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How to raise your rates

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A bunch of sex-crazed IWT readers keep demanding that I do personal appearances, so I’ve decided their wish is my command. A few parts of that last sentence are not true.

Here’s a video I just did on how to raise your rates (including the word-for-word script to use):

Next weekend, I’ll be speaking at FINCON, a conference for personal-finance bloggers in Denver. This is not as nerdy as it sounds. For example, you can read the story about how one of my readers hit on a national reporter last year. Here are some of the other people who will be there.

My talk this year is called: Secrets of a 7-Figure Blogger: A Behind-the-Scenes Look at the Rise of “I Will Teach You To Be Rich.” I really like to keep things humble.

The event is sold out, but I’m planning more meetups where I can answer your specific questions. In fact, I’ve done a bunch in person recently in NYC and SF.

So make sure you’re on my email list and I’ll email you next time I do a meetup. I love meeting you guys in person, even if a lot of you are weirdos with questionable social skills.

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  1. So, are you doing a meetup in Denver/Boulder while you are here?

  2. Excellent advice here Ramit! I’ve always been interested in a pricing structure and when to lower or raise prices. I agree that adding value is the best way to raise prices, and I’ll be sure to focus on this next time I ask for a raise.

    I’ll see you at FINCON!

  3. why is it that the first thing i thought when i saw FINCON was “a conventions of fins/in finland”

    I also liked the video, and ramit, I am commanding you to dance!

  4. Look forward to meeting you at Fincon. And I promise not to hit on you. 🙂

  5. Excited to hear your presentation this week. I really enjoyed your advice at last year’s conference. It has been tremendously helpful for me. I did the 4 four quadrants exercise that you shared about defining your site’s goals and purpose.

    I refocused my site at Couple Money and did a spin off site with all of the posts that didn’t match my goals. Refocusing has helped not only with traffic, but has made writing posts easier. With a specific goal in mind instead of just writing about personal finance, topics create themselves.

    Thanks Ramit!

  6. For anybody who wants the How to Raise Your Rates script in the Marie Forleo video:
    Hi Josh [the client],
    I just wanted to talk to you about a couple things in terms of our engagement together. First of all, in the last year this is what we’ve done together. I’ve helped you manage your email inbox, saving you over six hours a day. I’ve helped you refer you [sic] 19 clients generating a total of $450,000 and X dolalrs in commissions. And I’ve helped you do X, Y, and Z. This year, one of the things you told me was you’re looking for A, B, and C. Now, I’m going to be adding A as a complimentary part of my services to you. That’s because I’ve heard from a number of clients that you want that, and so I’ll be able to do that for one hour a week for you as a complimentary part of us working together. The other thing is, I’m becoming more selective in the clients I work with. Now, you and I have had a great time working together. We’ve generated $450,000 dolalrs in revenue. And I’ve helped save countless hours. My rate is going to be going from $15 an hour to $25 an hour. If that’s something that you’re not comfortable with, please let me know. I’ll be happy to refer you to someone else who might be a better fit for your cost needs. But if this is something that works for you, these are my plans for the next 30, 60, and 90 days and I would look forward to working with you together.

    • Thx CL. Everyone, watch the video. Notice how different it is to HEAR it than to READ it.

    • Going along with Ramit’s comment on the difference between reading and hearing it…

      It’s really important to say this or anything related to money in a calm and confident manner. You need to be committed to giving your clients incredible value but not attached to their response. People can tell when you sound eager, desperate or uncertain.

      A few things to keep in mind:
      -Speak slowly but not hesitatingly.
      -If you’re female, watch the pitch of your voice. If it’s really high, you can sound anxious.
      -Tweak around the words until you find something that sounds comfortable, natural, and authentic for you. There shouldn’t be lots of “ums” or the sense that what you’re saying is forced or fake.

      To your brilliance!
      Elizabeth Grace Saunders

  7. If anyone actually wants me to take photos of their babies, just drop me a line!

  8. Insiya Hussain Link to this comment

    Saw this first on MarieTV a few days ago– good show. I second the dance-for-your-audience vote 🙂

  9. Actually, Ramit, it’s locking up after you say the words, “six hours a day” or at least it has locked up for me, so I’m glad CL took the time to post the script. In some areas, these long videos don’t actually play, especially in the aftermath of a Hurricane with lots of internet blinks and outages still ongoing.

    • You just made the ten or so minutes I took to type up the script worth it. Thank you! (I also realized that I apparently can’t spell dollars. C’est la vie.)

  10. Wow – I love this.

    *So many* independent professionals miss out on understanding why people hire us. It’s not to write code, design things, or be an assistant. They hire us to help deliver a positive ROI on their investment in us.

    A core theme in my new book is convincing freelancers that if they want to raise their rates, they need to step away from the temp agency / commodity mindset in favor of positioning themselves as a trusted business consultant. For example: Even though I write Ruby code for my clients, I market myself as someone who helps small businesses make more money or cut costs using technology. Ruby code just happens to be the medium I use. Ever since overhauling the way I position and promote my freelancing business, I’ve been able to raise my rates from $100 to $200 an hour – and I have more demand than ever (i.e., another rate hike is in the near future!)

    Great job, Ramit!