You went into coaching for more than just the money, but the truth remains that you are still running a business and have bills to pay.
You’ve heard that you should charge big fees for coaching but find yourself paralyzed.
It’s far too often that beginning coaches halt at the thought of charging big fees for coaching services.
After all, they’re in it to make a difference in the world and change people’s lives.
Often times we’re still operating from the story that you can’t get paid to do good in the world (Which is completely false, by the way. Just take a look at Oprah.)
Furthermore, if you tell them they can charge big fees for coaching they often times say something along the lines of:
“Oh, I would never be able to charge that much!”
“Who would pay for that?”
“I’m not experienced enough to be charging big fees.”
Or, one of my favorites, “People won’t be able to afford me.”
The reality is that you can and should start charging big fees for coaching.
Think about it. You are allowing someone to have your brain and your time. There is no other you in the world, therefore this is considered a creme de la creme type offering.
Taking that into consideration, why wouldn’t you charge big fees for coaching?
While you know that you can make good money as a coach and while you are surrounded by examples of this fact, it can be difficult to get going with charging big fees.
That’s why we’re going to help you out in this article so that you can start receiving some major abundance for the work you are putting out into the world.
The first step is, of course, mental and spiritual. We must change our mindsets around the idea of making money in order to allow ourselves to have flourishing businesses.
Below you’ll find just a few examples.
The idea that in order to be of service you cannot make a lot of money is probably one of the most difficult money that hold people back when they try to charge big fees for coaching.
We live in a society that has told us that in order to be “good” we pretty much have to take vows of poverty.
We see this in the non-profit world where people run themselves into the ground without making much money.
We see it when we hear things like “Rich people are evil.”
We see it when we blame people who have money for our own misfortunes.
We see this when we hear the old adage, “Money is the root of all evil.”
None of this helps us as individuals or as a society.
The truth is that money is neutral. What people decide to do with it, on the other hand, is what may lead to trouble.
However, just because you have the opportunity to make money doesn’t mean you’re automatically a bad person or will do something shameful with it.
If we as individuals cannot receive money for doing good then how are we supposed to help out our fellow man?
Think about this for a second. You have to take care of yourself so you can take care of others.
We know this when it comes to our health and truthfully money is no different.
If we can’t pay our bills then we won’t be in business very long, therefore missing the opportunity to help even more people through our work.
#2 Money is nothing more than an exchange of value
As a society we tend to put a lot of pressure on money.
This is yet another block that keeps us from trying to charge big fees for coaching.
We money is this external force out to make or break us.
We tend to think people will judge us for what we have (or don’t have).
In fact, as MJ Demarco notes in his bestselling book, The Millionaire Fastlane, it’s almost as if we become slaves to money.
Here’s the real kicker though: we made money up.
We used to trade goats and chickens for goods and services until we invented currency.
In other words, we are simply exchanging value for value; and as Marianne Willamson puts it in her book, The Law of Divine Compensation, there is nothing wrong with trading fair value.
For a coach looking to start charging bigger fees some questions may arise at the thought of seeing money as an exchange of value:
“Well, are my services really worth such a high price tag?”
“Am I being unethical when charging a lot of money?”
This brings us to our next point.
#3 You are worthy of getting paid
If someone is having difficulty when they charge big fees for coaching it almost always goes back to self-worth issues. Period. Point blank. End of story.
If you don’t believe you are worthy of getting paid for your work then you won’t.
It really is that simple.
Furthermore, if you don’t believe in the value of what you are putting out into the world then other people are going to have a difficult time seeing it too.
One way to overcome this is to do an exercise taught by Kate Northrup in her book, Money: A Love Story. She calls it a self-value exercise and encourages readers to list three ways that they provided value into the world each day.
The points you list each day don’t even have to be business or money related. Or, if they are, they don’t have to be astronomical. You can see some examples below:
- I helped an old lady cross the street.
- I was there for a friend when they needed me.
- I got a new client today.
- I wrote a great blog post.
As you can see, the examples above don’t necessarily have to do with money. However, they do help you rev up your self-worth.
If you increase your self worth then you will have an easier time charging big fees for your coaching services.
When it comes to asking for money – and especially when it comes to charging big fees – feelings of self-worth directly affect your ability to do so.
