Do Your Fees as a Business Coach, Corporate Coach or Executive Coach Reflect Your Value?
Executive coaching and business coaching evolved from the corporate education and training world. The fee structure for coaching also has roots within this same world.
The traditional fee methodology for education and training is to determine a price per participant. This pricing model includes material, hours and any additional out of pocket expenses such as travel and lodging. For many coaches, this model is still being used and fails to address 2 critical issues:
- Value
- Return on investment
According to Webster, value means "to be worth." How much are you worth from a fee perspective? A recent survey issued by Sherpa Coaching suggested that coaches with 5 years of experience or more earn $300 per hour. However, a colleague of mine saw his value or worth through a different filter which increased his hourly rate to around $800 an hour.
Return on investment (ROI) can be constructed using a variety of formulas. For me, the simplest way to achieve ROI is to project the desired results in dollars, subtract the coaching fees and then divide the remainder by the fees. For example, if the desired results are a $48,000 increase in revenue and the coaching fee is $8,000, then balance of $40,000, if achieved, is a 5 to 1 return on investment.
When business coaches or executives coaches think in a per participant pricing mentality because of past conditioning, then they have decreased both their own value and motivation to secure a positive return on investment. And with a 40% growth rate within an annual $1 billion industry, maybe it is time to rethink your fees to truly become one of 10 coaches who earn more than $100,000 annually.
Leanne Hoagland-Smith, M.S. is a business coach who specializes in strategic planning with offices in Indianapolis and Chicago. She writes, speaks and coaches people in businesses to quickly double or triple results through the creation of an executable strategic plan.
One quick question, if you could secure one new client or breakthrough that one roadblock holding you back from success, what would that mean to you? Then, take a risk Leanne, a call at 219.759.5601 to experience incredible results.
Visit http://www.processspecialist.com/ and explore everything from free articles to connecting with Leanne.
Why Does A Life Or Executive Coach Choose His Clients
Just like a client chooses his coach, life coaches and executive coaches will also choose their clients. Why do they do this?...
Business Coach or Executive Coach: What is Your Business Value?
Many business coaches and executive coaches identify themselves as "My name is (insert the name)" and "I am a business coach ...
Small Business Help - Top 7 Tips for Hiring an Excellent Executive Business Coach
Executive business coaching has become a business of its own with over 10,000 coaches now peddling their services. Maybe you...
Executive Coach or Business Coach Did Your Business Grow By 40% in 2006
In December of 2006, The Economist suggested that the business coaching industry was growing at an annual rate around 40%. On...
Great Executive Coaches or Business Coaches Equal Great Sales People
Great coaches are first and foremost great sales people. These successful business owners understand and employ a proven sal...
Executive Coaching - The Business Benefits
Executive coaching is an investment for you and your business and you need to understand what returns you will get. How exact...
Personal Life Coach
Most of us have found ourselves stuck in some domain in our livesin a career, in a relationship, or in a negative cycle or pa...
How Does Sports Coaching Differ from Corporate Coaching?
Athletes Versus EmployeesMost athletes are young, open to improvement, eager to learn and anxious to receive what a coach can...
Strategic Benefits of Business Coaching, According To Your Strategic Thinking Business Coach
There is a rapid growth of business coaching in the United States and those people who have business coaches are realizing so...
2007 May Be the Break Out Year for Business Coaching
A recent report released by the Alternative Board suggested that small business owners view 2007 optimistically when it comes...
What a Difference a Coach Makes
In being a resident of the Tampa Bay area since 1979 I have had front line exposure to the highs and (mostly) lows of our loc...
Executive Coaching to Business Coaching The Times Are Changing
What are the trends for business coaching or executive coaching in 2007? Are you prepared for these changes?As a business coa...
Ten Strategic Actions To Ensure That You Reach Your Goals
So many people decide to set goals for an upcoming new year only to have that new year pass by without the goals being met. ...
The Top Ten Myths And Realities About Business Coaching, According To Your Strategic Thinking Coach
I think it is safe to say that there are many preconceived notions about business coaching. Furthermore, some of these notio...
Internet Article Marketing - A Worthy Marketing Strategy to Increase Sales as a Business Coach
Coaching industry is growing at a 40% rate. More and more individuals are leaving their existing jobs and hanging up a shield...
3 Compelling Rewards For Being a Coach/Consultant
Being a coach/consultant can be extremely rewarding and a really worthwhile business. Not only are you helping people to unde...
Life Coach Certification
Life coaching helps people achieve their goals. As a life coach, you have the ability to solve problems people face on a regu...
Achieve Inside Out Results Through an Executive Business Coach
Executive business coaching continues to be an excellent solution to closing the performance management gaps in business whil...
Life Coaching And Its Many-Many-Many-Many Niches
Considering getting a life coach? Not sure if theres a coach who specializes in your particular area of development? Rested a...
Do You Need a Performance Coach?
In todays fast paced world, we are often confronted with the issue, I want to get in shape, but I just dont have the time! W...