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How do you price your packages and have good cash flow? It is very important to know how much money you need to earn and charge accordingly.
Struggling to price your coaching services so that you arenโt overcharging or undercharging for your coaching packages? Itโs a fine line: Charging too much which means no sales. And charging too little? Means youโre overworked and overwhelmed. Thatโs why today, Iโm going to help you figure out your perfect coaching program price. Click the video to watch... First, letโs talk about the pricing strategies you can use to price your coaching services Youโve got a few options: Pricing Option #1: Hourly (so you do your work, get paid, and youโre done) You can charge an hourly rate, where your client pays you by the hour. While this is nice because you get paid for the time that you put in, I donโt recommend this option. The reason I donโt recommend hourly pricing is because it trains your clients to believe that the value of your coaching lies in the time that you put in with them. The truth is though, thatโs not where the real value of working with you lies. As a coach, the real value that you provide is in the result that youโre able to help your clients get. And that is infinitely more valuable than the hours that you put in to help them get that result. So if hourly pricing isnโt the way to go, what are your other pricing strategy options? Pricing Option #2: Retainer (so you get paid a set amount every month) You could charge a retainer rate, where your client pays you a set amount each month. Of course, you would agree beforehand what support that entitles them to every month. Often that means a certain number or calls, or even unlimited calls, or some type of specific support. I also donโt recommend retainer pricing because I am a fan of boundaries and of having a life outside of my business (no matter how much I love it). Am I right in guessing that you and I are alike in that way? If so, then youโll probably also want to set boundaries with your clients - no matter how much you love them - to preserve your own sanity. So if hourly and retainer pricing are out, what does that leave you with? Pricing Option #3: Package The final option is to price based on a set package or program. For example, a 3-month program with 12 calls. As you can probably guess, I am a big fan this pricing strategy also because it allows you position your coaching and pricing based on the result that youโll help your client get through your coaching package. That completely shifts the conversation from what โyouโre worthโ or the value of your time. Instead, it becomes about something way more powerful: Your client, the result youโre going to help them get, and the value of that result to them. Not only is this a way more powerful conversation, but itโs also truly a win-win for both you and your client. So, now that you know HOW to price your coaching program, letโs talk about WHAT price to set for your coaching rates! Again, you have a few options, so letโs talk through them. Want to Build a 6-Figure Coaching Business So You Can Achieve More Freedom? Get Instant Access To My FREE Ultimate Guide Below! GET INSTANT ACCESS When you sign up, youโll also receive regular updates on building a successful online business. Pricing Strategy #1: Penetration Pricing (to help you get paying clients asap) The first pricing strategy thatโs available to you is called Penetration Pricing. And itโs called that because the idea is to โpenetrateโ the market by offering the lowest coaching fee that youโre comfortable working for. For most new coaches in most industries, this price usually comes to around $1,500 for a 3-month package. How does that price point feel? Let me know in the comments below! Does it feel too high? Too low? Either way, listen: If that price feels high, you can absolutely charge a lower price. If that feels low, remember that you can always change your pricing. Penetration pricing is simply about getting your first few clients as quickly as possible so that you can get some revenue in the door, start building your brand recognition, and get some testimonials. Then youโll be ready to move on to the next pricing strategy... Pricing Strategy #2: Necessity (to help you quit your job asap) Once youโve gotten your first few clients, you can start using the next strategy, which is Necessity pricing. This is a term I created, so you wonโt find it if you Google it, but itโs basically the price that you need to charge to replace your income with your business revenue. In other words: What price do you need to charge to make 3 monthsโ income from your job with 10 clients. If $1,500 or less is that price, then youโre already set! If it needs to be higher, no worries. You know why? Now that you have clients, testimonials, and revenue under your belt, itโs the perfect time to raise your price. Thatโs not the end of it though. This last strategy is the final step to making sure that you are truly getting paid what youโre worth for the work that youโre doing. Pricing Strategy #3: You Choose (so you can create the income and life you want) At this point, youโve worked with more clients, your brand is established, youโve got testimonials showing what a great coach you are, and youโre consistently getting sales inquiries. In short: Now youโre at a place where YOU get to choose. Youโve earned it. And by the way, if youโre