Latest / Burning Brightly / 119. How to Charge More For Your Coaching (and Stop Charging by the Hour)

Transcript

119. How to Charge More For Your Coaching (and Stop Charging by the Hour) · Burning Brightly

• 0:00
  Stop focusing on yourself and what you think you are worth.
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  Instead, focus on what the transformation is worth for your clients.
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  Now, of course, as new coaches, we're not gonna be as good at delivering that transformation as we will later on down the line.
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  So it's absolutely okay to charge lower prices towards the beginning.
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  I call this beta pricing.
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  You can offer it in a way that's very appealing.
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  While also kind of satisfying your own need to just try it out a little bit before charging high ticket prices.
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  But remember, don't confuse the transformation for your own value.
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  If you have issues with your own value, that's something we can do mindset work on at a different time.
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  But instead, I want you to price for the transformation.
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  If you're a Latter-day Saint or another woman of faith feeling called to build a business, welcome.
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  I'm Bonnie Wiscombe, and each week we'll combine faith and practical business strategy to help you answer that calling with confidence.
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  This is Burning Brightly.
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  high ticket coaching is not about charging more for the same thing.
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  It's not about just trying to get away with charging as much as humanly possible.
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  It's about creating a transformation in your client that is so valuable, people are excited to spend thousands of dollars on it.
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  One of the biggest questions I get from newer coaches is, "How can I charge thousands of dollars for coaching, number one, when I'm a new coach, number two, when I've got some mind drama around that much money?
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  Are people actually gonna pay it?
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  Is it actually worth that?"
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  if you are an LDS or a Christian woman, there's an added layer of, is this the right thing to do?
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  Is it morally okay to charge thousands of dollars for my services?
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  In fact, charging high ticket prices is not selfish at all, and it actually helps your clients get better results.
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  I'm also gonna show you how to confidently price a coaching package based on the transformation, not on the time you spend on it.
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  Let's first talk about why so many of us want to undercharge.
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  A lot of us just want to serve, especially women for some reason.
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  We just really love making the world a better place, and we want to do so at an affordable rate because we want it to be accessible.
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  We wanna help lots of people, which is fantastic, great desire.
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  We want to serve, we want to make the world a better place.
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  But sometimes it also comes from being uncomfortable when talking about money, especially large amounts of money, worrying that people might think we're greedy or confusing generosity with undervaluing yourself.
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  Again, nothing wrong with wanting to be accessible, But there is something wrong with undervaluing yourself because you're afraid to charge what the transformation is really worth.
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  That is the first point I wanna make here.
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  What you are selling is not your coaching.
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  You are selling a transformation.
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  You are selling a bridge from where they are here to where they want to be.
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  That bridge is extremely valuable because it's taking them to their dream future.
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  If someone said they could come to you and wave a magic wand and deliver to you a result you've been dying to have, maybe it's losing some body fat or having a better marriage with your husband, or maybe
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  it's doing some home projects.
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  Like, just wave a magic wand and you would get it.
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  What would that be worth to you?
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  Tons of money, right?
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  So much money because you've been working for this thing for a long time, and likely have already invested money and time and energy into it.
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  Now, obviously, coaching is not a magic wand, but it is a transformation, and that's what I want to focus on.
• 3:03
  Stop focusing on yourself and what you think you are worth.
• 3:06
  Instead, focus on what the transformation is worth for your clients.
• 3:10
  Now, of course, as new coaches, we're not gonna be as good at delivering that transformation as we will later on down the line.
• 3:16
  So it's absolutely okay to charge lower prices towards the beginning.
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  I call this beta pricing.
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  You can offer it in a way that's very appealing.
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  "Hey, this is my first time running this new program.
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  I'm so excited for it.
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  It's gonna deliver these amazing results to you.
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  And because you're the first group, you get this incredible discount of the beta price that is X amount."
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  All right?
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  You can make it very, very appealing, while also kind of satisfying your own need to just try it out a little bit before charging high ticket prices.
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  But remember, don't confuse the transformation for your own value.
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  If you have issues with your own value, that's something we can do mindset work on at a different time.
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  But instead, I want you to price for the transformation.
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  Now, for those of us who are Christians that might be thinking, "Is this even morally okay to charge thousands and thousands of dollars?"
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  I wanna remind you that God wants us to care for our families, care for ourselves, create margin in our business, that means profit, so that we can give generously to the church, his kingdom, and to others that are
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  in need.
