Hi Reader !!
Welcome to How To Be a Working Coach, the newsletter designed to help you get the coaching practice (and the life you want)! This is Issue #34, focusing on the strategy behind your pricing.
Early in my coaching career, I was coaching 30-33 hours a week. But I was basically giving away the service, charging $25-$75/hour. It was a slog. By the time Friday afternoon arrived, I was tired. I'm pretty introverted, and all that interpersonal contact meant that my sessions early in the week were quite productive.
But by Thursday morning, it was no longer a guarantee what clients would experience. And it always seemed like there was more month than money.
I had to figure out something else to do. And I decided that pricing was my gateway.
The Two Worlds of Coaching Pricing
Most coaches stumble through pricing decisions without a reliable methodology. They either undervalue themselves out of fear or overprice based on wishful thinking. But working coaches understand that sustainable pricing requires systematic thinking.
After years of experimenting with different approaches, I've identified two fundamental pricing strategies that actually work: Value-Based Pricing (what you're worth based on credentials and experience) and Lifestyle-Based Pricing (what you need to earn to live the life you want).
The magic happens when you understand both approaches and use them strategically depending on your situation and goals.
The hardest lesson I learned through my coaching journey was that clients care about the results they get much more than the price they pay. Focusing on what they get for the money they spend makes all the difference. But your experience is going to be different than mine because you are a different coach than I am. So, considering how you will arrive at the number that begins the conversation, usually takes one of two strategies.
Strategy #1: Value-Based Pricing - What You're Actually Worth
The Credential Premium Formula
Your coaching credentials aren't just wall decorations - they're quantifiable value that clients recognize and pay for. Here's how to calculate their worth:
ICF/EMCC Credential Values:
- ACC/Foundation Level: +$50-75/hour
- PCC/Practitioner Level: +$75-100/hour
- MCC/Master Level: +$100-125/hour
These aren't arbitrary numbers - they reflect market research from FLUXIFY graduates and industry surveys showing what clients actually pay credentialed coaches versus non-credentialed coaches.
The Training Investment Multiplier
Every hour you've invested in coach training translates to an hourly rate value:
Training Hour Formula: $0.30-0.50 per training hour
- 100 hours of training = $30-50/hour rate increase
- 200 hours of training = $60-100/hour rate increase
- 500+ hours of training = $150-250/hour rate increase
[Space for personal reflection on how your investment in training paid for itself through higher rates]
Why This Formula Works:
- Clients see training hours as risk mitigation
- More training = deeper toolbox for complex challenges
- Training investment demonstrates professional commitment
The Experience Factor (With Diminishing Returns)
Here's the reality about experience pricing that most coaches get wrong:
The First 1,000 Hours Rule:
- Hours 1-250: +$10 per 100 coaching hours
- Hours 250-500: +$10 per 100 coaching hours
- Hours 500-1,000: +$10 per 100 coaching hours
- Hours 1,000+: Minimal additional hourly value
Example Calculation:
- ACC coach with 150 experience hours: +$15 to base rate
- MCC coach with 3,000 hours: +$100 to base rate (not $300!)
Industry Specialization Bonus:
- Relevant corporate experience: +$10-25/hour
- Industry-specific coaching track record: +$15-35/hour
- Niche expertise (turnarounds, mergers, etc.): +$25-50/hour
Additional Value Factors
Delivery Method Premiums:
- Phone coaching: Base rate
- Video conferencing: +$5-10/hour
- In-person coaching: +$15-25/hour (plus expenses)
Client Fit Premium:
- Ideal target client: +$10-25/hour
- Outside your sweet spot: Consider a discount or referral
Value-Based Pricing Calculator Example
Base coaching rate: $100/hour
- ACC credential: +$50
- 200 hours training: +$80
- 400 hours experience: +$40
- Industry specialization: +$20
- In-person delivery: +$20
Total hourly rate: $310/hour
For the full calculator spreadsheet, see How to Be a Working Coach #10
Strategy #2: Lifestyle-Based Pricing - Reverse Engineering Your Life
The Annual Revenue Target Method
Instead of guessing what to charge, start with what you need to earn and work backwards.
Step 1: Define Your Target Take-Home Income. Example: $100,000 desired annual income
Step 2: Add Your Business Expenses
- Coach training and credentials: $5,000
- Technology and tools: $3,000
- Marketing and networking: $4,000
- Insurance and legal: $2,000
- Office/workspace: $6,000 Total expenses: $20,000
Step 3: Calculate Gross Revenue Target $100,000 (take-home) + $20,000 (expenses) = $120,000 gross revenue. Monthly target: $10,000
My wife and I live a low-key lifestyle. I discovered that calculating my number based solely on what we need didn't really stretch me. I had to let myself dream a little bit about something we might work toward over the long haul. Or set some stretch goals to push me to continue developing my practice. You might find similar realities.
Remember The One-Third One-Third One-Third Rule
For every hour of coaching delivery, expect to spend:
- 1 hour coaching
- 1 hour administration (prep, notes, follow-up)
- 1 hour marketing/business development
Example Work Week Breakdown:
- 45 total work hours per week
- 15 hours coaching clients
- 15 hours of administrative work
- 15 hours of marketing/sales activities
Monthly coaching hours: 15 hours/week × 4 weeks = 60 hours Required hourly rate: $10,000 ÷ 60 hours = $167/hour
For more on the One-Third One-Third One-Third rule, see How to Be a Working Coach #14
The Reality Check: What If You Can't Fill Those Hours?
