“How Much Do I Charge?” is Not a Powerful Question!

One of the big questions that new coaches ask is, “How much do I charge?”

I understand the reason behind this question! It can be very confusing to determine the answer to this question and to be honest, there is not really a definitive answer. 

To me, the bigger question is, “How much money will I make in my first year? Along with, “What are the costs to get a business up and running?”

Or, if you are not a new coach, you might ask:

“What is a reasonable goal when it comes to my net income — now, the next 3 or 6 months, this year or even farther into the  future?” 

Here are a few other questions to ask yourself: 

• How much will I need to invest in my business?
• How long before I have positive cash flow? 
• What is the typical time it takes to get a business up and running and to have a coaching career with a steady income?

I will give you some answers to these questions after I tell a little story.

I tell this story in my book, Evolve Your Coaching Business. When I first became a coach, it was really helpful to look back at my experience with my first husband and his partners who started a fruit business with some partners. 

Weird as it may seem, there are a lot of similarities that helped me and might help you. 

In the fruit business a couple of decades ago, there were three basic ways to make money: sell to a processing plant, have your own roadside fruit stand, and sell at farmers markets. 

These guys loved the growing part. Being a fruit grower, out in the orchard tending trees, beautiful countryside, no one telling them what to do. 

But the money-making part, the business of fruit,  turned out to be much harder than they anticipated. Sound familiar? This is how a lot of coaches feel, and my suggestion is to follow this next tip. 

These guys got creative.

They spent time on marketing and sales. They put time, money and effort into experimenting with new ways to make money selling their fruit. 

One idea they had was to do home deliveries. They bought an old ice cream truck and started driving through neighborhoods selling their fruit. This totally bombed! Fruit markets were so common that no one needed to have home delivery. 

They didn’t give up! This is tip number two. They kept doing research to find out what people did want. 

They were already attending farmers’ markets in Washington DC, but the profit was not great due to all the competition, so they went door to door in a wealthy neighborhood and asked if they wanted fruit delivered.

Again they discovered this was not what people wanted. 

But from that research project, they found that those folks wanted high-quality fruit and community.

There was a niche that was willing to pay top dollar and wanted exactly what they had to sell.

Now they had a niche and knew what their niche wanted. 

Identifying a profitable niche is one of my most popular trainings in my business academy for coaches. 

Once you know what people want and are willing to pay for, the rest becomes so much easier. 

Back to the story: The next step the guys took was to explore the communities to see where they might have a place where they could sell their fruit and create community. 

My family and I were driving around the area, and we saw a big empty lot. It was a church parking lot. 

We stopped right then and there and talked to the minister who happened to be in his office. Would he be open to having us sell fruit on the weekends in the church’s parking lot. He loved the idea. A new way to market & sell our fruit was born. To have their own private community-based farmers market. 

Here’s another tip. Once you find something that your ideal clients want, go for it! Reach out and find ways to give them what they want. 

This business has been quite fruitful (intentional pun) for decades and is still going strong as I write this message. 

As I said, a coaching business is a lot like the fruit business. 

How much you make as a coach depends on a lot of factors. Here are a few: 

• Knowing your niche 
• Your ability to market 
• Your personality
• Your network
• Being creative
• Experimenting & being willing to fail (over & over) 

Above all else is your willingness to do the work, spend the money, and take the time to build a business or a career. Remember this can be a lifelong career like it was for the guys and their fruit business. 

Coaching is not an industry where you can just walk into a job, unless you work for an organization.

Two more things I want to talk about here.

Having a niche is important and which one you choose impacts your income. Executive coaches tend to make the most money. The other top earner is someone who builds a strong brand and following, and scales their business.

To answer the basic questions I presented at the beginning of this message, I reached out to ChatGPT today! 

The answers that came through were not at all surprising to me. Though it can seem like the wild west when it comes to how much coaches charge and the wide variety of earnings. There are some basic truths. 

Here is what ChatGPT confirmed for me today:

GPT said:

The rates for new life coaches can vary widely depending on factors like location, niche, experience, and market demand. However, for newer life coaches, typical rates might range from:

• $50 to $100 per hour for one-on-one sessions.
• Package deals could offer discounts for multiple sessions, for example, $400 for 6 sessions.
• Some new life coaches also offer free or discounted initial sessions to attract clients and build testimonials.

As they gain experience and build a client base, coaches often increase their rates. More experienced or specialized coaches can charge anywhere from $150 to $500 or more per session.

And GPT said: 

Executive coaches typically charge significantly more than general life coaches due to the specialized nature of their services and the high-level clients they work with. Rates can vary based on the coach’s experience, reputation, and geographic location. On average, executive coaches charge: 

• $200 to $600 per hour for individual sessions.
• Some high-level or highly experienced coaches charge $1,000 to $3,500 per hour, especially if they work with top executives, CEOs, or high-ranking professionals.
• Monthly retainers are common, which can range from $2,000 to $10,000+ per month, depending on the frequency and intensity of the coaching.
• Corporate packages or engagements for teams or leadership development programs can cost anywhere from $10,000 to $100,000 or more for extended programs.

The pricing tends to reflect the impact that executive coaching can have on organizational performance and leadership development.

And GPT said:

Building a profitable coaching business can take anywhere from 6 months to 3 years or more, depending on various factors like niche, marketing efforts, client acquisition, and the coach’s prior experience. Here’s a general breakdown of the stages:

1. Initial setup (0-6 months): This phase involves obtaining certifications (if desired), building a brand, developing a website, creating coaching packages, and establishing an online presence. Many coaches begin with free or low-cost sessions to build testimonials and experience. Profitability at this stage is typically low as the focus is on gaining traction.

2. Building a client base (6-12 months): Coaches begin marketing their services, networking, and attracting paying clients. Consistent marketing, referrals, and content creation (blogs, social media) can help increase visibility. Depending on marketing success and niche demand, some may start seeing profit within the first year, while others might just be breaking even.

3. Growth phase (1-3 years): As coaches build a reputation and refine their offerings, they may increase their rates and scale up by offering group coaching, online courses, or corporate contracts. By this stage, a steady stream of clients and word-of-mouth referrals often contribute to a more consistent income. Coaches who invest in marketing, networking, and continuous learning may see significant profitability within this period.

4. Scaling (3+ years): By this point, a well-established coach might expand into more passive income streams (e.g., digital products, webinars, membership programs), allowing for higher income and lower time investment. Profits can be substantial as the business matures and marketing efforts pay off.

The timeline to profitability varies, but consistent marketing, networking, and delivering results to clients are key factors that influence how quickly a coach can turn a profit.

Here are my final tips on this important topic: 

• Have a business building mindset.
• Stop thinking about getting clients and start thinking about building a business and a career.
• Think about adding income with group coaching, packages and programs.
• Get creative with ways to combine your coaching with other modalities.
• Use a spreadsheet to project how much you might reasonably make in one year, minus the expenses to see a possible net income.

Then look at what you will need to do to make that happen. I did this in my first year and saw that there was no way I would replace my current income in one year, but I could do it in 2 or 3 years. And I did.

This helped me take the steps and not be stressed about money. I want the same for you. 

I hope these tips will help you succeed as a coach, to make money and to enjoy the journey!