{"id":492610,"date":"2022-09-02T07:00:00","date_gmt":"2022-09-02T11:00:00","guid":{"rendered":"https:\/\/www.virtualvocations.com\/blog\/?p=492610"},"modified":"2022-09-02T11:50:30","modified_gmt":"2022-09-02T15:50:30","slug":"9-best-tactics-negotiating-pay-raise-as-freelancer","status":"publish","type":"post","link":"https:\/\/www.virtualvocations.com\/blog\/guest-posts\/9-best-tactics-negotiating-pay-raise-as-freelancer\/","title":{"rendered":"9 Best Tactics for Negotiating a Pay Raise as a Freelancer"},"content":{"rendered":"\n

While employees have performance reviews as an opportunity to discuss a higher salary, freelancers are often deprived of the chance to justify rate increases. In this guest post, Jenna Bunnell of Dialpad shares effective tactics for negotiating a pay raise as a freelancer.<\/em><\/p>\n\n\n

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So, you\u2019ve built up your freelance business and gained a network of clients, but how do you ask for a pay increase without ruining all that goodwill? Many people find it awkward to discuss money, but you’re selling yourself short if you\u2019re earning less than you should. As a freelancer, you deserve a fair reward for the benefits you bring to your clients and fair compensation for the security you miss out on. In this post, you’ll learn some tips for successfully negotiating a pay raise \u2014 if you don\u2019t ask, you don\u2019t get it!<\/p>\n\n\n\n

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Click Here to Watch a Group Career Coaching Session and Learn How to Find Your Professional Brand \u2014 With Your Free Subscription Plan<\/a><\/strong><\/figcaption><\/figure><\/div>\n\n
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Why Is It Hard for Freelancers to Get a Raise?<\/strong><\/h2>\n\n\n\n

Regular employees get yearly pay reviews or appraisals when they can discuss why they deserve a raise. They might even get a raise automatically, in line with inflation. But that\u2019s not the case for freelancers.<\/p>\n\n\n\n

You don\u2019t work for that company full-time, and you\u2019re likely to be\u00a0working remotely<\/a>\u00a0\u2014 which can mean \u201cout of sight, out of mind\u201d and less opportunity to impress the boss, as they can\u2019t physically see how hard you\u2019re working. Plus, bosses don\u2019t want resentment from employed staff if they realize the freelancer is getting paid more.<\/p>\n\n\n\n

Female freelancers can find it especially hard to ask for pay increases. Women typically negotiate\u00a030% lower<\/a>\u00a0raises than men because they\u2019re more reticent about tooting their own horn. Male freelancers are 4.5 times more likely to make over $150,000 per year than their female counterparts. All of this means that clients often get away with underpaying freelancers, and very few freelancers are satisfied with how much they get paid.<\/p>\n\n\n\n

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When Should I Ask for a Raise?<\/strong><\/h2>\n\n\n\n
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You Haven\u2019t Done It in a While<\/strong><\/h3>\n\n\n\n

You shouldn\u2019t still be charging the same rates as when you started out. You have more experience now and a solid reputation. Plus, the cost of living goes up yearly, so why should you have less in your pocket? Review your rates yearly or even every six months \u2014 put it on your Excel to-do list.<\/p>\n\n\n\n

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Learn More on Negotiating Freelance Rates: 11 Tips for Remote Contractors<\/a><\/strong><\/figcaption><\/figure><\/div>\n\n
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It\u2019s Easy to Attract Clients<\/strong><\/h3>\n\n\n\n

Although you don\u2019t want to make life hard for yourself, there\u2019s such a thing as \u201ctoo easy.\u201d If new clients agree to your fees immediately, then you\u2019ve probably set them too low. In all likelihood, you could have gone higher and still gained their custom.<\/p>\n\n\n\n

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Your Schedule Is Full<\/strong><\/h3>\n\n\n\n

This is another sign that you\u2019re not charging enough. It proves that your freelance business is doing well<\/a>, which is the ideal time to expand it. By only keeping or taking on clients who are willing to pay higher rates, you\u2019ll be able to provide better quality service.<\/p>\n\n\n\n

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Others Are Earning More<\/strong><\/h3>\n\n\n\n

Don\u2019t be the one who misses out! Look at the rates for other freelancers offering similar services and find out the going rate for your industry. Are people charging based on experience and achievements? You can do the same.<\/p>\n\n\n\n

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Tips for Successfully Negotiating a Raise<\/strong><\/h2>\n\n\n\n
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1.<\/span><\/strong> List Your Skills and Achievements<\/strong><\/h3>\n\n\n\n

