Raising rates with new clients -- what about referrals?

ninadepalma

I've heard that a great time to raise your rates is when taking on new clients. Makes sense! But what about when that new client is a referral? Should you offer them the same rates as you offer the client who referred you?

As you might have guessed, I'm asking because of personal experience, haha. Today an old, old client passed my info along to someone they know. I would never accept new work at the rates I have with this old, old client, because my circumstances have changed drastically since I started working with them (i.e. I'm not translating for fun anymore).

Anyway, what do you guys think about the general scenario? I'm not asking for advice as much as I'm opening this topic up for discussion ?

MaV

I know how you feel... Normally, I would explain to the new client that the raises have increased a bit, underlining that now you are a full-time translator (it should be a good thing for them too!), but that you are open to discuss the conditions with them, if they had something else in mind. But that's me and I'm super-duper-ultra-shy. I always feel bad for asking for money - I love projects with a budget.

ninadepalma

Yeah, that's a good approach, and definitely the one I was planning on taking in this particular instance. Let's say I have raised my rates by X cents per word since starting with this old client. I was thinking of asking for X/2 cents more than the old client's rates. So...not quite as much as I ask for from clients I find myself, but still a bit more than my rates when I was part-time. And then I was going to say something about working towards an agreement.

People who are further along in their careers may take the stance that I should ask for X more cents per word, firmly. But this could be good industry experience for me, and it might be worth the slight pay cut.

Anyway, these rates (even the old client's rates) are still higher than what some Russian agencies have offered me...

MaV

Yeah, I guess the "firmly" thing is nice, but I find it much more difficult to do when it comes from a recommendation from another client. Usually, where I've been able to be unflinching, it was for projects I didn't really want to get (and, surprise, ended up getting... ooops).

And I can only imagine the rates those agencies are suggesting. The other day, I saw one that offered 0.02 cents per word. One of these days, I'm fully expecting to see someone suggesting 0.01 cents per sentence!

ninadepalma

MaV Yep, I woke up to an email in my inbox from a Russian agency offering me ~$0.02 a word for translation. If they want native speakers, they have to expect that plenty of them are living in the US, where rates like that just won't fly. Almost all the agencies I've worked with so far have been Russian, and they've all been comfortable paying me much more than $0.02/word...

annagiuliam

I wouldn't worry about raising rates for referrals. In the end, price is defined according to various factors and you cannot guarantee the same rate for all clients. Some projects are much easier and others require more research etc. And you also need to keep in mind the rising cost of life.
I would just propose a rate that I see fit and then eventually consider a small discount.