11 min read
As online creators, numbers are usually the last thing we want to look at.
Many of us have fear around numbers, math, and money, but we need to think about how we are pricing our coaching packages if we ever want to create a sustainable business.
It’s not enough to only make money for the short term.
We want to create long-term growth that allows us to quit our day jobs, travel the world, or stay at home with our kids.
It doesn’t matter what your goal is.
Knowing how to price yourself as an online coach can help you get there.
Instead of jumping right into the nitty-gritty of finding your pricing, let’s cover one of the best ways to get started: by intelligently packaging your online coaching services.
Crafting online coaching packages can take some experimentation. As you get acquainted with your target market, you may want to shift and tweak your pricing and deliverables along the way.
While it’s good to test your online coaching packages over time, you need a solid foundation to build from, especially in the beginning. To make this process easier, we’ve compiled a list of actionable steps you can take to create appealing coaching packages for your ideal clients.
We talked more about this in our Tradecraft article on How to Start an Online Coaching Business, but to paraphrase, you’ll want to have an online coaching niche nailed down before you start to brainstorm what services you should offer clients.
Do you want to work in a private coaching or group coaching capacity? Do you want to help your target audience by being a trusted life coach, business coach, career coach, or something completely different? These questions will help you choose a niche.
Service descriptions will give you and your clients clarity on what is included inside each coaching package. Before you buy something, you naturally want to know what it is, why you may need it, and if it’s the perfect fit for you.
People who are searching for an online coach feel the same way. Spending time to craft service descriptions that detail the why, how, and what of each coaching package will help you communicate your value to new visitors.
When you create a list of everything that is included, people will be interested to see how many coaching sessions they get inside the package (one vs. multiple coaching sessions/month) and how long you will meet for (30 minutes vs. 1-hour). But we don’t want you to stop there.
You should also outline any other deliverables and features that are also included in your package. This will help you sweeten the deal by adding value to your coaching packages. If you aren’t sure what you might want to add, explore the questions below.
Any of these features would give your clients extra value. You can set a more premium price for your online coaching services if you add more perceived value to each package.
Depending on your coaching niche, you’ll want to look at competitors in your field to get an idea of what kinds of coaching packages others are offering.
Every coach takes a different approach when building their packages, so don’t feel like you need to build the same packages to be successful. If anything, your packages should be unique so you can offer a higher-level client experience.
When you look at your competitors, you should notice:
Once you do some research on your competitors, you can start to pull out what might work best for you. If one coach offers packages for three months of support, it might inspire you to create a similar package but with a different number of coaching sessions inside.
Again, you don’t need to directly copy someone else’s coaching packages. You only need to gather research so it can enhance your own understanding of what options your ideal clients have when they are looking for an online coach.
Once you’ve done your research and have a list of what you want to include in your packages, it’s time to create different tiers for your online coaching services. Naturally, what’s included in a private coaching partnership will be different than a group workshop.
When you create your list of coaching services, you can brainstorm future services you’d like to grow into while focusing on two or three coaching tiers at the moment. It’s best to focus on selling a few services rather than trying to sell clients on dozens of choices. Sometimes it turns into information overload for them and total overwhelm for us!
Before we dig into the pricing of your coaching services, it’s important to understand what your business expenses look like. It takes money to make money, but with so much of your coaching work happening online, you can easily run a low-expense business.
Think about all of the coaching tools and software you need to run your business. Do you do any business travel or need to invest in new equipment? Are you planning to hire a virtual assistant? Remember that many of these expenses will be tax write-offs, but you still need to account for them in your pricing.
If you don’t have your expenses in mind, you may end up pricing yourself too low. When that happens, it’s hard to sustain your coaching business over time because you’ll have a harder time turning a profit.
Remember, it’s more about your net growth than your gross revenue!
This is one of the most common questions we hear from new coaches. Pricing is a difficult subject, especially since it seems almost taboo in certain circles.
Interestingly enough, your pricing strategy will be one of the most important decisions you make in business even though it is rarely talked about.
