HOW MUCH SHOULD I CHARGE? – One of the most common questions I hear from CCP students.
Obviously, potential coach entrepreneurs are curious about the kind of income and potential lifestyles they can expect from a coaching business. It’s an important question. Unfortunately, there is no one, easy, simple answer. Your fees depend on your budget needs and wants, and whom you coach (what the market will bear).
First of all, charging for coaching requires a change in your mindset. You must recognize that you are providing value that will enhance your clients’ quality of life now and for forever. Furthermore, do not trade your time for money by charging by the hour or per session. Instead, charge for VALUE.
People don’t want to pay for a session – they DO want to pay for RESULTS. Successful coaches charge for the results their clients want that will remove that pain.
Your experience & education, your time, and your story all come together to get RESULTS for your client. Know your niche market and their pain points. Tell them the RESULTS they can have from working with you and how you are uniquely qualified to help them get those results.
HOW MUCH SHOULD I CHARGE? Describing the Process…
Describe the process for achieving their results not as coaching sessions, but as Packages with exciting names.
Examples: “A Slimmer, Healthier You”; “Happier in Your Marriage”; “Your New Job”. Offer payment through 2 Options, eg:
Option 1: (A Simple Fee for a RESULT)
Clients choose a FULL PAY Option, which includes: a variety of modalities including, but not limited to eg: a certain number of coaching sessions with you (by phone or face-to-face) a certain number of 10-15 minute emergency calls, and unlimited emails over a specified time period with a specific end date.
Plus, (your choice of) possible additional resources in the form of an easy Step by Step System which you have developed, audios, videos, e-books, special reports, templates, quizzes, etc.
Option 2: (A Monthly Retainer for the RESULT)
Clients pay monthly fees over a minimum time period (3/6 mos, etc), which can be extended as desired. Modalities are the same as above.
Option 1 total usually costs about 20% less than Option 2 over the same time period. Also, ask for a commitment to a period of time that will be reasonable for making positive change. Usually 6 months renewable (3 months, at minimum). Ensure that your client understands the neurological science behind the request for an extended period of time. It takes consistent, persistent repetitions over time for old, toxic habits to be abandoned and replaced by new, healthy ones.
Time-bound commitments create consistent and predictable incomes. And additional savings from the monthly roller-coaster and the scramble for replacement clients every month.
HOW MUCH SHOULD I CHARGE? Creating a Budget
Furthermore, create a budget. It’s important to know how much money you will both need and want to make monthly and annually. Make sure you develop a monthly budget that includes ALL of your monthly expenses, both business and personal. Don’t leave anything out – be brutally honest!
That will tell you the basic amount you will need to bring in, every month, to maintain your current standard of living. Considering most coaches consider a full practice to be 8 – 10 clients monthly, divide your budget expenses by 10. This will tell you the minimum amount you’ll need to charge for a 1:1 session.
Monthly expenses = $5,000
Therefore, 10 clients @ $500/month would maintain the status quo ($60,000/yr)
Of course, 1:1 coaching is only one way to bring money into your business. You can:
- Increase the number of clients
- Increase your fees
- Facilitate group events
- Develop products for sale, (books, ebooks, mp4s, programs, systems, etc.)
- Create passive incomes, affiliations /joint ventures, etc.