If you’re wondering how to price your coaching to maximise your revenue, you are not alone. It’s something that most of us struggle with at some point or other during our businesses. The good news is that however this nervousness around pricing shows up for you, there are things you can do to help.

In this episode of Women in the Coaching Arena, Business mentor and Coach Jo Lott shares the main ways feelings or nervousness around pricing can show up and what to do about them.

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Transcript

[00:00:00] Hello and welcome to Women in the Coaching Arena podcast. I'm so glad you are here. I'm Jo Lott, a business mentor and ICF accredited coach, and I'm on a mission to help brilliant coaches build brilliant coaching businesses. In this podcast, I'll be sharing honest, not hype, practical and emotional tools to support you to make the difference that you are here for.

Welcome to the second episode of Women in the Coaching Arena podcast. Today we'll be [00:00:30] discussing how to price your coaching to maximise your revenue, and this topic is close to my heart because so many coaches work for free or for really low cost for years, which is not sustainable for the coach.

And while it comes from a good place of wanting to make a difference and make coaching accessible for more people,

It's essential to create a clear strategy for pricing your coaching so you can have a sustainable living from coaching. It's also good to [00:01:00] know that having a good pricing strategy is not just beneficial for you, but it's actually beneficial to your clients too, because we have all been taught throughout life to associate price with value.

So most people would choose the Gucci handbag in front of them. vs us the Primark handbag, because we think the Gucci handbag is better, more valuable. So it's the same if you are pricing or coaching really low or giving [00:01:30] it away continuously for free. People will think it's not as good as it actually is.

Because as a coach you have a unique set of professional skills and experience just like any other professional out there.

Doctors, lawyers, accountants, all of those other professionals, even if they are working for charities or doing really amazing work, they aren't giving their services away for free or for really low cost.[00:02:00]

So you don't need to either. You are worthy of receiving money for your professional amazing skills and qualifications.

And as a woman, we have to balance our time and family life with our mission and dreams. You will wear so many hats as a woman and solopreneur, and each role competes for your attention. So it is really crucial that you take the time available and price [00:02:30] your services in order for you to reach your financial goals and create a sustainable coaching business.

So first, let's talk about the capacity calculation. So it's a really easy formula that helps you set your pricing strategy. So if you think about your monthly revenue goal, so think about that for a moment. How much do you want to earn per month? And now think about how much you want to earn per [00:03:00] client per month?.

So for example, if you want to make 5,000 pounds a month and you charge £250 per month per client, your capacity is 20 clients. So to reach your goal, you would need to have 20 clients at any one point to make your 5,000 pounds per month. So obviously the higher the prices, the fewer clients you will need [00:03:30] and translating into less marketing, less time, more energy for each client, and better testimonials because you have that extra energy to give each of your clients.

So if you're currently charging per session or for a block of say, three sessions, which isn't going to create a really sustainable monthly recurring revenue for you, don't worry, we will now move on to how to create a [00:04:00] really good, tangible, high value offer that can build you a sustainable coaching business.

Let's talk about my intangible to tangible process, because coaching is intangible. The average person doesn't really understand the value of coaching, and so we need to create something really tangible that the average person actually understands what they're buying when they invest in your services.

1. So have a think about what Hell [00:04:30] Island looks like for your clients.

Where are they now? In tangible terms. What are they actually doing in the morning? What are they doing in the afternoon or at lunchtime? What are they doing in the evening? Are they waking up dreading the sound of that alarm because they have to drop their kid off at nursery at seven in the morning and rush on that train.

What's going on for them in real terms in their life right now?

And then have a think about what does Heaven [00:05:00] Island look like for them? So what do they want more than anything? And this is why market research is so helpful, because it's easy for us to generalise these things and we really want to hear your ideal clients' actual language. Like what do they say they want to you or to their friends down the pub?.

What do they say in real, real words, do they want. Work that they love? Would they call it work that they love or would they just say, I just want to [00:05:30] earn a living around my kids? What do they actually say in their terms?

2. So let's move on to step two of the framework. So the second step is to map out your boat. So your, ideal client is in Hell Island right now. We want to take them to Heaven Island. So they are gonna get in your boat. And what milestones are they gonna go by? From hell island to heaven Island?. So for example, if your ideal [00:06:00] client is stuck in a rut and you are taking them to work that they love, they may go by the island of knowing their values, knowing their strengths, looking at the market to see what's available. They may need to do their CV or interviews.

They are the general milestones that would need to happen to take your ideal client from Hell Island to Heaven Island if they wanted a great career.

So [00:06:30] that is now your coaching package, so you can clearly outline a few high level milestones that you will be working through with them to help them to actually reach their goal.

So now you are clear on the dream that your ideal client has and how you'll get them there.

