The Difference Between Being A Self-Employed Coach And Getting Paid A Salary To Work For Someone Else!
by Barb Zeigler
(Kansas City, MO USA)
This great article on life coaching fees was written by Barbara Zeigler who specializes in Business Skills for Coaches. With her permission, I have reprinted it here. It is very relevant for all coaches, who are confused about what fee they should charge
When you worked in the corporate world, did you feel that twinge of being overpaid when you got your paycheck? Did you think you deserved to make enough to put something in your 401K? Did you believe you deserved a paid vacation, personal days, and paid holidays? Any guilt back then? Probably not.
If you felt your salary and benefits were justified as an employee, then you should feel that you deserve the same, if not more, as a self-employed coach. If you feel uneasy about charging $200 or $300 per hour, could it be that you haven’t really looked at your coaching as a business?
When you worked for someone else, they were responsible for the business and they dictated your salary and your benefits. As a self-employed coach, You'll find you have to deal with the “business side.”
But when you try to put it all together from bits and pieces and trial and error, it can feel overwhelming. And it’s the bits and pieces and the trial and error that can cause you to earn the under $25,000 a year that many coaches make, according to the ICF and Sherpa annual salary surveys.
So ask yourself, “Do I have trouble justifying my coaching fees to myself? When I’m speaking with a potential client and they ask about fees, can I respond comfortably if my program breaks down to $200, $300 or more per hour? Do I know why my fees are justified? Do I believe they are justified?
We know that the value clients get from us can be life changing and the cost minimal when looked at that way – value isn’t the issue. And yes, some of us do have money issues left over from our childhood. You know, the “money doesn’t grow on trees,” or whatever your family story was.
Here’s What You May Be Missing
Remember the cost of your coaching training? And the time you dedicated to becoming a life coach? And there are all the other costs you have as a self-employed coach – your website, your web service, your cell, the associations you join, your networking costs, your ongoing training, coaching conferences, your personal coach, etc. And don’t forget all the time you spend marketing, doing administrative tasks, speaking, designing your coaching offerings, and all the other things you do. When you price your coaching services you have to take all that into consideration.
When you divide the $100, $200, or $300 you charge for your coaching by all the hours you invested in order to coach that client, you’ll realize that you deserve those fees because you are in business for yourself. After all, that’s what the companies you used to work for did to set their prices.
There are some more invaluable hints on Setting your life coaching fees