How much to charge for business and life coaching

How much to charge for business and life coaching?

The ultimate guide for coaching pricing

“Pricing in coaching – this topic causes many coaches and consultants to break out in a cold sweat, overwhelmed with uncertainty.

How much is too much? How little is too little? And where is the sweet spot that reflects both the value of your unique abilities and experiences and works for your clients?

The quest for the perfect life coaching pricing can feel like navigating a complex maze filled with unpredictable variables. However, this ultimate guide will show you the necessary steps and provide expert tips to help you determine the right price for your coaching package or offer.

How much to charge for life coaching

Pricing is a critical aspect of success as a coach. It demands a careful and structured approach. Your price should reflect the value of your services and simultaneously be competitive.

It also depends on your type of coaching. Is it live or online coaching? Do you offer life or business coaching? Are you a new coach just starting, or do you have 30 years of experience? Do you offer group or individual coaching? And how much are your target clients able and willing to pay?

7 Steps Towards Successful Pricing As A Coach:

1) Do market research:

Determine what other coaches in your industry and geographical area charge. Engage with other coaches on social media and consult colleagues directly. Consider coaches with a similar level of experience and the same target group as yours.

2) Calculate your costs:

Sum up all expenses associated with your coaching activity, such as cost of living, office rent, marketing costs, further education, coaching tools, coaching software, and taxes. This sum helps you understand what you need to charge at a minimum to run a profitable coaching business.

3) Determine your value:

Identify the unique coaching skills, experiences, and knowledge you bring. Always keep your ideal clients in mind and understand what transformation they achieve through working with you. What tangible result does coaching with you bring about? Most importantly, how do your ideal clients perceive this result?

Consider how your clients’ lives change for the better and which problems are solved through your coaching services. Finding the perfect answers to these questions can help justify a higher price.

4) Consider your target audience:

Adjust your coaching prices based on whether your focus lies on start-up founders, who often have a limited budget, or if you offer life coaching or business coaching targeted to established business people and entrepreneurs with larger budgets.

5) Find the right Pricing Models:

Determine which pricing model suits you best. Many business and life coaches charge per hour, per session, or a flat fee for a coaching program that spans a specified period. Sometimes, a monthly payment may be the right choice for your life coaching package. Aim for flexibility to adjust your prices according to particular circumstances or opportunities.

6) Be transparent about your coaching fees:

Communicate your prices clearly and transparently. Ensure your clients fully understand what they’re receiving from you and what they need to invest. Display your prices on your website and discuss them with potential clients. Nothing undermines client trust more than hidden fees and lack of transparency.

7) Regularly review your prices:

The coaching industry and economic conditions are continually evolving. Therefore, regularly review your prices and adjust them if necessary.

Following these steps, you can develop an informed and effective pricing strategy for your coaching business. Remember, there’s no “right” or “wrong” in pricing—it’s about identifying the pricing model that works best for you and resonates with your target audience.

7 Pro Tips On Business And Life Coaching Pricing

1) Differentiated Pricing Models:

Offer diverse pricing models that cater to different client needs. For instance, you could provide standard and premium offers. In the standard program, clients receive the session and additional coaching tools and worksheets via CleverMemo, while the premium offer includes regular communication via CleverMemo.

2) Package Pricing:

Many coaches offer packages with great success. Create package deals offering multiple sessions or long-term packages at a discounted price. This provides potential clients with clarity regarding the total costs they can expect when signing up for coaching with you.

3) Introductory Offers:

Consider offering a 20-minute complimentary introduction call for new clients. Many life coaches charge a reduced fee for the first session or offer a discounted package for multiple sessions.

4) Value-based Pricing:

Instead of setting a price per session or hour, consider value-based pricing, where you charge your fee based on the results and changes clients achieve. Here’s the Model for Sustainable Results in Coaching and Counseling (Infographic)

5) Sliding Scale Pricing:

A “sliding scale” pricing model allows clients with varying financial means to avail of your services.

6) Group Coaching:

Group coaching sessions could be cost-effective for those who can’t afford one-on-one coaching or prefer to work in a group setting. This variant can also increase your income by allowing you to work with multiple clients simultaneously.

7) Online Courses:

Besides personal coaching, consider offering online courses or webinars. These can generate passive income, scale your business and help you reach a wider audience.

Remember, each person is unique, and a “one-size-fits-all” solution often doesn’t work. Therefore, you might offer a course on a specific topic and support clients individually in implementing the individual modules via CleverMemo, addressing their unique needs.

Not all pricing strategies are suitable for every coach or business model. Selecting those that best fit you and your ideal clients is crucial.

Avoid these 8 mistakes when pricing your coaching services

1) Undervaluing Your Services:

Many coaches underestimate their services, especially when starting their careers. Keep in mind that your prices should reflect the value you deliver. Avoid offering free coaching sessions. A free 20-minute introductory call is sufficient and very effective. However, once actual coaching starts, charge your standard hourly rate.

2) Lack of Transparency:

To avoid misunderstandings that might turn off potential customers, it’s essential to be transparent and clear about your prices. Include your pricing structure in your coaching contract as well.

3) Ignoring Hidden Costs:

When setting your prices, consider all your expenses, including indirect costs like marketing, further education, coaching tools, coaching software, and your time. The preparation and follow-up of sessions also require time.

4) Inflexibility:

While consistency is important, be prepared to adjust your prices if market conditions change, your services evolve, or your pricing model isn’t accepted as expected.

5) Frequent Price Changes:

Frequent or drastic price changes can confuse your clients. If you need to change your prices, communicate this clearly and explain the reasoning behind it. For example, you may charge higher fees once you complete another certification or gain more experience. If you offer more hands-on support between sessions for some clients, you might also ask them to pay premium prices for your premium service.

6) Lack of Differentiation:

If all your services and offers carry the same price tag, you might miss out on opportunities to charge more for special offers or high-value services.

7) Under-delivering Value:

Ensure that your price matches the value you deliver. Clients are unlikely to return if they feel they’re not getting their money’s worth.

8) Lack of Positioning:

Clear positioning and differentiation from other coaches can aid in pricing. Justifying higher prices might be challenging if you and your offer don’t sufficiently differ from others. Consider your target audience, what types of business or life coaching you offer, what sets you apart, and why clients should choose you over competitors with similar offers.