Pricing doesn’t need to be a scary or overwhelming thing when you understand the variables that go into it. Here is an inside look into how we encourage new coaches to set their prices.
If you are an online coach who meets with clients for hour-long coaching sessions, it can be tempting to put an hourly rate on your services and call it good. Coaches who think this way often charge around $50-150/hour for these kinds of coaching sessions because it feels like a lot more than they were making at another job.
The problem with this technique is that there’s a lot more work that needs to be done before, during, and after each hour-long coaching call. You also have to account for the time you put into admin work (emailing, sending invoices and contracts, onboarding, etc.), preparation time before each coaching call, and all the work you do in between coaching sessions.
This is why value-based pricing has become so attractive for online coaches. Rather than being paid by the hour, you are able to create packages that are based on your expertise, experience, time, past client results, and the added value you are giving clients beyond the session time.
Then your pricing isn’t based solely on the number of coaching sessions you can book. With value-based package pricing, you can increase your prices by adding value while taking on fewer clients.
Some clients will be more likely to pay for a $1500 business coaching package for three months rather than $500 for a single hour-long coaching session, even if the three-month coaching package only has one hour-long session every month.
The actual price itself is the same in both scenarios, but how it is presented is completely different. A $500/hour price tag feels high, but $1500 for three months of coaching support feels more comprehensive and valuable.
It’s all in how you display your pricing!
As you think about your value-based pricing, it’s good to think about how many hours in the day you can devote to your coaching business.
If your business starts as a side hustle, you may only have a few hours to spare every day after your day job. Your pricing will probably be different than someone who is ready to take the leap and make coaching their full-time job.
With a side hustle, it will help to have an idea of how much extra income you’d like to make. If you are working toward the goal of quitting your day job in a certain period of time, knowing how much you want to make annually will be incredibly helpful in the next stage.
If you are afraid to charge more than $50 for a coaching session but have an annual income goal of $50,000, that means you would have to find enough clients to do a thousand total coaching sessions for the year. That feels overwhelming!
If you want to make $1000/month of extra income as a side hustler but only want to manage five clients at a time, that means each person must pay at least $200 in order for you to make your income goal.
You can keep playing with the numbers until they make sense for both you and your clients.
According to PayScale, the average life coach can earn anywhere from $23,000 to $105,000 per year. Since this salary range is wide, it’s even more important to price your coaching packages based on the value you can provide your clients.
Think about what you are helping your clients with. If you are a business coach, are your coaching sessions resulting in a 20% increase in product sales because of the marketing strategies you create together? Your prices should reflect that!
If you are a life and career coach, did your help with a client’s money mindset help them land a new job and negotiate a $15,000 salary increase from their last job? Your prices should reflect that too!
Even if your coaching services don’t lead to a specific increase in income, they could lead to changes that are invaluable to clients.
How can you put a price on a better and healthier marriage, more confidence when leading your team members, or more personal fulfillment in your artistic projects?
As you compare your prices to the industry standard, keep in mind what goals you can help your clients reach and how much they are worth to your clients. It will help you find where you fit into the average salary range and break out of it over time.
Don’t discount the experience you already have. It may not be in a traditional sense with a top-level coaching certification or multi-six figure product launches under your belt, but it doesn’t mean you can’t raise your prices.
This is where having great testimonials can really help! After you work with coaching clients, make sure to ask them if they’d be willing to give you a testimonial and if you have permission to post it on your website.
These testimonials act as social proof so you can raise your prices as your client results get better and better. You can also charge more if you have a professional coaching certification or other kinds of training that your ideal clients value.
What factors are most important to you when you consider how you will price your coaching packages?
Is it reaching your income goals, getting a solid base of clients to start, booking high-level clients, or increasing your experience?
Knowing the answer to this question is the first step to finding the right price for your services. Take some time today to write down your baseline goals for your coaching business.
Download this issue of Tradecraft as a PDF to read and reference at your own pace.