Ep 82 – The Mindset Shift That Helps You Charge More with Coaching Clients

This will be a super short episode. And it’s part of the Smart Mindsets & Habits series.

I feel so honored that when I work with my clients I get to see them shift their mindset in ways that will help them succeed faster at this game called entrepreneurship.

By the way, thinking of building your coaching business as a game is one way to take the pressure off and enjoy the journey.

So the specific mindset I’m digging into today is about OWNING your right:

  • Own your right to be in business for yourself
  • Own your right to earn well
  • Own your right to live the life you want

That may sound odd. Let me explain.

My Early Coaching Business Was An Albatross

When I was new to my own coaching business I treated myself like I didn’t deserve to be in business, like I didn’t deserve to earn well and have the life I want. Here’s what I did:

  1. I overcomplicated my business model by offering too many options.
  2. I undervalued myself and charged way too little to sustain my business.
  3. I over-delivered in every way.
  4. I was too accommodating with my schedule.
  5. I allowed late payments.
  6. Ultimately, I didn’t think through what I wanted and plot a strategic course to get there.

Bottom line … I was operating unconsciously in my coaching business. I was driven by a mindset that doesn’t go well with being the CEO of a business. Big mistake.

A few years in, I realized that I had created a monster — a business that was complex, running me ragged and paying me poorly.

Its part of the reason why I now teach coaches to create a Simple Coaching Business Model and to strategically grow their business from the get go.

The Big Takeaway for Coaches

So here’s the secret I want you to come away with from this episode … ACT AS IF

Act as if you are already in high demand.

There are 7 ways I can think of that will help you do this:

  1. First decide what you want your life to be like.
  2. Strategize every step of your business development to fit that vision.
  3. Only offer times on your schedule that you truly want to work.
  4. Only offer exactly what you want to offer and not what you think you should offer.
  5. Create a low overhead, easy to manage business.
  6. Treat yourself with the respect you want your colleagues, prospects and clients to have for you.
  7. Charge prices that will help you reach your financial goals right NOW!

Imagine the difference between a business where you act like you deserve all the perks that come with being your own boss and a business where you act like you don’t deserve that.

I’m not saying you need to be mercenary. Simply honor yourself. Do what is right for you.

Is it a bit scary to charge for your services in a way that pays you well.

I shared in Episode 58 that you can plan for profit from day 1 and in Episode 60 how to strategically price your services. When you charge prices that feel like a big investment to your clients they will invest energetically into their own growth. It’s a win – win. Whereas charging low fees is a lose – lose.

You don’t want to lose. You don’t want your clients to lose. OWN your right to be successful at your coaching business.

It’s time to build this muscle … how will you ACT AS IF you deserve what you want today?

In the Next Episode: Overwhelm is a Bad Habit Coaches Need to Break Now

Ep 60 – How To Price Your Signature Coaching Program

This episode is part of my Money Mastery series. It’s the follow on episode to How to Develop Your Signature Coaching Program. Consider listening to that first before this episode if you haven’t already.

Common Pricing Strategies and What Works Best for Coaching

I can think of 3 common pricing strategies for pricing:

  • Cost plus pricing – where you calculate your costs then mark up the program so it pays you well.
  • Competitive pricing – where you set your price based on your competition.
  • Value based pricing – where you set your price based on the value of your offer to the client.

I do encourage you to the do the math of what it will cost you to deliver your program. Most coaches miss this piece. And it’s quite eye opening to realize the cost of the time you spend getting a single client in addition to specific costs of marketing and inclusions in the program.

That said, to ultimately determine the cost of your program I prefer VALUE based pricing.

Here’s the reality, if you narrow to serve a viable audience and create a unique program based on market research, then your program probably doesn’t exist out there so competitive pricing or so called “market value” isn’t a useful guideline.

Also, few if any of your prospects are ever going to do cost comparisons, especially if you don’t sell coaching but rather offer a unique program.

Purchasing a program such as I suggest you create is an emotional decision.

They will hear or see your message. Their trust in you builds because you’ve struck a resonant chord with all that you’re doing.

