Question: Do you have any suggestions on how to raise a long-time client's rate? Would it be best to let them go and keep adding new clients at my new, higher rate?

I still have my original clients and they take up a good amount of my time, yet are only paying a third of the rate my new clients are. I don't want to help them any less. Yet when I can make three times as much in the same amount of time with new clients, it becomes a tough balancing act.

Answer:
This is a dilemma virtual assistants who have been in business for a while face. When I first started back in 2005, my starting rate was $25 per hour. Today, seven years later, it's $50 per hour. Does that mean that my original client still pays $25 per hour? No.

As in any business, clients understand the need for rates to go up periodically. Of course the way we handle raising rates will make the difference between keeping a mutually beneficial relationship and losing a client.

My first suggestion is to add a paragraph to your contract that states something like "Rates are subject to annual review. Client will be given 60-days notice when rates increase." That way your clients will know up front that there is a possibility of a rate increase annually. They will also know they will be given plenty of notice so they can budget for the increase.

Review your rates around October 1st each year and see if a rate increase is called for. Review each client's rate to see what would be appropriate for them. Then by November 1 give each client a notice of any rate increase to be effective January 1 of the new year.

What if your client decides they don't want to pay the higher rate? Not all is necessarily lost. If they really want to find another virtual assistant at a lower rate and you really want to stick to your rate, then this may be the time to let them go. In fact I've intentionally let challenging clients opt-out of my rate increase as a way of letting them go without hurt feelings.

But it may be that a particular client is one you really love and they ask you if you're willing to negotiate another rate. Why not consider doing just that? If the work is something you love and the client is great, but they just can't afford the higher rate, you may be able to compromise. I have a favorite client that I just recently did this with. We discussed her needs as well as mine and agreed to a compromise. We met in the middle and are both happy. She's paying less than new clients but I'm still getting a decent rate, love the work, and have a great client who refers me to new clients - and who pay the higher rate!

When you do decide to let a client know you're raising their rates, don't think you can say to a $25/hour client, "By the way, next month the rate jumps to $50/hour". You cannot double your price in one swoop like that. You can say something more like, "It's that time of year when I review my rates. My rates are increasing across the board. New clients will be paying $50/hour. However, since you've been a long-time client and I love working with you, this year I'm only increasing your rate by 25%. The new rates goes into effect 60 days from today. I'd be happy to discuss any questions you have."

You could let them know that you expect their rate to increase by that same percentage next year as well. When you set the expectation, it's not a surprise or cause for concern when it happens.

If you and your clients value yourself and your services, you deserve asking for a decent rate from your clients. Read another post I wrote about this subject here.

Remember these rules about raising rates:

• Create clear expectations; include a paragraph about rate increases in your contract
• Give your client plenty of notice - at least 60 days - of any rate increase
• Be reasonable and flexible
• Value yourself and your services

I'd love to hear your feedback and experiences you've had of raising client rates.

Many virtual assistants are starting the new year with questions about their business. I've decided to start a new blog series here for those virtual assistants who want answers to their questions. This Questions and Answers series is your opportunity to ask any questions about your virtual assistant business. I'll then compose a reply via my blog so that all can benefit.

Use the contact form to send me your questions. I'll post one each Friday and send you the link. Your feedback is very much appreciated.

Read the first in the series about how to raise an existing client's rate here.

• Are you writing at your blog regularly?
• How do you promote your blog content?

It may be time to hire a Blog Content Manager and Promoter.  Whether your goal is to attract new clients or increase traffic to your blog, a Blog Content Manager can assist. Maybe you're an author and want to build an audience for book sales; perhaps you want to generate more traffic and increase ad sales. Whatever your goal is, a Blog Content Manager can help make sure your blog is regularly updated and promoted on social media networks.

Here's what one client has to say:

Sue has been managing my blog content for over a year and her services have added tremendous value to my business. I’ve worked with a lot of contractors over the years, and Sue is one of the best. I greatly appreciate that I can count on her to deliver on her promises, and she always meets deadlines. Sue’s efforts have also given me more time to focus on growing my business, and the consistent addition of content has helped drive a tremendous amount of traffic to my site (http://BusinessInfoGuide.com). I would not hesitate to recommend Sue for blog content management and promotion. She is a true professional who will make your life a lot easier and help bring traffic to your website. - Stephanie Chandler, Business Info Guide

Six days ago I replied to an aspiring virtual assistant's question in a LinkedIn group for virtual assistants. Her main concerns were how to go about marketing and getting new clients.

I explained, "That's a common concern when starting a business. It's important to put strategies into place now to start connecting with potential clients. Of utmost importance is sharing valuable information with prospects so they come to know you, like you, and trust you. Then they are more willing to want to do business with you and refer you to others as well."

Then I encouraged her to read my blog post about getting your first client: http://chiefvirtualofficer.com/blog/2009/10/09/take-three-steps-to-get-your-first-client-2/

We then communicated further by email and I made her an offer for the Action Guide, Building Blocks: Succeed as a Chief Virtual Officer and the CD Client Communication Clinic. They were in the mail to her the next day. Further discussion led to finding out she needed her website done. So now Joel's working on the website and tweaking her logo.

Have you had success using LinkedIn Groups and Questions?

Nearly four years ago I worked for a client in the real estate industry managing much of their financial needs with QuickBooks online. At times I would need tocollaborate with their accountant. Eventually they hired an in-house assistant and no longer needed my services. A few months later their accountant moved to another state.

Now neither I nor the accountant worked for this client any longer. However, the accountant connected with me on LinkedIn. I accepted the invitation to connect. We both thought, "you never know when we'll need the other's services". It's been nearly four years and I was just contacted by this accountant. She needs some work done and thought a virtual assistant could do this work. Who did she think of first? Someone she already had a relationship and connection with - me.

This reiterates the fact that building trusting relationships takes time. Don't be in a hurry to sell your services to total strangers. Take time to get to know people, Connect on LinkedIn, ask some questions, comment on their blog. Once they get to know you, like you and trust you, you'll have something to build a working relationship on.