I’ve done this exercise myself and have directed plenty of clients to do so as well. It doesn’t take long before we’re feeling better about our own self-worth and the value we’re putting out into the world.
As such the world starts to reflect that value back to us in the form of opportunity and money. Since we know we deserve it and our open to receiving it, we then know what we have to do.
#4 Your brain is actually quite expensive
A few years ago there was a very popular article on Forbes entitled No, You Can’t Pick My Brain. It Costs Too Much.
In the article the author talks about how to deal with people who want free services. It also gives some great reasoning as to why you should charge big fees for coaching
Let’s take a moment to discuss just how expensive your brain really is.
Chances are if you’re reading this post then you’ve gotten some training in coaching.
Training that isn’t cheap.
There’s also a good chance that your training will continue in other forms as you grow your practice and acquire new skills.
There are also costs in the form of books, advanced education, networking events, memberships, attending conferences and mastering your skill set.
As you can clearly see, maintaining your brain so you can do your coaching work is extremely expensive.
As such it only makes sense for you to start charging bigger fees in order for you to continue it’s regular maintenance.
Let’s also take into account that there is no other you in the world.
No one has your particular zone of genius.
No one has your special gifts quite the same way you do.
Above all, no one has your life experience.
No one has your same style or personality.
This means that your coaching is a unique offering only you can give.
Consider this the next time you’re telling someone how much your coaching costs.
#5 It’s about the value you provide, not the time you put in
A major mistake many coaches make when pricing their services is choosing their rates based on time.
It’s not completely their faults.
We live in a world where most people who work are bound by time. They either get paid an hourly rate or an annual salary.
Here’s the thing about running your own business though: you are no longer getting paid for your time.
In fact, no one cares how much time you put into creating your coaching program or how much time it takes you to prepare and show up for coaching calls.
What they do care about is what value you can provide for them.
Additionally, as self-employed coaches we can easily spend our time on things that don’t actually make any money.
You’re not going to get paid just because you spent six hours creating updates for your Facebook page.
As such this is something to majorly consider when figuring out your prices:
If you’re no longer getting paid for your time, you must charge according to value.
It’s the only way to ensure your needs are being met so that you can do necessary things for your business like marketing, having a social media presence and possibly outsourcing when the time comes.
It’s also how you should be charging for your coaching anyway. Changing people’s lives for the better is something that’s value based, not time based.
So how do you figure out how to charge big fees for coaching based on value?
You could start by asking current and past clients what they’ve been able to achieve as a result of your work. Even better, get it in writing as testimonials for your marketing materials.
You may be surprised at the great things your clients say about working with you.
It’s often times that we as coaches don’t really realize what we do for our clients.
Hearing it come out of their mouths makes it easier for us to comprehend what we do and how good we are at doing it.
Marie Forleo has a great video that helps you better understand this concept. Essentially pricing based on value is founded upon these key things:
Your job is to figure out how you can help them achieve or improve these things.
She uses the example of relationship coaching. A real result would be that you should able to help your clients achieve saved marriages.
While you would (and should) be charging big fees for this service and it may scare you a bit, also realize that paying your premium price is going to cost your client less than six months of marriage counseling or going through a divorce.
Seeing it from this perspective helps you charge premium price and makes it easier to market and sell to your clients.
As an added bonus it will help you increase your feelings of self-worth.
As we already discussed in our previous point, a healthy sense of self-worth helps you start charging big fees and attracts more money.
#6 If you charge big fees for coaching you can weed out bad clients
Price shoppers are defined as individuals looking for a bargain.
As a general rule of thumb these are probably not the kinds of people you would want in your coaching practice.
Simply put, the coaching process is not something that should be susceptible to deals and bargains.
Coaching isn’t a blue light special at Kmart, it’s a transformational journey.
Furthermore, price shoppers wouldn’t be your ideal clients anyway. If they’re not willing to pay your rate than they are not the ones for you.
Of course, negotiating is a different story. You can do that with ideal clients if and only if they meet your criteria of being ideal.
That being said here are some signs that will let you know whether or not you’ve got a price shopper on your hands:
They compare your price to someone else’s.
They try to barter.
They ask to “pick your brain” after you’ve told them your pricing.
They really aren’t that ideal for you and it would be a stretch to work with them.