Then, they go to your website, which is hopefully already designed as a client winning coaching website not an online brochure. On that website are beautifully streamlined words and conversion processes that gently encourage visitors to have a Discovery Session with you.

All of this is thoughtfully coordinated and strategized but in a non-salesy way to build trust with potential clients rather than trying to convince them about the value of coaching.

They hire you because they like you and trust you. You’ve been in front of them with valuable content and your website reinforces that. Then, in the Discovery Session you lovingly assess if they are a good fit for your program and enroll them.

You don’t want to sell people – to have to convince them to hire you. It’s unsavory. It makes you feel skeevy.

But if you have a signature program that you have thoughtfully crafted to fit their circumstances, their pain and desires then no hard sell is necessary. You do need to ask them to enroll though. ; )

The Mystery of Odd Numbered Pricing

You’ve no doubt seen that a lot of people use odd numbered pricing where prices end with 5, 7, or 9. For example, a long-term high value program might be priced at $5,975 for a 5-month program or an online training might be priced at $697.

Early on in my coaching business I eschewed that whole odd number practice and priced evenly. $5,000 instead of $4,975. $500 instead of $497.

And I struggled to enroll clients. I’m not saying there may not have been other factors involved.

And then, I looked around at the people I admired that offered mentoring, coaching and training. I noticed they were all using odd numbered pricing. I switched and immediately saw a difference in my revenues.

Weird? Yes. But we as human beings have been trained all our lives on odd numbered pricing and it’s ingrained. There’s an emotional response to it even if it’s not logical.

That said, if you have an issue with it, do your own testing.

Encourage Single Payment Investment

With your Signature Program, encourage or incentivize a single payment investment by creating significant savings over a payment plan.

For example, if your 4 month program is $3,995 for a single payment. Make the payment plan total roughly 25% higher. So, 4 payments of $1,249 paid at the beginning of each month — which adds to $4,996 — is over $1,000 more than the single payment.

Incentivizing a single payment helps both you and your clients in these ways:

  • They invest once rather than continually making payments, which is an irritant.
  • They are not focused on the financial investment but rather fully focusing their energy on transformation.
  • Also, bundled programs like I’m suggesting don’t deliver value in even amounts month to month.

My own 5-month Coaching Business Breakthrough program is front loaded with value. The first 2 – 3 months, depending on the pace of my client, are where I’ll deliver the most support and assistance to create everything for their coaching business. The last two months are less labor intensive because we’ve completed the bigger milestones.

It’s a risk for you if someone pays monthly and drops out in the early months.

In the last 17 years, 90% of my clients have paid the single payment up front for my signature program. I’ve noticed that those who opted for the payment plan often became difficult clients because they were not as committed to their own success.

I think that’s because they weren’t fully invested up front. They had one foot out from the start. A part of them didn’t believe in themselves up front. And a part them wasn’t fully ready to have a business yet.

In the last 5 years none of my clients has opted for the payment plan.

When people want something enough

they find a way to make it happen.

And just that mindset and action empowers them significantly!

Should You Have Tiered Pricing?

One last thing about pricing … some people advocate having tiered pricing.

I say no. You’ll do better if you direct clients to your Signature Program and stand behind it.

  • First, a confused mind never buys. The more offers you have that you’re marketing at one time, the less likely someone will enroll.
  • Also, remember … don’t sell coaching. It’s a hard sell.
  • Do coaching with paying clients who have enrolled into a program they know they want.
  • And, the more people you sell into your signature program the more you earn doing exactly what you love.

If you want to create lower priced programs than your Signature Program, consider making them altogether different. For example, offer an online program about a different thing your target audience wants help with. It’s not only different in focus but also different in format.

Sell it as a down sell only after someone firmly turns down your Signature Program. That way you don’t set up competition for the program you most want to deliver.

But consider, that you don’t really need to have other offers besides a free downloadable offer so you can build rapport and stay in touch with your network unless you’re prepared to create a separate way to attract potential clients to that offer.

This and the episode before it were an episode loaded with tips. Consider listening to them again and please share it with fellow coaches. So many struggle with this piece.