Scenario: Only 8 hours of coaching per week (32 hours/month) Required rate: $10,000 ÷ 32 hours = $313/hour
This is where the two pricing strategies intersect - your lifestyle needs require rates higher than your credentials, training or experience support, or vice versa.
The Rolling Revenue Tracking System
I learned this approach from my coach, Mark LeBlanc: track your coaching revenue on a 30-day rolling window.
Monthly Revenue Review Questions:
- Did I initiate enough new business conversations?
- Am I on track to hit my monthly revenue target?
- Do I need to adjust rates up (low hours) or down (to win specific clients)?
- Where are the gaps in my sales pipeline?
The most challenging part of the rolling 30-day window occurs when you bring in considerably more than your target for a given month. You'll need to make some decisions about whether to pay yourself a draw, so that you can cover your lifestyle expenses for the month and bank the rest. Or whether or not you can be responsible with an extra windfall in a particular month. No judgment either way, do what works for you.
The Psychology of Premium Pricing
Why Higher Rates Often Close More Deals
The Value Perception Paradox:
- Executives expect to pay for expertise
- Low rates signal inexperience or desperation
- Premium pricing positions you as exclusive, not accessible
Social Proof Integration: Your rates mean nothing without evidence of results. Critical pricing supports:
- Client success stories and case studies
- Testimonials that mention transformation, not just satisfaction
- Before/after examples of leadership development
- Business impact metrics, when possible
The Corporate vs. Individual Client Reality
Company-Sponsored Clients:
- Higher budget tolerance
- Focus on ROI and business impact
- Expect premium rates for experienced coaches
Self-Pay Clients:
- More price-sensitive decision-making
- Personal value focuses on business ROI
- May require a different rate structure or payment plans
This dichotomy is essential because some corporate clients won't take you seriously unless your rate matches what other coaches are charging. Do a little research to determine what other coaches working with similar clients charge, and ensure your prices are competitive. I like to price myself squarely in the middle of the upper half of the range. I don't want to be the most expensive option out there, but I also don't want to undervalue what I offer.
Pricing Conversation Strategy (Without Negotiating)
My Written-Only Pricing Rule
As I mentioned in last week's newsletter, I've learned I'm terrible at verbal price negotiations. Here's my complete system:
The Proposal Process:
- Discovery calls focus entirely on fit and value
- Written proposals include a clear pricing structure
- Multiple package options (good/better/best)
- All pricing discussions happen via email
Strategic Pricing Buffer: I typically start 10-15% higher than my target rate, allowing room for negotiation while protecting my minimum acceptable fee.
Benefits of Written-Only Pricing:
- Removes emotional pressure from both parties
- Creates time for thoughtful consideration
- Maintains professional documentation
- Protects your pricing confidence
Package vs. Hourly Positioning
Instead of: "I charge $200/hour for coaching," Try: "My executive coaching engagement is $4,800 for a three-month intensive development process."
Package positioning:
- Focuses on outcomes rather than time
- Reduces price comparison shopping
- Allows for premium pricing based on value
- Creates clear boundaries and expectations
Integration: When to Use Which Strategy
Use Value-Based Pricing When:
- You're establishing credibility in a new market
- Working with corporate clients who expect credential-based pricing
- You have strong credentials and specialized experience
- The client asks explicitly about your background and qualifications
Use Lifestyle-Based Pricing When:
- You're planning your annual business strategy
- Deciding whether to take on additional training or credentials
- Evaluating whether your current client mix supports your life goals
- Determining if you need to shift your target market
The Integration Sweet Spot:
The most successful working coaches use value-based pricing to establish their worth, then ensure their client mix and hours worked support their lifestyle-based revenue targets.
Common Pricing Mistakes to Avoid
For Newer Coaches:
- Underpricing to "get experience" (which signals low value)
- Copying other coaches' rates without understanding their credentials/experience
- Focusing on hourly rates instead of engagement value
For Experienced Coaches:
- Assuming years of experience automatically justify higher rates
- Failing to adjust pricing based on market feedback
- Not tracking revenue systematically to optimize pricing strategy
Universal Mistakes:
- Negotiating rates verbally without preparation
- Pricing based on what you hope to charge vs. what the market supports
- Failing to connect pricing to clear value propositions
The big benefit of getting this right is you get the lifestyle you want, the income you need, and you bring your best self to every encounter with your clients.
This Week's Experiment: The Complete Prcing Audit
Part 1: Value-Based Calculation (45 minutes) Using the formulas above, calculate what your credentials, training, and experience justify:
- Total your credential values
- Calculate your training hour multiplier
- Add your experience factor
- Include any specialization bonuses
- What's your value-based hourly rate?
Part 2: Lifestyle-Based Analysis (30 minutes) Determine what you need to charge to support your desired lifestyle:
- Define your target annual take-home income
- Calculate all business expenses honestly
- Apply the 1/3/3/3 rule to determine coaching hours available
- What hourly rate do you need to hit your lifestyle goals?
Part 3: Gap Analysis (15 minutes) Compare your two calculations:
- Is your value-based rate higher or lower than your lifestyle needs?
- If there's a gap, what needs to change? (More credentials, different target market, more hours, adjusted lifestyle expectations?)
- What's your action plan to align these two approaches?
Part 4: Current Client Review (30 minutes)
- Are you charging rates that reflect your value-based calculation?
- Is your current revenue tracking toward your lifestyle goals?
- Which clients or prospects would you price differently with this new framework?
Upcoming: Next week in "How to Be a Working Coach", we'll explore "Upsells and Expansions" - how to grow revenue from existing clients without feeling pushy or compromising the coaching relationship.
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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