One way to avoid having to deal with price shoppers all together is to charge big fees for coaching. This sends them running.
The end result is you’ll have room for higher quality clients.
From more of a psychological perspective, the higher the rates the better quality of clients.
By general rule if people are willing to pay a high price then they take the process seriously and really see the value coaching can bring to their lives.
This is something most beginning coaches don’t think about, or it’s something they learn the hard way.
Coaching is a very intense process for the client. As such it requires your full preparation and presence.
If you are going to give the committed service your clients deserve then you can’t overload yourself with too many clients.
Furthermore, you’re only one person with a limited amount of time and energy.
Many coaches don’t realize this when they’re starting out and start juggling as many people as they can fit into their schedule.
Before you know it you’re overloaded, burned out and something slipped through the cracks with one of you’re private clients and now they’re upset.
Practically speaking, you probably can’t take on as many coaching clients as you think you can. At least not without sacrificing a lot of your personal time and sanity.
Besides, remember you’ve got other parts of your business that need some attention in order for it to run smoothly.
The only way to really handle this is to start charging big coaching fees.
This allows you to work with only as many people as you can realistically handle while still overing necessities like your finances.
Furthermore it frees up more of your time so you can either spend some time taking care of yourself (which is extremely important) or growing your business in other ways.
At the end of the day you need to think about scalability as a business owner.
Scalability is the ability to handle a growing amount of work or a business’ ability to accommodate growth.
This is what allows your income to grow exponentially over time.
Chaining yourself to a one-on-one private coaching model is not and never will be scalable because there’s only so much you can do as one person.
By charging big fees you can allow yourself to only work with the best people so that you can grow your business in other more scaleable ways.
This brings us to our next point.
From a smart business perspective, private coaching is a premium offering because it’s how your clients get the most of you and your expertise.
Coaching is your cream of the crop offering for your cream of the crop people.
If you charge big fees for coaching then you can start filling your sales funnel with other products and services that would grow your brand.
Books, for example, are a great marketing tool you can use to expand your reach.
They are scaleable because you only have to write a book once and then you sell it over and over again.
Furthermore, it’s at a low price point so people who may not initially be ready for private coaching can get a taste of what it is you can do for them.
Another option for scaleability is an online course or program that is available on demand.
Similar to the book, you only have to create it once and then you can sell it over and over again. It’s also another great way to introduce people to your work without the full price tag of private coaching.
You can also price and on-demand higher than the book while still being much cheaper than private coaching, adding yet another revenue stream to your business.
Finally, group coaching is another viable option for scaleability. It allows you to work with multiple people at once instead of just focusing on one person at a time.
At the end of the day it’s like a pyramid.
The bottom of your pyramid is a low priced offering like a book. This will most likely appeal to the most people because of price.
Next step would be a course and then group coaching.
Finally, the top of your pyramid is your private coaching.
All of these things work together to market yourself as a high end coach.
They also work together to move people through your lower end offerings in order to trust you enough to shell out money for a big coaching fee.
At this point you may be thinking, “Are you telling me I have to do all of that just so I can charge big fees for coaching?”
You can definitely start charging big fees now for many of the reasons already explained in this article.
I’m just trying to show you how big fees fit into the bigger picture of your coaching brand.
#9 Sales is a numbers game
When people go into starting a coaching practice they often don’t realize how much actually goes into the art of sales.
In many of her free teleclasses financial expert and founder of DailyWorth.com, Amanda Steinberg, mentions how we typically close about 25 percent of leads.
That means that if you find about 100 people who would make good coaching clients that you’d only be closing about 25 of them at the very least. Of course, this is after actually talking to the 100 prospects.
That’s a whole lot of people to deal with!
So in addition to considering how many people you can realistically take on as a client each month you also need to consider how many people you can realistically talk to in order to close the deals.
One way to make it much easier on yourself is to charge big fees for coaching.
This means you’ll have to talk to less people to meet your needs.
Besides, let’s think of this from a numbers perspective. At the end of the day it’s much easier to sell a high-priced offering to one person than it is to sell a lower priced offering to multiple people.
While starting to charge big fees for coaching can be scary for beginners, it is a smart business and life decision.
By rewiring your stories about pricing, revving up your self-worth and then applying practical principles to your pricing you’ll be able to charge big fees and make the kind of money you deserve for your work.