Self Employed? How to Effectively Increase Your Hourly Rate

If you work for yourself, your income naturally depends on your hourly rate. Of course, you’d love to make a better hourly wage. But how do you know if you’re being fairly paid?

Here are some tips on when you should (and shouldn’t!) raise your rate.

When You Should Raise Your Rates

1. Your skills or service have improved. If you can provide more value, raising your rates to reflect that is reasonable.

2. Supply and demand have changed for your service. If you’re booking yourself solid and turning away new clients, then you’re in an excellent position to charge more. Simply raise your rate until you’re getting the number of clients you want without having to decline new business.

3. You’re testing a new rate to gain information. Just be sure you have a plan if the higher fees don’t pan out.

4. If you want to reposition yourself. There’s nothing wrong with positioning yourself as a high-end consultant, but be sure you can deliver that type of service. You won’t last long if the quality of your work doesn’t match the prices you’re charging.

When Not to Raise Your Rates

There should always be a legitimate business reason for raising your rates. You might just want to earn more money, but that’s usually not justification for charging your clients more. Before making any rate changes, always look at your skills as well as supply and demand.

Frequently Made Mistakes

1. Never raising your rates. If you never raise your rates, then you’ll eventually be undercharging. Over time, that’s a lot of money that’s not making its way into your pocket.
   

2. Not testing. New clients are the best place to try out new rates. Keep your old clients at the old rates while you’re testing; you can always bump them up later. If the new hourly charge doesn’t work out, you’ll still have your old clients to fall back on.
   

3. Raising rates beyond what’s reasonable. If you’re just starting out, you can’t expect to charge the same as an expert. You’ll generally be more effective if you start at the lower end with your price until your client base is sufficient. Then you can start testing higher rates.
   

4. Changing too frequently. Your clients can’t plan your services into their budget if you’re always changing your rates around.

How to Increase Your Rates

1. Improve your services. You should constantly be trying to add value without significantly increasing your costs. The better your service, the more you should be able to charge.
   

2. Always over-deliver. Not only do you get great word-of-mouth advertising, you’ll have a much easier time raising your rates when the time comes.
   

3. Get testimonials. Anytime a client is obviously happy, ask for a testimonial. Put those testimonials on your marketing materials.
   

4. Truly care about your clients. When your clients can tell how much you care, you’re much more likely to keep their business and get referrals. Their referrals can bring plenty of new clients to test out your new rates.

Ultimately, rates are determined by the marketplace. Your job is to position yourself appropriately within that marketplace and then test higher rates when the time is right.

However, within what the marketplace will bear, the sky is the limit when setting your own rates. This is one of the best parts about working for yourself. Use these tips to raise your income as your expertise becomes more valuable. You deserve it!

Letting Go Of The Past Opens My Eyes To New Possibilities

The past is gone, so I focus on what is to come. I see my road map clearly when I shift my view to the road ahead of me.

When relationships end, it is sometimes sad, but I know that everything happens for a reason. Instead of sulking about the loss, I reassure myself that goodness is to come.

I believe that letting go of someone from the past makes room for a new relationship that is nurturing and fulfilling. Knowing this enables me to peacefully lay the past to rest. Anything that is meant for me is already on its way.

Changing jobs is difficult when I share a bond with my former employers. Part of me feels inclined to hold onto that bond, but I push myself to let go.

By choosing to close one chapter of my life, I open myself to new bonds with great potential. I see new opportunities clearly when I commit to wiping the slate clean and looking forward.

Although there are lessons to learn from past experiences, I avoid using them as the standard with which to measure future prospects. I keep an open mind.

Today, I believe that letting go of the past is the answer to finding something newer and more fulfilling. I release the familiar and bravely reach out for new experiences ahead.

Self-Reflection Questions:

1. What are some of the lessons that I take from past professional opportunities?

2. How do I know when something in front of me is worth my time?

3. How do I know when it is time to move on from a current situation?

10 Ideas for Boosting Your Income

There are plenty of opportunities to boost your income if you’re willing to hustle. A few hours each week can add significantly to your discretionary income. You’ll find a few ideas listed below, but come up with a list of your own ideas. With enough creativity, you might discover an untapped source of secondary income.

Boost your income starting tomorrow:

1. Be a part-time personal assistant. You can make phone calls, run errands, mow the grass, have the car washed, or pick up the kids. Think of all the things you wish you had help with. You can provide that to someone else. While there aren’t too many people that can use an assistant full-time, there are many people that could use and hour or two of help.
   

2. Rent your car. How much time do you actually spend driving it? The rest of the time it’s just sitting in the driveway dripping oil and serving as a target for birds. There are apps that will allow you to list and rent your car. Parkingspotter and Relayrides are two examples.
   

3. Knock on doors. A variety of organizations are looking for people to canvas neighborhoods and solicit donations or spread information. You can brush up on your social skills, too.
   

4. Bartender. With the right position, you can make a lot of money quickly. Take a class and learn how to mix your favorite drinks.
   

5. Clean houses. Some people actually like to clean. If you’re one of them, you’re in luck! Some people are too busy to clean and have the financial resources to pay someone else to do it. All you have to do is find each other. A few basic cleaning supplies are enough to get started.

6. Housesit. If you spend your evenings in front of the TV or playing on your computer anyway, do it at someone else’s house and get paid for it. There’s not much to do besides getting the mail.
   

7. Teach. Do you know yoga, algebra, or how to play the violin? Share your knowledge for a price. Use online classifieds or hand out a few fliers. Just a couple of students can provide a nice boost to your income.
   

8. Get a roommate. Split the rent and utilities. That can easily be upwards of $1,000 per month. All you have to do is give up some privacy and half the refrigerator. Be sure to take a shower before the hot water is gone.
   

9. Pet-sitter or dog walker. Pet sitters make around $25 per day. If you’re lucky enough to get a good dog, it’s an easy job. Dog walkers earn around $15 per 30-minute walk. A few clients can add to your income nicely. Look at rover.com.
   

10. Buy and sell things on Craigslist. People have traded their way from a used cell phone to a Porsche without spending a dime. Look for things selling at a low price. Purchase it and resell at a higher, more reasonable price.

1. There are always good deals to be found. You must be knowledgeable of the item, however. Do you know the typical price for a 1988 USA Peavey Predator guitar? Know the market value of what you’re buying and look for someone willing to do something silly.

A little extra income never hurt anyone. Think of other ways to boost your income. If you’re willing to work, you can create a second income that makes a big difference in your life. Find something that interests you and you’ll enjoy yourself more. Many of these tips can be put into action immediately.