130 | Pricing Your Coaching to Maximise Your Revenue

Speaker: 00:00:00

Welcome back to Women

in the Coaching Arena.

2

: 00:00:02

I am Jo Lott, an ICF accredited

coach and mentor who helps coaches

3

: 00:00:06

get clients with honesty, not hype.

4

: 00:00:09

As part of my summer replay series,

I'm bringing back some of the

5

: 00:00:13

episodes that I've sparked the biggest

mindset shifts and practical Action,

6

: 00:00:18

and this one is all about pricing.

7

: 00:00:21

If you have ever felt unsure about

what to charge or worried about

8

: 00:00:25

how your prices will land with

potential clients, you are not alone.

9

: 00:00:30

In this episode, I will walk through

the common fears around pricing,

10

: 00:00:34

how to build out high value offers.

11

: 00:00:37

How to stop charging by the hour,

and also how to calculate what your

12

: 00:00:41

business actually needs to bring

in work for you in the long term.

13

: 00:00:46

This one is packed with practical

steps and encouragement, and I hope it

14

: 00:00:50

gives you the clarity and confidence

to price in a way that is aligned for

15

: 00:00:55

you and sustainable for your business.

16

: 00:00:58

Microphone (Samson Q2U Microphone)-2:

Today we'll be discussing how to price

17

: 00:01:00

your coaching to maximise your revenue,

and this topic is close to my heart

18

: 00:01:04

because so many coaches work for free

or for really low cost for years,

19

: 00:01:09

which is not sustainable for the coach.

20

: 00:01:12

And while it comes from a good place of

wanting to make a difference and make

21

: 00:01:17

coaching accessible for more people,

22

: 00:01:19

Microphone (Samson Q2U Microphone)-3:

It's essential to create a clear strategy

23

: 00:01:22

for pricing your coaching so you can

have a sustainable living from coaching.

24

: 00:01:28

It's also good to know that having

a good pricing strategy is not just

25

: 00:01:33

beneficial for you, but it's actually

beneficial to your clients too.

26

: 00:01:38

Because we have all been taught throughout

life to associate price with value.

27

: 00:01:44

So most people would choose the

Gucci handbag in front of them.

28

: 00:01:49

vs us the Primark handbag,

because we think the Gucci

29

: 00:01:52

handbag is better, more valuable.

30

: 00:01:55

So it's the same if you are pricing

or coaching really low or giving

31

: 00:01:59

it away continuously for free.

32

: 00:02:02

People will think it's not

as good as it actually is.

33

: 00:02:06

Because as a coach you have a unique set

of professional skills and experience just

34

: 00:02:11

like any other professional out there.

35

: 00:02:14

Microphone (Samson Q2U Microphone)-5:

Doctors, lawyers, accountants, all

36

: 00:02:17

of those other professionals, even

if they are working for charities

37

: 00:02:22

or doing really amazing work, they

aren't giving their services away

38

: 00:02:26

for free or for really low cost.

39

: 00:02:30

Microphone (Samson Q2U Microphone)-6:

So you don't need to either.

40

: 00:02:32

You are worthy of receiving money

for your professional amazing

41

: 00:02:37

skills and qualifications.

42

: 00:02:40

Microphone (Samson Q2U Microphone)-3:

And as a woman, we have to

43

: 00:02:41

balance our time and family life

with our mission and dreams.

44

: 00:02:47

You will wear so many hats as a

woman and solopreneur, and each

45

: 00:02:51

role competes for your attention.

46

: 00:02:54

So it is really crucial that you

take the time available and price

47

: 00:02:59

your services in order for you to

reach your financial goals and create

48

: 00:03:03

a sustainable coaching business.

49

: 00:03:07

So first, let's talk about

the capacity calculation.

50

: 00:03:10

So it's a really easy formula that

helps you set your pricing strategy.

51

: 00:03:15

So if you think about your monthly revenue

goal, so think about that for a moment.

52

: 00:03:21

How much do you want to earn per month?

53

: 00:03:25

And now think about how much you

want to earn per client per month?.

54

: 00:03:30

So for example, if you want to

make 5,000 pounds a month and you

55

: 00:03:36

charge £250 per month per client,

your capacity is 20 clients.