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  Plus, as we charge a fair amount and have profit in our business, we can continue serving.
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  If we were to just give our coaching away for free, we would only be able to do so many hours, maybe a couple a week, maybe, if we have time for that.
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  But when it pays us for our time and efforts, we can continue investing in our business, invest in the community, pay taxes, invest in the church and other philanthropic opportunities.
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  There's so many ways to bless our lives and the lives of those around us when we make a profit.
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  So it's very, very, very important that our business is profitable.
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  Now that we know we're charging for a transformation, and we know that, yes, it is morally okay to charge large amounts of money when the transformation is really, truly worth that, Let's now address the fact that we do
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  not want to be charging for our time.
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  Now, we see this in business all the time, right?
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  Some people charge for their time.
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  Maybe if somebody does yard work for us, or house cleaning, Or babysitting.
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  They will come over, give us an hourly rate, and whatever they can do in that hour, we pay them that rate.
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  Here's why that doesn't work for coaching.
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  With coaching, you don't get a huge result in one session or one hour, and a lot of the tools that I give my clients, they have to then go implement in their own life to get the best results
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  possible.
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  So I like to look at coaching a little bit more like a more professional service that I would pay for, like a doctor or a therapist or an orthodontist.
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  Imagine if I only came in and only paid my kids' orthodontist an hourly rate.
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  Well, not much happens for one hour of an orthodontist's time.
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  It's about the big picture.
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  The transformation I'm paying for is take my kids' crooked teeth and make them straight so that they can have a good bite, so that their mouth is healthy, and so that it looks beautiful.
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  All right?
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  It's that big transformation.
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  It doesn't make sense to charge hourly when you are charging for a transformation instead of your time.
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  That's why that first step is so important, to zoom out and remember we're charging for the transformation Now, the transformation I give my clients, it involves a whole lot more than just a couple hours of my time.
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  It involves support in between calls.
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  They can email me.
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  They can hop on our community and ask questions.
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  It involves being part of the community that I have built in my membership, right?
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  So they can see what peers are doing and ask questions there too It involves some of the training that I offer them.
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  I give that to them in the form of prerecorded content, they have videos inside my membership that they can learn from and then come ask me questions about it, sometimes it involves my coaching skills that I have developed
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  and been trained for.
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  Sometimes it involves my experience as an entrepreneur.
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  So as you can see, it's so much more than just one hour of service.
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  A few other examples.
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  People do not buy piano lessons.
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  They buy the skill of playing the piano.
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  They don't buy nutrition appointments, they buy a healthier body or weight loss, That is how we want to look at ours as well.
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  Now, here's an example of what happens when you start to charge hourly, because some of my clients have done this in the past.
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  Number one, if a person is feeling bad about the transformation, like it hasn't been a great week and they're not making progress, chances are good they might cancel the call because, number one, they feel bad about it and
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  they don't wanna face the music that week with you on the coaching call.
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  Number two, they're gonna have to pay you for that week.
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  When you charge for the transformation, whether they come or not, they have paid and they are more invested, a few years ago when I was trying to lose weight after having my last baby, I hired a personal trainer,
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  and I hired her for a certain amount of money every month.
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  And whether I showed up for the appointment or not, I was charged that amount of money.
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  Now, that doesn't mean you have to do it that way.
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  I love to allow some flexibility for my clients.
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  If they miss a one-on-one call, I very often allow them to reschedule or at least give them a chance to recoup that time.
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  But they take it so much more seriously when it is part of a package The next reason you should be charging high ticket and not charging per hour is that high ticket packages create better clients.
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  It is true.
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  Those who are willing to pay thousands of dollars just show up better than those who do not.
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  When you invest $100 in something, what do you think?
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  You think, "Oh, okay, I put some money into that.
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  Maybe I'll show up.
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  Maybe I'll try it," it's kind of like a little dipping a toe in the water.
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  When you invest $2,000 into something or more, you think, "I am doing this."
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  Now, what does that mean for sales?
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  Well, does it mean you're gonna sell a little bit more upfront?
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  Absolutely.
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  Because there are fewer people willing to invest $2,000 than there are 100.
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  But it means you're getting the right people.
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  It means you are getting higher quality people who are willing to step in all the way and do the work, Instead of dipping a toe into the water of coaching, they are diving into the water.