Also, if you want help to create your entire business foundation with everything I’ve talked about in these episodes, go to prosperouscoach.com/VIP and tell me about you.

We’ll have a conversation about what you want and what’s been in the way to see if you’re ready for a coaching business breakthrough.

In the Next Episode: Get Out Of Your Own Way To Earn More As A Coach

Ep 57 – Coach, Is It Time To Give Yourself a Raise?

This episode is the 5th in the series called Money Mastery. 

The last episode called Are You Turning Away Coaching Clients with Your Pricing explained a more strategic approach to pricing than charging by the session or a package of sessions. I highly recommend that you listen to that.

In this episode, I’ll focus in on the mindset and simple mechanics of how to give yourself a raise, no matter what approach you’re using to charge right now.

Shift Your Money Mindset

If you’re a new coach chances are you’re not thrilled with your income yet. And there may be conflicting ideas in your head about taking money for coaching.

First there’s the idea “Well, I’m a new coach so I shouldn’t charge much.”

But totally at odds with that is the desire “I want to be financially successful at this.”

And then, there’s this other idea that can come with the helping professions “Money isn’t that important to me.”

It’s like mental whiplash.

So first … compassion. I feel ya, because as a new coach I was thinking those same things. One of the coaches in my Facebook group — Prosperous Coach Club —said it so clearly:

“As someone new to the field you desire to earn a good wage but setting fees is like the taboo topic. It is uncomfortable. You feel your skill set and knowledge is worth it but fear your lack of experience being newly in the field doesn’t warrant it.”

Exactly. Thank you for that Jenny.

Most new coaches charge fees that will keep them earning below the poverty level. The strange thing is that if you applied for a job you’d never say ‘yes’ to the rates you’re paying yourself!

You deserve to earn more. Period. And deciding to own your worth is all you need to do. 

Rather than thinking that you should charge as a newbie, own your life and work experience. Charge to sustain yourself.

Be a good boss and pay yourself well. Everyone wins. You, your family, your clients – everyone!

Let’s take a more pragmatic and dispassionate look at this.

Do the Math

Think from the get go like a business owner and do the math.

What I mean by doing the math is to actually figure out what you want to earn and then play with the number of clients and fees per client you’ll need to earn that much.

Now to demonstrate this I’m going to keep things simple. In the last episode I suggested there’s a much better way to price than by the session or a package of sessions.  And I stand by that. But to make doing the math easier to understand I’m going to talk about pricing by the single session.

Let’s say you want to earn $100,000 annually and you’re charging $100 per one-hour session. 

To earn $100K, you’ll need to have 1000 paid client hours each year.

Let’s take this a step further and divide 1000 paid client hours by 50 weeks. That’s assuming you’ll take 2 weeks off each year and work the other 50. 1000 divided by 50 = 20. 

You’ll need 20 active clients paying $100 for their weekly session.

Does have 20 paying clients each week sound doable?

When I first started as a coach, I would have said ‘yes’. I had the illusion that enrolling coaching clients would be easy. Every one wants a coach, right?

But 20 years in I now know that it takes a lot of marketing and enrolling to have 20 clients. And serving 20 clients per week is a big client load! 

The largest number of 1:1 clients I’ve worked with is 15 and I found that to be far too many clients for me. I’m more comfortable with 10 one-to-one clients at time.

Consider how much work it would be to find, enroll and maintain 20 active clients every week.

Sure, you might leap to the idea of doing group coaching or having an online membership program, and you could do that eventually. 

The reality is filling those groups and building that membership program is a big endeavor fraught with challenges. It’s something that fits better later on once you have a leads list and know better what you’re doing.

As a new coach, to keep your overhead and labor low consider offering only 1:1 coaching for a while. Build up your leads list and your reputation. Later, you can try group programs.

I talk about this in my episode called The Simplest Coaching Business Model.

Now let’s give you a raise to make it easier to earn 6 figures.

Let’s say that you decide to increase your fees to $500 per session but still aim for $100,000 annually. You deserve that raise. Make your life easier.

At that rate you only need 200 paid client hours per year. Divide that by 50 weeks. 

