Unlock Higher Earnings: How to Set and Boost Your Freelancer Rates

Accepting low rates is sadly common within the freelance community and is particularly tricky for new freelancers who undervalue their worth or become stuck, never increasing their rates with experience.

There are a few reasons for this, but one of the most glaringly obvious is a lack of transparency from both fellow freelancers and employers who hire freelancers, with many employers often offering lower rates to freelancers simply because that freelancer sold themselves short.

Charging your worth is essential to being a successful freelancer. There is only so long you will be able to continue undervaluing yourself before you become exhausted by your lack of income and ultimately seek traditional employment again.

You deserve a pay rise as much as anyone who is in a traditional employment situation.

Are you ready to charge your worth as a self-employed freelancer?

Here are some of the ways you can set and raise your rates as a freelancer, as well as some other useful tips and resources that have helped me!

1) Knowing your worth as a freelancer — don’t get stuck charging low rates

Setting fair rates and sticking to them helps you get into the mindset of knowing your worth, which is the kind of gumption you need when it comes to dealing with difficult situations like a non-paying client.

I recommend this resource a lot but the free ‘Illustrated Freelancer Guide’ goes into detail about setting your rates in chapter two and nails it.

A useful tip that they mention is that if you’re building your portfolio or doing some work at ‘friend rates’, make sure you make it clear on your invoice that you have given them a percentage discount and that this isn’t your usual rate.

Once you’re in the cycle of setting your rates low, it’s very difficult to get out of it because many companies won’t be receptive when you try to raise them — it can be viewed as a dramatic increase rather than simply charging a fair wage.

Tip: If you are charging for a meeting, charge for the time before and after the meeting to cover the time when you will be preparing for the meeting and debriefing. This is because you won’t be working on other projects efficiently during this time.

2) Raise your rates annually in line with inflation

Always know your worth and take into account that you have another’s years of experience under your belt.

But what should you be charging? This largely depends on your industry but your first point of rate setting should be to add up your monthly expenses (or ideal monthly income) and divide that amount into a set amount of hours and hourly rate.

Raising your rates with an older client can be difficult. It’s definitely easier with new clients as you can make them aware from the start that you will be periodically raising your rates based on experience and time.

That doesn’t mean you shouldn’t raise rates with older clients, but perhaps be prepared that they may not be able to pay so you can instead offer them a smaller package for the same price.

How do you tell a client that you’re raising your rates? With a Freelance Rate Increase Letter

Here are a few examples of short emails that a freelancer might send to a client to inform them of a rate increase.

You can edit these to suit your own situation with your client and your tone of voice.

1) The Straightforward Approach

Subject: Rate Increase Effective [Date]

Dear [Client’s Name],

I hope this email finds you well. I’m writing to inform you that, as of [effective date], my hourly/project rate will be increasing to [$new rate]. This adjustment reflects the value and expertise I bring to our projects together.

I deeply value our partnership and look forward to our continued collaboration. Please let me know if you have any questions or if there’s anything else you’d like to discuss.

Best,
[Your Name]

2) Highlighting Expertise and Experience

Subject: Updated Rates Reflecting Advanced Skillset

Hi [Client’s Name],

Over the past year, I’ve undertaken significant professional development and training. As a result, the quality and range of services I offer have expanded. In light of this, I’m updating my rates to [$new rate] effective [effective date].

Thank you for understanding, and I am eager to continue bringing even greater value to our projects together.

Warm regards,
[Your Name]

3) The Appreciation Approach

Subject: Upcoming Rate Changes

Hello [Client’s Name],

I want to express my gratitude for the trust and partnership we’ve built together. As I periodically review my pricing structure to ensure it aligns with industry standards and the quality of my work, I will be implementing a new rate of [$new rate] starting [effective date].

I appreciate your understanding and am always here if you’d like to chat further about this.

Best wishes,
[Your Name]

4) Long-time Client Consideration

Subject: Important Update on My Freelance Rates

Dear [Client’s Name],

As one of my long-time clients, I wanted to personally reach out and let you know about some changes to my rate structure. Starting [effective date], my new rate will be [$new rate]. This adjustment ensures I can continue to deliver the quality of work you’ve come to expect.

I genuinely appreciate our ongoing collaboration and hope we can maintain this for many more projects to come.

Kindly,
[Your Name]

Remember, it’s essential to remain professional and positive when communicating rate increases. Make sure you’re open to discussion and prepared to explain the reasons for the rate change if asked

3) Know the industry rate standard for the country where your work

This is key for making sure you’re being paid fairly. For example, if you’re based in the UK, but most of your work comes from the US you have to know the standard industry rate for both countries to make sure you’re being paid fairly.

You also need to take into account the cost of living where YOU are based and make sure you’re earning enough to get by. On top of that, you need to make sure you’re factoring in what you lose when it comes to the currency exchange.

4) Have a contract for new clients with late fees stated!

Another big issue when it comes to freelancers being undervalued is payment issues. Did you know that 41% of clients hiring freelancers consistently pay late and self-employed workers lose an annual average of 20 days chasing unpaid invoices?

When you realise how much unpaid labour that adds up to, it gets pretty depressing.

I’ve previously written an article on how you can approach non-paying clients and what you should put in your contract to make sure you are covered beforehand.

Though enforcing your contract can be a daunting task in itself and many clients hiring freelancers simply get away with it, you’re still putting yourself in the best possible position if you have a contract to work with when the worst happens.

Tip: Writers can check out this amazing resource put together by other freelance writers —#FreelancerPayGap lists publications and how much they paid individuals. You can also find a handy list of rates on the Journo Resources freelance rates page.

5) Find your ideal freelance clients

When it comes to finding work that pays well, I would keep away from sites like Upwork and Fivver as much as possible, which can often feel like a race to the bottom in terms of pay.

It can be a great place to start, especially if you need help finding those important first clients but it’s best to browse the freelance jobs listings on sites that tend to have well-paid positions.

Instead, focus on identifying clients and businesses that you feel you can actually help and offer your services to them (I’ve discussed a good way to approach this in my sell your skills article).

That way you’re not competing with countless other freelancer for each position and you can pick work that you’re truly interested in.

6) Consider unions and insurance for freelancers

Lastly, consider joining a union. Unions for freelancers are few and far between but they do exist and work hard to fight for the rights of freelancers while providing excellent resources to know your worth.

One of the biggest is the Freelancers Union but it’s also worth looking for local grassroots organizations where you can have a more personal involvement.

Insurance for freelancers isn’t necessary but can offer you extra protection against copyright infringement as well as personal and professional accidents. Insureon offers one option but there are many options depending. on your needs.

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