Life Coaching Fees – How to Price Your Life Coaching Services in 2023
You’ve finally got your life coaching business started. Great! You’re on a call with a potential client, maybe your first client, and they ask the question, ‘how much do you charge per hour’ or ‘what’s your rate per session?’
If you haven’t prepared already, you will most likely sell your services lower than is recommended. Navigating the world of life coaching can be rewarding and fulfilling, but one crucial aspect that requires careful consideration is determining the appropriate pricing for your services.
With fees ranging from $50 to well over $1,000 per hour, finding that sweet spot between the value you offer and your client’s budget becomes essential. Should coaches charge by the hour or by monthly packages?
So I’ve done the research and in this article, we will explore various factors involved in setting your fees and strategies for effectively communicating your worth to potential clients. So grab a cup of coffee, get comfortable, and let’s dive in!
“The moment you make a mistake in pricing, you’re eating into your reputation or your profits.” — Katharine Paine
Understanding Life Coaching Fees
Life coaching fees can vary depending on factors such as hourly rates, the type of coaching such as one-on-one or group coaching, package options, and executive or celebrity coaching rates. However, before we get into numbers and all, let’s talk quickly about a couple of things.
Return On Investment (ROI) to your client
It’s all too easy to find a life coach or a few you want to emulate, check what their life coaching rates are and simply price yours a little lower. There is a better way. Before you even put any figure on paper, find out what the ROI is for your client. This may be more difficult to calculate in some coaching niches than others.
For instance the ROI in the relationship niche could be a guy getting a date with the girl of his dreams. It could be your client getting a contract signed for the business coaching niche. These just two examples to give you the idea. So find out what the return on investment is for your potential client.
How Much of Your Time Is Required?
How much time are you going to have to dedicate into doing a thorough research and have actionable items for your client to follow? Get a good estimate before you come up with the rates.
Remember that your client is expecting, at the barest minimum, the best value for money. Go out of your way and give them more value than what they pay for coaching and it will work more in your favor down the road.
Don’t be afraid to undersell your services to potential coaching clients because of the risk that they would say no and go with a different provider. Know your worth and know that you’re worth it.
Now let’s get into the numbers on setting the cost of life coaching for your business.
Hourly rates are a common and straightforward way to price your life coaching services. As a life coach, you’ll simply charge clients based on the number of hours they receive coaching from you.
This payment structure is popular among many coaches because it allows for flexibility in scheduling and adjusting to the varying needs of clients.
The average cost for hourly rates falls between $75 and $250 per session, with novice life coaches typically charging around $50 to $100 per session. On the other hand, executive coaches can charge more than $200 per hour due to their specialized expertise.
For example, according to a 2020 survey by Sherpa Coaching, starting executive coaches charged an average hourly rate of $300. When determining your own hourly rate as a life coach, consider your experience level and coaching niche alongside market research within your target audience.
When it comes to offering life coaching services, many coaches offer package options for their clients. This approach not only simplifies the pricing structure but can also be more appealing and cost-effective for potential clients.
Package options typically bundle a set number of sessions together at a slightly discounted rate compared to booking individual coaching sessions, making it an attractive option for those looking for long-term guidance and support.
For example, let’s say your standard hourly rate is $100 per session. You could offer a package deal that includes six coaching sessions at $500 instead of charging separately for each session ($600).
By offering this discounted bundle, you are encouraging clients to commit to working with you over an extended period while simultaneously providing them with added value.
Additionally, some coaches may choose to include supplementary materials or additional benefits in their packages — such as email support between sessions or access to exclusive webinars and resources — further enhancing the attractiveness of these offerings.
Remember that life coaching packages should cater specifically to your target market’s needs and preferences. If you specialize in business coaching or executive coaching, consider creating custom-tailored packages geared toward professionals seeking career advancement or personal development within the corporate world.
On the other hand, if your focus is on personal growth or specific life transitions (e.g., parenthood), create relevant packages addressing those milestones and related goals.
Offering diverse yet targeted package options enables clients from all walks of life—and professional arenas—to find a suitable fit with your unique expertise and approach as a coach.
Executive and Celebrity Coaching Rates
It’s important to understand that executive and celebrity coaching rates can differ significantly from standard personal coaching prices. These clients typically have higher expectations and require more specialized attention, which comes with a premium cost.
It’s not uncommon for these types of clients to pay thousands of dollars per session or tens of thousands for a bundled package.
However, it’s essential to make sure you’re pricing your services appropriately based on the value you provide, rather than simply charging what others are charging. Make sure you have the qualifications and experience necessary to work with high-level clients before setting your rates too high.
While these rates may seem exorbitant at first glance, remember that executive and celebrity coaches often have an extensive network of connections and opportunities that can lead to significant returns on investment for their clients.
“A life coach does for the rest of your life what a personal trainer does for your health and fitness.” – Elaine MacDonald
Factors To Consider When Pricing Your Life Coaching Services
When pricing your life coaching services, it is crucial to identify your worth and value, define your niche and target market, conduct market research, calculate your expenses accurately, and find the right balance between affordability and profitability.
Identifying Your Worth and Value
As a life coach, it’s crucial to recognize your worth and the value that you bring to your clients. Identifying your worth can be challenging, especially when starting out as a new coach. However, it’s essential to have confidence in yourself and believe in the impact of your coaching services.
Factors such as experience, training, credentials, specialized niche or market segment served, and results achieved with past clients should all be considered when evaluating your pricing structure.
For example, if you specialize in helping individuals navigate career transitions or create side hustles while working full-time jobs successfully, then you would charge higher fees than coaches without these specialties in your coaching program.
