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Wendy Buckingham / Creator, Life Coaching Professionally
One of the most common questions you are going to be asked by prospective clients is "What do your life coaching sessions cost?"
It's a question many new coaches have trouble answering easily and congruently because they are not sure of their value or what is right for their target market.
The life coaching fees that you set will depend on your experience, how you market yourself and the niche or specialty you work within.
For example, if you are a corporate coach specialising in executive mentoring then you are likely to be able to charge significantly more than if you are working with single mothers or students.
But you also need to set your fees based on your own personal expenses.
If you have overheads of $500 a week then your fees need to be able to cover that, and more. Of course this may not happen immediately as you find your coaching feet and get experience, but it's what you should aim for.
If you don't know your expenses then I suggest setting up a simple spreadsheet that covers your living expenses. Add 10% to each amount to allow for expense creep!
You also need to allow for expenses involved in growing your life coaching practice.
These will include, depending on your choices, items like business cards, website hosting, advertising, networking events, ongoing trainings, association memberships and so on.
When you've worked this out, you should aim to charge enough to deliver 30% or more on all your expenses. 50% will be even better leaving you with enough to put aside for a rainy day. And, of course, agaub this may not happen from day one.
There will always be a coach who charges more or less than you do, so don't fall into the trap of making comparisons and thinking "I should be charging more/less".
Some may set their rates as little as $USD50 an hour for individual face to face coaching while some corporate and celebrity coaches can achieve $USD1500+ a session or more.
Comparing will only cause you stress. The chances are there is little comparison with you. You really won't know what they have used to justify their fee or if, in fact, their fee is justified at all!
As a basis for any fees you have go back to the chart I suggest above and fill it out.
Figure out what you have to charge and work from there. The more your skills develop, your reputation grows and the harder it is to get in to be coached by you, the more you can charge!
Who knows! As your practice develops, you may need to employ an assistant or to manage things for you.
All these extra expenses will also need to be taken into account for fees you set.
Many coaching schools recommend you start practicing pro bono as part of your training. Pro Bono is a latin phrase that is commonly used to describe professional work that is done for free or as a volunteer.
If you come from a related discipline such as psychology or
counselling, or even consulting, where you have simply added coaching techniques to your
skills, you may have no problem charging full fees straight away.
But if you are coming into coaching without any related experience, then offering to coach people for free, or at a reduced rate may be a good idea as you gain experience and confidence.
you are really confident you know what you are doing, go for it and
start charging a full rate straight away. It's whatever you feel
comfortable with and whatever your niche will bear. You can always adjust up or down.
Even if you are inexperienced, you are trained and hopefully credibly certified as a coach and you will be adding value to your practice clients. If the client is paying you a token amount, however small, they will be more inclined to take the process seriously.
If you do take on some clients for no $ payment at all, then I recommend you work out some form of exchange that is of value to you. Do they have a service you would be interested in as an exchange?
I've put together some really important considerations about bartering and swapping as well as reader contributions including how a virtual assistant does swapping and a swapper who has over 30 years of successful bartering so take a look when you have finished with this page.
And it's a good idea to let those practice or swap clients know what your full life life coaching fees rate will be for future clients you take on. This will make them more appreciative of the opportunity to be coached for no fee or at a reduced rate that you are offering them.
Often when a prospective client starts pushing you to reduce your fee with an "I really want to do this, but can't afford it" story, it's often more about their priorities than whether or not they have the money.
On two occasions early in my career I fell for this and, anxious to sign up the client, seriously
discounted my fee only to discover that the clients were actually in a
much better position financially than I was at that time.
In the first instance the client was saving for an extended overseas holiday and in the second carrying out major house renovations.
When I discovered this in the course of the coaching, I have to admit it left me feeling somewhat undervalued and cheated. Not the best place to be coming from as a coach!
So, I think it is much better to change the structure of the program, for instance the number of sessions or length of sessions, to fit what the client is willing to pay, than discount your time and skills.
If you get taken on as internal coach with a large company, a recruitment agency you may find yourself on staff at fixed life coaching salary.
