Most freelancers treat their rate like it is fixed. It is not. It is a variable they are choosing not to change.
Here is the business case for changing it now.
The Maths Most Freelancers Avoid
If you work 1,000 billable hours a year at EUR 50 per hour, you earn EUR 50,000 gross.
If you raise your rate to EUR 65 and lose 20% of your clients, you work 800 hours and earn EUR 52,000 gross.
You earn more. You work less. Your remaining clients get more of your attention.
The rate increase that causes a 20% client loss is usually still net positive. Most freelancers know this and still do not raise their rates.
What Actually Happens When You Raise Rates
Based on every freelancer I have spoken to who has done it:
About 10 to 20% of clients do not follow. These are almost always the clients who take the most time and pay the least per hour of total work.
The clients who stay do not become more demanding. They often become easier. When you charge more, both sides take the work more seriously.
New clients who come in at the higher rate do not know your old rate. There is no adjustment.
How to Do It
Set a date. For new clients, use the new rate immediately. For existing clients, give four to six weeks notice.
The message: 'From [date], my rate for [service] will be [new rate]. I wanted to give you advance notice so we can plan any upcoming work around this.'
No apology. No long explanation. A statement with a date and an offer to plan around it.
For a structured five-day process to work through the rate increase including the specific language: Raise Your Rates. EUR 9.
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