Imagine doing one thing right now that gives you a higher earnings total. You’d do it, right?
Sure. But I bet many of you haven’t. That one thing?
Raising your rates.
Yes, you’ve heard this from me before. It’s important. That’s why I repeat myself.
Imagine this — you have a new client in front of you. They’re looking for someone to write consumer-facing articles for their company website. You know, tout the company by providing expert advice on whatever product/service they sell.
You’re sitting there looking at your bank account. Damn, you need this job. So when they ask what your fee is, you say …. what?
Do you go low to score the gig or do you go higher to compensate for the time you’re going to put into this?
I know which one I’m doing.
Honey, go higher.
Your Assignment
Today I’m going to give you guys a simple assignment. It really is simple — raise your rate. If it’s been a while since you’ve given yourself a raise, today’s the day. I mean it. Here’s why.
Let’s say you charge about $50 an hour. You have clients, but they’re not exactly rolling in cash. Nor are you. The assignments, while easy, aren’t paying enough for you to make ends meet. They hand you about four jobs a month, each one taking about two hours each to complete. That’s $400 for eight hours of work.
If you raise your price to $75 an hour, that $400 becomes $600. You’re now working smarter, not harder.
Ah, but your client isn’t having it. They can’t pay you more, they say.
Decision time — is this a client you keep or one you replace?
I’m all for keeping clients who treat you well and who pay quickly. But when the work outpaces your ability to bring in new, higher paying clients, you might want to rethink that relationship.
The Rate Change Bonus
There’s also this strange phenomenon that occurs when you raise your rate. You attract a higher level of clientele. I’m serious. It’s happened often enough to me that I believe that you can indeed price yourself too low to attract top-tier clients.
Example:
I was asked by a friend to submit a bid to work with her company. I put together what I thought was a decent, acceptable bid — $90 an hour.
She called. “You meant $125 an hour, right?”
Lesson learned. Companies with serious cash want serious professionals. Low-balling your rate gets you passed over.
Don’t make the beginner mistake of thinking you have to have the lowest price to win the job. You don’t. If you’re actively marketing and attracting clients, you are already targeting better clients, and you should have a rate that doesn’t scare them. Or doesn’t scare them much.
That’s something to consider, too. If you’re quoting your rate and no one is balking at it, you’re too low. If you can hear the gulp or feel the hesitation, you’ve priced yourself well.
Things to remember:
You set your rates. You’re not an employee — you’re a small business owner. You have the final say in what you charge. Not your clients, not prospective clients. What you want to earn is solely your decision.
It’s okay to negotiate. Not every client can afford you. That’s okay. But if you’re close in price and you’re getting a good vibe from them, it’s okay to agree on a different price. It’s also okay to change the scope of the project to fit within your rate and their budget.
Raise ’em regularly. I suggest raising your rates annually, about 10 percent or so (the percentage increase is up to you — remember, it’s your decision) for existing clients. Quote new clients at your new annual rate.
Avoid charging per hour. Confused? Hear me out. The longer you work with a client, the more intuitive you are about the writing. Speed can kill your earnings. If you can get that 1000-word article finished in 4 hours where it used to take 7, you’re losing money. Why be penalized for speed and skill? Instead, propose a project fee based on your hourly rate and your skill level. Or charge per word, which is just as equitable to you and your client.
Ready to earn more? Go on. Get out there and charge like you mean it.
Do you raise your rates regularly? If so, what does your usual increase look like?
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