You need only 4 one-to-one paying clients each week. 

Now, that’s more enjoyable and sustainable than 20 each week.

Decide To Raise Your Coaching Fees

But you might be thinking, well, Rhonda, how can I charge $500 for one session? Who would pay for that?

You’d be surprised. I’ve seen a lot of coaches charge much more than that.

But know this … they have put a lot of strategy behind their pricing. It starts with:

These are all the things I teach new coaches how to do.

It’s not just about throwing up a website selling life coaching or some other type of coaching and enrolling people by the session.

This doing the math exercise was simply to illustrate how to think about paid client hours and how as you price higher you make earning well a more realistic scenario.

I suggest that you do not charge by the session at all. If you haven’t heard my last episode, go back and listen to understand this. It’s at prosperouscoach.com/56

In any case, you can’t begin to earn well until you charge more.

Decide to give yourself a raise.

Two years into full time coaching, I distinctly remember feeling so frustrated with my income. I couldn’t figure out how to break through the blocks I had about it.

And then I had a mental break through. How did I do that?

One day I simply decided to raise my fees. In fact, I challenged myself to raise my fees by 25% with each new client I enrolled.

And that’s what I challenge you to do now. With each new client you enroll, increase your fees by 25% or more. You’ll be amazed how you take a leap in the way you position yourself and own your value.

My preferred method for raising fees is simply to charge higher fees for new clients. 

You can also raise fees across the board with existing clients by giving them notice. Tell them that as of a specific date your fees go up to a new amount.

Increasing Your Fees Helps Your Coaching Clients Too

Sometimes we don’t consider the effect that low fees have on our prospects and clients.

As I increased my fees, my client took bigger leaps.

They were more invested both financially and emotionally in the work so they showed up more fully, put more into their actions. And because of that, they were more ideal clients for me so I enjoyed the work more.

  • As I increased my fees my confidence grew.
  • As I increased my fees I was able to be more choosey about clients and opportunities.
  • As I increased my fees I developed better marketing, enrolling and coaching skills.
  • As I increased my fees I relaxed.

And relaxing had a profound effect on every aspect of my life, especially my ability to enroll clients. I had fewer ‘no thank you’s’.

My conclusion? If you really want to do the meaningful work possible with coaching and get paid well, charge higher fees

Now everyone has their glass ceiling. I’ve hit a new one over the years and had to work with my mindset to get through it.

There came a time for me where earning more was no longer my goal. Serving more people and living my life the way I want to are the reasons I charge the way I do.

Here is my recommendation for you:

  • Don’t be about money, be about value and sustainability.
  • But, do be a smart business owner.
  • Set revenue goals.
  • Do the math to plan how you’ll achieve those. 
  • Take smart actions.
  • Keep making incremental improvements in your mindset and habits.

In the Next Episode: Start Planning for Profit In Your Coaching Business

Ep 56 – Are You Turning Away Coaching Clients with Your Pricing?

This episode is the 3rd in my Money Mastery series.

You’ll learn a powerful shift in the approach to your coaching business that will dramatically boost your earning power.

Are You Charging Fees for Coaching Sessions?

Raise your hand if you’ve ever priced your coaching by the session or by the hour.

You’re not alone in that. It’s the typical pricing strategy for new coaches. I raised my hand too.

I used to charge by the month for a certain amount of sessions. Now, that’s slightly more strategic than charging by the hour, but as pricing strategies go, it’s on the low side of effective.

Today, the only time that I charge by the session is for my Strategy Session. You’ve heard me mention this from time to time. It’s a one-off 90-minute session where you can get my expertise to help you choose a smart target audience and coaching niche.

Those are small but crucial steps for your success. Once you have your audience and niche figured out it’s like being let out of mental prison after a long stay. Sunshine. Fresh air. Freedom.

Consider giving yourself a special Christmas present that will be a turning point for you in your coaching business. Grab a Strategy Session with me.

There are two weeks left this year to invest in a Strategy Session before the price goes up in 2020.

