3 Key Factors to Increase Your Coaching Rates
One of the biggest dilemmas that coaches face is that of raising their rates. It can create fear and uncertainty. Here are some examples of common concerns coaches might have:
- “Will people be able to afford my prices?”
- “What if people don’t get the results to justify the increase of my prices?”
- “Will people even pay me if I increase my prices?”
- “What if my existing clients stop working with me if I increase my prices?”
The truth is there are many coaches charging $5,000-$25,000 USD for their coaching services. So, what is the difference between the coaches who charge just a couple of hundred dollars for their service and the coaches who can command thousands of dollars in fees? It all comes down to three key factors.
Key Factor 1: Target the Right Prospects
One of the most important things to do as a coach and business owner is to target the right prospects. You could be the best coach in the world or have a fantastic coaching program that delivers phenomenal results, but if the people you are targeting aren’t able to pay or don’t have an urgent need for the end result that you are promising them, then you will struggle to get clients.
Just like it’s a huge challenge to sell ice to eskimos, you certainly do not want to sell to people who are not in the best position to take up your coaching services. As such, you only want to target prospects that have the ability and the willingness to pay for your coaching services.
For example, if you are a Career Coach, targeting working professionals might be a better for your business than targeting fresh graduates. Working professionals are more likely able to afford your coaching services than fresh graduates who could still be heavily in debt with student loans, making it difficult for them to hire you.
Also, you want to target people who have a strong desire to get the end results you are promising. The stronger the desire, the greater their willingness to take up your coaching. For example, if you’re a Dating/Relationship Coach for women, then targeting women in their 30s and 40s might be better than targeting younger women because they may be more interested in settling down than their younger counterparts.
Key Factor 2: Target Big Pains and Problems
It is very important to understand that people want coaching because they have a problem they want to solve. The bigger their problem, the greater their pain, and hence, the more urgency they feel to get it resolved.
Humans tend to do things to either move towards pleasure or move away from pain. More often than not, the bigger motivation is to avoid pain. So, when you can identify the biggest pain and problem that your prospects want to avoid or be relieved of, they are willing to pay a premium amount for your help to solve it.
Key Factor 3: Package an Irresistible Offer
Now that you know the biggest pain and problem your prospects are going through, you need to package an irresistible offer as a solution for them—one that is specific to their problems yet all encompassing.
People do not buy products and services. They buy a better version of themselves. So, you want to position your coaching services not as features or benefits but as results that they can get from your coaching services and programs. Let your prospects feel that they can get clarity when working with you.
If you implement these three key factors into your coaching business, you will be able to increase your coaching rates with little to no resistance, and you will also get better clients as a result.