The best way to remind yourself of how awesome you are is to make a list. Come up with a\u00a0process map<\/a>\u00a0table, note all your clients and projects from the past year, list any new skills you developed, and include testimonials from clients.\u00a0Were there any notable achievements for yourself or your clients? Did you drive thousands of new followers to your client\u2019s Twitter? Did your article rise to the top of the Google SERPs? You can use all this to prove yourself in negotiations.<\/p>\n\n\n\n

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Take a Step Toward Becoming a Financial Success as a Freelancer<\/a><\/strong><\/figcaption><\/figure><\/div>\n\n
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2.<\/span> Decide What to Ask for<\/strong><\/h3>\n\n\n\n

There\u2019s no point asking for a ridiculously huge hike, but don\u2019t undersell yourself either. If you start high, there\u2019s room for compromise. Ensure that the new rates will cover your overhead and still allow for a profit margin. The increase should be significant enough that you won\u2019t have to ask again for at least six months.<\/p>\n\n\n\n

If you\u2019re negotiating with multiple clients, do it one at a time. Start with the lowest-paying one and don\u2019t be put off if they don\u2019t bite \u2014 you can afford to lose a low-payer.<\/p>\n\n\n\n

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3.<\/span> Tell them Your Situation<\/strong><\/h3>\n\n\n\n

Yes, freelancing brings many perks, but the trade-off is that your job is less secure, and you don\u2019t get the benefits that employees do. You must pay for your social security and use your equipment and utilities when you work from home. The client probably hasn\u2019t thought about what life is like for freelancers, so you need to help them understand exactly why you need and deserve a higher rate.<\/p>\n\n\n\n

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4.<\/span> Demonstrate Your Value<\/strong><\/h3>\n\n\n\n

You also need to show your client how valuable you are and how that value differs from that offered by regular employees. As well as your flexibility, you\u2019re saving them money. They don\u2019t have to provide sick pay, annual leave, or 401k contributions, nor even buy you a desk or computer.<\/p>\n\n\n\n

If you\u2019ve worked for this client for some time, they\u2019ll have come to rely on your services. They won\u2019t want to train an employee to replace you or even hire a new freelancer who doesn\u2019t have the same company knowledge. If you\u2019re now an expert on VoIP, you\u2019re the best person to market it to their customers.<\/p>\n\n\n\n

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Watch a Group Career Coaching Session, “Rules for Negotiation: Navigating Remote Jobs Offers, Salaries, And Contracts” \u2014 With Your Free Subscription!<\/a><\/strong><\/figcaption><\/figure><\/div>\n\n
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5.<\/span> Use Your Power<\/strong><\/h3>\n\n\n\n

As a freelancer, you\u2019re under no obligation to continue working for that client. Unlike an employee, you don\u2019t have to give notice (unless your contract says otherwise). You can turn down work if you\u2019re too busy or don\u2019t like how you\u2019re being treated.<\/p>\n\n\n\n

In short, you hold some power over your client, especially if you have a network of other (better-paying) customers. You may have gained some previous negotiation experience with other clients, so you can use the best techniques.<\/p>\n\n\n\n

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6.<\/span> Timing Is Everything<\/strong><\/h3>\n\n\n\n

If you suddenly announce you\u2019re hiking your prices next week, that won\u2019t go over well with the client, who may give you a knee-jerk reaction (which might be \u201cno\u201d). Be aware that they might need time to run it past someone else, or factor it into their budget. It\u2019s better to give them advance warning, such as two or three months, and arrange a time to discuss the matter. You can send a\u00a0follow-up email<\/a>\u00a0to remind them of the increase. Make sure you let existing clients know of the change before posting new rates on your website.<\/p>\n\n\n\n

It\u2019s also a good idea to put in the request in the fourth quarter, as this is when companies usually create budgets for the following year. If you work for international clients, make sure you know when their fiscal years start and end.<\/p>\n\n\n\n

Choose your timing wisely \u2014 don\u2019t ask for negotiation when the client is busy with a critical stage in a project timeline, or you may not get the attention you deserve. If it\u2019s going to be tricky to meet in person, try a video teleconference. Most business telephone providers offer this feature that you can take advantage of.<\/p>\n\n\n\n

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7.<\/span><\/strong> Negotiate Without Fear<\/strong><\/h3>\n\n\n\n

Never apologize for raising your rates. Yes, it\u2019s good to demonstrate your value, but you don\u2019t actually have to justify asking for an increase. Don\u2019t worry about what the client will think, and don\u2019t sell yourself short for fear of losing them.<\/p>\n\n\n\n

Even if this is your first negotiation, go into it with confidence, armed with the facts to back up your request \u2014 the value you bring to the company, the money they save, the average rates for freelance pay in your industry, and examples of other clients who pay well.\u00a0Track your hours<\/a>, and show them how long you dedicate to their projects each year.<\/p>\n\n\n\n

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