I took a job from www.elance.com in October of last year. It has worked out wonderfully and I am very committed to this individual and his business. My problem is, he pays me a little over half of what my fee is going to be when my actual business is up and running. I do not know what to do. Do I "grandfather" him in at the rate he pays me now, or do I tell him that my fees have changed? I am so stuck on this. I really do not want to lose him as a "client." Any words of advice???

Personally, I would probably either grandfather him in or gradually move him up to your current rates. Even if you get a small increase now, it would be more than you are getting now.

Robyn

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Wiemer's Business Services LLC

I can relate to this exact situation - when I took on my first client I started out with her at exceptionally low rates and as my practice grew I found that I was making much more money working with other clients. But like you, this client was very important to me - and in fact, is the source of about 75% of new business for me on a regular basis. So not only did I grandfather her in but I have kept her rates lower than anyone else's for the last four years. We're still working together, she still sends me tons of referrals, and I'm still charging her about a third what I charge anyone else. Plus, I really, really like her

I would say, even if this client isn't a great source of referrals [yet] bring him in at the same or a slightly increased rate. Let him know you are charging him less than other clients and let him know why. Then teach him how to send you referrals. If he doesn't become a great cheerleader for you over the next few months, you may find it necessary to gradually increase his rates as your practice grows.

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Thank you Tess and Robyn. That is what I was thinking, but wanted to let some experts give me their opinions.

Dina