Learn about the factors that will help you price your online coaching sessions and learn about the different pricing methods available.
You’ve done your research, identified a niche, and developed a marketing strategy for your coaching brand, but are wondering how you should price your services.
It is okay if you find yourself stuck because pricing can be complicated.
It is also a critical aspect of your marketing strategy.
You want to get your prices right before you can pitch your first clients.
It will actually be among the first questions your target clients will be seeking answers to.
Just like with many purchases, any buyer considers the price of an item before making any commitment, your coaching clients are not any different.
They want to know how much your training will set them back.
They also want to understand what value your service will bring to them.
In other words, after they learn about the price, they wonder why you are charging that amount or simply what’s in it for them.
One of the challenges coaches face is pricing their services and often most of them undercharge their services because they undervalue their coaching skills. For you to excel in your career as a coach, you need to price your services correctly so, therefore, consider several variables that help you determine the best way to price your services which include your target market, niche, market prices, your skills, and the value your coaching will add to your clients. Also, choose a pricing structure that allows your clients to pay for your services with ease.
So, when creating your coaching program, it is important to think about the price even before you roll out your services.
To many buyers, the price connotes value.
Luckily, we’ve got your back!
Here is a cheat sheet to help you price your online coaching services.
Let’s get started!
Table of Contents:
How Much Should I Charge For Coaching Online?
- What To Consider When Charging For Coaching Online
- Different Ways to Structure The Price for Your Online Coaching
What To Consider When Charging For Coaching Online
So to sum it all up, below are some of the factors that you should consider when charging for your online coaching.
1. Your Target Clients
When setting the price for your coaching services, consider your target clients because consumer purchasing power varies from one group to another.
For instance, if you intend to coach high-end clients such as CEOs of top corporates, your prices will be significantly higher than those of trainers targeting fresh graduates trying to find a job.
Therefore, research the buying habits of your target clients to understand how much they spend on coaching.
You may extend your research to cover their spending habits.
For example, how much are they spending on coaching, and who decides their budget?
Are they sponsored, or do they pay for coaching on their own?
These questions will help you discover what price range your target group can afford.
2. Niche Market
The coaching business has various niches such as career, relationships, sexuality, leadership, marketing, and small business coaching, to mention a few.
Each niche has a price range.
Also, in the niche, you find different categories of clients.
For example, if you target high-income earners who are in the corporate sector, you can charge them as individuals in regular jobs.
In the corporate sector, they could be interested in leadership coaching or business development.
On the other hand, you may have individual clients in the mass market who are interested in relationship coaching.
You cannot charge corporate clients for leadership coaching or business development as you would for relationship coaching.
The bottom line is that there is a maximum rate for each niche.
Therefore, find your niche first.
Then, strike a balance and offer your clients reasonable rates.
3. Location Of Your Clients
Another factor to consider when pricing your coaching services is where your clients live.
The cost of living differs from that of one locality to another.
For instance, clients living in a city with a high cost of living will pay more for services than those living in a low-cost town.
The reason behind this price difference is that the cost of providing the services is high.
Let’s say you are moving to a new city to launch your coaching career.
Your business should pay for your running expenses, such as transport, rent, telephone, and office accessories.
If these costs are high, you will need to increase your prices to break-even and remain profitable.
Therefore, price your coaching services incorporating the cost of running the business in your city.
4. Your Level Of Experience And Skills
As you advance in your coaching business, you gain infallible experience you cannot gain from classroom training.
For example, you get firsthand experience in handling clients with diverse personalities.
With time, you develop effective ways of handling your clients.
When you have proven methods that work, you can optimize your coaching services to give your clients results quicker than your competitors.
Therefore, you need to charge for the efficiency and extras that come with your training.
Unfortunately, this may not be the case if you are a novice.
You may need to charge less to get the relevant experience and increase your prices gradually.
You may also have other skills besides coaching that may be relevant to your niche.
For example, if you specialize in leadership coaching and have held leadership positions in the past, your pricing should cover your expertise.
