The perfect copywriting retainer rates vary from company to company. What may feel like a luxury for one business may be the key to securing profitable contracts for another. Identifying these differences is keyed to securing the most out of your retainer agreement.
Consider the following criteria before adjusting your rates:
Cost Of Living
One of the first and most important decisions you need to make is how to adjust your rates in light of the cost of living in the area you work in. Depending on where you are, the cost of living can vary dramatically. While you might not have to consider raising your rates to pay for your daily necessities in large cities like New York or San Francisco, elsewhere in the country your rates might need to be raised to cover the most basic costs of living.
For example, according to the US Bureau of Labor Statistics, the cost of food in Houston is more than 40% higher than the national average. Fuel costs are also significantly higher, which could translate to an increase in your costs for running your copywriting business. Consider how expensive electricity is in Texas compared to the rest of the country and how much your clients may be affected by the seasonal changes in your area (e.g., warmer in the summer, cooler in the winter).
Peak Season Vs. Off-Season
Another factor to consider when determining your perfect retainer rate is whether you should increase your rates during the peak season or off-season. While there are plenty of opportunities to make money from copywriting during the holiday season, many businesses see an increase in the volume of their work during this time, which often leads to higher rates. However, if you are in the San Francisco Bay Area, you can enjoy the mild climate all year round and get in the mood to write even in the bleakest of winter nights.
Your decision here will largely depend on your business’ current financial situation. If you’re currently in a profit position, you might consider increasing your rates during the peak season to reflect the demand for your services. Alternatively, if you’re struggling financially, you may want to hold off on increasing your rates until the off-season. When the volume of your work dries up during the winter, you can usually expect to see an increase in your rates. A good rule of thumb is to consider your expenses and how much you’re earning in comparison to pay for the simple but essential things in life.
Demographics
You also need to decide how to raise your rates based on the demographics of your client base. For instance, if you are primarily attracting a Caucasian clientele, you may want to consider hiking your rates to match the standard rates of a typical white-collar job. Alternatively, if you are primarily serving a Hispanic population, you may want to lower your rates to a level more affordable for your mostly Spanish-speaking clients.
Raising your rates based on the demographics of your client base will also help you determine the most effective way to market your services. Consider the following:
- Are you reaching your targeted audience?
- Is the price right?
- Are you increasing or decreasing your rates?
- Is the quality good?
- Are you happy with your client base?
- Are there other copywriters/creative agencies in your area?
- Are you satisfied with the services you provide?
Technology
The last thing any business wants is obsolete technology hampering their workflow. You should research the most efficient way to operate your copywriting business so that you can bring in the revenue you need without wasting too much of your time. This may mean investing in new software or hiring additional personnel to help you run your business more effectively. Keeping up with the times is key to being able to provide your clients with the best possible service.
If you’re worried that your current technology isn’t up to date, it’s time to upgrade. However, keeping up with the times doesn’t mean you have to get overly-concerned with technological advancements. Consider how much your clients will appreciate the extra attention to detail and improved quality compared to what they are used to. Remember, your software, hardware, and web hosting should all be state-of-the-art and up-to-date so that you can focus on running your business.
Seasonal Affective Disorder (S.A.D.)
If you’re experiencing Seasonal Affective Disorder (S.A.D.), you may want to consider the following:
- Are you creatively blocked during the winter?
- Do you get along with your clients?
- Is your work steady?
- Do you enjoy what you do?
- Do you feel like you can add value to your clients’ businesses?
- Do you get along with your colleagues?
- Are your rates in line with what others in your area are charging for similar services?
- Do you feel like you are providing value?
- Are you earning enough money?
- Are you happy with your life?
- Is there something you need to improve upon?
If you answered yes to any of these questions, it might be time to increase your rates. If you answered no to all of them, it might be time to consider lowering your rates until you determine what is causing your creative block and whether or not this is something you can overcome. Don’t worry, you aren’t alone in experiencing S.A.D., so don’t be discouraged if this happens once in a while. Just use this time to your advantage and recharge your batteries before the holidays are over.
Value
Just because your rates are increasing doesn’t mean that your client won’t value your work. Remember, your client is paying for your expertise, so make sure that you are providing value beyond simply your writing skills.
If you are new to the writing scene, consider the following:
- How much do you charge?
- How much do you need to charge to satisfy your clients?
- How much do your clients value your work?
- What are you providing for your clients that they value?
- Is your value worth what your clients are paying for it?
- Are you meeting your clients’ needs?
- Are you using the right tools and technology to get the job done?
- Are you doing anything to establish yourself as an expert?
- Are you happy with the results you are getting?
- Are you adding any new services?
- Are you satisfied with your business?
If you answered yes to any of these questions, it might be time to increase your rates. If you answered no to all of them, it might be time to consider lowering your rates until you determine what is causing your clients’ lack of value and whether or not this is something you can overcome. This may take some time, but you can usually get back on track.
As you can see, there are numerous factors that go into deciding when to raise your copywriting retainer rates. By taking the time to consider all of these factors, you can rest assured that you are making the right decision for your business.