FFN #22: When Was The Last Time You Gave Yourself a Raise?

🧐 Do Your Research

Before you do anything it’s a great idea to research what other freelancers in your field and of your same experience are charging, this helps provide evidence to your clients when raising your rates. Check out our rate database or ask in the community to see what your ‘co-workers’ are charging. Another sneaky way you can check what the going rate is in your field is to check job listings from reputable sites. After you have a ballpark figure of what other freelancers charge, determine your annual base income. You do this by dividing your desired annual salary by 52, this will give you the $$$ amount you need to earn per week. To get your hourly rate divide your weekly $ amount by 40. Didn’t think you would be getting a maths lesson in this email hey? The figure you end up with is just a starting figure, there are a couple of things we still need to consider.

📚 What to Factor In  

When you’re a freelancer, you’re the boss! It’s the best, but it also means lots of extra responsibilities that need to be taken into account. As an employee your taxes are taken out of your paycheck each week and your employer pays a few taxes on your behalf, as self-employed folks we are responsible for paying both of these (welp!). Other factors to consider building into your rate are health insurance, life insurance, vacation days, sick leave and dry spells. It may feel like a lot to consider, but it’s crucial to factor in these hidden expenses so that your business can remain profitable. 

🤸🏽 Time To Let Your Clients Know

Once you’ve set your rate it’s time to tell your clients, this is usually the hardest part for people. Don’t worry we’re here to help! Never spring a rate raise on a client, let them know 60-90 days out. You can do this by sending them an email or on a call. Be confident in what you’re charging and ready to give supporting evidence of your rent raise- remember the database, the results you’ve driven for the business or new skills you have learnt. Just as you would at a corporate job, be sure to give yourself a raise each year. Small increases in rates each year are far less daunting to your long-term clients and allow them to adjust their finances accordingly. Although most clients won’t have an issue with you raising your rates, it’s important to get your new raise in writing. Once your client agrees to the rate raise, send them a new contract that details your rate increase and the scope of the work. We have a few templates you can use at The Freelance Shop. If a client isn’t keen on signing a contract, this could be a red flag and could be a sign to rethink working with them. Getting paid what you’re worth is important no matter where you work or what your employment situation is. As a freelancer, you can set your rates. The trick is making sure that you’re thinking about everything that’s included in that price and communicating that information.

Goodles

Holy macaroni! Goodles has reimagined one of my childhood faves packed with nutrients, proteins and prebiotics. My go-to flavor is Cheddy Mac, it tastes like my childhood but eats like a balanced meal. I’m not sure what kind of sorcery went into making this delightful mac n cheese, but I’m certainly not complaining. The company oozes joy, Goodles celebrates the great things in life like petting a doggo or grass between your toes and gives 1% of each product sold to organizations that address food insecurity. They lied, you really can have it all!