How do I ask for a rate increase? | Reader Q&A

In this reader Q&A, I got a really interesting question from a reader of the newsletter: "How do I ask for more money?" I thought it was a really interesting question, and wanted to talk about it from the perspective of someone who frequently hires freelancers.

Typically, the conversation starts as follows:

Them: The rate is XXX.

Producer: We're looking to cut budget. Is it possible to do Y?

Every freelancer will encounter this, or some form of this at one time or another. And sometimes, the compromise is worth it: work is slow, the ask isn't too bad, or you're looking to establish a relationship. But if the rate is not something you can do or agree on, how do you handle it?

Approach 1: Kindly Seek Compromise

If the rate is lower than you'd like, but is a job you're still wanting to take, the best reply is one that kindly asks if you can seek a compromise.

The best way I've seen this come to life: Typically, I don't go down on my rate, but this sounds like an interesting project. Would you be willing to meet halfway if it's possible?

As a producer, there are times where I've been able to move around or shift things to reach a compromise number. And for me, I'm going to try to stretch the budget where I can to make sure that we work with people that want to work with us. One thing I also like about this is that it reestablishes your normal working rate.

Approach 2: The nice explanation

There are jobs where there's not enough money in the budget, and then there are jobs where there is not money in the budget. If you're hit with a number that is astronomically below your rate, and there are questions about why things are so high (or requests to do things for too low), sometimes it's nice to explain why the rate is the rate, without going into too much detail.

What this looks like in practice: For this region, XXX is typically the rate for this role. I've set mine as YYY based on my years of experience and knowledge at this level. Would you like me to try to help find anyone who would be willing to work at the rate you listed, even if that means they are a little bit newer?

Rates can differ across the country, which means that someone can come in with an expectation of a number that is lower than the working rate of most people you know. And when that happens, you want to remind people of your value and the value of your peers. If the job goes to someone else who is willing to work for less, you still are able to maintain the relationship as someone who is helpful, not only to them but to the people you recommend.

Approach 3: The relationship builder

Sometimes, you might want to take a job because you think it could lead to better things in the future. And this is the case for some jobs out, where helping save on the budget in one place can get you called back for another job. But use this technique with caution; prices are sticky and there is no guarantee that the producer will come back for the next one.

The way I've seen this: I'd like to be able to work with you guys on the next projects you have out her. If we did a deal this time at this rate, would you also be willing to consider me for future jobs at full rate?

As a producer, I went to bat for this person the next time we worked together to get full rate, but I also had to explain that the rate changed from one job to the next because they did us a favor. Prices are sticky; if you go down on your rate, that'll be the rate they expect.

What about raising the issue of your new rate?

Times change, inflation hits, and the cost of things are rising. What if you need to take that into account, and bump up your rate with someone who you've worked with in the past.

The best way I've seen this? Also, rates increased slightly from last year. The cost of eggs :(

I laughed, and gladly put the new rate into the budget. Sometimes humor goes a long way, and quite honestly, I couldn't deny the logic. I ended up using the cost of eggs as my go to response for budget questions for a while after that one.

If you have a question, please feel free to comment below or shoot me an email. We try to answer everything we can.