You can charge more, have less competition, describe what you do in a way that makes people want to buy. And if you are worried about the word offer [00:07:00] promise, don't worry. I know you'll do everything you can to design a program that helps your ideal client achieve what they want because, you care, you are a coach, and it's a shared goal.

They will play their part because it's their actions that will generate their results. You know, there is nothing we can do, no matter how much of an amazing coach you are to take those actions for them. So it's about knowing that most people [00:07:30] realise that it's their responsibility. So just like , you sign up for a diet, or a gym membership, you do not expect to get fit if you eat biscuits every day and don't show up at the gym. Just like your clients will realise if at the end of their coaching session they commit to reflecting on their strengths or whatever might come out of your session, and then they arrive at the next session and they haven't done it, they will generally know, they didn't do their part.

Most people understand that if [00:08:00] they don't put the work in, they are not gonna get the results.

.3. And so step three, finally, we need to choose your price. So when determining your price, it's easy to think as a coach that it's all profits, especially when you start out. I remember I definitely said to my first coaching group that I went to, but , isn't this all money in my pocket.

And they said, oh, no, no. Before you know it, you'll realise that you spend a lot on business development, on extra [00:08:30] training, on books, on Zoom subscriptions. There are still costs as a coach. So it's worth remembering that it's not just your hourly rate you are thinking about here. It's your website fees. It's all the time that you take to market to get that client. It all needs to be taken into account, into your pricing. If it gives you a rough idea, I generally pay myself 50% of the fees I receive from a client. The rest goes [00:09:00] onto business building activities, coaching programs, training

it subscriptions branding photography

tax, for example. So, that gives you hopefully a rough guide that even if you are thinking of it as say, 200 pounds a session, actually it's really a hundred pounds a session.

So now you may be thinking well, how much are we talking here? Like, what's, what's normal? What's not? So what I say to people is that

it's [00:09:30] based on the transformation you provide and the tangible difference in their life.

So for example, if you are helping a really big corporation solve a really important problem, then your price will be high. If you are helping somebody to set up, say, a lead magnet, then the price is gonna be much lower, like, yes, it's amazing to have a lead magnet. Don't get me wrong, I teach that myself.

But if that's what you are teaching, then that may be a lower [00:10:00] cost than if you are helping a six figure entrepreneur grow to seven figures, for example. So it's about basing your pricing on the transformation that you provide.

So finally, let's address the questions in your mind that may have been coming up throughout this episode. So maybe you've been thinking, well, that's all well and good saying this, Jo, but who's gonna pay that? Or you might think I'll never be able to charge that much. It's unethical. [00:10:30] Or you might think I would never charge those sort of fees.

It's not possible for someone like me in my niche. And I hear you. As a woman, we have often been socialised to care for others and expect nothing in return. We've been fed messages that women with money are greedy, self-centered, shallow, whereas men with money are powerful and successful providers for their [00:11:00] family.

And if you think about it, in the first sense, like most women do, then you will literally turn away opportunities, And I see this happen all the time with the amazing women I work with. If, for example, they're discussing work with a charity or a not-for-profit organisation, they immediately assume that that means they need to work for free.

Because of course if they're a good person, [00:11:30] they'd do it for free, and often the organisation is not actually saying that. But it's a hidden assumption and belief from the coach. So when I ask more, have they said that they want this for free, then the coach realises that it's their assumption, and it may not be that the organisation is expecting everything for free.

And again, back to the lawyers, the accountants, [00:12:00] all of the other professionals working with charities. Are they doing the charities accounts for free? Are they advising them about their legalities for free? So answers on a postcard. I would love to know if other professionals are giving their professional service away as regularly as so many coaches do.

So let's go back to the belief that receiving money from a charity would make you a [00:12:30] bad person. Greedy, not kind, not caring, not considerate. And don't get me wrong, I feel all of this too. My upbringing was very traditional with my dad earning all the money and my mum being powerless with having to ask for money for the shopping and the things we needed.

And I think to be able to move the needle with reducing that gender pay gap, we really do need to explore our own beliefs. So things like, I don't [00:13:00] want people to think I'm greedy. I don't want people to think I'm money grabbing, I'm uncaring. I don't want people to think I'm horrible. I don't want to feel shameful. I don't want people to think that I'm selfish. And now let's stop and ask ourselves how many men do this work entirely for free. I would love to have the stats on the amount of female coaches doing pro bono work and the [00:13:30] amount of male coaches doing pro bono work. If you have those stats, please do share.

I think it would be super, super interesting because men have been taught that making money means they're powerful. They're a good provider for their family, and of course they'll earn money for their work because they're respected and valued if they charge high fees.

So I wanted to just share these thoughts as something to consider, because [00:14:00] these are the things I strive to model because no one will do it for us. We need to step up and start valuing our time and our contribution because we genuinely get paid for the value that we create in the world. So allow yourself to receive the value in return for the value that you are creating.

