How to Raise Your Freelance Rates Without Losing Clients
My rate has gone from $45/hour to $130/hour in 4 years. I’ve raised it every January without exception. In that time, I’ve lost exactly 1 client to a rate increase — a price-sensitive client who was already my least favorite to work with.
Every other client accepted the increase, most without comment. Here’s the exact process I use.
The Annual Rate Increase (My System)
When: January Every Year
I announce rate increases in late December, effective February 1. This gives existing clients 30+ days notice and starts the new year with new pricing for all prospects.
How Much: 8-10%
| Year | Rate | Increase |
|---|---|---|
| Year 1 (mid-year adjustment) | $45 → $85 | 89% (correcting initial underpricing) |
| Year 2 | $85 → $100 | 18% (still catching up to market) |
| Year 3 | $100 → $115 | 15% |
| Year 4 | $115 → $130 | 13% |
The early jumps were larger because I was correcting my initial underpricing. Years 3-4 settled into 10-15% increases. Going forward, I’ll target 8-10% annually.
The Email Template
Here’s what I actually send to retainer clients:
Subject: 2026 Rate Update
Hi [Name],
Happy almost-New Year! I wanted to give you a heads up that my rates will be adjusting effective February 1, 2026.
Your monthly retainer will move from $2,500 to $2,750, reflecting updated market rates and expanded capabilities.
I really value our work together — this past year’s [specific project/result] was a highlight. Looking forward to building on that in 2026.
Let me know if you have any questions!
Best, [My name]
Key elements:
- Advance notice (30+ days)
- Specific new number (no ambiguity)
- Brief justification (“updated market rates and expanded capabilities”)
- Personal touch (reference specific good work together)
- Not apologetic (this is a business communication, not a favor request)
For Project-Based Clients
I don’t send announcement emails to project clients. I simply quote new projects at the new rate. They never see the old rate.
Why Clients Accept Rate Increases
In 4 years, here’s why I think most clients say yes:
1. You’re delivering value. If your work generates results, clients know your value exceeds your cost. A 10% rate increase on someone who’s driving your growth is a no-brainer to accept.
2. Small increases are expected. Every vendor, tool, and service raises prices annually. Clients’ own prices increase too. A 10% annual increase is normal business.
3. Switching costs are high. Finding a new freelancer, onboarding them, rebuilding the working relationship — that costs more than 10% in time and risk. Clients know this.
4. You’re not the cheapest option anyway. Clients who chose you at $115/hour weren’t price-shopping for the cheapest option. They valued quality, reliability, and your specific expertise. A bump to $130 doesn’t change that calculus.
The One Client I Lost
In year 3, I raised a client’s rate from $100/hour to $115/hour. They responded: “That’s outside our budget. We’ll need to find an alternative.”
My feelings: slightly hurt, briefly anxious, then relieved. This was a client who:
- Consistently negotiated every invoice
- Took 25+ days to pay (on Net-15 terms)
- Requested frequent scope additions without wanting to pay
- Was my lowest-margin client
Losing them freed up 10 hours/month that I filled with a new client at $115/hour. Net revenue impact: positive.
Lesson: The clients you lose to rate increases are almost always the clients you should have released anyway.
How to Handle Pushback
”Can we keep the old rate?”
“I appreciate you asking. The new rate reflects current market rates and my ongoing investment in skills and tools. I can offer [reduced scope] at the current rate, or the full scope at the new rate — which works better for you?"
"We love working with you but the budget is tight.”
“I understand budget constraints. A few options: we could reduce the monthly hours from 15 to 12 at the new rate (keeping your total cost similar), or I could offer a 3-month transition at 5% increase before moving to the full rate. What feels right?"
"We’ll need to think about it.”
“Of course — take your time. The new rate takes effect February 1 for ongoing work. Happy to discuss further if it would help.”
Then wait. Don’t follow up with concessions. Let them process. Most come back with “we’ll continue.”
Rate Increase Confidence Builders
Track your value delivery. Before sending rate increase emails, document results you’ve delivered for each client this year. Increased conversions, revenue generated, problems solved. This reminds YOU why you deserve the increase and prepares you if clients ask for justification.
Know your market rate. If comparable freelancers charge $120-150/hour and you’re raising to $130, you’re within market. If you’re significantly above market, the increase needs stronger justification.
Have a pipeline. If losing a client would create financial stress, you’ll negotiate from weakness. A healthy pipeline gives you genuine confidence to hold your rate.
Remember the math. A 10% rate increase on $100K revenue = $10,000 more per year for the same work. Even if you lose 1 client, the increase on remaining clients more than compensates.
The Bottom Line
Raise your rates every year. 5-10%, 30 days notice, professional communication. Don’t apologize. Don’t negotiate against yourself. Be prepared to lose a client (you probably won’t, and if you do, they were likely your worst client anyway).
The freelancers who earn the most aren’t the most talented — they’re the ones who consistently raise rates while delivering consistent value. Be one of them.