Check your current client rates
It’s important to regularly check your current client rates, and how they compare within your industry. Schedule time once or twice a year to look at the average income you’re achieving on an hourly, daily or project basis, and to assess whether it shows you may need to change your prices (or the way you work).
There are a range of ways to check the average income in your sector, including the IPSE Freelancer Confidence Index and Self-Employed Landscape reports. Various employment sites also list the average salary for various freelance roles, based on submissions from their registered visitors. Specialist trade bodies may also publish rate cards, such as the National Union of Journalists (NUJ), or the Broadcasting, Entertainment , Communications and Theatre Union (Bectu).
IPSE members can access our guide to setting rates for 2023, which also includes a list of standard freelance rates based on our research and the input of the IPSE community. And our articles on how to become a freelancer in specific careers typically include any publicly available information on industry rates to save you time when researching a new profession.
It’s important to remember that the rates suggested will depend on various factors, including the skills and experience required, location, industry trends and more. A London-based freelancer with a decade of work behind them will generally achieve a higher comparable income than someone six months into their self-employed career living in the Outer Hebrides.
Other useful sources of information on freelance rates include job adverts, and speaking to other self-employed professionals in your industry. Getting involved in the IPSE community, local groups and building up your network will help you discover whether you’re achieving the correct rewards for your efforts. Money can be a touchy subject at times, but many freelancers will be fairly honest and open if they know they’re helping other people achieve a sustainable self-employed career.
How to justify higher rates
Whether you’re pitching new business or negotiating with existing clients, you need to know how to justify your higher rates.
Clients always want to know that they’re getting great value, even if they might be paying a slightly higher price. Which means it’s important to look at what you offer from their perspective, and clearly communicate the reasons behind your pricing policy.
Simply acquiring a new qualification probably won’t convince a client to pay a higher rate for your existing services. But if it means you can contribute to their business more effectively with specialist knowledge, or at a more strategic level, then you may become more valuable to them.
With existing clients, it’s useful to re-examine your original contract, and see if the scope of work has expanded substantially over time. It’s easy to find that you’ve agreed to an increasing number of tasks over time, using more than the allotted hours, without putting additional compensation in place. And any evidence of the projects and results you’ve delivered may also help to demonstrate your value.
Another option is to reposition how your business works with a client. Switching from an hourly or day rate to project-based pricing could allow you to earn more for your time. You could also consider informing new clients of potential increases as part of any initial agreements or contracts, which means you can refer back to those documents if there are any issues.
In every case, the important factor in securing higher rates will be that the client feels that they’re going to get more value from your relationship as a result.
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