Happy February! This month, we're tackling the uncomfortable truth most creative freelancers face: You're probably leaving thousands of dollars on the table every year.
How does that happen? It happens when you're afraid to charge what your work is worth.
If this is you, don’t beat yourself up. In our race-to-the-bottom world, it’s easy to worry that you’ll easily be replaced by AI, or the next kid on Fiverr who’s willing to charge almost nothing just to get started. I’ve been there; I undercharged for years. And what I learned after years of undercharging was that I couldn’t do it anymore, because the cost was resentment, burnout, and the slow erosion of my love for my work.
I don’t want that for you. So let's fix it.
FIRST: SHOULD YOU RAISE YOUR RATES?
Take this 60-second quiz:
Haven’t raised rates in 12+ months? (1 point)
Fully booked but still stressed about money? (1 point)
Clients accept rates without negotiating? (1 point)
Learned new skills this year? (1 point)
Resent clients when invoicing? (1 point)
Your score:
0-1: You're probably fine, but read on
2-3: Time to raise rates
4-5: You're definitely underpriced
Now, here are the three strategies to set your prices right:
Use this when: You haven't raised rates in more than a year and have recurring clients.
Why? Cumulative U.S. inflation between the start of 2023 and the end of 2025 was about 6-7%. If you haven’t raised your prices in two years, you’re making 6-7% less in real dollars.
The formula: Current Rate × 1.07 = New Rate
Examples:
$75/hour → $80.25/hour
$2,000/project → $2,140/project
Use this email template with your clients:
📧
Subject: Update: 2026 Rate Adjustment
Hi [Name],
I'm reaching out with an update about my rates for 2026.
I've enjoyed working with you and delivering [specific result]. As of [DATE—4-6 weeks out], my rate will be adjusting to [NEW RATE]. This is my first increase in [time period]. It reflects the rising cost of doing business, as well as my continued investment in my skills.
Your current rate holds for any projects booked through [DATE].
Looking forward to continuing our work together!
Best, [Your Name]
What happens: 80-90% of clients respond with "sounds good" or silence (acceptance). 5-10% negotiate. A few say they can't afford it (these were borderline anyway).
How to handle objections:
"Why the increase?" → "I need to keep pace with the rate of inflation and continue making ongoing investments in tools and skills."
"Can we negotiate?" → "I can't lower my rate, but I can adjust our scope to fit your budget."
Use this when: You've mastered certain skills that you’re getting hired for, and you’re tired of being punished for your efficiency. This strategy is best begun with new clients.
The problem with hourly: Year 1: Logo takes 10 hours at $100/hour = $1,000 Year 3: Same logo takes 3 hours = $300
You got better and now you’re earning less.
The value-based alternative: Price your work based on the outcome the client receives, not your time.
The calculation:
Time-based floor: Estimated hours × hourly rate.
Add complexity (20-50%): Tight deadline? Multiple stakeholders? Rapid response requested? Multiply by 1.3-1.5.
Add value premium (20-100%+): How much revenue/savings will this create for them?
Real example: Website redesign for e-commerce company
Time: 40 hours × $100 = $4,000
Complexity: 3-week deadline, 3 stakeholders = $4,000 × 1.4 = $5,600
Value: Will increase conversions from 1% to 2% = extra $50K/year for them
Final price: $10,000-12,000 (not $4,000)
Same work, 2.5-3× more money because you're pricing the outcome.
How to present it:
Focus on the value you’re creating for them, not the cost of your time.
DON'T SAY: "This will take 40 hours at $100/hour."
SAY: "For a complete website redesign that doubles your conversion rate, the investment is $10,000."
Use this when: You want predictable income and have clients with ongoing needs.
Why retainers matter:
Monthly project income looks like: $8,000 → $2,000 → $0 → $6,000 (stress). Monthly retainer income looks like: $3,500 → $3,500 → $3,500 → $3,500 (stability).
Goal: 50-60% of income from retainers, 40-50% from projects.
The conversion formula:
Client's average monthly spending × 0.9 = Retainer rate.
Example: Client spends $4,000/month on projects → $3,600/month retainer
You charge slightly less, but your income is guaranteed.
How to structure it:
Option 1: Deliverable-based: "$4,000/month for 8 blog posts, 4 graphics, and 1 newsletter, with one round of revisions included."
Option 2: Hours-based: "$3,000/month for up to 20 hours. Unused hours roll over one month."
Option 3: Access-based: "$2,500/month for 15 hours of ongoing support: unlimited requests, 24-hour turnaround, one project at a time."
The pitch email:
📧
Subject: Idea: Ongoing Partnership for 2026
Hi [Name],
I've enjoyed working with you on [recent projects]. Over the past [time], you've typically needed [service] about [frequency].
What if we set up a monthly retainer? For $[AMOUNT]/month, you'd get:
[Deliverable 1]
[Deliverable 2]
Priority access to my calendar
Faster turnaround times on your projects
We'd start with a 3-6 month commitment, and we’d both have 30 days’ notice to adjust or end the agreement.
Let me know what you think!
Best, [Your Name]
Creative Cash Coach
YOUR ACTION PLAN
This week:
✅ Take the quiz
✅ Choose one strategy
✅ Draft your email using the templates
Next week:
✅ Send to 2-3 clients
✅ Update your website with new rates
✅ Implement new rates with new clients immediately
This month:
✅ Track responses
✅ Celebrate the yeses (most will!)
✅ Learn from the nos (Were they the right clients anyway?)
FINAL THOUGHT
Underpricing hurts your ability to deliver great work, compromises your relationships with clients, and shortchanges your future. Charging what you're worth allows you to show up fully, do your best work, and build a business that lasts.
Pick one strategy. Draft the email. Hit send.
Your 2026 pricing reset starts now.
Rooting for you,
Your Creative Cash Coach
P.S. Reply and tell me which strategy you're implementing. I respond to every email!