Just how much are you worth?
So you're a Life coach now, you've...
Done your research.
Picked an accrediting program.
Graduated.
And now you're ready to start your business, but one simple question stops you dead in your tracks.
Just how much am I worth?
Maybe you've been waiting your whole life for this moment. You've been working for other people to build their wealth for years; now it's time to work for people to build your wealth.
Perhaps you are younger and this is your first business endeavor and you're ready to take on the world.
Or maybe you are somewhere in-between. You may work other jobs, care for kids, be in school, or have other responsibilities.
The fact remains, people from each group all struggle with pricing their life coaching services. This fear of pricing usually comes in two forms.
Am I asking for too much?
Am I asking for too little?
So for our final week of April's Business & Marketing theme, Lisa Finck (A.C.C.), Brooke Adair Walters (M.C.P.C.), Jerome LeDuff Jr (M.C.L.C.), and Anthony Lopez (M.C.L.C), tackle the seemingly challenging topic of How to Charge for Your Services.
And if you want less talk and more numbers we got that for you too! Brooke, our resident expert on all things brand, business, and marketing, has made a pricing calculator* for you! (Link at the bottom) The calculator includes.
A simple calculator
Expenses
A Coach Program Calculator
A One on One Calculator
And a Profit/Loss Calculator
This has been an exciting month and we've covered a lot of ground in such a short amount of time. Be sure to stick around though because next month is our ICF month and we will be going over the new and updated Core Competencies.
What do you need to consider when pricing your service?
What do you need to survive? What do you need to live?
Surviving and living may seem synonymous but lets make a distinction for a moment. So often we forget that, at the very least, we have to put food on the table and have a roof over our heads, though the quality of said food and roof may vary from person to person. Worrying about this is survival and takes precedence over anything else.
Beyond the basic necessities is living. Having the time and resources to pursue spiritual fulfillment, higher education, investments, leisure time, family time, vacations, and entertainment are all things that people value and take into consideration when budgeting for the future. Nobody want to work only to survive.
It will become very easy for you to put a price tag on your services when you keep your survival and life in mind.
This is why you and only you can accurately say what the value of coaching is because $200/session means completely different things depending on where you live in the world.
What is the value of the profession & education?
Sure, anyone off the street can start "life coaching" and call themselves a life coach. But would you really expect people to pay more than a few bucks for this level of "coaching"?
The best way to advance the legitimacy of the coaching profession is by being educated through an International Coaching Federation (ICF) accredited program. (Certified Life Coach Institute just so happens to be one and offers 3-day courses)
Recognition for your expertise comes at a cost which in turn means you are not only allowed to charge for your services, you are expected to.
This expectation comes from the fact that you are recognized by the ICF and are in line with an agreed upon standard of excellence and abide by a professional code of ethics. Not every coach can say this and the fact that you can should be considered when valuing your coaching.
Who are your clients? Can they afford your services?
Are you serving underprivileged communities? Are you working with executives and CEO's? Something in-between? Who your target market is and your niche will also determine how you price your services.
In our live discussion we go over the temptation to lower our prices in order to help those who are not financially well off. And while it is true that they may be in the most need of our services there is a danger in doing so that could affect the people you want to help down the line.
Running a business costs money and without a steady source of clients who pay consistently you may not be able to pay the bills the keep the business running. Helping some people is better that helping no one but there are great strategies you can use to both help people and still make money. Group coaching can offset individual costs and implementing payment plans can get people through the door.
There is also an argument to be made that higher prices will lead to better clients.
A higher ticket price may mean less clients overall but the clients you do receive are motivated and will to do what it takes to reach their goal. These are the clients who are willing to pay for larger packages or retain your services for a very long time
Less Talk. More Numbers.
Okay fine. You get what you asked for but more numbers doesn't mean less work. For our coaches who want to get granular, specific, and love spreadsheets, our very own Brooke Adair Walters put together and amazing tool you can use to see the numbers and calculate exactly how much you need to charge. So what does it include?
Instructions
That will walk you through how to save a copy for personal use and what boxes can be filled.
A Simple Calculator
For those who want less talking and and even less numbers. The simple calculator take into account how much you want to make, how many clients you want, and how much you want to work and spit out what you need to charge per session.
An Expenses Sheet
Track every possible expense imaginable from all categories to see what the annual total expense comes out to
A Coaching Program Calculator
Set your target price and target attendance to see your possible annual profit.
A One on One Session Calculator
For a more in depth and accurate version of the simple calculator to find out exactly what you need to charge per session.
An Profit/Loss Tracker
Where you can budget your income, expenses, profit, and loss all on one sheet.
*And of course we must say that this calculator should only serve as a reference for you to better estimate what you should be pricing your services at. You are the final judge and it is your responsibility to understand any outside factors that could affect the market value of coaching.
Thank you,
Lisa Finck, Brooke Adair Walters, Jerome LeDuff Jr., and Anthony Lopez
Join us at our new time every Tuesday at 5 pm PST/8 PM EST for our CLCI Live Facebook Demos.
We now stream from our site! Watch by clicking here
We also now stream live on YouTube! Subscribe to our channel and don't miss out!
Don't miss out on our 3-day life coach classes, it's an education that is beneficial for life, not just for life coaches! Want to learn more click here.