Because you have professional skills, qualifications, and masses of experience, and you [00:14:30] can transform lives, and you are just like every other professional out there deserving to be paid for the amazing work that you do and the transformation that you provide in this world.

And as a woman coach, you create a lot of value and transformation. I know that already from the amazing women I work with, who I am completely in awe of every single day. And you will feel in yourself when the [00:15:00] value you are offering is outweighing the money received. And I definitely have felt that myself and raised my prices recently because I felt more begrudging when I want to have huge involvement and give lots of care, attention, energy to every single client. But if my prices are not in line with that energy I'm giving, I certainly feel it. [00:15:30] So I'm not interested in offering a low-cost cookie cutter approach.

I'm all in, and I need my prices to reflect where I am with regards to my client attention and

transformation and you always want to ensure that people gain more than they expected and that they feel like this was really exceptional value. And one of my favorite phrases is [00:16:00] always deliver more than expected.

And this isn't difficult for you. Anyone who is a coach wants to create amazing transformations. I literally don't know anybody who doesn't. And I speak to people all the time that say, it's not about the money for me, it's about the difference I make in the world. And I'm like, yes, I know. Don't worry.

I don't think many professional qualified coaches are in this for the money.

And it's good to [00:16:30] remember that all your client wants is to belong, to be listened to, to be valued, to be individualised and respected for the person that they are. And that's easy for you because empathy is true to your core and you know intuitively what people need.

I will always support other women who are in the coaching arena as Brene Brown would say

if you are not in the arena getting your ass kicked on occasion. I am not [00:17:00] interested or open to your feedback. There are a million cheap seats in the world today filled by people who will never be brave with their own lives, but will spend every ounce of energy they have hurling advice and judgment at those of us who are trying to dare greatly.

Their only contributions are criticism, cynicism system, and fear mongering.

If you are criticising from a place where you are not also putting yourself on the line. I am not [00:17:30] interested in your feedback. And I absolutely love that, which is why I have called this podcast Women in the Coaching Arena because you get it when you are in the arena, and sadly, most of our friends and family and partners do not get what it feels like to be in the arena trying to make a massive difference in the world and facing so many challenges at actually doing the work that we are here for.

So I see you. I know it's hard. I know it's [00:18:00] challenging and I know it means so much to you to make a difference. So when you are pricing your offers, it can help to do market research or even better ask somebody else who is less attached to exactly what you are working on to do the market research for you because it is an emotional thing, and I think it's also a really deep rooted systematic thing for women to not be able to [00:18:30] really price effectively because there are so many fears around judgment as a woman making money, and also as a woman doing caring work for money. Again, it's not our fault. It is in built that we have always had to take the caring role and expect nothing in return. So it's not an easy thing to overcome. So do seek support in looking into your pricing and what a [00:19:00] reasonable price would be for the service that you are offering?

Okay, so let me summarize where we went this episode.

. 1. So firstly, use the capacity formula to work out what you need to charge each client to reach the financial goal you want each month.

So what's your financial monthly goal and how much do you intend to charge each client on a monthly basis?

2. Second, let's go through the [00:19:30] three step intangible tangible framework to create an offer that demonstrates the value that your client will gain from working with you.

So the three steps are

1. What's their hell island, where are they now, and what's their heaven island? Where do they want to be?

2. The second step was what does your boat consist of? So what milestones or islands are you taking them past on their journey to Heaven Island?

3. And thirdly, what's your price? How have you decided [00:20:00] to price your program taking into account the transformation that you will provide and market research to what the going rate is for this kind of transformation?

Lastly, what beliefs do you need to explore to make pricing, not about you, but about the value that your ideal client will receive from working with you? So what thoughts come up for you when you think about charging for your expertise? I would really recommend writing [00:20:30] them down. If they are going round and round in your head, you cannot explore them.

So write down, they'll think I'm greedy. They'll think that's too much. They'll think I'm not good enough. Write down whatever it is that's going on for you and really explore is it true or is this something that I have literally brought up with that's going around in my head and unable to see a way forward in a rational, logical way.

So it really is imperative, [00:21:00] not just for you, but for all women that you explore and work through those systematic barriers that hold women back. And please do drop me a dm. I have a beliefs worksheet and video I can send you on this to really help you work through those beliefs that may be holding you back from pricing, what transformation you are creating in the world in your coaching business.

I really hope you enjoyed today's episode and found [00:21:30] it helpful. And like I always say, trust yourself, believe in yourself, and be the wise gardener who keeps on watering the seed.

Thank you so much for listening to this episode of Women in the Coaching Arena. Please come and say hi to me on LinkedIn or Instagram and let me know how you are getting on in your coaching business and how you are gonna go for your dreams this year. My name on LinkedIn is Joanna Lott and on [00:22:00] Instagram is at Joanna Lott Coaching, and I'll al

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