December 2, 2020
In today's video - How to Price Your Coaching Packages. If you watch this video and take note of everything I recommend then you will be able to charge more for your coaching packages and programmes.
0:00 - Introduction
1:05 - How to Price Coaching Packages
3:10 - How to Sell Coaching Packages
6:11 - Coaching Agreements and Contracts
6:30 - Coaching Packages on Monthly Payment Plans
7:34 - Instalment/Payment Plans
9:19 - Articulating Your Value to Coaching Clients
So you've just graduated coaching school and they've sent you out into the big bad world to go an pick up your first few coaching clients.
Unfortunately many coaching accreditations are great at upskilling your practical coaching skills but light on teaching coaches basic business skills required to grow their coaching practice.
A great way to start charging for your coaching is to sell hourly rate sessions either by the hour or on a monthly subscription package. Imagine though if you wanted to earn six-figures as a coach charging $100/hr for coaching sessions, that means you need to sell 1,000 hours of coaching a year just to hit your target. Most people typically work 160 hours a month, but when most of your time is taken up coaching it leaves little time to do sales, admin, accounting and marketing activities eventually leading to burn out...or at the very least feeling like your on a constantly turning treadmill.
Therefore hourly rate is a good way to get started and bring in some income, but it's not a very efficient way to grow and scale a coaching practice.
That's where the first shift occurs when selling a coaching package, you need to anchor your prospective client to outcomes and results instead of anchoring them to your time (via monthly coaching sessions).
This creates a "contract" between coach and client, it now means you've both got skin in the game and can work out what's required of the client to achieve the desired outcome/result and you, as the coach, can break down your process into a series of steps you're going to take your client through to achieve the desired outcome.
What that looks like is...
"A 6-month Transformational Programme that will get your Client from A to B"
Which you can then sell for a fixed fee.
Many coaches allow their clients to pay monthly (i.e. they take the coaching fee of say £3,000 and simply divide it by six months - £500/mth) however this again leads to clients not completing their coaching programme and failing to get the results.
When a coaching client is paying monthly again they are anchored to time, your time! And they feel they're in control of when they can leave your coaching programme, irrespective of whether they've completed it or not. Therefore it's important to have an agreement in place between you and the client outline the length of the programme, expected/desired results and the investment for the coaching programme.
Even if they get the desired outcome at month 4 may see this as a cue to leave...so therefore they're anchored to the monthly fee and not the result.
So rather than split the investment out over 6 months evenly; a better way to price your coaching packages is to front load the investment with a higher initial instalment and then several smaller instalments (so for a £3,000 coaching programme they pay £1000 up front followed by 5 instalments of £400/mth).
Clients who say, "Yes!" to those coaching packages have a higher chance of completing the entire coaching programme, and then continuing on with your coaching afterwards.
If you have several coaching packages available the temptation, as a coach, is to sell the client the cheapest one because there's less friction involved (less at stake!) than the more expensive one, irrespective of whether it's the right coaching package for your client.
Most coaches sadly don't know how to sell coaching packages, let alone at a higher price point.That cheaper coaching programme might not be the right package for your client...and selling it to them could be unethical because all it's doing is putting money on your table.
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