56

: 00:03:43

So to reach your goal, you would need

to have 20 clients at any one point

57

: 00:03:49

to make your 5,000 pounds per month.

58

: 00:03:53

So obviously the higher the prices,

the fewer clients you will need and

59

: 00:03:59

translating into less marketing, less

time, more energy for each client, and

60

: 00:04:06

better testimonials because you have that

extra energy to give each of your clients.

61

: 00:04:12

Microphone (Samson Q2U Microphone)-8:

So if you're currently charging per

62

: 00:04:14

session or for a block of say, three

sessions, which isn't going to create

63

: 00:04:20

a really sustainable monthly recurring

revenue for you, don't worry, we will now

64

: 00:04:26

move on to how to create a really good,

tangible, high value offer that can build

65

: 00:04:33

you a sustainable coaching business.

66

: 00:04:36

Microphone (Samson Q2U Microphone)-9:

Let's talk about my intangible to tangible

67

: 00:04:39

process, because coaching is intangible.

68

: 00:04:42

The average person doesn't really

understand the value of coaching, and

69

: 00:04:48

so we need to create something really

tangible that the average person

70

: 00:04:52

actually understands what they're buying

when they invest in your services.

71

: 00:04:57

Microphone (Samson Q2U Microphone)-3: 1.

72

: 00:04:57

So have a think about what Hell

Island looks like for your clients.

73

: 00:05:01

Where are they now?

74

: 00:05:03

In tangible terms.

75

: 00:05:04

What are they actually

doing in the morning?

76

: 00:05:06

What are they doing in the

afternoon or at lunchtime?

77

: 00:05:09

What are they doing in the evening?

78

: 00:05:11

Are they waking up dreading the sound

of that alarm because they have to drop

79

: 00:05:16

their kid off at nursery at seven in

the morning and rush on that train.

80

: 00:05:21

What's going on for them in real

terms in their life right now?

81

: 00:05:26

And then have a think about what does

Heaven Island look like for them?

82

: 00:05:31

So what do they want more than anything?

83

: 00:05:33

And this is why market research

is so helpful, because it's easy

84

: 00:05:37

for us to generalise these things

and we really want to hear your

85

: 00:05:42

ideal clients' actual language.

86

: 00:05:44

Like what do they say they want to

you or to their friends down the pub?.

87

: 00:05:49

What do they say in real,

real words, do they want.

88

: 00:05:53

Work that they love?

89

: 00:05:55

Would they call it work that they

love or would they just say, I just

90

: 00:05:58

want to earn a living around my kids?

91

: 00:06:01

What do they actually say in their terms?

92

: 00:06:05

2.

93

: 00:06:05

So let's move on to step

two of the framework.

94

: 00:06:08

So the second step is

to map out your boat.

95

: 00:06:12

So your, ideal client is

in Hell Island right now.

96

: 00:06:15

We want to take them to Heaven Island.

97

: 00:06:17

So they are gonna get in your boat.

98

: 00:06:20

And what milestones are they gonna go by?

99

: 00:06:23

From hell island to heaven Island?.

100

: 00:06:25

So for example, if your ideal client is

stuck in a rut and you are taking them

101

: 00:06:32

to work that they love, they may go

by the island of knowing their values,

102

: 00:06:37

knowing their strengths, looking at

the market to see what's available.

103

: 00:06:42

They may need to do

their CV or interviews.

104

: 00:06:46

They are the general milestones that

would need to happen to take your

105

: 00:06:51

ideal client from Hell Island to Heaven

Island if they wanted a great career.

106

: 00:06:58

So that is now your coaching package,

so you can clearly outline a few high

107

: 00:07:05

level milestones that you will be

working through with them to help

108

: 00:07:10

them to actually reach their goal.

109

: 00:07:12

Microphone (Samson Q2U Microphone)-17:

So now you are clear on the

110

: 00:07:14

dream that your ideal client has

and how you'll get them there.

111

: 00:07:17

Microphone (Samson Q2U Microphone)-3:

You can charge more, have less

112

: 00:07:19

competition, describe what you do in

a way that makes people want to buy.

