You’ve done what you said you would do. You took a few low-ball projects and got some decent feedback. You’ve taken some tests, posted a nice picture, and filled out your portfolio with examples of your best work. Time to raise your rates.
Inertia is your enemy
Remember when you first started out? How hard it was to get into the groove? Well, you are in a new groove now. And it’s time to push yourself a little.
One of the hard and harsh mathematical truths of freelancing is that we have a finite number of hours to sell. If you aren’t getting top dollar for your time you’ve got a lower paying job than you ought to have. But, having regular work is a comfort. It’s nice to relax into the routine and let inertia just carry us along.
The way to see inertia as your enemy is to recall the last plateau you were on. Before you climbed up to the plateau you are on now. You wouldn’t conceive of sliding back to the ‘before’ and you won’t want to go back to where you are now– once you make the next little climb.
Consider this
You’ve already demonstrated you can do the work and do the work successfully. Buyers should have little doubt that if they hire you, you will get the job done. The income bottleneck isn’t with the buyers, it’s with you.
Here’s some info to wise you up. From the 2008 Writer’s Market:
- e-mail copywriting: $73 (these figures are all hourly averages)
- Web page writing: $83
- Technical writing: $84
- Online editing: $58
- Web page design: $90
- Ghostwriting: $70
- Rewriting: $63
That’s per-hour averages. That’s what writers are getting paid to do what you do. There are plenty more categories I didn’t list. I couldn’t read through my tears.
So, the excuse that you aren’t worth it is bull-dooky. You are worth it.
How I know you are underbidding
This is a marketplace. Buyers are looking for the best deal they can get and providers are (supposed to be) looking for the highest price they can get. If you aren’t getting rejected for a large percentage of the jobs you bid on– jobs you are fit for– you are pricing yourself too low.
Buyers should always have the option of choosing a provider based on price. You don’t want to be that provider. You should be getting passed up for most of the jobs you apply for. In order to get the creamy jobs, you have to let many lower-priced jobs pass you by.
If you aren’t getting turned down enough, you are too cheap. Seriously. Buyers are competing for your time. You owe it to yourself to let the auction play out. If you were selling volume, or could just manufacture more, then you could make a living just cranking out more product. But you know this isn’t the case. As soon as you start one job, you are unable to take on the next one. And if the next one paid half-again as much as the one you were stuck with?
You absolutely cannot be afraid of not working. When you are between projects, you get to work for yourself. Improve your skills, work on that e-book, or try out some other ideas you’ve had (more in my next blog post on ideas for finding higher-paying work).
The buyer you want is the buyer that can afford you. Be the Porsche. Let the Escort buyers keep walking. Even though your rate is high for oDesk, it is still dirt cheap compared to industry averages. You can save buyers money while still making a better wage.
Raising your rate with established clients
You have them, I have them– bread and butter clients. They started out with a small project and the relationship has kept going. They like your work and they keep giving you more. Unfortunately, although they provide steady work, your rates have moved past what they were when you first started dating. Time to raise your rate.
Steel yourself for a ‘no’. Remember, although you risk losing a client (and maybe a client you like) you just can’t continue selling your time and talents for cheap. Don’t bluff. Get ready for, “Sorry, I can’t afford that.”
The way to do it is politely and professionally. Remind them of past work and how well things went. Let them know ahead of time that you are raising your hourly rates. “Starting next month, my rate is increasing to X dollars an hour.”
Complete current work at your existing rate, but be firm. This isn’t personal, it’s business. If they can’t afford you at the new rate, they can’t afford you. No hard feelings– great working with you, keep me in mind for future projects.
One of three things will happen.
- They won’t complain and your higher rate will go into effect. Sweet.
- They will moan and gripe and maybe fire you for awhile… and then, a week or a month later, you will get an email asking if you are available. Still sweet.
- You won’t hear from them again. Not sweet, but we are all grown-ups here, right?
So, bottom line. Gird your loins, put on your professional businessperson attitude and raise your rates. Quit being an amateur, playing at writing. Get serious. Get paid.
- How to Get a Buyer to Pay You More Money
- So Do Those oDesk Tests Really Mean Anything?
- oDesk shares new information through their “oConomy”
- Payments, Rates, and Freelance Sites
- Living With A Lower Dollar (How A Dropping Dollar Can Make You Money)
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