Coaching ~ Setting Fees and Collecting Payments

Replies to This Discussion

Permalink Reply by 48 Days on October 15, 2008 at 11:06am

Hey Kirk,

This is a great question. Since I consult with businesses I don't face this same challenge. However, I'm really interested to see what people have to say about this.

Jon

▶ Reply to This

Permalink Reply by Eric on October 15, 2008 at 2:46pm

Kirk,

Great discussion.. I find it relatively easy to close the sale.. I got into coaching because, like a lot of us, I was broke and in debt like most of my clients. When I express that I was in my clients shoes and that there is hope, if they are ready to get out of debt, they usually sign up. At first I was letting clients break the fee into three installments.. I'd cash one check prior to the first session then the others 30 days apart. This worked with limited success as I found that clients budgets were tight, and I felt guilty about straining it even further with my two $100 checks. Lately I have been asking for half up front anf another check for the second half at the first meeting with the uinderstanding that I'll cash it a month down the road.. I'll see how much better that works.. (two checks as opposed to three.) Of course I only offer to break it up into payments if the client indicates they need it.

As far as fees go.. the lowest fee I charge is $389 for six months of support. That's what I charge 95% of my clients It the client makes upwards of 90 - 100K I raise it to about $440.. I have been told I don't charge enough by a couple of the more experienced coaches, and I think that's probably true. That's something I really need to work on (I always feel so sorry for the stories I hear at the consultation, I can't bring myself to charge the full value of the service) I have a feeling I'm not alone in this dilemma) I have been fortunate in the fact that I do a lot of counseling work for my church as well as lead FPU there, so they let me use the church for my counselling, thereby lowering my overhead as I pay no rent for office space. It sometimes can be a challenge to get space. I know I'll need an office within the next 12 months, so I probably should raise my fees a bit to get prepared for that.

▶ Reply to This

Permalink Reply by Joel Boggess on October 15, 2008 at 3:33pm

I have been in the coaching business for about 2 years and have experimented with my price models. Consistently, my prices have been going up and my client load has been on the upswing. Currently I have 3 packages that people can choose from ranging from a materials only options to a full seven course meal.

▶ Reply to This

Permalink Reply by Joel Boggess on October 15, 2008 at 3:34pm

Eric said:

Kirk,

Great discussion.. I find it relatively easy to close the sale.. I got into coaching because, like a lot of us, I was broke and in debt like most of my clients. When I express that I was in my clients shoes and that there is hope, if they are ready to get out of debt, they usually sign up. At first I was letting clients break the fee into three installments.. I'd cash one check prior to the first session then the others 30 days apart. This worked with limited success as I found that clients budgets were tight, and I felt guilty about straining it even further with my two $100 checks. Lately I have been asking for half up front anf another check for the second half at the first meeting with the uinderstanding that I'll cash it a month down the road.. I'll see how much better that works.. (two checks as opposed to three.) Of course I only offer to break it up into payments if the client indicates they need it.

As far as fees go.. the lowest fee I charge is $389 for six months of support. That's what I charge 95% of my clients It the client makes upwards of 90 - 100K I raise it to about $440.. I have been told I don't charge enough by a couple of the more experienced coaches, and I think that's probably true. That's something I really need to work on (I always feel so sorry for the stories I hear at the consultation, I can't bring myself to charge the full value of the service) I have a feeling I'm not alone in this dilemma) I have been fortunate in the fact that I do a lot of counseling work for my church as well as lead FPU there, so they let me use the church for my counselling, thereby lowering my overhead as I pay no rent for office space. It sometimes can be a challenge to get space. I know I'll need an office within the next 12 months, so I probably should raise my fees a bit to get prepared for that.

▶ Reply to This

Permalink Reply by Victor Encinas on October 15, 2008 at 4:33pm

Hi Kirk,

As a financial and career coach, I have a fee schedule based on what I believe the market value of my service is. I always collect up front (before coaching). I advise my clients that if we get the coaching fees out of the way up front, we are able to concentrate on our coaching without the distraction of $. I will often break up the fee into 3 payments, but I must have 3 checks in hand before I start the coaching. Hope that helps.

Victor

▶ Reply to This

Permalink Reply by Terry L Chandler on October 18, 2008 at 7:16am

Happy weekend, Kirk!

When I began conducting the 48 Days to Work You Love workshops, it was suggested that I ask the participants to pay me what they felt the workshop was worth when we finished. One participant paid me, the other four disappeared. Consequently, I learned another way how not to close!

Another suggestion was to conduct the workshop over a five week period, requiring $199 for the entire program. That would break down to a $40 per session fee. What is your future worth?

Five years ago, at least here in North Carolina, the fee was conceivable to most people. Now, however, the business atmosphere has changed. Jobs are gone, many people are collecting unemployment and/or living off of their pensions/investments. They are scared...

As for me, I learned the power of optimism many years ago. I started thinking about solutions as opposed to focusing on the problem. I also learned that people are much more valuable than they think they are, and God is much more interested in our character than our comfort. When we prioritize well, solutions come to us (though not always the way we think they'll come!).

I'm an avid reader. I strive to listen twice as much as I speak (two ears, one mouth, and for good reason, as we only have one brain!). Also, it pays to wait for the other person to stop speaking before we respond. They'll usually tell us how to sell them on an idea or concept, if we listen.

Also, I personally find that too many questions annoy me, alianating me from the person I'm interacting with. Keep your thinking fresh, relaxed, and hopefully humorous!

These days, "If you want to capture someone's attention..."laugh!</</b>i>. After all, God does!

Thanks for your interest, Kirk. I hope this helps!

