There’s this weird idea in coaches that you have to charge all your clients the same amount. Sure, if you found out I sold you a t-shirt for $20 that I normally charge $10 for you’d feel ripped off, but the comparison is a bad one.
Coaching is more complex than a t-shirt and the price you charge has more to do with the level of commitment than the specific work you do or even the outcomes they’ll create.
Having said that, there are 3-4 good reasons why you might consistently charge clients a different rate for coaching. I’ve laid them out in this video with a summary below:
1) They have different profiles –
(job titles, income streams, positions, types of work)
I sometimes charge CEO’s a different rate than I would charge a new coach. And I’m certainly more willing to work to get a yes with a really talented coach than a CEO. Partially it’s because the type of person is different and often the portion of income they are investing is different.
That’s certainly the case with the nun I coach who runs a hospice. I charge her less because I believe in her work and also because she’s a nun.
2) The perceived value is different –
I’ve paid $40k+ for 1-1 coaches but I can’t imagine hiring a trainer for that same amount. Not because trainers have less skill but the value of that is less in the market. If you coach CEO’s and you coach career transition people the CEO might be seen as more valuable. Whether or not that’s true, it means you could decide to charge differently for career coaching.
I’d rather have you create a better explanation of the value of your career coaching instead, but sometimes the perceived value or going rate does have an impact on what you can charge.
3) The work is different –
I have a client I only work with twice a month and she pays less than another client who I work with every week. I charge $5k to do a strategic planning session which is a little less than my hourly rate for coaching. And the mastermind group I run costs 1/10th of what working with me 1-1 costs.
I charge different rates because the work is different. Sometimes I do different work and charge the same rate. After all, time doesn’t always equal value, but if the work is different you might charge something different.
4) The entity you’re serving is different –
If you’re being hired by a company vs an individual you might charge something else. Usually, this means the work is different but it may not be. It could be the same work, but since the client is the company you might charge more. This is similar to #1 but not exactly the same. Because it acknowledges that Business to Business sales can be different than when you sign a deal directly with a client.