Leadership coaches can earn a million dollar or more per year – and still not be paid what they are really worth. Yes that is true. And here is why. The secret is the impact that a leadership coach can have on the leader, the impact that a leader can have on the organization, and arranging to be paid based on the value delivered, not the hours spent coaching. Let’s take these in reverse order.
Should you be paid for results or for time spent?
Should you be paid for results or for time spent? I hope this is obvious. The customer is buying results. If you doubt this, take all the time in the world, don’t deliver anything, and you will see just how much your time per hour is worth.
Just so you have internalized the concept, it is more fair to coach a leader to save their company $10,000,000 and receive $100,000 for 10 hours coaching over six months, than it is to save the company $10,000 and receive $6,000 for 30 hours of coaching over twelve months.
If you want to be paid what you are really worth, then you need to be willing to commit to the success of the project in the same way that your leadership client is. It is as simple as that.
How is the value of the leader determined?
Hopefully, it is based on the value that the leader delivers to their organization, and as it is leveraged throughout the organization. The leader’s decisions and actions are leveraged – for better or worse – throughout their organization. They move a foot, and 10,000 people each move six inches, for a total of 5,001 feet of movement. That is the leverage of leadership, and that is the leverage that leadership coaches can profit from.
How Do Leadership Coaches Exert Their Leverage?
Leadership coaches exert their leverage in three ways. First, they coach the leader. Second, they coach the leadership team to make sure that they share the vision of the leader, and help them to effectively support the leader. And finally, they work with the followers to help assure that they can embrace the leader’s vision and effectively execute it. And now you can see why a seven figure fee just might not be big enough!
JTS Advisors Strategy and Accountability Coach