How to Raise Your Prices as a Digital Entrepreneur—Legally and Strategically
Raising your prices as a digital entrepreneur isn’t just a money move—it’s a legal one too.
Whether you're a coach, consultant, service provider, or online course creator, increasing your rates without the right legal foundations can expose you to client disputes, chargebacks, or even breach of contract claims.
In this guide, we’ll show you how to raise your prices legally and professionally, so you can grow your digital business with confidence—and stay compliant while doing it.
Why the Legal Side of Pricing Changes Matters
Raising your rates affects more than just your bottom line—it changes the terms of your client relationships. That’s why it’s essential to:
Follow contract terms and timelines
Provide clear, written notice
Avoid retroactive pricing changes (a legal no-no)
Document your updates to reduce liability
Failing to do so could open the door to refund demands, legal disputes, or reputational damage.
When Are You Legally Allowed to Raise Your Prices?
That depends on what your contract says.
Here are the most common scenarios:
✅ If You Have a Clear Pricing Clause:
You may be able to raise prices after a set period or upon renewal. Look for language like:
“This agreement is valid for X months at the current rate.”
“Client will be notified in writing of any pricing changes upon renewal.”
🚫 If You Don’t Have a Written Contract:
You’re at higher risk. Without documentation, it's harder to enforce rate changes—and clients may dispute charges or walk away.
Pro Tip: Always use a written client agreement that outlines your pricing structure, renewal terms, and how rate changes are handled.
How to Legally Raise Your Prices as a Digital Entrepreneur
1. Review Your Current Client Agreements
Before announcing a price increase, read your current service contracts or terms and conditions.
Key legal questions to ask:
Does my agreement allow for price changes?
Is there a renewal clause I need to follow?
Do I owe advance notice (and if so, how much)?
If you’re unsure, it’s wise to have a lawyer review your contracts before proceeding.
2. Give Proper Written Notice
Even if your contract allows a rate change, clients should never be surprised. Legally and ethically, provide written notice at least 30 days in advance when possible.
Your notice should include:
The new rate
The effective date
Any changes to the scope of services
An option to renew or decline (if applicable)
📧 Send it via email and consider a read receipt or acknowledgment request.
3. Update Your Contracts and Terms
Once your prices go up, you need to update your:
Client agreements
Website terms and conditions
Sales pages and checkout flows
Proposal templates (if applicable)
Why? Using outdated contracts at the new rate creates inconsistencies and potential legal conflicts.
4. Handle Existing Clients With Care
If clients are mid-contract, you typically can’t raise rates until renewal—unless your agreement explicitly says otherwise.
Options for handling active clients:
Grandfather them in at their current rate until the end of the term
Offer early renewal at current pricing for loyalty
Clearly state when the new rate will take effect if their term is ending
Avoid applying new rates mid-contract unless clearly permitted—it could breach the agreement.
What Not to Do (Legal Red Flags to Avoid)
❌ Raising prices without notice
❌ Making retroactive changes to agreed-upon terms
❌ Sending verbal notices only (always get it in writing)
❌ Failing to update your service agreement
❌ Applying new prices inconsistently across clients
Even small missteps can create tension—or legal claims—especially if you're working with higher-value clients or group programs.
Raising Prices for Digital Products or Courses
Selling a course or digital product? Good news: You generally have more flexibility—as long as:
You clearly list pricing and refund terms on your sales page
You lock in pricing upon checkout (you can’t change it after purchase)
You update all materials when you change prices
Still, we recommend including Terms of Purchase on your sales page and linking to your website Terms & Conditions for extra protection.
Final Thoughts: Raise Your Prices with Confidence—And Legal Backing
You don’t need to fear raising your rates—but you do need to protect your business as you grow.
When you combine smart pricing with solid legal strategy, you create a business that’s both profitable and protected—and that’s the kind of foundation that allows you to scale with confidence.
Ready to Raise Your Prices the Right Way?
Whether you need updated client contracts, customized terms of service, or legal review of your pricing structure, we’ve got your back.
👉 Book a legal consult with our team to make sure your next rate increase is strategic, clear, and legally sound.
ABOUT MJ MORLEY LAW PC
MJ Morley Law PC provides comprehensive legal solutions tailored for entrepreneurs and businesses at every stage of growth. From entity formation to intellectual property protection, our dedicated team is here to ensure your business thrives in a complex legal landscape. Ready to take the next step? Book a free consultation with us today or explore our services to learn more about how we can support your business goals.