In a corporate job, somebody else initiates your raise. There’s an annual review on the calendar, and you may or may not get an increase based on performance, cost of living or both.
Working solo, none of that exists. If you want to be paid more, you’re the one who has to bring it up with clients. Most solopreneurs put it off, because that conversation feels so uncomfortable.
Raising your rates is a routine business operation, and if it’s not something you plan for, you’ll find that your pay doesn’t reflect changes in your business and expenses.
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The signs that you’re due for a rate increase
Two things drive a rate increase, and they’re not dependent on each other.
The first is that your costs go up whether your rates do or not. The inflation rate in the U.S. has seen significant increases over the past few years. Your life expenses, like groceries and rent, have gone up. On the business side, your software subscriptions and insurance may also have increased. Hold your rate flat, and you’re paying more while your income stays the same.
The second is that your work may be worth more as you gain experience. That’s a different angle of rate increases, and there are a few things to consider:
- Your client roster stays full. You’re turning away work or are booked out for weeks or months at a time. You could charge more, lose a client, and land in the same place financially.
- You’ve specialized. Certifications, new tools, a narrower niche—anything that narrows the pool of people who can do what you do.
- Nearly every prospect says yes. A high close rate usually means you’re the affordable option. Some price resistance from potential clients is healthy.
When I started my solo business, I didn’t know what to charge (as is the case with many people). I raised my rates regularly, trying to get a feel for what clients would pay. If you’re new to solopreneurship, you may need to do the same to get a baseline.
Test the number on new clients first
You don’t have to raise rates on all of your clients at once. Quote a higher rate to every incoming lead while your existing clients stay where they are.
Once a few new clients accept your higher rate, you have market proof. Keep in mind, you might still be undercharging, which is worth looking at before you stop at the new number. But if you get consistent pushback, you know that you might need to adjust before you have a conversation with your existing clients.
What to say to existing clients
Give your existing clients 30 to 60 days notice so they can adjust their budgets. A rate increase should never be a surprise on an invoice or something they can’t plan for.
Frame it as a professional update. You’re informing a client of a change, not asking for approval. It’s never an apology—like, “I’m sorry, but I need to raise my rates”—because that undercuts the claim you’re making, which is that you’re worth the higher rate.
A simple script to use:
“I wanted to let you know about an update to my service rates. Starting [date], my rate will be $XX. I’ve really enjoyed working on [project] together, and I’m looking forward to continuing.”
Keep it that short. The more you explain, the more it reads as a request.
If a client says the new rate doesn’t fit the budget, offer a reduction in the scope instead. By doing less work, you can put your time toward another client who agrees to your new rate.
Make the rate conversation routine
Some clients won’t stay with you through a rate increase. That’s fine. Losing a low-paying client frees up your bandwidth for a better-paying one.
One of my earliest clients came back years later, asking to work together again. My current rate was no longer within their budget. Agreeing to do the work at my old rate would have been a disservice to the expertise I’d gained over the years.
Of course, you can always keep your loyal clients at their original rate and raise your rates only for new work. That’s a judgment call, depending on how many clients you work with and how stretched you feel with increases in your expenses.
Review your rates right alongside your expenses and revenue goals. Uncomfortable as it may feel at first, it’s a normal part of running a business.
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