Setting Coaching Fee (Coaching Price) That Create a Steady Stream of New Coaching Clients

I can remember setting through a workshop by a well known coaching training group that said “Keep your prices high, you are valuable” and then they recommended setting a fee of about $1,800 that they said their coaches and trainers got.

So, I followed that principle and struggled for my first few years. Yes, I got a few clients, but not very many.

But then I discovered what I’m about to share with you.

It was after I discovered several things that my business took off like a skyrocket. Being able to lay a value on the table that prospects would rush to grab up, and also finding the price that was seen as the easiest and most valuable to pick up.

It was then that I got more clients than I could handle, and I started raising my price every month.

Four Ways to Look at Coaching Fee (coaching price)

  • The fee or price you ask for
  • The price you are actually worth
  • The price that your prospect believes coaches in general are worth
  • The price that your prospect believes that YOU are worth

People determine what they will pay for your services based on what they believe you are worth, AND they will always buy the most valuable solution to their problem that they can buy. So, it’s up to you to help them determine what you are worth to them, and that you have the most valuable solution of anything they have ever found.

Always keep in mind that there is a value  in your prospect’s head that he believes that coaches in general are worth, which might be pretty low since most people don’t really understand what they’d get from working with any coach. And then, there’s the value that you have built that YOU are worth.

And if you haven’t built any serious value, then the value they see, and the price they pay is pretty low.

Just keep in mind that a coach who says, “I am a coach” or that “I’ll coach you to better ___________” has not layed any value on the table for your prospect to discover. You are ONLY ASSUMING that they know what a coach is worth. . . and NO ONE knows what that value is, unless it’s you of course. But the prospect does not know.

So, the first thing that has to happen is that you must build the value of what that prospect sees, not by TELLING him, but helping him DISCOVER the value that he could get from you. Ask him questions such as

  • Where do you want to end up?
  • What has kept you from getting there? What are you struggling with?
  • And if you could eliminate that NOW what would that be worth to you?
  • What is it costing you now for not resolving it?

Your job is NOT to sell coaching, but to help your prospect discover just how valuable it would be to

  1. Act to fix this problem, remove the struggle.
  2. To achieve that new level of success
  3. That he hasn’t been able to do this on his own before this
  4. Work with you, especially if he could make a breakthrough that he’s not been able to achieve by himself

Also to realize that your value will go up over time. When you start building your value, it’s very likely that you won’t be that good at it. You’ll get better at two things over time, delivering value in your coaching, and building a bigger picture of value in your prospect’s mind.

There is always the value you actually deliver, and the value you can transfer into your client’s mind, and you will get better at both over time.

Therefore, when you start down this path, setting a coaching fee, coaching price, that sells is more important than getting what you think you are really worth.

Coaching Fee Rule #1

Fill the pipeline. Set a price that is easy to sell, and FILL THE PIPELINE first.

Wouldn’t you rather have a full coaching schedule at $50/hour instead of having 1 client every month or so at $250/hour?

Consider that your ability to sell your coaching is your ability to prove to your prospect what you are worth, and you will get better at that when you are working with more clients. Therefore, don’t hold that price up there because you believe “you are worth it.” You will become worth it after you’ve worked with lots of clients.

So, find the price where you fill the pipeline quickly.

And, if you are new to coaching, don’t hesitate to give some away for free. If you have 5 new clients, even free ones, and they succeed, the word will spread. In fact, make sure that it does by asking them to pass it along. When you take on a free client establish the value of what you are giving to them, and that you don’t really do these things for FREE. There is a value, and help them discover that value, so in exchange for you helping them achieve this new level of success (the value), you are just asking them to spread the word for you.

Your job . . . fill the pipeline while proving your value.

As you fill the pipeline at low cost, raise the price. Everytime you find that you have hit your new goal of number of clients, raise the price.

Set a goal that month to month you will be raising your price because every month the pipeline is full. You will find that within a much shorter time than if you held your price high in the first place that you will be making more.

And, one more hint: It is easier to show your value to someone by “giving them a taste”. In other words, always have something you can hand to them to let them give you a try. I’ve done this for over 10 years and I still have something I give a prospect to “try it out.” It’s really hard for someone to come up with a $1,000 a month fee when they don’t know you. So, I give them an opprotunity to go from zero (or few clients) to dozens, and I’ll show them how to do that in 45 minutes. A free session where we’ll work together to discover what’s not working for them now, and how we’d turn this into a steady flow of new clients. They find that much easier to do than spending $1,000 to get started.

Having a series of entry points:

Have several levels of entry points. Your first job during that free session is to help them discover how valuable you are, and what that value would be. At that point they should WANT you, but haven’t determined what they will spend.

So, once they want you, and have the value that they will receive, they shouldn’t have a problem spending your coaching fee to get that much value. It should look something like: Your fee is $1,000 a month, but they should see a 50 times return on investment, or $50,000 for $1,000 invested.

Some will take you up on that. Some won’t. But they WANT you. So your job is to “find the price that they are willing to spend.” So, find an entry point that works. Your job is not to make a sale at any cost, but to help them get what they want. They already want you, so help them get it.

Have several entry points. For instance, although I charge $1,000 a month for 2 hours a week, I can provide $500 a month for every other week. Or even better, I have mastermind groups of 10 people that I charge $500 a month for, and they meet 2 hours a week.

On occasion, I’ve taken people in where we work only once a month, and I tailor the price to work with their budget.

I figure that dropping too low in hours together, they will either take longer to get where they want to be, or, in some cases, they just aren’t getting the reinforcement they need and will continue to struggle. Therefore, your job is to “give them a taste.”

I spend those shorter sessions working on a vary narrow target where we’ll actually achieve significant results in a very small portion of their business, or their life. Once we have achieved that significant progress, it is time to ask, “Would you like to move along faster? Let’s try spending enough time together that will move you faster and faster.”

If a small business did see a multiplier in income, they should be using a portion of that to add more hours and grow even faster. A dollar in that generates $10 out, they could take 9 times more than they did last month to increase this month’s output to 100 times what they had last month, or whatever portion of that increased income and profits.

If you’d like to have a steady stream of new coaching clients and that has been something that has been out of reach, then join our online group for free by going to

www.100k-small-business-coach.com/sq-pg/Super-Star-Coaching-Business.htm

To Your Super Coaching Business Success

Alan Boyer

$100K Small Business Coach

Helping coaches/consultants/trainers reach their first $100K (or many more) within a couple of months