Raise Rates on Hourly Contract?

[jorgensons]

I have had an open contract with one of my clients for several years now. He only sends small jobs 3-4 times a year so I haven't paid too much attention to that contract. I've known for a while that the hourly rate I'm charging him is lower than what I charge everyone else, but until now, the "it's too much of a hassle to figure this out" factor has always won out. Now, with out-of-control inflation in the US, my income isn't stretching nearly as far as it used to, so I need to raise my rate. Unfortunately, I can't figure out how to do it.

I tried using the "change rate" option on the contract, but it would only allow me to decrease my hourly fee. (Why would I ever want to do that?!) Surely, there's an option to raise rates without all the trouble of starting a new hourly contract—and surely this option would be used far more often—but I can't figure it out. Has anyone had luck raising rates on an ongoing contract? If so, please tell me what I'm missing. It seems so bizarre if this isn't an option.

That said...if this feature doesn't exist, please work on it a.s.a.p., Upwork! For ongoing contracts, rate increases are to be expected, and making it easy for both parties would be to everyone's advantage...client, freelancer, and Upwork itself.

[jennifervh]

Hi Signe, 

Your client has the option to raise your hourly rate. It makes sense to me that freelancers cannot raise the rate themselves without speaking to a client and agreeing to new terms - otherwise unscrupulous freelancers could raise the rate and the client might not be aware it's happening. I'm guessing (not sure) clients cannot choose to lower your rate from their side for the same reason - so they can't take advantage.

Have a conversation with your client, let them know that your rates have increased, and ask them to increase from their side to your new rate. I have done this with a couple clients myself over the years and it was no hassle.

Best,

Jennifer

[jorgensons]

I assumed it would be similar to the freelancer's ability to initiate a new contract. When that happens, the freelacner sends it for the client's approval; the contract just doesn't come into being beacuse the freelancer says so. Similarly, I wouldn't expect to have the ability to increase my rate without the client agreeing -- that wouldn't make sense (or be fair).

However, making the freelancer set up a new contract and write a new description/work scope adds an extra step to what should be a very simple process. Similarly, if the freelancer has to have a conversation with the client first and then the client has to follow through by taking the extra step of raising the rate, that makes it more complicated than it needs to be.

I really do think freelancers should be able to send a new rate, along with a message explaining why. Then, it's very easy -- the client can either approve or disapprove. That's much more streamlined than what you're desccribing as the current system.

[jennifervh]

Yes, it sounds like a good idea.

I would still have a conversation with my client about a change in the terms of our contract in addition to/before sending the proposed new rate over, but for clients who need a little prodding on admin tasks it could be helpful. A little easier for them to just hit approve than to initiate the action themselves.

[jorgensons]

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[jorgensons]

EXACTLY. This is a client who often doesn't even respond after I submit work to acknowledge receipt of the files. He's never had a problem with my work so it's not a big deal, but I can't imagine that a rate increase will happen swiftly if it all has to happen on his end.

The other thing about this client is that we don't communicate through Upwork at all. He doesn't like the platform, so all our communications are by email, phone, and Zoom. Making it as painless as possible, and having him spend as little time navigating Upwork as possible, would be the ideal situation here.

[ericaandrews]

I can't find the contract you are referring to on your profile, but if you have been with this client for SEVERAL years, one of the best ways to give yourself a 'raise' and possibly save the client 'fees', is to take the entire contract OFF Upwork altogether.   If you have been working with the client more than 2 years, you are no longer required to bill/invoice through Upwork.  I think 'recovering' that lost 5-10% in freelancer 'fees' might help you.  In addition, if you decide to ask the client for a higher rate, he/she may be more accomodating if they don't have to pay Upwork 'fees' on top of the new rate (Or, maybe, the client's 'recovered' Upwork 'fees' might actually cover your rate increase altogether.)  It might be worth it to grab a calculator and see how much you are spending in 'fees' Upwork is still ciphing from your contract and if you can fill the 'gap' all or partially just by eliminating the 'fees' and taking the contract 'direct' and off Upwork altogether. This would also mean you and your client can make future rate adjustments with less 'red tape'.

[cradex]

Please tell me do You know does the raising of the rate will affect all past hours or only future hours spent on work on the active contract? Reasonably looking, that will affect only future hours but want to check that. Thanks in advance!

[6bfcdaf8]

How did your client receive the idea? Are the ok with it?