Start A Successful Coaching Business- part 4
There are several factors that you will need to take into account when setting the fee structure for your coaching buisniess. These are usually dictated by the current market trends, what your local or niche market will bear and the materials and services being offered in your coaching practice. In order to be able to set a fairly competitive and acceptable fee structure you will need to first evaluate all these factors while paying special attention to the current market trends.
What To Charge
The following are some tips on how to decide on the fees setting structure:
Your expertise and experience as a speaker, motivator, presenter or coach makes a big difference in the fee structure and incentives you can add to your contract. If your coaching sessions are well known, well liked and you are seen as an accepted authority in the field or niche you have chosen, than the fees you can charge can be and usually are considerably higher than those of someone with similar programs and systems, who have less experience or are not as well known.
The area being explored during your coaching sessions also has some bearing on the fees that you should charge. If the topic/niche is currently popular and in high demand in the current market, then the fees you can charge would also reflect this. This higher fee is commonly accepted when compared to other “less trendy” topics or niche’s where there is not as much demand.
Another opportunity to charge higher fees for niche areas where the materials and the experienced presenters are quite limited.The niche itself needs to be in demand and if it is desired by famous or well known people, then the opportunity to charge a higher fee is also available. However, having the right experience, systems and programs for this in demand and less served field is a major requirement in order to justify your fee structure.
The length of the coaching agreements is also another point taken into consideration when fees are being decided. If there is a contract in place to provide coaching services over a lengthy period of time, then the fees charged will reflect the continuous commitment on the client’s behalf. Some contracts with high fees come in yearly increments and the payment is made in advance to lock in both the client and the coach. Some well known coaches get six figures for yearly contracts with individual or corporate clients!
Fees are also decided based on the need to have any other added services that may complement the existing coaching exercise. This may include personalized attention on a regular predetermined basis, or a smaller group session for specific executives at a large firm. Sometimes further in depth coaching is needed and additional customized modules may be created that the client may request for the company’s overall optimum progress.
Any or all of these fees do not really follow any rigid structure and is usually open for discussion. The amount your clients are wiling to pay will be based on the perceived value of what they believe you are going to bring to their lives or business. The best way to approach coaching clients is to emphasize the value and benefits of what they are spending their money on, as well as the results that you expect to achieve with them after the coaching sessions end.