113

: 00:07:26

And if you are worried about the

word offer promise, don't worry.

114

: 00:07:31

I know you'll do everything you

can to design a program that helps

115

: 00:07:36

your ideal client achieve what they

want because, you care, you are

116

: 00:07:39

a coach, and it's a shared goal.

117

: 00:07:43

They will play their part

because it's their actions that

118

: 00:07:46

will generate their results.

119

: 00:07:47

You know, there is nothing we can do,

no matter how much of an amazing coach

120

: 00:07:50

you are to take those actions for them.

121

: 00:07:55

So it's about knowing that most people

realise that it's their responsibility.

122

: 00:08:01

So just like , you sign up for a diet,

or a gym membership, you do not expect

123

: 00:08:07

to get fit if you eat biscuits every

day and don't show up at the gym.

124

: 00:08:11

Just like your clients will realise if

at the end of their coaching session they

125

: 00:08:16

commit to reflecting on their strengths or

whatever might come out of your session,

126

: 00:08:21

and then they arrive at the next session

and they haven't done it, they will

127

: 00:08:24

generally know, they didn't do their part.

128

: 00:08:26

Most people understand that if

they don't put the work in, they

129

: 00:08:30

are not gonna get the results.

130

: 00:08:33

.3.

131

: 00:08:33

And so step three, finally,

we need to choose your price.

132

: 00:08:36

So when determining your price, it's

easy to think as a coach that it's all

133

: 00:08:42

profits, especially when you start out.

134

: 00:08:44

I remember I definitely said to my

first coaching group that I went to,

135

: 00:08:49

but , isn't this all money in my pocket.

136

: 00:08:51

And they said, oh, no, no.

137

: 00:08:53

Before you know it, you'll realise

that you spend a lot on business

138

: 00:08:57

development, on extra training,

on books, on Zoom subscriptions.

139

: 00:09:02

There are still costs as a coach.

140

: 00:09:04

So it's worth remembering that

it's not just your hourly rate

141

: 00:09:08

you are thinking about here.

142

: 00:09:10

It's your website fees.

143

: 00:09:11

It's all the time that you take

to market to get that client.

144

: 00:09:15

It all needs to be taken into

account, into your pricing.

145

: 00:09:20

If it gives you a rough idea, I

generally pay myself 50% of the

146

: 00:09:25

fees I receive from a client.

147

: 00:09:27

The rest goes onto business building

activities, coaching programs, training

148

: 00:09:34

Microphone (Samson Q2U Microphone)-11:

it subscriptions branding photography

149

: 00:09:38

Microphone (Samson Q2U Microphone)-3:

tax, for example.

150

: 00:09:40

So, that gives you hopefully a rough

guide that even if you are thinking of

151

: 00:09:44

it as say, 200 pounds a session, actually

it's really a hundred pounds a session.

152

: 00:09:50

So now you may be thinking well,

how much are we talking here?

153

: 00:09:52

Like, what's, what's normal?

154

: 00:09:54

What's not?

155

: 00:09:55

So what I say to people is that

156

: 00:09:58

Microphone (Samson Q2U Microphone)-12:

it's based on the transformation

157

: 00:10:00

you provide and the tangible

difference in their life.

158

: 00:10:04

So for example, if you are helping

a really big corporation solve

159

: 00:10:09

a really important problem,

then your price will be high.

160

: 00:10:13

If you are helping somebody to set

up, say, a lead magnet, then the price

161

: 00:10:19

is gonna be much lower, like, yes,

it's amazing to have a lead magnet.

162

: 00:10:23

Don't get me wrong, I teach that myself.

163

: 00:10:25

But if that's what you are teaching,

then that may be a lower cost than if

164

: 00:10:29

you are helping a six figure entrepreneur

grow to seven figures, for example.

165

: 00:10:35

So it's about basing your pricing on

the transformation that you provide.

166

: 00:10:41

Microphone (Samson Q2U Microphone)-13:

So finally, let's address the questions

167

: 00:10:43

in your mind that may have been

coming up throughout this episode.

168

: 00:10:48

So maybe you've been thinking, well,

that's all well and good saying

169

: 00:10:52

this, Jo, but who's gonna pay that?

