As an online coach or educator, it can be hard to know how to price your services. When your pricing is too low, it may appear that your work is not valuable. Exceedingly high pricing may indicate a high value, but can also turn off potential clients from learning more about what you have to offer. When you know that the work you do has the ability to help others, it can be easy to find yourself giving away services, making deals, and engaging in other business practices that stop you from getting the income you deserve. Follow these principles to ensure you’re setting a price that reflects the hard work you put into your coaching business.
Principle #1: Know Your Worth
Find out how much coaches who do your job for large corporations charge per hour. The fee is likely more than you’re charging clients. It’s easy to think that you should charge less, since you don’t have a human resources department, a secretary, a custodial staff, assistants… but really, you do. You’re doing all of that work yourself on a daily basis, and you deserve to be paid as such. When potential customers ask what they’re getting if they choose to work with you, don’t downplay yourself. Tell them about your qualifications, successes that other clients have had, and what makes you stand out from others who offer similar services. This isn’t the time to get humble.
Principle #2: Get Competitive
Check out the pricing of people who do similar work in your area. If you’re the only one who does what you do in your area, check out other coaches in areas with a similar cost of living. This piece is key- if you’re in an area with New York City prices, you shouldn’t be charging middle of Idaho rates. Smart consumers price shop, and when they do, you want to make sure that they that your prices are similar to other coaches in your area.
Principle #3: Know Your Market
Are you targeting stay at home moms? Busy dads? College students? Know your market, and know how much disposable income they have to spend. You may need to do some research on average salaries in your area to know how much money people are likely to be able to spend on your services. When you’re networking, spend the vast majority of time interacting with people in your target market. Sure, you may have some outliers who work with you from a different market, but the majority of your time should be spent working to target the group of people who are most likely to purchase your services.
Principle #4: Finding Clients
One of the hardest parts of running a business is finding customers, but it doesn’t have to be that way! Social media marketing is key for online coaching growth, and using it wisely allows you to reach customers you wouldn’t encounter otherwise. Running targeted ads on Facebook and Instagram can help you find people in the income bracket you want. While creating free ads is an option on Facebook, paying for targeted ads is worth the money. Find out what other business your target market patronizes, and go to their Instagram feed or Facebook page. Connect with people who like/ interact with the business. Target your ads to those groups. When you’re beginning to connect with your market, it’s a great idea to offer a brief free consultation, but it’s key to remember that the freebies stop there. Don’t be afraid to let people know that if they’d like to work with you, there is a fee.
Know that it’s normal for the price you charge to fluctuate. As you search for the sweet spot that brings in clients and pays you what you deserve, you may find that you’ve been charging far too much or far too little. When you change your prices, fight the urge to apologize or justify the increase. Explain to your customers that your demand and workload has increased (and it has, as you’re doing all of this research to ensure you’re charging your clients correctly), and you have to price your services accordingly. When you’ve shown your clients that you offer an excellent service, it’s unlikely that a slight price hike will drive them away.