There’s what I consider to be a bit of a scary movement in Life Coaching at the moment.
It strikes me as a pyramid scheme and it’s growing in popularity.
This is how it works.
A handful of coaches who (supposedly) charge fees of $50k and up to work with clients are teaching other coaches how to charge fees of $50k and up.
I have no doubt that some of the teachers have, and do, charge very high fees, some even as high as $200k per year, but not every coach can.
For the most part they are selling a dream and no matter how they frame it or dress it up, at a deep level they are appealing to people’s greed rather than their desire to help others.
There simply aren’t enough people out there who can afford to drop that kind of coin to service the amount of coaches going through these programs.
One of these coaches told me, and I swear this is true, that anybody can afford it if they want it badly enough. They will borrow, beg or find some way to get the money.
That’s the lie told by the trainers.
I find that insulting to the tens of millions of people in this country who struggle to pay their monthly bills.
Imagine you have an investment opportunity that you know cannot fail. Go with me on this and let’s agree it cannot fail.
You can double your money in 6 months if you can only invest $1,000,000.
Can you pull it off?
Can you raise that kind of money even though you know there is no chance you can lose?
I doubt it unless you have a very wealthy family member or close friend. I know I certainly couldn’t.
The coach I mentioned above told me he’d persuaded a teacher to borrow $30,000 for his services.
It equated to almost a years salary for the guy.
A Secret About Life Coaching
Let me tell you a secret about Life Coaching.
It doesn’t always work.
For any number of reasons, many of which are outside of your control, you don’t always help your clients get the results they want.
I couldn’t sleep at nights knowing that I could put somebody into long-term serious debt because I persuaded them to borrow a huge amount of money to work with me.
I’m now going to do a flip flop.
You have to charge what you think you are worth and what will make your practice sustainable. If you think that is $100k per client, then go for it.
I suspect unless you have a background in Corporate America and have a contact list of senior executives to call upon you’re probably going to fail, but the choice is yours.
A Life Coaching client I was once working wth me announced at the beginning of a session that he had spent half a day researching what other coaches were charging.
‘What for?’ I asked.
‘So I can work out what the average going rate is and charge accordingly’ he replied.
‘What if the going rate doesn’t allow you to pay your bills without working 80 hours per week?’ I went on.
He just shrugged his shoulders and looked a bit sheepish.
How Much Should I Charge For Life Coaching?
On the Coach The Life Coach course one of the least sexy parts of it is explaining how to work out what you should be charging at a minimum to stay in business.
It’s not particularly complicated, but it does involve knowing how many inquiries you need to generate (and that may include a face-to-face chats at a networking events) how many prospects you are likely to convert into clients and how much money you want and need to earn in a year.
It also involves knowing the difference between a cold prospect, a warm prospect and a referral because your conversion rate will vary accordingly.
It really doesn’t matter what other Life Coaches are charging because they are not you.
They may live extravagantly or very frugally. They may have 5 kids and a spouse, or may be single. They may want to coach from every corner of the globe or be happy to work from their one bed apartment.
Forget what other coaches charge because it’s none of your business. You’re not selling a commodity where price is the biggest deciding factor, you’re offering a bespoke service.
Charge what feels right for you and what can allow you to live a nice life doing a job you love and then get to work on making it happen.
I’d be interested to know if fees have ever been an issue for you. Please let me know your thoughts in the comments.