Increasing editing income – raising fees and declining lower-paid work

​How to increase editing and proofreading income
Taking annual action to increase income from freelance editorial work is simply good business practice.

How to increase editing and proofreading income
Taking annual action to increase income from freelance editorial work is simply good business practice.

​Earnings need to keep up with cost-of-living increases else our editorial businesses could fail. Even if they don't fail, the decline in profitability could have a significant impact on our lifestyle and well-being.

In this article, I consider several approaches to increasing editing income and declining lower-paid work. These respect editors' differing circumstances, client bases and business goals.

What we earn is determined by the following:​​

• The fee we consent to when we’re in the position of being made an offer (from, say, a publisher, packager or agency). Here, we’re price-accepters.
• The fee we charge when we’re in the position of making an offer (to, say, an independent author, student or business). Here, we’re price-setters.

Increasing our earnings is not always straightforward, though. You or I might think our desired rate increase is entirely justified (for example, because of inflation). However, what you or I think is not the issue. Any change to a pricing model must consider the client’s response for the simple reason that the client might not be prepared to pay. Remember:

• When we’re price-setters, we’re within our rights to increase our fees. On the flip side, our clients are within their rights to decline the new price and walk away.
• When we’re price-accepters, our clients are within their rights to maintain their current fees (or even decrease them), while we’re within our rights to negotiate or decline the work and walk away.

Decisions about what to set or accept therefore need to be carefully planned.

Avoiding knee-jerk thinking
If a colleague states that they’ve decided to no longer edit for ‘low’ rates, by all means congratulate them on their business decision. Don’t assume, though, that their decision is the same one you should be making. Before you impulsively follow their lead, ask yourself the following questions:

• What do they mean by ‘low’ rates? Is your definition of ‘low’ the same as theirs? You may think £25 an hour for editing is great but your colleague may think it’s unacceptable.
• Do they have a supporting income that enables them to implement their decision immediately with no harm to their lifestyle? Perhaps they have a partner who is the primary breadwinner, or maybe they’re lucky enough to have an independent income from a generous trust fund (we can all dream!). Put another way, your colleague might be able to afford to immediately decline £25 per hour on principle, whereas you’re responsible for all your monthly outgoings and aren’t in a position to bear the risk of earning zero pounds per hour until you have acquired a replacement client.
• Do they have a large and established client base in a sector that is known to be less price-sensitive than the sectors you work in? Perhaps their knowledge and specialist skills put them in the rare position of being able to name their price. You, on the other hand, might work in a more competitive generalist market where you’re easy to replace.
• Is their visibility so high that they’re confident they can replace lost clients with new customers who’ll pay their desired prices? Their marketing strategy is mature, whereas you’re still building your visibility and juggling feast and famine.

In other words, don’t feel compelled to decline work just because your colleagues deem what’s on offer as a bum deal. Their current circumstances might be very different from yours. Not everyone can afford to be unemployed, and the choices available to a mature freelance-business owner may be very different from those on offer to the beginner.

Case study – the price-accepter
When you’re a price-accepter, the process for managing rates is usually one of the following:

1. The flat refusal: the client offers work at a price you deem too low. You decline and walk away. Either you’ve acquired a better-paying replacement or you now have a gap in your schedule and are earning less.
2. The negotiation: the client offers work at a price you deem too low. You negotiate. The outcome could be the rate you want, a rate that’s in the middle ground and that will do until you have alternative work lined up, or a no-budge. If you get the rate you want, great. If you end up in the middle ground or with a no-budge, you’ll have to decide whether to walk away or move to phase-out mode.
3. The phase-out: the client offers work at a price you deem too low. You accept the fee but commit to find a better-paying replacement, at which point you’ll phase out this customer.

In the first five years of owning my editorial business, I was almost exclusively a price-accepter. My main clients were publishers and packagers. Returning to the knee-jerk-avoidance issues:

• I didn’t think in terms of ‘low’ and ‘high’. I thought in terms of experience, testimonials and portfolio generation, all of which I believed would make me more interesting and discoverable further down the line. Price comparisons were interesting but nothing more. They didn’t determine whether I accepted or declined work.
• During this period, my partner earned 60% more than me. We relied on his salary to live – food, mortgage, bills, clothes. My earnings paid for the nice stuff.
• I was completely replaceable in the eyes of my publisher and packager clients. They knew exactly where to go to find equally experienced editorial pros if I declined to work for them.
• My marketing strategy was growing, but I wasn’t so visible that I could decline work from a publisher, safe in the knowledge that the gap in my schedule would be filled with a better-paying client. Saying no meant risking earning zero pounds per hour, which in turn meant less nice stuff!

During that phase, I was a negotiator and a phase-outer. I’d take the work to ensure a full schedule. I gained experience and testimonials, and I expanded my portfolio – all great marketing tools. As I acquired better-paying clients, I phased out the 15-pounder, then the 18-pounder, then the 20-pounder, and so on. It was a gradual process.
​
In 2017, my marketing strategy has paid off. I’m highly visible. I’ve got the experience, the testimonials and the portfolio to make me interesting to enough non-publisher clients that I can decline a price and walk away. I’ve moved from negotiation and phasing-out to responding with a flat refusal.

