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This post was originally published in March of 2017. Here’s the new and improved version!
We like to think we’ll automatically get paid a fair wage for our services and talents, but that’s just not true. The fact is, we only get paid as much as we can convince someone to pay us.
There are lots of times you’ll deserve more money than you’re currently getting: a raise from your boss, an increase in your service fees from your clients, even a higher allowance from mom or dad 🙂
You need to know how to convinced people to give you the money you deserve! You work hard for that money, and you need it to finance your savings plan, so go get it!
Here are our top do’s and don’ts of asking for more money…
Don’t: Wait for an offer of more money
Your boss is responsible for keeping company expenses down. After all, the boss has a responsibility to the customers to keep costs low. And at the same time, the boss has a responsibility to the shareholders to keep profits high.
So no one is going to voluntarily offer you more money, even if they know you deserve it! You simply can’t sit back and expect your effort to be recognized and financially rewarded.
Do: Take the initiative to ask
The first “do” in our Do’s and Don’ts of Asking for More Money is to actually ASK!
If you are asking for more money from your employer:
It’s important to remember that employers usually expect you to ask for more. Employers specifically offer less than they expect to pay so they’ll have some wiggle room to come up when you ask for more. All you have to do it ask them to come up!
Never accept the first offer on a new job! Always counter by saying something like, “Can you come up a little on that salary? I am looking to be closer to $whatever-amount-you-chose”. It can be scary, I know. The last thing you want is to appear difficult or unlikable by pushing for more money. But, in my experience, employers respect it. They want to know that you think you’re worth more than their minimum offer. Don’t disappoint them by settling for the minimum without any fight!
If you are asking for higher fees from your clients:
Asking for higher fees from your own clients is probably harder than asking for a raise because you develop personal relationships with your clients and really want them to like you! But you have every right to increase your fees to keep up with increasing inflation. The key here is to increase your fees on a slow, steady schedule.
Keep the increases small, maybe 1-3% depending on your industry, so it doesn’t make a huge difference to your individual clients. Do you really notice when Starbucks raises their rates? Me neither!
Of course that 1-3% multiplied by your number of clients will really add up for you! Continue increasing on a standard schedule, maybe every six months. Your clients will get used to it and won’t blink an eye at these little increases!
You can simply notify clients that their rate will increase slightly from $whatever-their-current-rate-is to $the-new-rate because of a “scheduled market inflation increase”. Thank them for their continued business and let them know how much you’re looking forward to continuing to provide exceptional service!
And when the economy experiences a temporary decrease, you can keep your rates flat. You can notify your clients that you are waiving your scheduled increase for that period, and you’ll look like a hero!
Bottom Line: You don’t have to like asking for more money. Or even be comfortable with it or good at it. You just have to do it! Take the leap and ask for more.
Don’t: Go into a negotiation blind
If you have no idea how much your skills and experience are worth, you will probably either 1) ask for way too much or 2) accept far too little.
What if you are clueless about your company’s financial position? You could actually offend your boss by asking for a sizable increase in a company with no revenue growth.
Approaching a negotiation without researching the surrounding circumstances can seriously hurt your chances of getting more money!
Do: Conduct a little research
Before asking for more money, you’ve got to do your homework. Salary.com and Glassdoor.com are great resources for researching salaries. You can find salaries by job title, company, and geographic market. Knowing the average market rates for your position in your market will help you ask for a reasonable salary.
To increase fees for your clients, check out your competitor’s rates and adjust them for differences in services and quality of work. You want more money, but you don’t want to price yourself out of the market!
Also consider the financial position of your company or your clients. You look much more cooperative when you show consideration for the circumstances for the other side of the negotiation. In a down economy, you don’t want to ask for the moon.
Don’t: Let this Ask be a surprise
Ugh, bosses HATE being blindsided by a request for more money. It immediately puts them on the defensive and makes them more likely to say no.
