CHAPTER 5
Strategies On Coaching Prices and Fees
For a lot of coaches, pricing their services is an extremely emotional activity and way too many of them end up undervaluing their services.
In this final chapter, we’re going to take a closer look at coaching fees and coaching prices.
We’ll be diving into types of pricing, crucial pricing factors and we’re also going to look at general coaching prices and fees in a couple of key areas.
Pricing Categories
There are generally 3 different categories or types of pricing for coaches.
1. Hourly Rate
This is the pricing strategy or category most coaches understand and it’s the go-to pricing category for new coaches. Hourly rates are fairly simple and straightforward – the client pays you based on every coaching hour they receive (refer to Chapter 1 for key reasons why it’s important to step away from this pricing category as soon as you can).
2. Value Rate
This is a more complex pricing strategy and it often means getting on a call with a client or meeting them face to face to discuss what they expect from their work with you.
Value-based pricing involves the client’s perception of value received and the impact created from your coaching services.
For instance, a business coach could potentially help a client create $1 million in revenue or income. Your coaching rate – value rate -- would be a small percentage of this revenue. This method is basically about looking at your coaching services through the lens of the value you can ultimately create for your client.
3. Retainer Rate
This is a long-term pricing strategy and it’s a great fit for Type #2 Coaching Packages (as discussed in Chapter 2). One of the best things about a retainer rate is that you can quickly and easily create a stable and fairly predictable income in your coaching business minus the worry and anxiety that comes from a “feast or famine” income stream which is based solely on how many clients you can sign up, each month.
Pricing Factors
The following are 4 key pricing factors to consider before you decide on your coaching prices.
Pricing Factor #1:
Monthly Income
This should be a realistic number for you and something that lets you live well. When you have your monthly income number at hand, it’s relatively easy to work backward and work out how many coaching clients you need plus exactly what you need to charge each client, so you can achieve your income goal in a way that feels aligned with your values and sustainable in terms of your time and energy.
Pricing Factor #2:
Willing and Able
Typically, a business executive is willing and able to pay more for coaching than a college student. Finding out what your particular ideal client is willing to pay involves some research and you need to look at what some of the other coaches (newbies as well as experienced coaches) are charging in your niche. This will give you a general idea on the capacity in your target market as well as the payment capacity of your specific ideal client.
Pricing Factor #3:
Expertise
If you’re a well-known coach or an in-demand coach in your field of expertise, your clients will be much more willing to pay premium prices to work with you. If you’re a brand new coach, you need to focus on gaining experience and building your track record so you can eventually charge premium prices with ease.
Pricing Factor #4:
Location
Location may not seem like something you need to consider when it comes to pricing your services and coaching packages especially since most coaching sessions are now carried out online. However, pricing and location are related because of the cost of living or perceived cost of living in any given area. What this means is clients living in major cities around the world are often more likely to pay higher fees for coaching services versus those living in smaller towns or rural areas.
Setting Your Coaching Prices and Fees
Coaching prices and fees are mostly unregulated and many coaches choose a price that feels aligned, based on their research on competitors’ price points plus what their target market or ideal clients are willing to pay.
Prices for coaching packages often vary wildly and this is mainly because most coaching packages are one-of-a-kind, based on the theme or topic, the level of expertise or experience of the coach as well as the coaching niche.
Plus, a lot of coaches include or exclude various elements and add-on services in their packages and this makes it a challenge to gain an accurate picture of average or general coaching package prices.
With that in mind, we’ll dive into general coaching prices and coaching fees based on 2 main categories -- life coaching and business coaching.
Life coaches
can generally charge anywhere from $100 to $500 an hour. Based on research commissioned by the International Coaching Federation and carried out by PricewaterhouseCoopers a few years ago, the average global annual salary of a life coach is about $51,000 and this works out to just over $4,000 a month.
Business and executive coaches
charge more than life coaches and this works out to anywhere between $250 to $600 per hour and upwards of $1,000 if you’re a renowned coach in your field.
Life coaches
can generally charge anywhere from $100 to $500 an hour. Based on research commissioned by the International Coaching Federation and carried out by PriceWaterhouseCoopers a few years ago, the average global annual salary of a life coach is about $51,000 and this works out to just over $4,000 a month.
Business and executive coaches
charge more than life coaches and this works out to anywhere between $250 to $600 per hour and upwards of $1,000 if you’re a renowned coach in your field.
As mentioned, coaching packages can vary wildly and prices are hard to pin down. Business coaches can charge anything from $8,000 to $20,000 or more for a 6 month package and life coaching packages can go from $5,000 to $10,000 or more for a 6-month package based on the pricing factors discussed in this chapter and also on other variables such as number of coaching calls per month and extra support between calls.
Congratulations, you’ve worked through this entire Guide and you’re ready to price your own coaching packages and services!
If you created an outline or blueprint of your coaching package based on earlier chapters, keep it handy so you can easily refer to it as you answer the following questions.
Question #1
Which pricing category or strategy do you want to work with at this time?
Question #2
What is the monthly income you want to create in your coaching business at this time?
Question #3
What is your ideal client willing and able to pay?
Question #4
What would you say is your level of expertise as a coach?
Question #5
Where are your clients located?
Question #6
Based on your answers to the questions above and on the general price range for life coaching and business coaches, what is the price for your coaching package or service, at this time?
Chapter 1
The (Ugly) Truth About Coaching Sessions
Chapter 2
Types Of Coaching Packages You Need To Know About
Chapter 3
Your Game-Changing Coaching Package Template
Chapter 4
Sample Coaching Packages From The Real World
Chapter 5
Strategies On Coaching Prices & Fees
Chapter 6
Start Creating Your Coaching Packages
CHAPTER 6
Start Creating Your Coaching Packages
Now that you have a powerful, foundational understanding around packaging and pricing your coaching services, you’re ready to take the next step…
It’s time to learn exactly how YOU can build a profitable, purposeful, coaching business (even if you’re a brand, new coach or you’re still working at your 9 to 5)
Craft Irresistible Coaching Packages Clients Can't Say 'No' To
Free coaching package template helps you design lucrative coaching packages that make enrolling clients effortless.
