want to know why THEY should pay you more, so make it focused on the service you offer to them.

2. Give them an out. Some clients may want to keep your service but just can't afford the increase. Give these clients an "out" by offering to scale back your services. Tell them what you can provide to them at your current rates to match their old budget.

3. Be kind. Even if you have a client who has been paying you half of your normal rate and you feel cheated, you need to remember that this is not the client's fault-it's yours. So be kind and respectful when you communicate the increase.