Terry Chandler
owner TLC Touch



Have a great weekend!

▶ Reply to This

Permalink Reply by Kirk Anderson on October 18, 2008 at 9:47am

Hey Terry,

Do you have a formal business? Website?
May I suggest that you take the opportunity on your posts to share it with others. You never know who may need something that you can provide. Just add a link using the link button at the top of the text box.

Good Luck with your Coaching Business

Kirk Anderson
River Valley Coaching
Terry L Chandler said:

Happy weekend, Kirk!

When I began conducting the 48 Days to Work You Love workshops, it was suggested that I ask the participants to pay me what they felt the workshop was worth when we finished. One participant paid me, the other four disappeared. Consequently, I learned another way how not to close!

Another suggestion was to conduct the workshop over a five week period, requiring $199 for the entire program. That would break down to a $40 per session fee. What is your future worth?

Five years ago, at least here in North Carolina, the fee was conceivable to most people. Now, however, the business atmosphere has changed. Jobs are gone, many people are collecting unemployment and/or living off of their pensions/investments. They are scared...

As for me, I learned the power of optimism many years ago. I started thinking about solutions as opposed to focusing on the problem. I also learned that people are much more valuable than they think they are, and God is much more interested in our character than our comfort. When we prioritize well, solutions come to us (though not always the way we think they'll come!).

I'm an avid reader. I strive to listen twice as much as I speak (two ears, one mouth, and for good reason, as we only have one brain!). Also, it pays to wait for the other person to stop speaking before we respond. They'll usually tell us how to sell them on an idea or concept, if we listen.

Also, I personally find that too many questions annoy me, alianating me from the person I'm interacting with. Keep your thinking fresh, relaxed, and hopefully humorous!

These days, "If you want to capture someone's attention..."laugh!</</b>i>. After all, God does!

Thanks for your interest, Kirk. I hope this helps!

Terry Chandler
owner TLC Touch



Have a great weekend!

▶ Reply to This

Permalink Reply by Matt Wegner on October 18, 2008 at 8:43pm

Hi all,
Kirk and I have discussed this many times over the last year or so. I'll put in my 2 cents. I've been coaching part time for a little more than a year. My fees are quite low right now, and I wind up doing a fair amount of pro bono coaching. I have been gradually raising my fees to control volume (mainly for my own time management). I found recently that by not trying so hard to close the sale, more sales come. It seems that by offering 3 payments up front, people seem to be more willing to take the plunge. I think it's because broke people are used to thinking in terms of monthly payments. I always ask for at least the first payment up front.

The big thing for me lately is being as open and honest as possible. By simply stating the facts instead of trying to convince them, I build a better relationship with them. I also make a genuine effort to listen to their needs and find solutions tailored to their situation. I currently close with 50% of the people I meet with. I'd like to get that a little higher, but I'm ok with that ratio right now.

▶ Reply to This

Permalink Reply by Justin Lukasavige on October 24, 2008 at 8:07pm

What a great discussion guys! What it really comes down to is that you need to ask your prospects where they want to be in 6-months from now (if you're offering 6 months of coaching for instance). If you can show them that with your help they could really be there, they have very little standing in the way of them taking you up on the offer. If they don't sign up with you there is something else in the way, such as not creating enough value. You probably gave the fee away too soon in the process.

I'm working with a family right now that I met with for free last week. They asked me point blank how they could pay me if they are already behind on their bills. Do I want them to put me first and not pay some of the others?

That's a great question that really speaks from the heart. Clients are often scared (or very emotional) when they're sitting in your office. You can't go wrong by telling them the truth. In this instance I asked them to envision where they will be if they don't go through with the program. It's ultimately their decision and they have to be willing to make some sacrifices and do what it takes. I also told them I was confident I could fit it into their budget.

I worked with them to set up their initial budget this week. When they came in they were about $1,800 in the negative each month. When they left they had about $700 left over each month. That's a pretty good swing if they can work the program. Was committing to the fee worth it? Absolutely, but they needed to see that before we began coaching.

If you convey that feeling to them in the initial consultation you can't go wrong.

Lukas Coaching

▶ Reply to This

Permalink Reply by Eric on October 25, 2008 at 3:46pm

Justin,

A $2500 change in position is amazing! What sorts of changes did you make to achieve that?

▶ Reply to This

Permalink Reply by Kirk Anderson on October 25, 2008 at 3:57pm

Wow! Great response! I am totally interested in the swing from -$1,800 to +$700! How did they do that? Were they way over spending or did they get a second job? Maybe you could touch on how you motivate them to kick it into high gear.
Thanks for the post!

▶ Reply to This

Permalink Reply by Kirk Anderson on October 28, 2008 at 10:29am

Thanks Dan! So the real question is...do you make them pay for your lunch?

I've heard you say that Financial Coaching is a difficult style to make financially viable. I do charge more for my business coaching and hear many times that most coaches should raise their fees to add "perceived value." Currently, I am working on my own fee structure too. It seems that many coaches start off coaching because they experienced a significant life change and want to share what they learned with others. However, many of the coaches don't know much about running a business, sales, or marketing. They love people, but don't know how to make it work as a business.

My recommendation to coaches is to read up on business and sales books in addition to all the other resources that they are studying. I also would suggest that every coach has a coach. Someone who can short cut your learning curve by telling you what doesn't work before you try it.

Thanks Dan for what you do. I am sitting in my office working for myself because of the advice I received from you just by tuning into your radio show with Tim Knox. I am "unemployable" and excited about what I get to do everyday.

God Bless, Kirk

▶ Reply to This

▶ Reply to This

• ‹ Previous
• 1
• 2
• Next ›
• Page