I meet a lot coaches who want to target leaders and even more since the pandemic.
In a recent Nail Your Niche session with one of those coaches, I asked:
Do you want corporations to pay for your clients’ coaching?
Or, do you want your clients to pay out of their own pocket?
That decision will affect so many aspects of their business.
There’s a belief out there that corporations will pay more for coaching.
That’s only true IF:
- You have the right kind of coaching certifications.
- You are well networked in the corporate world.
- You have significant leadership experience.
- You’re good at pitching your offer to those with a budget.
- You’re good at negotiating for what you want.
I think coaches pay a hefty price when they target corporate paid clients.
When clients are not making the investment, they are less accountable. And, when a 3rd party pays, they have a lot of expectations.
Let’s talk through the pro’s and con’s of corporate paid clients so you can make an informed decision about your business model.
6 More Hassle Factors of Corporate Paid Coaching
I already mentioned a set of circumstances and skills you’ll need going for you to inspire corporations to pay you to coach one or more of their employees.
There are also at least 6 more hassles associated with corporate paid clientele.
- Competition is fierce among corporate, executive, performance and leadership coaches. There are so many vying for favor with corporations. Many organizations already have a cadre of coaches they prefer to hire for their employees.
- To get a corporate coaching gig, you’ll need to access the person who does the hiring. Often, it’s a department head over that employee who controls the budget. Sometimes it’s HR. Every corporation is different.
- Once you get a meeting with that person, you’ll need to deliver a pitch, share success stories and references from firms that have hired you before and likely, write a proposal.
- You’ll need to negotiate the contract. There are set market rates for some industries and the level of employee you coach. So often I hear from coaches that they couldn’t negotiate the rates they really wanted from a company and can be years before you can negotiate an increase your rates.
- The person who hired you may want periodic reports of their employee’s progress. That doesn’t sit well with me because coaching should be totally confidential.
- You’ll have to invoice the company and wait for payment. Might even have to push them to pay you. Even if you negotiate a retainer and that still might be paid a month in arears.
That all boils down to giving up a lot of control:
- of your income
- your hours
- what you deliver and how
And that’s why I encourage coaches to target an audience and set up their business model so their clients pay them directly.
I also show coaches how to charge more from day 1 so they are earning well in year 1.
Life is Easier When Coaching Clients Invest Out of Their Own Pocket
I like to control every aspect of my business. It’s one of the main reasons I wanted to work for myself. I don’t want to have to interface in the world I was dying to leave.
I want to decide exactly who I serve, where, when and how I work with clients, and what I charge.
It’s so much more of a joyful business when YOU:
- Are paid up front for the full scope of your work.
- Have clients who want to work with you that are 100% accountable for their success because they made the investment.
- Don’t have to report to anyone. You help your clients benchmark their own progress.
So, before you imagine that corporations pay you many more times what you can earn from clients directly, think through the pros and cons, including what costs YOU will have to pay in order to get corporate pay.
And remember, you control what you charge clients who pay out of their own pockets.