Whether paying business coaching fees or buying a pump truck, your client should be thinking in terms of Return on Investment (ROI). That is “How much money do I get back, for every dollar I invest?” How much more money will I make in my business because I have that bigger dump truck? How much more money will I make in my business, because I am more accountable, or make better strategic decisions, or communicate more effectively – because of your business coaching? Here are some ideas on how to use this approach to maximize your fees.
Avoid Consumerist Thinking
Thinking in terms of ROI is all about comparing how much you invest to get a given result. Even though business people are taught to think like this, people tends to revert back to thinking about how much they have to spend without necessarily considering what they get for it. In essence, we tend to fall into consumerism, thinking of everything as a commodity, and searching for the lowest possible price.
Focus on Results, Not Activities
To make this work you have to put everything you do in terms the results generated. That means it is not about how many hours you spend coaching your client, but how much more the company earns because of the difference your coaching makes to their decisions and actions. By tying your business coaching fees to your client’s results, you are taking a chance, but you are also creating a very big up-side. This is because a business leader’s actions are leveraged throughout the organization, and a single idea from the business leader can generate millions of dollars of revenue for the company and significant income for you, if the incremental revenue can be tied to incrementally better decisions and execution and they can be tied directly to your coaching. Obviously, to get to this end point, you have to start out talking about ROI, and specific goals that your coaching can impact.
Maximize Value to Maximize Business Coaching Fees
By tying your business coaching fees to the results your client derives from your coaching, you truly can be paid what you are worth. So to maximize your feels, you need to maximize the value that you deliver to your clients. In other words, if you want to make a lot of money as a business coach, you damn well better be worth it!
JTS Advisors Strategy and Accountability Coach