170

: 00:10:54

Or you might think I'll never

be able to charge that much.

171

: 00:10:58

It's unethical.

172

: 00:10:59

Or you might think I would

never charge those sort of fees.

173

: 00:11:03

It's not possible for someone

174

: 00:11:07

like me in my niche.

175

: 00:11:09

And I hear you.

176

: 00:11:10

As a woman, we have often been

socialised to care for others

177

: 00:11:15

and expect nothing in return.

178

: 00:11:18

We've been fed messages that women with

money are greedy, self-centered, shallow,

179

: 00:11:24

whereas men with money are powerful and

successful providers for their family.

180

: 00:11:30

And if you think about it, in the first

sense, like most women do, then you

181

: 00:11:36

will literally turn away opportunities,

And I see this happen all the time

182

: 00:11:42

with the amazing women I work with.

183

: 00:11:45

If, for example, they're discussing

work with a charity or a not-for-profit

184

: 00:11:49

organisation, they immediately

assume that that means they need to

185

: 00:11:56

work for free.

186

: 00:11:56

Because of course if they're a

good person, they'd do it for

187

: 00:11:59

free, and often the organisation

is not actually saying that.

188

: 00:12:04

But it's a hidden assumption

and belief from the coach.

189

: 00:12:09

So when I ask more, have they said

that they want this for free, then

190

: 00:12:15

the coach realises that it's their

assumption, and it may not be that the

191

: 00:12:20

organisation is expecting everything

192

: 00:12:25

for free.

193

: 00:12:25

And again, back to the lawyers,

the accountants, all of the other

194

: 00:12:29

professionals working with charities.

195

: 00:12:32

Are they doing the

charities accounts for free?

196

: 00:12:35

Are they advising them about

their legalities for free?

197

: 00:12:40

So answers on a postcard.

198

: 00:12:42

I would love to know if other

professionals are giving their

199

: 00:12:47

professional service away as

regularly as so many coaches do.

200

: 00:12:52

So let's go back to the belief

that receiving money from a charity

201

: 00:12:57

would make you a bad person.

202

: 00:13:00

Greedy, not kind, not

caring, not considerate.

203

: 00:13:04

And don't get me wrong,

I feel all of this too.

204

: 00:13:08

My upbringing was very traditional with my

dad earning all the money and my mum being

205

: 00:13:12

powerless with having to ask for money

for the shopping and the things we needed.

206

: 00:13:18

And I think to be able to move the needle

with reducing that gender pay gap, we

207

: 00:13:24

really do need to explore our own beliefs.

208

: 00:13:27

So things like, I don't want

people to think I'm greedy.

209

: 00:13:31

I don't want people to think I'm

money grabbing, I'm uncaring.

210

: 00:13:35

I don't want people to think I'm horrible.

211

: 00:13:37

I don't want to feel shameful.

212

: 00:13:39

I don't want people to

think that I'm selfish.

213

: 00:13:43

And now let's stop and ask ourselves how

many men do this work entirely for free.

214

: 00:13:51

I would love to have the stats on

the amount of female coaches doing

215

: 00:13:57

pro bono work and the amount of

male coaches doing pro bono work.

216

: 00:14:02

If you have those stats, please do share.

217

: 00:14:04

I think it would be super, super

interesting because men have been taught

218

: 00:14:09

that making money means they're powerful.

219

: 00:14:12

They're a good provider for their family,

and of course they'll earn money for

220

: 00:14:16

their work because they're respected

and valued if they charge high fees.

221

: 00:14:21

So I wanted to just share these thoughts

as something to consider, because

222

: 00:14:29

these are the things I strive to model

because no one will do it for us.

223

: 00:14:33

We need to step up and start valuing

our time and our contribution

224

: 00:14:39

because we genuinely get paid for the

value that we create in the world.

225

: 00:14:44

So allow yourself to receive

the value in return for the

226

: 00:14:49

value that you are creating.

227

: 00:14:52

Because you have professional skills,

qualifications, and masses of experience,

228

: 00:14:58

and you can transform lives, and you are

just like every other professional out

229

: 00:15:04

there deserving to be paid for the amazing

work that you do and the transformation

230

: 00:15:11

that you provide in this world.

