Deciding what level you set your business and life coaching fees at is one of the most common dilemmas when you set up your coaching business. And fees vary enormously across the profession, ranging from as little as $20/ session right through to over a thousand dollars/month.
There are some great coaches who charge far less than other poor coaches and this is down to how much coaches value themselves and the services they provide. But what does actually determine how much you can charge and what is a fair price?
How good you are If you are a great coach your services will be in demand, you will get business through referral and you will be able to charge more for your services. The more you invest in your own development as a coach, the more skilled you will become and therefore you will be ale to place a higher value on what you do. Remember that your life coaching fees do not just represent the time you spend coaching but also the time and money you have invested in becoming the professional coach you are.
Your target market Different clients can afford different amounts. For example an unemployed youngster is likely to be able to afford far less than a multi-millionaire business owner. Fees are usually far higher for corporate clients than for personal clients, one reason being that larger organisations have budgets for personal development and they can offset the costs against the business.
Another way of looking at it is ‘what is your coaching worth to your client?’ Coaching may result in one client finding a job worth $100K dollars, for another person it could help them save their marriage.
Some coaches who coach a broad spectrum of clients offer a flexible pricing policy depending on what their clients can afford.
Operating in a specialist or niche area Coaches who operate in specialist or niche areas often command higher business or life coaching fees. If you have invested more money and time into your own personal development to be the best in this field then you have more reason to value your services more highly. Also if you market yourself in a particular niche area you will be perceived as an expert (and therefore the best) their area and therefore you can charge more.
Your own needs and costs You may want to give great value to your clients however most coaches have to make a living from coaching, or at the very least not make a loss. You must assess all of your costs in running your business and understand how much income you want to take out after tax.
Telephone versus face to face coaching One hour of telephone coaching will take up one hour of your time (excluding preparation and follow up emails). One hour of face to face coaching will also incur costs of traveling – both time and fuel, unless of course they comes to you. You need to consider these extra costs and so may need to differentiate between your prices.
Your own premises versus coaching at your clients’ premises Having your own premises will incur further costs and so these need to be taken into account. But the other way to look at it is to consider the perceived added value of your services by providing a dedicated consulting room?
Packaging up your services Many successful coaches package up their services into 3 or 6 month programmes and market their services as an amount/month which includes not just the sessions themselves but support for the duration.
Grants Sometimes you might find that government grants are available for your coaching which reduces the cost to your client but means you can charge more. Helping your client access grants is a great way of helping to secure business.
