How and When To Raise Your Rates

“Everything is worth what its purchaser will pay for it.”
— Publilius Syrus, Roman writer and poet.

In Issue #240

Main Essay: How and When To Raise Your Rates
by Monica Day

There’s only one thing more challenging than knowing what to charge a client when you’re just starting out …

Knowing when to raise your rates, and by how much.

Sometimes, even when we hit certain success milestones, there’s a newbie looming in our hearts and minds. Big double-decker fears pop up – what if the client says no and stops using me? What if I charge more and the next project bombs? What if I price myself out of the market?

Here’s the problem with letting your fears rule your price list.

Once you’ve written some successful packages for clients, they will keep calling. And calling. And calling. Then, you’ll start getting referrals. And they’ll start calling. And so on. Once word gets out that there’s a hot new copywriter on the scene – and she’s working at newbie rates – a steady river of projects can become an ocean at high tide.

If you haven’t hit this stage in your career, you’re probably snorting right about now – yeah, I wish …

All I can say is, be careful what you wish for.

A colleague of mine learned this lesson the hard way. She made a big, ambitious wish. She left her in-house copywriting gig and hung out her freelance shingle. She pursued every single approach that could ensure her success: scored top clients … lined up top copywriters to mentor her … and took on ambitious projects with the potential to be blockbuster controls.

Was she successful? Absolutely. But by the time she figured out that her strategy had worked … and it was time to nudge up her rates … it was almost too late. Her health became compromised. Her copy was still good, but it wasn’t great – and sometimes she was even missing deadlines. She wasn’t happy about that – and neither were some of her clients.

When her skill level – and her value – increased, her rates should have also gone up. But in her mind, it was going to take two years of this kind of pace to reach her goals. It only took a fraction of that time – and the lag in her response to the change in her value about killed her.

In her case, it took many phone calls and a few cosmos to convince her to do the deed. And guess what? When she finally took the plunge – her client didn’t flinch to pay the new rate. In fact, I’m willing to guess they expected it months ago and felt lucky for the long run at the low rate.

Since I can’t cajole and drink with each of you (or I’ll have to go into rehab!) here are some less-pain, more-gain ways to raise your rates:

— Introductory Rate: When you book your first project with a new client, offer them an “introductory rate.” For example, you might say that your regular rate is $4,000 for a package, but since it is a test drive for you both, you’re happy to do it for $3,000. This way, you are sharing the risk of working together for the first time, but you’ve left room to increase your rates as soon as you prove yourself.

— Just Do It: If you’ve been working for the client on a few projects already, and they’ve gone well, you can simply bite the bullet and raise them. Remember, they can always say ‘no’ and you can always decide that you’re willing to keep working for them at the current rate until you can replace them with a higher paying client.

— New Year Plan: The beginning of a new year can be the perfect time to plan for a rate increase … simply issue a new price list, or let your clients know now that as of January 1st your new rates will be in effect.

— Performance Bonus: Some clients simply can’t pay more. They may have a limited budget or a restrictive mandate from a head honcho … but they don’t want to lose you. Try suggesting a performance bonus or royalty arrangement. These are often easier to sell as the client is only paying extra for you when they are earning more from your copy. Win-win.

Keep in mind that your prices are yours. You can raise them, and you can lower them to suit your needs. If there is one client that simply won’t go up – and you really enjoy doing their work – let them be the exception. If you need to lower your rate to snag a new client and then slowly charge more as you prove yourself, that’s fine, too.

But keeping your rates the same – and too low – for the sake of consistency or out of fear, isn’t necessary. Earning what you’re worth, valuing your time – and knowing your value in the marketplace – is.

Editors Note: That friend I wrote about? She finally raised her rates and snagged the client of her dreams. When I first wrote this essay, she was charging somewhere around $1500 to $3000 a package. Now she gets $15,000. Phew … that was a lot of cosmo-drinking … but worth it!

Resource Referral: Custom-Tailored Program at a Cookie-Cutter Price

Unless you were at a barbeque … riding the waves on a new boogie board … or otherwise enjoying Memorial Day weekend, you probably already know our big news around here.

Virtual Mentor was officially launched! And there are lots of reasons for you to consider subscribing if you haven’t already. Virtual Mentor offers you proven advice on dealing with:

Practical matters such as pricing, choosing your niche, finding and landing clients, determining your USP, conducting effective research, and more …

Lifestyle issues, such as balancing your practice with your life, letting your passion guide you to your niche, writing fast so you can live slow, and more …

Motivational issues, such as staving off procrastination, knowing when you’re ready to start booking clients, feeling more confident in your writing, and much, much more …

But what most people seem to appreciate about the program is the convenience. It contains everything you need to get your career to the next level – but you can access it when you want to, when you’re available, when you have the up-all-night burning question …

If you want …

 … then join Virtual Mentor today.

Special Time-Limited Bonus!

When our friends at AWAI heard about the program, they threw in a special bonus for early subscribers. It’s one of my favorite reports – dog-eared on my desk at all times: A Cheater’s Desk Reference for Copywriters: 27 Tips, Tricks and Techniques to Help You Work Less and Make More.

Enroll by midnight on May 31st and you’ll get everything Virtual Mentor offers … plus this special report. So don’t delay! Subscribe now.

Quick Life Tip: The Four Agreements

I was given the assignment to read a small, simple book for a workshop once called “The Four Agreements” by Toltec spiritual leader Don Miguel Ruiz. The tagline for the book is A Practical Guide to Personal Freedom – and it’s true. That really is what this book can deliver, if you take it seriously.

I have been amazed at how much I have referred back to this book since I took that workshop two years ago … and one by one, have come to realize the wisdom of these agreements.

They are:

Like most things that are “simple,” it is not easy to adhere to this advice. And yet, I can apply them to almost every single situation in life and it becomes clearer. In fact, I find myself referring to them during my coaching sessions all the time. I’ve given the book to my 11-year old daughter to read because I think it will get her through middle school with less pain and agony. And now, I’m recommending it to you.