thinking that itโs going to take you a long time to get here, Iโve got great news for you. It really doesnโt have to. For many of my students, they reach this point within a few months, or after their first 10 or so clients. And what happens once you get to this point? If you feel that the value your clients are getting exceeds the price youโre currently charging for your coaching packages, you can raise your price. Or, if you feel your price is low compared to your competitorsโ, guess what? You can set a price that feels more fair to you based on the industry that youโre in, and thatโs more in line with what other coaches in your industry are charging Or, youโve got one other optionโฆ You can decide to price at a premium. This means you set a premium price, thatโs often higher than the industry standard or at least on the higher end. (Be careful though, because you have to be able to back this up.) The beauty of having your own business is that you get to decide. Want to Build a 6-Figure Coaching Business So You Can Achieve More Freedom? Get Instant Access To My FREE Ultimate Guide Below! GET INSTANT ACCESS When you sign up, youโll also receive regular updates on building a successful online business. How to create the RIGHT type of high-end coaching package for the highest rates Now you know how to price your coaching services. But what should your coaching services look like for the best rates? Hereโs the thing: Your coaching pricing builds on the transformation you help your clients get. The more attractive your coaching results are, the higher you can price your services. For example, a coach who helps women in their 40s shave off 10 lbs with a specific methodology that doesnโt eat up all their time offers a very specific result. Potential clients have a much easier time imagining that THEY can get that result than if a health coach offers generic coaching for everyone. The next part of your high-end coaching offer is to target the right buyers. Itโs simple: If your clients have the willingness to pay, you can price your coaching higher. Thatโs why you shouldnโt sell coaching to people who only have a need. Instead, focus on clients who have the need and the want. For example: A college student might need career coaching, but he or she is unlikely to have the funds. A manager at a company is more likely to have both a need and a willingness to pay a higher rate for your services. (Want to learn more? In this post, I show you step-by-step how to create a coaching package that sells.) Should you list your rates on your website? Something a lot of my students ask me is: โLuisa, should I list my coaching rates on my website?โ https://www.youtube.com/watch?v=UQZfOKQF3v8&t= Look: The answer is that it depends. There are pros and cons to both alternatives. The biggest pro of using prices on your website is this: Youโre going to pre-qualify your potential clients. So when they reach out to you, people have already seen your rates and are prepared for that investment. But if youโre a new coach, the pros of not using rates on your website can be bigger. Why listing your coaching pricing might not be the best strategy Let me explain: I have a lot of clients who are health coaches, relationship coaches, and career coaches. While the top people in those industries can charge 5-6-figures, the majority canโt. And those lower prices set an anchor for people who are looking for a coach. And so, if you have your rates on your website, people will easily filter themselves out of being a client. Thatโs because they make that decision purely based on your rates. If instead, you donโt use rates on your website and people reach out to you because they love what you share and want your help, you get to have a conversation with them to help them understand the value. How to get the right people on your sales calls There are cons to this strategy. More people will reach out to you who arenโt prepared to pay your rate. Initially, you might have to have a few more sales calls to get the right people on the phone. Thatโs why I recommend a strategy that balances both of these aspects, especially if youโre new to coaching. Add a note on your services page that says, โThis is a significant investment.โ That way, people understand that youโre not selling coaching for $100, but you also get to have that conversation about value. And once youโve worked with clients and become more established, you can put your rates on your website to narrow down your sales calls. Now that you know your options for pricing your coaching program and setting your coaching rates, you are in control. How do you choose which coaching pricing strategy to use right now? Start with the one that feels best and test it. Remember, how you price your coaching services is not set in stone. You get to decide which one to start with and when you want to change it. But pricing your services is just step #1 of building a sustainable and profitable coaching business. I've helped thousands of people start their own coaching businesses. And I share the exact steps that will help you build a thriving coaching business. Get the blueprint here: Want to Build a 6-Figure Coaching Business So You Can Achieve More Freedom? Get Instant Access To My FREE Ultimate Guide Below! GET INSTANT ACCESS When you sign up, youโll also receive regular updates on building a successful online business.
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