Jil Hunsberger wrote this beautiful testimonial for her session:

I am so thankful I invested in a Strategy Session with Rhonda. I was at a standstill trying to define a viable target market and had spent way too much time and money trying to figure it out on my own with nothing to show for it. In one amazing session with Rhonda, we were able to define a unique target market that I am truly excited about. Rhonda is very good at what she does and I am excited to continue working with her to grow my business in the coming months!

Thank you, Jil. We had a lot of fun in that session!

The Coach Practitioner Approach

So why is my Strategy Session the only time I charge by the session now?

Because when I used to ask for fees for a certain amount of coaching sessions each month it kept me from earning well as a coach.

That by-the-session pricing approach is what I call The Practitioner Approach.

If you think of yourself as a practitioner of coaching then you are selling coaching and your only strategy to earn is to try to convince people to buy coaching from you.

Sound familiar?

That Practitioner Approach is the same thing that therapists do, that body workers do.

There’s a HUGE limitation to selling your services by the session or even a package of sessions.

Because you are putting a price to your time, every prospect and client is mentally calculating the value of each session against the cost.

They keep asking themselves …

do I really need any more of these sessions?

And that’s the problem with selling coaching. More about this in a minute.

Most likely you learned to price your coaching this way from your coach training school. It makes perfect sense when you’re first learning how to coach, you need to fulfill a number of hours of coaching to pass or certify.

If you have finished your coach training … I invite you to STOP that pricing practice now.

It’s time for a wholly different pricing strategy that won’t hold you back from earning well.

And it begins with key mindset shifts:

Shift to Being a Business Owner

First, stop thinking of yourself as a coach practitioner and start thinking of yourself as a business owner. Rather than running a coaching practice, run your business.

I know the whole world of business ownership can feel intimidating. But it can also be hugely empowering.

When you take ownership of your business it will raise your confidence. It puts you in the driver seat of your results.

Stop Selling Coaching

If you’ve been listening to my podcast for a while no doubt you’ve heard me suggest something that at first sounds crazy.

When you talk about coaching and sell people into a coaching program you’re pushing a big rock up a steep hill.

People don’t know that they want coaching. And some people have a negative opinion of coaching or they immediately rule it out for themselves because they think it’s like therapy and expensive.

In their minds, coaching is a nice-to-have for wealthy people instead of something they urgently want right now.

I talk about this in my most popular ever episode called Why is Coaching a Hard Sell?

Yes, you’ve been trained as a coach. Yes, coaching is highly valuable. You and I know it.

But if you’re trying to sell it you’re working very hard to earn very little.

What do I suggest instead?

  • Target a unique viable audience and find out what they want so much they’ll invest in you help to get it.
  • Then, gear your entire business around serving those clients towards that ultimate outcome.
  • Your website is no longer an online brochure about the type of coaching you do but a place your target audience feels at home with a strong conversion process to build trust and a desire to work with you.

Will you still coach your clients? Yes, because coaching is the main skill in your toolbox. But you’re no longer selling coaching – something people don’t readily buy.

And if you create a long-term private program that helps that audience reach their ultimate outcome one milestone at a time, you can charge much higher fees. And that means:

  • You need far fewer clients each year.
  • You’ll do less marketing to find and enroll them.
  • You’ll do deeper work with each client.
  • You’ll never have to try to convince people to buy coaching ever again.

Your target audience will be inspired to enroll because you’ve tailor made a program that helps them overcome specific obstacles while helping them reach their big goal.

They trust you because you’ve bothered to research what they want, what’s in the way and then put a clear pathway together to help them reach what’s been unreachable on their own.

And because they are investing in a whole program up front and it has milestones that get them where they want to go, they are not thinking about the money and calculating value. They are fully focused on the transformation.

And we all know that clients focused on their own transformation make greater leaps.

So, are you ready to make these shifts? I double dog dare you to try it. Get the word “coach” and “coaching” out of your vocabulary, off of your website. You’ll be amazed how things will change for you.

And if you need help to make these shifts in mindset and approach and get everything set up in your business to make enrolling great clients easy for you, check out my VIP Coaching Business Breakthrough program.

In the Next Episode: Coach, Is It Time to Give Yourself a Raise?