231

: 00:15:13

And as a woman coach, you create

a lot of value and transformation.

232

: 00:15:19

I know that already from the

amazing women I work with, who I am

233

: 00:15:23

completely in awe of every single day.

234

: 00:15:27

And you will feel in yourself

when the value you are offering

235

: 00:15:30

is outweighing the money received.

236

: 00:15:33

And I definitely have felt that myself

and raised my prices recently because I

237

: 00:15:40

felt more begrudging when I want to have

huge involvement and give lots of care,

238

: 00:15:48

attention, energy to every single client.

239

: 00:15:52

But if my prices are not in line with that

energy I'm giving, I certainly feel it.

240

: 00:15:59

So I'm not interested in offering

a low-cost cookie cutter approach.

241

: 00:16:05

I'm all in, and I need my prices

to reflect where I am with

242

: 00:16:11

regards to my client attention and

243

: 00:16:14

transformation and you always want

to ensure that people gain more than

244

: 00:16:21

they expected and that they feel like

this was really exceptional value.

245

: 00:16:26

And one of my favorite phrases is

always deliver more than expected.

246

: 00:16:32

And this isn't difficult for you.

247

: 00:16:34

Anyone who is a coach wants to

create amazing transformations.

248

: 00:16:40

I literally don't know

anybody who doesn't.

249

: 00:16:43

And I speak to people all the time that

say, it's not about the money for me, it's

250

: 00:16:47

about the difference I make in the world.

251

: 00:16:48

And I'm like, yes, I know.

252

: 00:16:51

Don't worry.

253

: 00:16:51

I don't think many professional qualified

coaches are in this for the money.

254

: 00:16:58

And it's good to remember that all your

client wants is to belong, to be listened

255

: 00:17:03

to, to be valued, to be individualised and

respected for the person that they are.

256

: 00:17:09

And that's easy for you because

empathy is true to your core and you

257

: 00:17:15

know intuitively what people need.

258

: 00:17:18

I will always support other

women who are in the coaching

259

: 00:17:22

arena as Brene Brown would say

260

: 00:17:25

Microphone (Samson Q2U Microphone)-14:

if you are not in the arena getting

261

: 00:17:26

your ass kicked on occasion.

262

: 00:17:28

I am not interested or

open to your feedback.

263

: 00:17:32

There are a million cheap seats in the

world today filled by people who will

264

: 00:17:36

never be brave with their own lives, but

will spend every ounce of energy they

265

: 00:17:41

have hurling advice and judgment at those

of us who are trying to dare greatly.

266

: 00:17:47

Microphone (Samson Q2U Microphone)-18:

Their only contributions are criticism,

267

: 00:17:50

cynicism system, and fear mongering.

268

: 00:17:53

Microphone (Samson Q2U Microphone)-14: If

you are criticising from a place where you

269

: 00:17:55

are not also putting yourself on the line.

270

: 00:17:58

I am not interested in your feedback.

271

: 00:18:01

And I absolutely love that, which is

why I have called this podcast Women

272

: 00:18:05

in the Coaching Arena because you

get it when you are in the arena, and

273

: 00:18:09

sadly, most of our friends and family

and partners do not get what it feels

274

: 00:18:15

like to be in the arena trying to make

a massive difference in the world and

275

: 00:18:20

facing so many challenges at actually

doing the work that we are here for.

276

: 00:18:26

Microphone (Samson Q2U Microphone)-16:

So I see you.

277

: 00:18:27

I know it's hard.

278

: 00:18:28

I know it's challenging and I know it

means so much to you to make a difference.

279

: 00:18:34

So when you are pricing your offers, it

can help to do market research or even

280

: 00:18:40

better ask somebody else who is less

attached to exactly what you are working

281

: 00:18:46

on to do the market research for you

because it is an emotional thing, and

282

: 00:18:51

I think it's also a really deep rooted

systematic thing for women to not be

283

: 00:18:58

able to really price effectively because

there are so many fears around judgment

284

: 00:19:04

as a woman making money, and also as

a woman doing caring work for money.

