Hit the Right Price
If there's one question that I hear from coaches more than any other it's this,
Pricing is one of the biggest stumbling blocks to building a profitable business.
Price too low and you'll have trouble paying the rent.
Price too high and you'll feel stressed about delivering the level of expertise that your clients will come to expect.
So how do you navigate the tricky terrain of pricing?
Follow these 3 tips :
TIP #1: PRICE FOR RESULTS
First, know there's no such thing as the "right" price in the coaching industry.
There's only the price that is right for you and the phase that you're at in your evolution as a coach.
But before you settle on prices, I want you to take a mental step back and shift your thinking.
Here's how that will look...
If you're a weight loss coach and you can help a client lose 20 pounds in a month, what's that result worth? Price for that.
If you're a business coach and you can get your client to $10k months in 3 months, what's that result worth? Price for that.
Never make the mistake of pricing based on how much you value yourself because let's face it...
Most of us undervalue what we're worth and what we're capable of.
Next thing to do is...
TIP #2: RESEARCH
Look at what other coaches in your niche and at your level of experience are charging...
Then, look for your personal "sweet spot."
What's the price - the magic number - that lands between "scary" and "exciting" for you?
What's a number that feels good yet challenging?
Go with that...
And don't stop there.
TIP #3: RE-EVALUATE
Re-evaluate your prices every few months.
As you become a better coach, you'll need to keep raising your prices to match those skills.
Keep in mind that when you're just starting out, it's all about gaining the experience you need to deliver real results for your clients.
Most coaches start with an hourly rate but pricing by the hour locks you into a number that's measured in time, not results.
This is a mistake and it will stunt the growth of your business (and it will keep you working around the clock!)
So, start offering long-term packages to clients as soon as possible (I go deep into this in Chapter 4 -- Create Powerful Packages).
When you're just starting, think about creating a "boutique" practice where you work with two or 3 clients for 3, 6 or even 12 months.
Do whatever it takes to surprise and delight them.
The key is to go above and beyond their expectations...
When you're just starting out, it's your first run with clients so your no.1 goal is to give your clients an incredible coaching experience and awesome transformations.
Many coaches share their prices on their website so start doing some research.
Look for 3 to 5 coaches who serve your marketplace or who share the same niche or area of expertise as you and take look at what they charge.
Next, think about what you want to charge for each of your services.
Use these questions to guide yourself to prices that are right for you:
- What is the result that I can promise my clients?
- What's the number that challenges me and inspires me to raise the bar on my coaching skills and deliver great results for my clients?
- What is my income goal?
Create Powerful Packages
There are many ways to share your coaching expertise and deliver results for your clients.
You can offer group programs, create self-paced courses, host live events or write a book to name a few.
Some coaches create online membership sites where clients pay a monthly subscription fee to receive trainings and coaching sessions focused on specific areas such as health and fitness, relationships or sales and marketing for small businesses.
All of these methods are valid and you can use one or more of them to build your business.
1:1 coaching is where world-class coaches hone their craft and get really good at what they do...
Many of these experienced coaches continue to offer 1:1 sessions even when they become global names.
As a new coach, working 1:1 with clients is the best way to uncover your individual coaching style.
It's also a great space to practice your skills and create your unique coaching methodology (check out my Ultimate Guide to Creating a Powerful Coaching Methodology that Changes Lives to find out how to do this right)
Overall, 1:1 coaching work can be segmented into 2 key categories:
Individual Coaching Sessions
These are basically 1:1 sessions offered on a per hour basis. There are also coaches who offer 45-minute sessions while others prefer 90-minute sessions with clients.
But it doesn't matter how long your sessions are.
When you lock yourself to offering individual coaching sessions, you're chaining yourself to the "dollars for hours" model and your business will hit a "ceiling" and become unscalable because you can only grow as much as you can coach...
And if you want to create more income and impact, you need to work more hours.
Most new coaches can charge about $175 to $200 an hour but this won't work for long.
Think about it...
If you want to hit about $60,000 in your business, at $175 an hour, you need to work 350 hours.
That's a LOT of hours for $60,000.
Hourly sessions are the fastest route to frustration and burnout, that's why you need to move to category #2 and start to offer coaching packages.
A coaching package is basically a series of coaching services designed to provide a solution to a problem or to help clients achieve a specific goal.
There are massive benefits to creating coaching packages.
Packages will help you create more space and time in your business and because these are long-term services, you won't end up continuously searching for clients.
You'll also get to go deeper with each client because you're working with them for a few months not just an hour here and an hour there.
This gives you time to help the client experience real, lasting transformation.
Packages are also more attractive to the clients themselves.
They'll get that you're in it for the long haul with them and this will motivate them to commit to doing the work with you so they can create the change they want to see in their life or business or get to the goal they've set.
So how do you create irresistible packages that motivate your clients to sign up and work with you?
The secret is to get clear. Really, really clear.
Just like you did with pricing, your packages must be designed around results.
Your clients must immediately see the results they're going to get when they work with you.
So, don't offer a "3-month coaching package to improve your health"
Offer a "3-month coaching package to release bad health habits and make healthy food and exercise a permanent part of your life."
Don't offer a "6-month package to build a successful business."
Offer a "6-month package to find your niche, grow your audience and create consistent $5,000 months"
A package that is clearly defined is easy to structure, deliver and sell (see Chapter 5 on How to Become a Rockstar at Sales)
Great packages are the difference between a successful coach and a coach who's struggling to make ends meet.
Grab a pen and paper or open a new document on your computer and start creating your coaching packages.
First, think about your zone of genius and then reflect on the results you can create for your clients.
Now consider how long you think it will take to get to that result... 3 months, 6 months, a year?
Be honest with yourself and get real about the timeframe (remember: you don't want to promise something that you can't deliver).
When you're done, watch my video 5 Steps To Craft Irresistible Long-Term Coaching Packages for more ideas and insights on creating packages your clients won't say 'no' to.