The renewal mistake
Most agencies treat renewal as autopilot: "Same scope, same price, sign here?" That's how you stay flat for 5 years while inflation eats your margin.
Renewals are leverage. Done right, you raise fees 10-25% per cycle, expand scope, and lock in longer minimums.
Three weeks before renewal
Send a recap email with a clear ask:
"Hi [name], your contract renews on [date]. Quick recap of year 1: - Sent X proposals, won Y, generated $Z in client revenue - Y/X close rate vs. industry avg of 18% - 4 case studies built (X, Y, Z, A) I'd love to talk about year 2. There are three things I think we should discuss: 1. Expanding scope to include [X] 2. Extending the agreement to 18 months for stability 3. Adjusting fees to reflect year-1 performance Free Tuesday or Thursday for a 30-minute call?"
Notice the ask is specific. "Adjusting fees" doesn't mean "discount" — it means "increase."
The renewal call structure
A 30-minute renewal call:
Phase 1 (10 min) — Year-1 review. Wins, losses, lessons. Their words.
Phase 2 (10 min) — Year-2 priorities. What changed. New problems.
Phase 3 (10 min) — Proposal. Three options:
- Same scope, +10% fee (cost-of-living + improved-workflow justification)
- Expanded scope, +25% fee (adds new service line — most clients pick this)
- Reduced scope, same fee (defensive option, rarely chosen)
Most clients pick option B. The middle option always anchors decisions.
How to justify the increase
Three approaches, in order of effectiveness:
1. Performance-based
"Year 1 hit/exceeded all KPIs. The new fee reflects the proven outcome."
Easiest if you actually delivered. Hardest if you didn't.
2. Market-based
"Our standard pricing has moved up 15% in the last 12 months. We honored your year-1 rate as a launch customer; the renewal aligns to current rates."
Works because it's true at most agencies.
3. Scope-based
"We're expanding scope to include [X], which adds [Y] hours/month of strategic work and [Z] of execution. The new fee reflects that scope."
Works because it's tangible and justifiable.
The 18-month commitment trade
Offer a discount on the renewal IF the client locks in 18 months instead of 12:
- 12-month renewal: full new fee
- 18-month renewal: 5% discount on the new fee
This both reduces your churn risk and accelerates your cash flow. Clients often take the discount because it's "free money."
When clients push back
Common pushback: "We're tight on budget — can you keep the rate flat?"
Response options:
Option 1: "I can keep the fee flat if you commit to 18 months. Otherwise, the new rate applies." Option 2: "I can offer the flat rate on Foundation tier. Growth tier moves to the new rate. Want me to scope down to Foundation?" Option 3: "I understand. We can pause the engagement for 90 days while you sort the budget. When you're ready to resume, the new rate applies."
Never just cave on the increase. Always trade.
Use the proposal generator for renewals
A renewal proposal is just a new proposal with year-1 metrics. Our AI generator pulls from your past proposal data and re-creates the document in 60 seconds with updated fees + scope.