As you coach your clients, you will give them critical nuggets that apply to their specific roles.
Such skills distinguish you from other coaches in the market.
Do not undercharge your services, especially if you have other relevant skills.
5. The Expected Results
Every good coach sets objectives for their clients.
These goals are specific, measurable, attainable, realistic, and time-bound.
For instance, if you are coaching sales executives, you could focus on behavioral change and building relationships.
It is possible to set targets and track performance on these goals.
When you structure good objectives, you can quantify your coaching results and give them a price tag.
The more you achieve, the more you get paid.
However, your pricing model should be reasonable and agreeable to your client.
6. The Value Of Your Coaching To Clients
The value of your coaching to clients is how their lives will change when they attain the agreed objectives.
For instance, on completing a coaching program, a sales executive could sell more and consequently earn more commissions.
They could negotiate for promotions and higher pay.
Moreover, consider how the client’s life will change with an increase in their disposable income.
Factor these benefits in your pricing to realize the full value of your coaching to your client.
You can use your experiences with other clients to convince them to see the value of your services.
7. Market Prices
Find out what other coaches in your area are charging for similar services.
Compare the prices for different customer segments to understand how you will price your services to gain a competitive edge over your competitors.
These prices will help you decide on what to include in your coaching packages.
Remember that some clients can pay more for coaching, as long as they are getting quality services.
Such clients often focus on the value they get from your coaching other than the cost.
However, this does not mean that to quote unreasonably high prices.
Different Ways To Structure The Price For Your Online Coaching
As you price your products, it is wise to provide your clients with flexible billing cycles.
This arrangement allows the due date to fall on days when they have money.
Here three ways that coaches use to structure the price of their coaching services:
1. Charging Per Hour
This pricing structure allows you to charge your clients for every hour you coach them.
For example, if your rate is $120 per hour, and you meet your client twice a week for two hours, your weekly pay is $960.
In this arrangement, the client pays only for the sessions that you meet.
It resembles the pay-as-you-go pricing structure, where clients pay for services only when the need arises.
It is a good practice to match your hourly pay with your expertise and experience.
If you are a novice, it is wise to start with low rates.
As you gain experience and clients in your niche get to know you, increase your pricing gradually to match your qualifications.
However, you need to be fair to your clients and be available when you say you will.
Also, do not charge them to the minute.
For instance, if you agree to have a two-hour session and your meeting exceeds by a few minutes, do not ask them to pay for the extra time.
Always keep time and never keep your clients waiting.
A good strategy is to agree to have short meetings but allow yourself some extra to wind up your coaching sessions.
This way, your clients will feel that you are going the extra mile to help them meet their goals.
2. Charging A Monthly Fee
You can also charge your clients a monthly fee for your coaching services.
The beauty of this pricing plan is that it gives you enough time to engage your client.
Therefore, you understand and serve them better.
This way, you will understand their needs better and offer effective coaching.
A monthly pricing plan best suits long-term clients such as corporates, where you deal with groups of employees.
It also benefits both you and your clients.
For instance, your clients get value from your in-depth interaction and focused attention.
They also save on costs by procuring coaching services for groups of employees as opposed to individuals.
This pricing plan gives you get a steady income which, allows you to plan for your finances.
3. Membership Package
Another popular pricing plan among coaches is using membership packages.
In this arrangement, clients subscribe for coaching services and pay a monthly fee.
These plans are auto-renewable thanks to payment services such as PayPal.
However, your clients need to ensure that they fund their accounts when the payment is due.
The advantage of this pricing model is that you automate the collection of your revenue.
You also get regular income as long as you have active members.
Subscription plans also allow you to reach clients outside your locality.
Since payment collection is not an issue, you can always conduct your sessions online through VoIP solutions such as Skype or over the phone.
You can also offer multiple packages with different features such as daily or weekly feedback and face-to-face meetings.
We hope you found this article helpful and gave you all the information that you needed for pricing your coaching sessions.
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Good luck with your coaching journey!