Of all the decisions that coaches need to make, setting fees/pricing is probably one of the hardest… and one of the most important! Pricing not only determines your bottom line, it also impacts whether or not someone becomes a client.
While there are many factors that influence pricing, ultimately you are just picking a number. And the good news is, you can change that number when you want to.
There are 3 main ways that coaches typically charge for their services:
– By The Session (e.g., $125/session)
– By The Month (e.g., $500/month)
– By The Package (e.g., 6 month package for $3,000)
I HIGHLY recommend the “By The Package” approach. There are a number of reasons why. Here are the two biggies:
#1 – It makes your income more stable and predictable. You can forecast your revenue and not be worried that all of your clients are going to suddenly complete on the same month.
#2 – Clients who sign up for a 3+ month coaching package are willing to make an investment and a commitment. They take coaching more seriously and therefore get better results. These are the kinds of clients you want to work with.
How to Create Your Coaching Package
Step #1: Decide how much individual coaching the client receives (number of months, number of sessions/month and length of sessions). Make your decision based on how much coaching will best support your clients in achieving the results they desire, how much coaching you want to provide and how much coaching will clients sign up for.
Step #2: Determine what additional services, value-adds or perks you want to include in your coaching package. For example: check-in calls, email access, assessments, written coaching session reports, other services such as consulting, healing, intuitive readings, muscle-testing, “done-for-you” services such as a Resume Re-Write, Marketing Plan Creation, Customized Eating and Exercise Plan, etc.
Step #3: Price your coaching package. There are many factors to consider when setting your fees, including your target market and niche, your background and experience, your business objectives and what is included in your coaching package.
Question: What are common coaching fees?
Answer: Coaching fees vary greatly. Here are some typical coaching fees in the US:
Monthly Investment for Life Coaching: $250 – $1,000+
Monthly Investment for Business Coaching: $350 – $2,500+
Monthly Investment for Executive Coaching: $500 – $5,000+
Question: How do I choose the right fee?
Answer: First, identify your income goals for your coaching business. How many clients do you need to serve and at what rate to achieve your income goals?
If you are a new coach and don’t yet feel comfortable or confident in charging your “ideal coaching fee,” choose a lower fee that you do feel good about. Sign up and coach a handful of clients at that lower fee and then raise your rates until you reach your “ideal coaching fee.”
If you are an experienced coach and have a proven track-record of helping your clients achieve results, set your rates so that you achieve your income goals, even if you have to stretch your comfort zone.
Question: Should I have a couple of coaching packages available at different price points?
Answer: Having “higher-priced, medium-priced and lower-priced” options means you’ll be able to serve a bigger segment of your target market. Do this by having different WAYS that clients can work with you (vs. having multiple 1-1 coaching packages at different price points). For example you can:
=> Offer group coaching as your “lower-priced” option. This is perfect for price-sensitive clients, people who prefer a group environment and people who want an entry-level way to experience you and your coaching.
=> Offer your 1-1 coaching package as your “medium-priced” option. For most coaches, this is the option that the majority of clients will choose.
=> Offer a VIP Day Coaching Intensive as your “higher-priced” option. When creating your “higher-priced” option don’t focus on giving more coaching. Instead focus on what will enable clients to achieve the desired results quickly. Premium buyers will make a big investment IF you enable them to achieve results quickly.
How do you package and price your coaching?
Do you have any questions about packaging and pricing your coaching services?
Post your thoughts, comments and questions below!