Hi Reader !!
We're at Edition #10 of How to Be a Working Coach!
Here's a reality for working coaches: No matter what you think of the process of earning a third-party coaching designation, Credentials pay for themselves.
A coaching credential carries significant value for a working coach:
- A certain inner satisfaction comes from achieving that third-party endorsement of your work.
- A credential shows that you put in the effort to learn new skills and to stretch your existing abilities.
- A credential gives you common ground to connect with clients/potential clients and gives you a way to build connections with peers in the coaching industry.
You can't join the ICF globally or in your local chapter unless you have begun the credential process.
These reasons point to the mistake most coaches make about the credential process: your credential won't open as many doors as coaches think. The real value of a credential is that it makes the rooms you can get into much nicer. And it makes it easier to STAY in those rooms.
One coach tells how his MCC didn't immediately level up his skills. His clients didn't start showing up for sessions more prepared. This coach had a hard time pointing out ANYTHING he thought was different after earning his MCC...until he started sending written proposals to potential new clients.
Just out of habit, he raised his rates when he got his new credential. (Which, by the way, is a good habit anytime something good happens in your practice.) He also did this when he got his ACC and PCC.
The rate increase was notable, a significant boost, and what surprised my coach friend was that no client hesitated. Instead, they all CELEBRATED his new accomplishment! His progress became a point of pride for them. Even though HE WAS NERVOUS about the increase...his clients weren't!
So, what's the lesson here? First, if you're serving your clients, they will pay to work with you.
Secondly, it can be challenging to understand what your clients see as a valuable cost. If you don't know your client's budget for coaching, you are flying blind. Almost no one likes to talk about money, but sometimes that's what you must do.
And third, investing in a credential is an easily verifiable way for your clients to confirm that you're ready to work with them. Reframing what you pay to upgrade your credential as an investment in your clients lands nicely.
In 2023, FLUXIFY (one of the training programs I run) did a study with graduates of our program about the return on investment they got from earning or upgrading their credentials. On average, it took five months of increased coaching fees to recoup every dollar invested in the training process.
The bottom line is that when you level up your credential (from no credential to ACC, ACC to PCC, or PCC to MCC), every hour of coaching from that moment carries a higher price tag. And clients know that with higher credentials, the fee also increases.
You also have more skills, confidence, and a better ability to help your clients get what they want.
Credentials are only one way to show your clients you're ready to work with them. Consider how many hours of client coaching experience you have.
A coach with over 2000 hours of experience will occupy a different place in a client's mind than a coach with 250 hours.
Training hours also make a difference. Documented training builds confidence for both the coach and the client.
So, how much difference does a credential make?
- Our student research showed that an ACC was worth a minimum of $50 per hour of coaching.
- A PCC added $90.
- And an MCC? That started at $125 per hour.
See? The investment pays for itself and adds up quickly. These numbers don't factor in that credentials make it easier to get a potential client to say yes more quickly!
(NOTE: The majority of our students are in North America and most work with clients who get financial support for coaching from their employers. Your numbers may differ, but you will see an increase!)
The same pattern applies to training hours and a coach's total coaching experience. Applying these numbers to your pricing plan makes an excellent argument for keeping your coaching log, even if you don't plan to apply for upgraded credentials.
You can download an interactive pricing guide I made here. Pricing Tool for Working Coaches REV7.xlsx
When you open the Excel sheet, you can enter your training hours, experience, and credentials and get a recommended range for your hourly coaching rate.
You can even tweak the ranges based on whether you have specific expertise in the focus of the coaching, your preference for in-person v. remote coaching, and whether or not the client is in your target group (some coaches charge more to work with someone who is not an ideal fit).
Let me know what you think of the Pricing Tool.
We'll dive into pricing strategy more in upcoming newsletters.
One side note: You should consider who's writing the check. Many coaches use different (lower) pay scales when the client pays directly than when the client is experiencing coaching that their company funds.
When you add this all up, the credential pays for itself! I'd love to hear your experience in figuring out how to price your offerings!
What topics would be most helpful for you to dive into? Let us know.
Cheers,
Jonathan Reitz & the Working Coach Labs Team
Brought to You By FLUXIFY
If you're thinking about adding an ICF credential or upgrading your credential, or you need a strategy for your renewal, FLUXIFY has you covered.
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