If the salary on offer seems low, take into account you may now get holiday pay, sick leave and all the other benefits that go with being employed as against having your own practice. And you will most likely have a steady flow of clients without the need for marketing yourself!
Try to find out what other coaches on staff at the company you are negotiating with or other organisations directly employing coaches are getting paid. You will then have a benchmark for negotiation. when your salary or contract review comes up.
Let's assume you have really begun to grow in confidence as a life coach. You have identified your coaching niche, you have a calendar full of clients and you know from their feedback you are delivering quality results.
It could be time to increase your fees and capitalise on your experience and popularity.
If you haven't already find out what other well established coaches in your field are charging. Keeping in mind the 'Don't Compare' edict above, make sure what they are offering is similar to your coaching service.
Have they changed since you began coaching? Have you changed your niche since you began coaching?
For example you may have attracted a more prosperous client or even feel you have grown enough as a coach to focus on a market that was more commercially rewarding for you.
For instance have you taken extra courses in team coaching, business coaching, or even some types of therapy that compliment life coaching such as NLP (Neurolinguistic Programming. This can make your offer of coaching more attractive and more lucrative.
Accreditation such as going from credentialing as, for instance, an ICF ACC, to PCC to MCC doesn't always add to your value but, it give you extra credibility which may be valued, especially in corporate situations where HR has to justify your engagement.
Legitimate client testimonials to your coaching success are gold and if you don't have a method for collecting them then check out this page that covers easily asking for testimonials. Testimonials add 'social proof' of your skills and act as a documentation for your credibility as a successful life coach. Display them on your website, any brochures or other promotional material you may develop.
Easy to overlook but just by itself, this element can be a really good reason for increasing your rates. Are you now renting office space. Have you invested in a VA (virtual assistant) - what else. Go back up to the idea of the Excel spreadsheet that I mentioned earlier and update it. It will tell you how much you NEED to increase your fees, irrespective of any of the other reasons in this list.
Over the years I found this method worked well:
Many coaches in the US, Europe and Asia charge life coaching fees either by the month, for a series of sessions, or by the hour - the latter being more common in corporate coaching situations.
If you are planning to coach in Asia or one of the other countries where the profession is comparatively new, you may need to do some research and then use your local judgement as to what the market will accept depending on your niche..
I can't give you a blanket figure to cover all currencies, but in the US and Australia average life coaching fees for individual are somewhere between $100 and $500+, a session - maybe less in rural areas. And some executive coaches who work with large organisations are charging upwards $700 an hour.
If you are marketing yourself worldwide, you should consider having a currency converter on your website so that prospects can immediately see your fees in their local currency.
As Life Coaching Online becomes more viable for distance coaching with programs such as Skype and Zoom, some coaches are choosing to put a loading on life coaching fees for face-to-face sessions. This is to cover the substantial travel and location expenses that can be involved when compared with online coaching.
A dilemma coaches often face is whether of not to publish their life and business coaching fees on their website or in printed brochures. Let's look at the pros and cons for both strategies.
The argument in favour of publishing your costs is that it tells the prospective client right up front what you charge and saves that "money conversation" that you may find uncomfortable at the end of an introductory session.
It's more transparent and the first question a prospect invariably asks at the end of an introductory session is "how much does it cost". I certainly favour it as it served as a filter as visitors to my site could see whether they could afford my rates.
Many coaches feel that until you have had an introductory session, the prospective client might not realise the value of your offering and why you are charging that amount, and decide against coaching even before speaking to you.
However, if your website has properly engaging relevant content they should be pretty well sold before you speak to them. I experimented with both and founding that publishing details of my coaching packages and what they cost, worked best for me and avoided the "money conversation".
I offered several different program options so there was something for most needs and budgets. The variations in your programs can be for length of sessions or number of sessions in a series and whether you include in between session email contact or brief telephone calls.
There are many ways to establish Life Coaching Fees.
Will you share yours?
New coaches will be really grateful for information
on how you started charging and what you did
to get your fees to where they are now.
Please share your experience...
Click below to see contributions from other coaches...
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