Case study – the price-setter
When you’re a price-setter, the process for managing rates is usually one of the following:

1. The flat increase: you offer the client a price. If they accept, you do the work. If they decline, you walk. You’re confident you can fill the gap in your schedule, but if you can’t it doesn’t matter because of your particular financial circumstances.
2. The negotiation: you offer the client a price. The client wants to work with you but tries to bring the fee down. If you need to fill the space in your schedule and aren’t confident that you’ll acquire a replacement, you’ll negotiate. The outcome could be a rate you’re still more than happy with, a rate that’s in the middle ground and that will do until you have alternative work lined up, or a no-budge. If you get the rate you want, great. If you end up in the middle ground or with a no-budge, you’ll have to decide whether to walk away or buckle.
3. The phase-in: this is an approach that my colleague Janet MacMillan wisely suggests using for established clients. The fee increase is staggered so that the client has time to adjust. It can be presented as an extended discount that respects the pre-existing relationship. The client views it as valuable because they’re getting a special benefit.

In the first five years of owning my editorial business, I had few clients for whom I set the price, and I was still developing my visibility. If there was space in my schedule, I’d try to fill it by negotiating and offering phased-in fee increases for regular clients.

In 2017, things have changed. I’m a flat-increaser. If the client doesn’t like the fee on offer, no problem. I thank them for their interest and wish them luck. Returning to the knee-jerk-avoidance issues:

• My Proofreading Standard and Proofreading Plus services are particular to my business. The definitions of service provision were created by me and may or may not mirror my colleagues’ services. ‘Low’ and ‘high’ therefore don’t mean much to anyone other than me and my client.
• I still have a partner with a backup income.
• The replaceability issue is sticky. I have a couple of business clients for whom price is not the issue. However, the work is sporadic – certainly not enough to fill my schedule. New indie-author enquirers can easily get comparative quotes so I’m definitely operating in a very competitive environment. With repeat indie clients, there’s an existing relationship based on trust, and satisfaction with my previous work. I wouldn’t go as far as to say I’m irreplaceable, but I have a value-based advantage when it comes to discussing increased prices.
• I’m highly visible. I get a lot of offers to quote and I turn down a lot of work. If my set price isn’t acceptable to the client, I can walk away, confident that the slot in my schedule will be filled.

As I hope the two examples above show, the approaches we take can vary over time and depend on individual circumstances. There’s no one-size-fits-all response.

Some additional thoughts

• Consider the impact: Taking a flat-refusal or a flat-increase approach might have unpalatable consequences. What will be the impact on your income if you or the client walk away? Can you afford it? If not, a gentler transition will be in order – one that includes negotiation, phasing in or out, and taking a longer-term view of one’s business goals.
• Have a replacement strategy: Rate increases should be founded on a plan for how to replace what you might lose. I prefer to assume the worst – that if I increase the rate there’s a very real chance the client will walk. Being pessimistic means you prepare yourself well ahead via regular marketing that puts you top of mind (or top of Google) for the types of client who’ll pay what you want to earn. We must be visible to those clients who won’t quibble over the price we want to charge or be offered.
• Be analytical: Flat refusals and flat increases should be based on a realistic assessments of the potential financial loss rather than on impulsive reactions to feeling undervalued. For some of us, at certain stages of our careers, it’s better to be underpaid and overwhelmed with work than overpaid but underwhelmed. We all want to be overpaid and overwhelmed but that doesn’t happen just because we decide that’s what we want!
• Be realistic: Don’t underestimate your value, but don’t overestimate it either. Even if you think you put the oo into proofreader, your client might decide they can afford to lose you. That’s not to say you should buckle. Rather, you need to have a plan B – a replacement client who wants a bit of your oo!
• Don’t be a sheep: You’re an independent business owner. Ultimately, you need to work out what to charge, what to accept, when to say yes or no, who to work for and how to be found. Your colleagues can’t do this for you, so they shouldn’t be the primary determiners of whether you take a phased approach or a flat one.
• Don’t take it personally: If you lose a client because you can’t find a mutually acceptable price point, it’s not a slur on your character or your abilities. It’s just business. You have to look after yours, and your clients have to look after theirs. Sometimes a fit just can’t be found.

Managing rates is a journey
Increasing earnings isn’t about knee-jerk reactions. Rather, it’s a journey. Depending on your circumstances, you might handle things one way now, and another way further down the road.

Whether you buckle, negotiate, phase in/out, or make flat-out decisions will be based on your circumstances. There’s no one, true way to do it and there’s no shame in any of those choices as long as they’re done in relation to an analysis of your business needs and goals.

---

Louise Harnby is a professional fiction proofreader and copyeditor. She curates The Proofreader's Parlour and is the author of several books on business planning and marketing for editors and proofreaders.

Visit her business website at Louise Harnby | Proofreader, say hello on Twitter at @LouiseHarnby, or connect via Facebook and LinkedIn.

---