Asking for a raise from your client can be terrifying. While this is normal, some people don’t have the guts to ask the magic question. They think that doing so would sabotage their working relationship. That’s why most choose to stay silent.
You won’t think twice about asking for a raise if you know your worth and have added value to your client’s business. If you want to double your freelancing rate but don’t know where to start, fear not because we have outlined the actions you need to take.
Taking a look at freelancing
Freelancing has been rising in popularity. This increase in attention from professionals is attributed to the chain of events that unfolded in the past two years. First, the pandemic in 2020 led to a strict lockdown that made it hard for consumers to purchase products through traditional brick-and-mortar stores. Because of this, businesses went under, forcing employers to lay people off.
There were also massive resignations. Unsatisfied employees voluntarily leave their jobs because of the high cost of living, salary stagnation, and limited career growth.
Since most people were stuck in their homes, they had nowhere to go but online. That meant everyone was on the internet, looking to entertain themselves and purchase necessities. Consumers sought food delivery services. Video conferencing also became in demand.
Employers also realized they could hire talents online, with these freelancers coming from different sides of the globe. 62% of employers prefer freelancers because projects get finished faster. 55% percent of them do because of reduced cost. Lastly, 49% believe they have access to a better talent pool.
Considering the recent spike in revenue of the most popular freelancing platform, Upwork, you can say that money is easy to make in this industry.
How to determine your freelance rate
The freelance rate you set is one of the most important decisions you can make, and it will shape your career for years to come.
The first step in determining your freelance rate is determining your worth. You need to be able to justify your price based on your experience and expertise and the market value of your services.
Once you know how much money you should charge, the next step is determining how you’ll charge for your services. You’ll need to decide on a payment method that works for both parties, whether hourly per project or another method.
How to price yourself
Expenses
When determining your freelance rate, you should consider your expenses. This includes renting a workspace, buying supplies and equipment, and paying taxes and insurance.
Once you figure out how much it costs to be self-employed, divide that by how much work you can expect to do in a day or week. This gives you an idea of what hourly rate would be fair for your services.
You can also consider any other factors that will affect your hourly rate. For example, if you have an expensive degree that has helped you land your job or meet clients, this will increase the value of your time and the cost of hiring someone else with similar training.
Your Client’s Budget
Suppose you’re working with an organization looking to hire a full-time employee. In that case, they likely have a generous budget for their new hire and can afford to pay you a higher rate than if you were working with an individual or company with a smaller budget.
However, even though the budget may differ between clients, you can still do some things to ensure your rate is fair and competitive. You can start by analyzing the market and determining what other freelancers charge for similar services.
It’s also important to consider your experience in this field and how long you’ve been doing this type of work. These factors will help determine whether or not your rates should be adjusted up or down relative to other freelancers’ rates in your area.
The Results and Value You Provide
The value of the product or service you offer is determined by the client’s perception of what they need. Clients with a problem will be willing to pay for a solution. If a client has no problem, they will not be willing to pay for your services.
For example, if you have experience writing sales copy for e-commerce websites and are hired by an online store owner who wants to improve their SEO ranking, then let’s say your hourly rate is $50/hour. If your work increases its sales conversion rate by 5%, your increased income per sale would be $1 (5% of $20). They would need at least 20 monthly sales to make up for hiring you at $50/hour.
Rates
There are multiple approaches to getting paid. Each one works best depending on your experience and job description.
Hourly Rates
Hourly rates are best for freelancers whose task takes more time to finish. If the nature of your niche requires you to work long hours, then you will earn more by having this payment setting. Evaluate your niche and determine if it makes more sense for you to get paid by the hour.
The downside to this approach is that it punishes freelancers who are too good at their job – especially creative ones. A master graphic designer can craft stunning visuals in hours, which may take novice days to replicate. As you can see, more time doesn’t necessarily mean better output.
So, if you’ve been freelancing for a while and think you produce top-notch quality output quickly, it is better to go for a different payment setting.
Project-Based Rates
In a project-based payment, you get paid every time you finish a project. Employers could pay writers for every article they write. Graphic designers get paid for every design they craft.
In this approach, the freelancer is paid based on the final output, not the hours spent to finish it. As we’ve written above, this is good for those who are too good at their niche.
Package-Based
A package is simply a series of projects that require multiple skills. For example, to be a competent social media manager, you must know marketing, graphic design, copywriting, captions, and community management.
You can list all these skills, and you’re going to tell your client that you will do all of these skills in a certain period and for a specific rate.
This approach is excellent for job titles like social media manager, wherein you need more than one skill to achieve your job title’s goals. If paid this way, you ensure your skill is compensated accordingly.
Retainer Rate
Retainer rates are perfect for projects that need maintenance. A content writer, for example, will edit an article blog every month based on the current state of Google searches. This way, the business ensures that Google searchers can find the piece that the company hired a writer for
Tips to double your freelancing rate
You ensure your efforts are appropriately compensated by actively seeking to increase your rate. You need to deserve it to achieve this, which requires hard work. Don’t worry; we’ve outlined what you need to do to double your rate.
Make a Positive Impact on Your Client’s Business
Before you can get a raise, the business must be able to afford it. That means you must have significantly contributed to the company’s recent successes before you can propose a salary raise.
Clients don’t resist these proposals if they believe the freelancer deserves them. It’s a no-brainer for an employer to give you $1,000 monthly if you’re helping them make $10,000 in return. That 4-digit earning is tiny for them.
Many freelancers ask for a raise even though the business is struggling, which is terrible. Be sensitive and help the company as much as possible before you ask for a raise.
List Your Significant Contributions
If you think you’ve contributed to your client’s recent success and deserve a raise, then it is time to do your homework.
Compile all of the recent wins you had while working with your client. Emphasize your role in it, and craft a convincing case on why you deserve to get paid more. If you truly deserve it, the client will happily grant it.
How do you plan to improve after the raise?
A pay raise is an investment from the perspective of the client. Doubling your rate is an expense moving forward, which means your client expects more of you when they invest more. Ensure that you will not disappoint the person who granted your wish. Don’t slack off and instead move your career further even more.
Takeaway
Asking for a raise doesn’t have to be scary. If you’re trying to impact your client’s business significantly, you will have no problem creating a compelling case for why you deserve to get paid more.
I hope we clarified that getting a raise is within your reach. So start improving yourself and create that significant impact we’ve been discussing.
Angeline Licerio
Angeline Licerio is the blogger behind Dollarmize.com. After working online as a writer and SEO strategist, she decided to start this blog to give advise to people who would like to earn money online. She is also the founder of SEO Tutorials for FREE, a Facebook community that helps aspiring freelancers and SEO specialists to kickstart their work from home journey.
