How to Raise Your Freelance Rates

When to Raise Your Rates

Raising rates shouldn't be arbitrary—it should respond to clear signals from your business and the market. Here are the signs that it's time to increase your prices:

You're fully booked: If you're turning down work or booking weeks in advance, demand exceeds supply. The market is telling you your price is too low.

Every client says yes: A healthy proposal win rate is 25-40%. If you're converting 70%+ of prospects, you're leaving money on the table. Some clients would pay more.

Your skills have grown: You've gained certifications, completed significant projects, or developed specialised expertise. Your value has increased; your rates should follow.

You've held rates for 12+ months: Inflation erodes purchasing power. A rate that hasn't increased in two years is effectively a pay cut. Annual increases are standard practice.

You're delivering exceptional results: If clients are thrilled with your work, giving testimonials, and referring others—they clearly value what you provide. You can charge accordingly.

You're feeling resentful: This is harder to quantify but important. If you're working hard and feeling underpaid, it affects quality. Raising rates to a level that feels fair improves everything.

How Much to Increase

The right increase depends on your situation, but these ranges provide useful guidance:

Annual inflation adjustment (3-5%): The minimum to maintain purchasing power. This isn't really a "raise"—it's keeping pace. In periods of higher inflation, 5-7% may be more appropriate.

Standard increase (10-15%): Appropriate when you've improved skills, have strong demand, or haven't raised rates in 1-2 years. This is the most common rate increase.

Significant repositioning (20-25%): For major skill upgrades, new certifications, or when you've been substantially undercharging. Bigger increases work best when you can point to something concrete.

Premium repositioning (30%+): Usually requires changing something else—your positioning, ideal client, or service offering. Going from "web developer" to "Shopify specialist for fashion brands" might justify this.

The Annual Rate Review

The easiest way to raise rates is to make it routine. An annual rate review removes the emotion and positions increases as normal business practice.

Choose a consistent date: Many freelancers use January (new year) or April (new tax year). Pick a date and stick to it every year.

Review the market: Check current rates for your skills. What are competitors charging? What do job boards show for similar roles?

Assess your performance: What have you achieved this year? New skills? Successful projects? Client testimonials? Document your growth.

Calculate your increase: Factor in inflation, demand, and skill development. Most years, 5-15% is reasonable.

Communicate proactively: Inform ongoing clients 4-6 weeks before the new rates take effect. This gives them time to budget and shows professionalism.

Communicating Rate Increases

How you communicate matters as much as the increase itself. Confidence, clarity, and advance notice make rate increases easier for clients to accept.

Give adequate notice: 4-6 weeks minimum for ongoing clients. For long-term contracts, 8-12 weeks is more professional.

Be direct and confident: State the new rate clearly. Don't apologise or over-explain. Lengthy justifications suggest you don't believe you're worth it.

Focus on value, not costs: Don't mention your rent increasing or needing to earn more. Focus on the value you provide and your ongoing commitment to quality.

Put it in writing: Always confirm rate changes in writing, even if you discussed them verbally first.

Choose the right moment: After delivering a successful project is ideal. Never raise rates during a crisis or when a client is unhappy.

Scripts for Existing Clients

Here are templates you can adapt for different situations:

Standard Annual Increase Email

Hi [Name],

I wanted to let you know about an upcoming change to my rates, effective from [date—6 weeks away].

As part of my annual review, I'm adjusting my day rate from £450 to £495. This reflects my continued investment in skills and tools, as well as broader market changes.

I've really enjoyed working with you over the past [time period], and I'm looking forward to continuing our partnership.

If you have any questions, just let me know.

Best regards,
[Your name]

After a Successful Project

Hi [Name],

I'm so pleased with how the [project name] turned out—and grateful for the great feedback from your team.

For upcoming work, I wanted to mention that my rates are increasing to £520/day from [date]. This reflects the specialist expertise I'm now bringing to projects like yours.

I'd love to continue working together on [potential next project]. Let me know if you'd like to discuss.

Best,
[Your name]

For Long-Standing Clients

Hi [Name],

I've been reviewing my pricing as we head into [year], and I wanted to give you plenty of notice about some changes.

My new rates take effect from [date], moving from £400 to £450/day. Given our long partnership, I'm happy to honour current rates for any work booked before [date].

I really value our work together and am committed to continuing to deliver great results.

Thanks for your understanding.

Best,
[Your name]

Grandfathering Existing Clients

Grandfathering means honouring old rates for existing clients, at least temporarily. It's a gesture of goodwill, but use it strategically.

When grandfathering makes sense:

• Long-term clients who provide steady, reliable income
• Clients you genuinely enjoy working with
• Relationships where the non-financial benefits are significant (portfolio work, referrals, learning opportunities)

When to avoid grandfathering:

• Difficult clients who already underpay for your effort
• When your old rate is substantially below market
• If it creates significant income disparity between clients

How to structure grandfathering:

• Time-limited: "I'll honour your current rate through Q1, then move to the new rate"
• Volume-based: "Current rates apply for work booked before [date]"
• Graduated: "I'll move you to the new rate over two increases—first to £475 in April, then £520 in October"

Handling Pushback

Not every client will accept your increase cheerfully. Here's how to handle common objections:

"That's a big increase"
Response: "I understand it's a change. My rates have been stable for [time period], and this brings them in line with current market rates for [your specialism]. I'm confident the value I provide justifies the investment."

"Our budget can't accommodate this"
Response: "I appreciate budget constraints are real. If we need to reduce scope to fit budget, I'm happy to discuss what that might look like. Alternatively, is there flexibility to revisit the budget given the value we've achieved together?"

"Can we meet in the middle?"
Response: Only negotiate if it's worth it to you. "I can offer [slightly lower rate] if we commit to [more days/longer contract/faster payment terms]." Never reduce your rate without getting something in return.

"We'll need to look at other options"
Response: "I completely understand you need to do what's right for your business. If it helps, I'm happy to introduce you to a colleague who works at a different price point. And if things change, I'd welcome working together again."

Sometimes clients will leave. That's okay. A client who won't pay your rates is making room for one who will. Trust that your value will find the right audience—and remember that you're building a sustainable business, not chasing every possible pound.