With clients, it’s less of a negotiation and more of a notification. You just need to let them know that rates are scheduled to increase by a small amount. And because your increases are small, they don’t need a bunch of lead-time before the increase. Even better, as you get in the habit of scheduling your increases for set dates, your clients will get used to your routine increases and won’t be surprised anyway.
Do: Give your boss a heads-up
The best way to prep your boss for a raise request is to consistently show him or her how awesome you are! Proactively tell them about your wins so they already know you deserve a raise by the time you ask.
Then make sure they know the Ask is coming. “Hey boss, I was hoping you’d have a moment to discuss my recent performance and compensation sometime next week” should do the trick.
Don’t: Explain why you need the money
You’re behind on bills or just had a giant unexpected expense. These fall under the category of not your boss’s problem. You might legitimately need the extra money through no fault of your own, but it just sounds whiny to list the reasons you need more money. Your boss and your clients may sympathize, but it’s really not likely to make them pay you better.
Bonus Don’t: Don’t compare your salary to anyone else’s. I know you did your homework and checked average salaries so you wouldn’t make a huge mistake asking for too much or too little. But the negotiation is about you and your performance, not your average industry worker, and certainly not your coworkers!
Do: Explain why you’re worth the money
You’re asking for more money because you’re worth it! Show them why.
Remember, you’re selling, not begging. What have you contributed to the company or to your clients? Have your contributions benefited them financially? If so, by how much money, exactly? It’s super effective to show people a dollar amount that they saved or earned because of your efforts.
Use the Feature/Benefit Tool to really sell yourself. The Feature/Benefit Tool has been used by salespeople since forever. Basically, you list the features of whatever you’re selling, but then you take it a step further by explaining the benefit. Like, if you’re selling a car with a sunroof: You show the buyer the sunroof (the feature), but then you point out to the buyer that the sunroof makes the car feel so much more open and spacious (the benefit). The benefit might seem like a common-sense jump that isn’t worth even stating, but it’s a powerful tool to demonstrate to the buyer that you understand their needs and that this specifically meets them.
To apply this to asking for a raise, just think, “I do Feature, so you get Benefit“.
“I digitized our records (feature), so you never have to waste time searching the file room for documents (benefit).”
Or “I manage all customer interaction (feature), so you can focus on marketing to find new customers (benefit).”
Showing how your service directly benefits your boss or your clients shows them why you’re worth the extra cost.
Don’t: Bluff
Are you really going to quit your job if they don’t give you a raise? Really?
No? Then don’t say you will.
If you aren’t ready to leave your job, don’t give any kind of ultimatum. Ultimatums are hostile, and you should only use them when you have no other option. If your boss calls your bluff and you don’t quit, you look weak and a little slimy.
Do: Say what you mean
On the other hand, if you have a better offer from another firm, and you really are prepared to leave your job if your boss can’t meet your demands, then ok, tell them that. Just know that you might have to follow through.
Otherwise, simply say what you mean. You feel you deserve the raise for the many contributions you’ve made above and beyond your job description, and you hope the company sees the value of your hard work.
Don’t: Take “no” for a final answer
“No” isn’t the end of the world. It isn’t even the end of the discussion. You don’t have to accept “no” as the final answer.
Do: Revisit the request in the fairly near future
Instead of accepting “no” as defeat or rejection, accept it as a temporary decision. They say “no”, they mean, “not right now”.
Let your boss know to expect a follow up on this request. For added Brownie Points, ask your boss what you can do to show him or her that you deserve this raise. Then do it! Then announce it. “Hey boss, I increased sales 5% just like you asked. When would you like to revisit that compensation discussion?”
At this point, you either have a raise, or you have a company or clients that don’t appreciate your services, and you can consider taking your talents elsewhere. Either way, you’re in the driver’s seat because you took the initiative to ask for more money. Go you!
Feel like sharing?
Have you asked for more money? How’d it go? Do you have any tips for us on getting that increase?
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