Louise Harnby | Fiction Editor & Proofreader
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The Editing Blog: for Editors, Proofreaders and Writers

FOR EDITORS, PROOFREADERS AND WRITERS

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

1/2/2017

11 Comments

 
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.
Managing editorial freelancing fees
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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.

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 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 tricky. 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.

​More information
  • Guide: ​How to Develop a Pricing Strategy
  • Blog: How to track the health of your editing business efficiently: The Editor's Affairs (TEA)
  • Blog: How to convert requests to quote into paying work: Help for editors and proofreaders
  • ​Free webinar: The different levels of editing
  • Blog: How to minimize cancellations and non-payment for editing and proofreading services
  • Blog: “I want to be an editor – when will I start earning $?” and other unanswerable questions
Louise Harnby is a line editor, copyeditor and proofreader who specializes in working with crime, mystery, suspense and thriller writers.

She is an Advanced Professional Member of the Chartered Institute of Editing and Proofreading (CIEP), a member of ACES, a Partner Member of The Alliance of Independent Authors (ALLi), and co-hosts The Editing Podcast.

Visit her business website at Louise Harnby | Fiction Editor & Proofreader, say hello on Twitter at @LouiseHarnby, connect via Facebook and LinkedIn, and check out her books and courses.
11 Comments
Eva Blaskovic link
1/2/2017 04:25:08 pm

Excellent article, Louise. Everyone deserves to make a living for services of value.

Reply
Sally Asnicar link
1/2/2017 11:12:16 pm

Great article, Louise. I'm lucky to be in a similar situation to you, I'm mostly in the flat increase phase and I have a partner who makes the lion's share of the household income. But one important point for me still is, DON'T BE A SHEEP. After ten years in this business, I'm still sheepish about raising my rates and the fear of rejection remains. So my resolution for 2017 is to 'toughen up'!

Reply
Louise Harnby
1/2/2017 11:50:10 pm

You're only human, Sally! I find it much easier to have straightforward conversations about money with new clients than with existing ones. I think some of that comes from having worked for so many years with clients for whom I was in a price-accepting position. It's great that you're in a position to get tougher, though, and know you can afford to take the rejection on the chin if it should come to that.

Reply
Jan Peters link
2/2/2017 01:32:10 am

Great article Louise. I tend to agree with Sally. 2017 is a year to toughen up and not be afraid of rejection. Though, in all honesty, I can't help myself and continue to offer 'a little' flexibility with my fees. It seems that proofreading/editing has gained popularity of late. There is a fair amount of competition out there in the marketplace. On the other hand, repeat business is still good and feedback from clients is what keeps me keeping on ...

Reply
Louise Harnby
2/2/2017 01:57:32 pm

I agree - repeat business is something never to be sniffed at. It provides us with stability so that we can make changes at a later stage if we want to. Flexibility is good too. It's all about working within your own parameters, not your colleagues', so that you make the right decisions for your business. Sometimes we have to find the right time to be tough, rather than doing it in a knee-jerk fashion. Keep up the great work!

Reply
Sophie Playle link
2/2/2017 11:23:38 am

Another very clear and thoughtful article, Louise. The point about managing your rates being a journey is spot-on. When I first started out, I wasn't sure what I should be charging. As I got into the swing of things, I learned what worked for MY business and stopped comparing my rates to other editors' so much. And I know that as circumstances change, I must continue to adjust.

Reply
Louise Harnby
2/2/2017 02:01:33 pm

Exactly, Sophie! Comparisons can cause us to trip up and make decisions based on the wrong factors. I think our industry is particularly prone to trying to find universal pricing solutions to what is a diverse market served by a ton of equally diverse suppliers with very different needs. I, like you, am always thinking about whether I need/want to adjust based on the what's happening now and where I want to be further down the road!

Reply
Lesley Jones link
2/2/2017 01:26:23 pm

Thank you for this really useful article, Louise. As ever, completely on the button! I empathise with your case studies. I'm still quite a newbie, I feel, and still exploring how best to market my business. However, I'm the sole breadwinner in my household and that can lead to scary times. At the moment I'm in the never-experienced-before position of being booked up for the next four months, but based on past experience, fully anticipate a famine period at some point, for which I have to be ready. I am both a price setter and a price accepter, but I haven't yet tried negotiating with a publisher! You inspire me so much, Louise. Thank you again.

Reply
Louise Harnby link
2/2/2017 01:53:22 pm

Thank you, Lesley. I'm really pleased you found it useful. Congratulations on your feast period and good on you for doing the necessaries to try to avoid famine! I have some more posts coming up about rates in relation to business ownership. I hope you'll find them just as useful. You sound like you've got your head in exactly the right place. Keep it up!

Reply
Sara Litchfield link
22/3/2017 06:19:57 pm

Great article, thank you - this is the challenge I'm tackling this year!

Reply
Louise Harnby
22/3/2017 06:32:36 pm

Good luck with it, Sara!

Reply



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