Similarly important is understanding what separates you from other coaches offering similar services and creating unique positioning around those differentiators.
Remember that charging too low may imply a lack of quality; thus potential clients may seek services elsewhere whereas being expensive could push away potential ones.
Conducting Market Research
When setting your life coaching fees, it’s crucial to do some market research. This involves analyzing the rates charged by other coaches in your area or niche, as well as examining their services and packages. By doing so, you can identify the range of fees you might charge and determine what makes your offering unique.
Market research also allows you to understand your competition and differentiate yourself from them. You may find out that there are many coaches offering similar services but at a lower price point. In this case, it would be important for you to communicate what sets you apart and why clients should choose you over others, even if you’re charging a little bit more.
Calculating Your Expenses
I wrote a complete article on life coach training expenses so I’m not going into too much detail here.
What you need to consider for your life coach prices is to calculate your expenses. This includes all the costs associated with your business, such as website hosting fees, software subscriptions, office rent, or utilities if you work from a dedicated space.
By figuring out how much it costs to run your business each month and year – including taxes and any insurance plans – you can then begin to set rates that will cover these costs while also making a profit.
Find the right balance that reflect your qualifications and experience but not so much that potential clients are scared off. It can be helpful to identify your niche and target market, as this will help you determine what rates are reasonable for the population you’re serving.
Here are some pricing strategies you can adopt.
Strategies For Pricing Your Life Coaching Services
To determine the best pricing strategy for your life coaching services, consider:
- Value-based pricing based on the results and benefits you provide.
- Competitive pricing by benchmarking against other coaches in your niche.
- Tiered pricing by offering different levels of service at varying price points.
- Subscription-based pricing for ongoing support and accountability, or,
- A hybrid approach that combines elements of multiple strategies to meet the needs of different clients.
Tips For Communicating Your Pricing And Value To Clients
- Clearly define your coaching services and what clients can expect. Have a very clear communication on your specialty. This should be evident in all promotional materials such as on your website, social media profiles and other marketing materials.
- Highlight the benefits and results of your coaching. One way to do this is by highlighting the results that clients can expect from working with you. For example, you may help them improve their relationships, increase their confidence, or achieve their personal and professional goals.
- Offer a free consultation or discovery session. Offering a free consultation or discovery sessions is an effective way to attract clients. It gives the opportunity to find why you as a coach can help them achieve what they desire to have. You also create trust and build a coaching relationship. Be patient, but persistent and give them time to think through things before making a commitment.
One life coach shared her experience of offering a free 30-minute consultation instead of charging for her initial sessions. She found that this approach helped her reach more potential clients who were hesitant about investing in coaching upfront.
By removing the financial barrier initially, she was able to build trust with these clients faster which eventually led to long-term relationships and referrals from satisfied customers.
- Be confident and transparent about your pricing. Understandably, many new coaches may feel uneasy or uncertain when setting their fees, but it’s crucial to stand firm and communicate your value clearly to potential clients. Avoid comparing yourself with others in the industry; instead, focus on what makes you unique and highlight that in your pricing.
- Consider offering payment plans or discounts for long-term commitments. This can be an effective way to incentivize clients to commit to your coaching services and ensure a steady stream of income for you. For example, you could offer a discount for clients who sign up for three months or more of coaching sessions or provide payment plans that allow them to spread out the cost over a few or several months.
It’s also worth considering how offering these types of incentives can help build trust and rapport with your clients. By showing that you are willing to work with them on pricing and committed to their success, you’re likely to foster greater loyalty and satisfaction among your client base. And in turn, this can lead to positive word-of-mouth recommendations and referrals – invaluable marketing tools in the highly competitive world of life coaching.
Conclusion – Life Coaching Packages
Pricing your life coaching services can be a daunting task, but it’s important to find the right balance between your value as a coach and your client’s budget. It’s crucial to identify your niche and target market, conduct thorough research, calculate expenses, and consider various pricing strategies such as value-based or tiered pricing.
Communicating your pricing and value effectively to clients is equally essential for building trust and attracting long-term commitments. Remember that coaching fees should not solely rely on industry standards but rather reflect your unique strengths as a coach. By following these tips and strategies, you can set yourself up for success in the highly competitive world of life coaching.
FAQs on Life Coach Costs:
How much does a life coach typically price their services?
Life coaches charge or may use different pricing methods such as hourly rates, package rates, or project-based fees. The fee structure often reflects the coach’s experience level in the coaching industry and expertise in particular areas of coaching. Online life coaching sessions may be significantly priced lower than in-person because many coaches will pass the savings on transport and other utilities to the client.
What factors should I consider when setting my life coaching fees?
Some key factors to consider when pricing your life coaching services include your training and years of experience, specialized training, level of certification or accreditation and other coaching qualifications, target audience demographics, and competition in the marketplace for similar offerings. Other factors include whether it’s going to be purely online coaching or in-person.
How can I communicate my value to potential clients when setting my prices?
It is important to clearly articulate your unique selling proposition as a coach – what makes you stand out from others in the field? You may also highlight testimonials or case studies that demonstrate successful outcomes achieved through previous client work.
If you’re totally new and haven’t worked any clients yet, consider offering your services for free in exchange for testimonials for your first 2 or 3 clients whether it’s personal or business coaching
Can life coaching fees be negotiable?
While many coaches will offer discounts under certain circumstances (such as referrals or long-term life coaching commitment), it is generally not advisable to negotiate on price due to the perceived devaluation of professional services offered by a coach who lowers their rate too easily.
Instead, focus on communicating the unique value proposition you provide in order to justify your asking price for your services or the perceived high fees.