#4 Why Going from Freelancer to Agency Owner Means Rethinking Your Pricing
Margin mindset.
If you're a freelance translator and you've ever thought about growing into an agency model, there's something you should know upfront:
It’s not just about finding more clients. It’s about fundamentally shifting the structure of how you work and how you earn.
When I first started thinking about building a boutique language agency, my biggest realization was this:
If I wanted to live off the margin generated by translation and language projects, I’d have to double my rates.
Why? Because I wouldn’t just be paying myself anymore, I’d need to pay the language specialists and myself (first as a project manager, later as a business owner). That margin had to support more than one role.
The Gradual Shift: When Roles (and Costs) Begin to Change
Here’s how the shift unfolded for me, not overnight, but step by step:
Phase 1: I did all the translation work myself. This was my freelance phase, and I stayed here until around €100K in annual revenue.
Phase 2: I started outsourcing some translation work and handled both translating and project management. This was roughly the €100K–€150K range.
Phase 3: I transitioned into full-time project management. I stopped translating entirely, focusing on managing jobs and coordinating with clients and vendors. This happened around €150K–€200K.
Phase 4: I hired my first full-time project manager, which finally allowed me to focus on growing the business—sales, marketing, operations. This happened after crossing €200K+.
It was a gradual climb. Each step felt uncertain. Each shift in role required a mindset change.
The Pricing Puzzle: Why You’ll Probably Need to Double Your Rates
Raising my rates was one of the hardest and most important moves I made.
Clients were used to my freelance rates. So I introduced the new pricing gradually.
New rates were applied to new clients only.
For existing clients, I raised rates in small increments over time.
Luckily, most of my early clients were working with relatively small volumes. That meant the rate increases weren’t too shocking and the transition went more smoothly than I feared.
But it was nerve-racking.
I didn’t know what was “legitimate” to charge. I second-guessed myself constantly.
Today, I understand something fundamental:
The person who decides what rate is legitimate... is you.
You get to set your standards based on the kind of business and life you want to build. Yes, you're operating in a market, and competition will push you toward a certain pricing zone. But within that space, you have more power than you think.
What a Healthy Agency Pricing Model Actually Looks Like
Here’s the simple pricing logic I wish I had understood earlier:
Your client rate should be approximately twice the cost of your language specialists.
That 50% margin isn’t just "profit", it’s what pays for project management, marketing, sales, systems, operations, and ultimately, your own salary as a founder.
If your agency rate is €0.24/word and you're paying your language team €0.12/word, you’re not being greedy. You’re creating a structure that can support a real, sustainable business.
Stepping Back to See the Bigger Picture
Making the leap from freelancer to agency owner isn’t for everyone.
It takes time. It takes trust. It takes rethinking how you value your time and how you want to earn.
But if you feel the pull to build something bigger, more scalable, and more resilient, it’s worth it.
And you don’t have to do it all at once.
You can grow gradually. One role shift at a time.
That’s how I did it.
And if you’re thinking about making that transition, I hope this gives you a more realistic and empowering view of what it actually takes.
— Tim Renders
I’m Tim Renders. I started as a freelance translator and built Entre les lignes, a boutique agency with millions in revenue throughout the years. These days, I share what I’ve learned and mentor other translators ready to take the leap.
Yes, a very helpful article. Thank you, Tim!
I absolutely loved this read. Thank you!