I was talking with a new coach the other day who was setting up the fees for her coaching business. Based on input she had received from instructors, colleagues and other mentors, she was about to price her coaching services at $150/month for 4 sessions.
STOP RIGHT THERE!
We have seen this so many times in the industry. A coach, just starting out, falls into the myth that you have to have a lot of “experience” (time, practice and knowledge) in the field of coaching in order to justify charging higher prices. In fact, even established coaches still fall prey to this type of thinking. A new coach starting out would have to acquire 55 clients in order to match their desire of making 6 figures, doing something they love! Heck, even if you just wanted to make $30,000 at coaching, you’d have to have 16 clients a month at this rate. No wonder coaches struggle. They are living as an Underearner (to use Barbara Stanny’s word). As Barbara Stanny describes in her book, “Overcoming Underearning”, an Underearner is someone who is living in a gap of where they actually are versus where they want to be, financially. As long as they fall prey to the belief that “I have to have a lot of experience in this field to justify charging higher prices”, they will continue to live as Underearners. And it won’t matter if they implement the most effective marketing strategies or attend the right social media classes; they will continue to be Underearners and frustrated with turning their passions into profits.
Let’s go back to my story with the new coach charging $150/month. When I reminded this coach that she was already a successful business owner (she’s had a successful business for several years in a large metropolitan area in a different industry offering services of a different type), she began to take on a different persona. Instead of feeling guilty for charging her clients for coaching and being uncertain about the value she brings, she remembered what was true and stepped into her confidence. When I reminded her that she has actually been living as an unofficial coach to her clients through her other business and now she has simply polished her coaching skills, her confidence grew again. And when I reflected back to her the value she is already bringing to her clients, her confidence became even stronger.
It is the confidence in yourself and in the value you bring to your clients that allow you to charge what you deserve and what you are worth.
As a coach, a business owner, if you focus on the logistics of the time it takes to work with each client, the administrative activity required to offer exquisite client support and the specifics of what you are giving to the client, you remain limited in your thinking, and the cost will never justify the product/service. However, as soon as you think about the end result that your coaching has on your clients and how that impact has changed your client’s life… your services become priceless.
When the new coach I was talking to stepped deeper into her own confidence, she knew she was going to be making significant impacts on people’s lives. She set up her business to charge $500/month for 3 sessions each month. Now she only needs 16 clients to reach a six-figure income (if she doesn’t do anything else but 1-1 coaching). In less than a week, she acquired a new client at her new rate and was receiving referrals for prospects. The confidence she owned made the conversation with the potential client easy and fun.
It is not the amount of training that you have, it is not how long you’ve been in the industry and it’s not even the area in which you are coaching that dictates how much you charge for your services. Each of those things simply contributes to the level of confidence you have within yourself. It is your confidence that allows you to charge what you are worth.
A hobbyist will continue to focus on the time involved with their clients as a way to justify, and to often limit, their fees. As a hobbyist, there is always a gap between where you are and where you desire to be financially. And confidence is something you are always striving for, it seems to just be out of reach. As a hobbyist, the guilt of charging too much continues to limit the degree of impact in the world.
A business owner will focus on the end result they provide to their clients, and therefore will charge what they are worth. Like a hobbyist, a business owner will also often live in the gap between where they are now and where they want to be financially. The difference is that confidence is something the business owner owns and steps into with courage (having fear and taking the step anyway). As a business owner, nothing will get in the way of ensuring a significant impact on your clients and the world.
So confidence is the secret weapon. To the degree that you have confidence is the degree that you will be successful. The more you can step into and own your confidence as a person, a coach, and a leader, the more successful you will be; the easier marketing is, the easier you will attract clients and the more money you will make.
Are you charging what you are worth?
If you answered with a solid, simple, confident “Yes”, I applaud you and commend the successful business owner that you are!
If anything other than a simple “Yes” came to your mind, there is a gap between where you are right now and where you want to be. I’d like to invite you to join our Business Success Inner Circle of coaches where we coach coaches into owning their confidence, to growing their business, and to making money doing what they love! We so believe in this program that we are offering the first two months FREE! Try it out, and own your confidence as the thriving coach and business owner you know you can be.