When starting out in the coaching business, there are many decision that need to be made, but none are as dreaded as decision to be made on your personal coaching fees. How much do I charge? Will it be too high? To low? Will it keep clients away? Or will it bring them through my door?
- Will my clients be able to afford my rates?
- Will low rates bring in the wrong types of clients?
- Should I charge less than the competition because I am new to coaching?
- Will potential clients think I’m a bad coach because my rates are so low?
- Will I drive myself absolutely nuts trying to figure out if my personal coaching fees are too low or too high?
A recent study detailed in the Harvard Business Review reported that coaching fees ranged from $100 per hour to over $3,000 per hour. That hardly narrows it down for a beginning coach. Most rookies in the business will start at the low end of that range, but there can still be a low to high range for newbies in the coaching field.
Personal Coaching Fees – the 20% Rule
There is some business folk wisdom that goes like this: If more than 20% of your clients complain about your fees, then they are probably set too high. If less than 20% complain, then they are probably set too low. However, if the average complaint rate for your personal coach fees is around 20%, then your fees are the perfect rate. Whether this is true, you will have to find out for yourself, but it may be a good place to start!
Personal Coaching Fees – Don’t Charge too Little
If you do make a mistake setting your personal fees, the worst mistake is to charge too little. If you charge too much, and clients avoid you like the plague, then you can just lower your fees. No harm, no foul. However, if you charge too little, potential clients may see this as you undervaluing your service and they may think your service has no value. Once your coaching services are seen as having little value, it may take quite some time to change perceptions. Don’t underestimate the value of your coaching ability and what you have to offer to clients.
According to a study by Sherpa Coaching, the majority of professional coaches average six clients per week. If you keep your fees at the low end of the scale, six clients won’t bring in a superstar salary. However, you don’t want to see too many clients each week because you will not be able to give each client the attention they deserve. Spreading yourself too thin won’t help build a successful practice.
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