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 59 – How To Develop Your Signature Coaching Program

This episode is part of my Money Mastery series. The series has been getting great response from listeners.

About episode 58 —planning for profit in your coaching business — Roger said he had several takeaways:

  • Having a real understanding of the stages of business.
  • The idea to set an expense budget.
  • “The big one is that I realize I was relying on my part time paid employment to support my coaching business as more of a hobby. So I have a shift now into thinking of it as more of a business and your great tip of taking a salary from my coaching business to pay bills will be fantastic.”

Thanks for sharing that, Roger!

Today’s episode is about a better way to package a coaching program and earn more than by the session or group of sessions.

First, let’s talk about schools of thought. There are schools of thought about everything.

If you’re still in coach training some trainers may insist that coaching should not be programmed. In other words, you shouldn’t create an offer other than coaching sessions because it means that you take away the coach’s agenda.

If you’ve been listening to me for a while you know I believe that you can both serve a client’s agenda AND offer a specific program for a specific audience that solves their biggest problem and gets them where they want to go.

After 22 years of experience in my own coaching business and helping hundreds of coaches reach financial success in their businesses in my private VIP program, I know that selling coaching by the session only may keep you at poverty income levels.

So what is a better way that helps you earn well as a coach? I’ve been leading to this in the previous episodes so I hope you’ll listen to those too.

Create a Customized VIP Program

This is what I help all my clients create.

It helps the coach feel confident they have something of value to offer. They learn to articulate what they do in meaningful terms and without the agony of trying to convince people to buy coaching.

Of course, like all successful aspects of a coaching business, creating this program has critical steps that go before.

  1. It begins by targeting a viable audience – one that’s full of seekers – people who do invest in their professional and personal growth.
  2. Next you uncover their biggest known problems and the ultimate outcome they want to achieve. That becomes your coaching niche.
  3. Then, you put together a signature program tailor made to that audience. Your program has a clear set of milestones that you’ll help your clients achieve on the way to that ultimate desired outcome.
  4. Then, you learn how to articulate that to prospects in a way that’s benefit rich, supplying them with assurance of both tangible or concrete and intangible or emotional things they’d like to achieve with your help. That there is a structure in your program helps them to trust you and feel inspired to invest.
  5. Lastly, you need a strategy to attract clients, build trust and rapport, then gently send them through a conversion process, sometimes called a funnel, so they are motivated to have a Discovery Session with you, where you’ll enroll them.

Getting all of this done isn’t easy by yourself.

It helps to have a guide like me help you with all the steps no matter how big or small.

Examples of VIP Coaching Programs

For example, let’s say you’re a relationship coach helping people to find their soul mate. Your program might include the following milestones – takeaways you’ll help your clients achieve:

  • Identifying personal values and partnership values. What are their must haves and deal breakers in their life partnership?
  • Getting ready for a partner. What are their strengths but also habits and behaviors in need of adjustment? What are their limiting beliefs about relationships? You might even have something like a life makeover in your program.
  • Setting first date goals. Helping them set personal boundaries and show up with confidence.
  • Discovering the best places to meet people and connect.

There’s a clear arc to the program and plenty of opportunity for the client to bring the agenda to sessions. This structure is more about helping prospects feel confident to work with you.

Or, let’s say you’re a leadership coach and target HR leaders to gain greater impact in their role – something you’ve discovered from market research that’s a top goal of HR leaders. Your program’s milestones might include:

  1. Creating a vision for the impact they wish to make.
  2. Identifying what’s been in the way.
  3. Uncovering their professional strengths and learning how to leverage them.
  4. Identifying skills and behaviors that need attention and areas to stretch.
  5. Develop good habits to strengthen their resilience, mindset and competencies.
  6. Building their rapport, identifying sponsors and other relationships that would help their star rise.
  7. Helping them develop a thicker skin and become bolder in meetings.

You can see that the focus in these descriptions is not about you and your skills as the coach. It’s about the target audience and what they want. But at the same time these kinds of milestones are what all coaches can help their clients achieve.

Either of these programs could be a 4 – 6 months or longer.

Bundle Significant Value Into The Program

So far in your coaching business you might be simply trying to convince a client to hook on … to want coaching and be willing to invest in a certain number of sessions up front.

It’s painful. And it’s without context especially if you haven’t narrowed to a viable audience, done market research and discovered what your audience wants so much they’d be willing to invest in your help to get it.

Programming your coaching into a VIP program creates a context for why a person would want to invest at a high level in their future success. And, you can develop this program without even using the word “coaching”. That’s your toolbox not an outcome they know they want.

Identify What They’ll Get In Your Coaching Program

The next step for creating your program is to identify the features. What do they get when they invest in the program? Consider bundling some of these things into your program:

  • A certain number of private sessions, say 10 – 18 sessions depending on length of your program, your preferences, and what it takes to achieve the goals
  • A certain number of group sessions or access to a closed Facebook group for community support
  • Annual retreats
  • Half or full VIP day where they fly out to work with you face to face on some aspect
  • Unlimited emails to you
  • Session recaps
  • Pre-created guides, forms or assessments to ease a process.

These things still involve coaching and coaching skills. But they add excitement to a program and help justify the fees to enroll.

In the Next Episode: How to Price Your Signature Coaching Program