285

: 00:19:11

Again, it's not our fault.

286

: 00:19:14

It is in built that we have

always had to take the caring

287

: 00:19:18

role and expect nothing in return.

288

: 00:19:21

So it's not an easy thing to overcome.

289

: 00:19:24

So do seek support in looking into your

pricing and what a reasonable price would

290

: 00:19:30

be for the service that you are offering?

291

: 00:19:33

Okay, so let me summarize

where we went this episode.

292

: 00:19:38

. 1.

293

: 00:19:38

So firstly, use the capacity

formula to work out what you need

294

: 00:19:42

to charge each client to reach the

financial goal you want each month.

295

: 00:19:48

Microphone (Samson Q2U Microphone)-19:

So what's your financial monthly

296

: 00:19:50

goal and how much do you intend to

charge each client on a monthly basis?

297

: 00:19:57

Microphone (Samson Q2U Microphone)-16: 2.

298

: 00:19:57

Second, let's go through the three

step intangible tangible framework

299

: 00:20:01

to create an offer that demonstrates

the value that your client will

300

: 00:20:05

gain from working with you.

301

: 00:20:08

So the three steps are

302

: 00:20:09

1.

303

: 00:20:10

What's their hell island, where are they

now, and what's their heaven island?

304

: 00:20:14

Where do they want to be?

305

: 00:20:16

2.

306

: 00:20:16

The second step was what

does your boat consist of?

307

: 00:20:19

So what milestones or islands

are you taking them past on

308

: 00:20:23

their journey to Heaven Island?

309

: 00:20:25

3.

310

: 00:20:25

And thirdly, what's your price?

311

: 00:20:27

How have you decided to price your

program taking into account the

312

: 00:20:32

transformation that you will provide

and market research to what the going

313

: 00:20:37

rate is for this kind of transformation?

314

: 00:20:40

Lastly, what beliefs do you need to

explore to make pricing, not about you,

315

: 00:20:45

but about the value that your ideal

client will receive from working with you?

316

: 00:20:51

So what thoughts come up for you when you

think about charging for your expertise?

317

: 00:20:57

I would really recommend

writing them down.

318

: 00:21:00

If they are going round and round in

your head, you cannot explore them.

319

: 00:21:03

So write down, they'll think I'm greedy.

320

: 00:21:06

They'll think that's too much.

321

: 00:21:07

They'll think I'm not good enough.

322

: 00:21:08

Write down whatever it is that's going

on for you and really explore is it

323

: 00:21:13

true or is this something that I have

literally brought up with that's going

324

: 00:21:19

around in my head and unable to see a

way forward in a rational, logical way.

325

: 00:21:26

So it really is imperative, not

just for you, but for all women that

326

: 00:21:32

you explore and work through those

systematic barriers that hold women back.

327

: 00:21:38

And please do drop me a dm.

328

: 00:21:40

I have a beliefs worksheet and video

I can send you on this to really help

329

: 00:21:45

you work through those beliefs that

may be holding you back from pricing,

330

: 00:21:50

what transformation you are creating

in the world in your coaching business.

331

: 00:21:56

I really hope you enjoyed today's

episode and found it helpful.

332

: 00:22:00

And like I always say, trust yourself,

believe in yourself, and be the wise

333

: 00:22:05

gardener who keeps on watering the seed.

334

: 00:22:09

Microphone (Samson Q2U Microphone):

Thank you so much for listening to this

335

: 00:22:11

episode of Women in the Coaching Arena.

336

: 00:22:14

I have a mess of free resources on

my website joannalottcoaching.com.

337

: 00:22:20

That's Joanna with an A

and Lott with two T's.

338

: 00:22:24

joannalottcoaching.com.

339

: 00:22:26

And I'll also put links in the show notes.

340

: 00:22:30

Let me know if you found

this episode useful.

341

: 00:22:33

Share it with a friend and

leave me a review, and I will

342

: 00:22:36

personally thank you for that.

343

: 00:22:39

Remember to trust yourself, believe

in yourself and be the wise Gardner

344

: 00:22:43

who keeps on watering the seed.

345

: 00:22:45

Get into the arena dare, greatly and try.