Here’s a question virtually all new coaches who come through our certification program ask: How much should I charge for coaching? Here’s some answers to the question and a calculator that helps you pick the right rate.
There are several ways to determine your rate.
You could observe what others are charging and charge a similar fee. The difficulty with that approach is that fees for coaching vary widely based on experience, location, market sector and confidence in the value delivered.
Some graduates of the EQ coach certification training may charge $75 per hour, $some $150 and I have even had some who do executive EQ coaching charge as much as $500 per hour.
Where you are and who you coach could a difference.
Coaches in larger metropolitan areas generally charge more than a coach in small towns. And, experienced coaches working with executives typically command higher fees than life coaches working with average earners – an average of $300 per hour, based on a recent survey.
You don’t want to overprice yourself and you don’t want to charge so little that your can’t support your coaching, so how do you pick the right number?
The best way – Consider yourself a business.
The best way is to calculate your hourly rate based on your costs, number of billable hours and desired profit. With that approach you treat your coaching practice as a business and consider that you must be paid first in order for the business to survive and prosper. I switched to that method years ago after reading a business book but found it difficult to explain to new coaches.
A free calculator that is a great tool for coaches.
Recently I came across a web-based calculator that does all the work for you quickly and easily and it’s free and you can find it at Freelanceswitch.com/rates. It is perfect tool setting your coaching rate.
Value yourself.
After using this calculator, you may get fearful and doubt that you are worth the fee that is calculated. I know how that feels. Take heart. I did switch to this fee method years ago and after seeing a true picture of my costs and needs to run a business, I immediately doubled my hourly rate. I was surprised that I not only earned more per hour, but attracted many more clients. The courage to charge comes from confidence in yourself.
If you do not yet have an full experience of your value, do NOT give free coaching. Trust me, with free coaching, you will sabotage the clients results. Do NOT establish a very low hourly rate that needs to be increased. Instead set a realistic rate and offer an introductory special while you build your confidence and your business. When you are ready return to your “regular” rate.
If you are not successful, you can’t survive and people don’t get coached. You have an opportunity to do great good. Price yourself intelligently.
To your success,
Joseph
