When it comes to social media management, setting your prices right is crucial. We all deserve to be fairly compensated for our expertise and hard work, and we all need to make a living that supports our dreams. After being deeply immersed in the social media marketing world for over 3 years, I’ve seen one big mistake that many freelance social media managers and service providers make: undercharging.
Undercharging not only risks burnout and resentment but can also repel potential opportunities. So, let’s break down the six key signs that it’s time for you to increase your social media management prices and confidently step up your game.
1. You’re Struggling to Cover Costs
Let’s be real—if you’re struggling to cover your living expenses, operational costs, or dealing with the stress of taxes, it’s a major sign you need to adjust your prices. I’ve been there myself! For example, I’m currently preparing for a move to Australia, and I had to reassess my business structure and prices to make it work. It’s never a fun conversation to have with clients, but it’s a necessary step for any business owner to keep things sustainable and successful.
2. Your Skills and Expertise Have Grown
Remember when you first started, and you were charging lower rates because you were new to the game? As you gain more experience and your client results improve, it’s time to reflect that in your prices. More experience means better results, and better results deserve better compensation. Make sure to adjust your rates as you continue to level up!
3. Your Workload is Taking Over Your Life
I’m a big advocate for building your business around your dream lifestyle, not the other way around. Whether your dream involves working from home, pursuing your passions, or traveling as a digital nomad, your business should help you achieve these aspirations. If your workload is preventing you from living that dream, it’s time to take a step back and restructure your business. Undercharging means taking on more clients to sustain your business, leading to increased workload and stretched-thin time. This is a recipe for burnout and resenting your clients. Pause, reflect, and adjust your prices to align with your desired lifestyle. Attract higher-ticket clients who value your expertise, take on fewer clients, and regain control of your time.
4. You’re in High Demand
If you’re getting more inquiries than you can handle or putting clients on a waitlist, congratulations! You’re in high demand. This is a clear sign that it’s time to increase your social media management prices. When demand exceeds supply, you can create a sense of exclusivity that allows you to command higher rates. Embrace this opportunity to adjust your pricing strategy and position yourself as a premium service provider.
5. Increase Prices Gradually with New Clients
One of the easiest ways to gradually adjust your pricing is to increase your rates with each new client or every few clients. This method allows you to keep up with your growth and development while maintaining long-term sustainability. It’s a great way to ensure that as you gain experience and expertise, your prices reflect your progress.
6. The Cost of Doing Business is Rising
Each year, the cost of doing business increases, so your prices should too. I read the book “Girls That Invest” by Simran, and she shared a story about her friend who received a pay raise at work. However, the increase was lower than the inflation rate, meaning her friend earned less than the previous year despite the raise. This is a reminder for freelance social media managers to account for rising business costs and the impact of inflation. Software subscriptions, payment processing fees, and other expenses will increase annually. Make sure these costs are reflected in your pricing structure so you aren’t getting paid less each year. Inform your clients that your prices will increase at the beginning of the new year or season, depending on how long you’ve been working with them.
Final Thoughts
Increasing your prices doesn’t have to be daunting. Recognize the signs and make the necessary adjustments to ensure your business supports your dream lifestyle.
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