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  They are all in, and they are completely invested.
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  A significant financial investment creates commitment.
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  We know that's true.
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  When we don't pay for things, we don't value it as much.
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  When we're committed, then we implement the tools we are taught, and the implementation then creates the transformation, Without each of those steps, without being fully in, fully committed, and fully implementing the things that I give my clients, they
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  don't get a transformation, and that is a shame for both of us.
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  I want them to get the transformation.
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  They wanna get the transformation.
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  Show them what the transformation is worth so now you know that you're selling the transformation.
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  You know you wanna sell the package and not an hourly price, and you know you want it to be high ticket so that people really value it.
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  How do you decide on the price?
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  Unfortunately, there is no hard and fast rule, but there are a few questions you can ask yourself as you're making the decision.
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  Number one, how valuable is this transformation?
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  What are people already paying for it?
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  What do they pay to escape the pain of it?
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  where would their life be in another three to five years without this transformation?
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  How long does the transformation take?
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  How much personalized support is included?
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  So for me, I actually recently started doing lower ticket membership because I wanted to help more people.
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  So there's a lot less support from me in a membership than there is one-on-one coaching.
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  That's how I can offer lower prices.
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  So it's just a different pricing model.
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  But ask yourself, if you're gonna be very high touch, you're gonna be checking in with them multiple times a week, they can check in via Voxer or Marco Polo or text or something else, then you want that price
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  to reflect that.
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  How customized is the experience?
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  Is this something very, very specific for that person?
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  If it's something that has to do with their health, it probably will be.
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  It will probably be very customized based on their, nutrition or fitness needs or their current health status Another question to ask is how much time does this save someone?
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  Not just money, but time.
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  Our time and energy is extremely valuable.
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  How much are you saving the person by taking them through this transformation?
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  And remember, it's okay to start lower while you're gathering proof.
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  If you don't have any testimonials, I highly recommend you start with beta pricing.
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  That could be half off what you intend to charge later on.
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  It could be thirty percent, it could be seventy percent.
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  You get to choose.
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  In reality, you're only gonna know what the market responds to by testing.
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  So put some feelers out, ask some people, see if you get some bites.
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  If not, maybe try lowering the price.
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  Maybe try a different audience, right?
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  There is someone out there who will pay just about whatever price you choose, depending on how desperate their need is and how long they've been looking for a solution to this.
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  Just make sure you don't stay in that beta pricing place forever.
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  As you gather testimonials, proof, experience, and you know your transformation is really, really worth it, increase your price accordingly Now, if this is hard for you to wrap your head around, you are not alone.
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  This was totally hard for me as well.
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  At the beginning, I thought, "Would I pay $2,000 for this?
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  Maybe, maybe not."
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  But if you wouldn't, maybe you're not your ideal client, because there are people out there whose pain and suffering is so great because they're in need of this transformation that they're willing to pay just about anything.
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  And once I realized that I wasn't trading hours for dollars, I was delivering a full-fledged transformation that was gonna change their life, then I realized how much it was worth.
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  I finally also realized that I wasn't giving to my clients just time.
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  I was giving them over a decade worth of entrepreneurial experience in my own businesses.
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  I was giving them thousands of dollars in education, tens of thousands of dollars actually, that I've invested in my own education.
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  I was giving them the experience of countless mistakes I had already made, and I was giving them a shortcut to the result they wanted.
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  Could they have gone out and gotten it themselves for free?
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  Sure.
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  But would it have really been for free?
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  'Cause it would've also cost them probably a decade in experience, tens of thousands of dollars in education, lots of mistakes, right?
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  So we are creating a shortcut to get them there quicker.
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  Just like the analogy I love of taking a plane ride to someplace amazing.
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  Can you get there another way on your own, hoofing it?
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  Or hitchhiking or driving your own car?
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  Sure, but it takes a lot longer, a lot more painful, a lot more time and energy invested So my friends, if you believe God has called you to coach, do not be afraid to charge what that transformation is
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  worth.
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  He wants you to charge high ticket because it means your clients will be invested.
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  It means it will bless your life and the lives of all those around you.
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  If you continue saying yes to this calling, it will bless your life forever, but you can't be afraid to charge what it's worth.
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  The important thing to remember is that charging well isn't the opposite of serving.
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  It is what makes serving possible.
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  It's what makes it possible for us to keep showing up over and over and take time away from our family and maybe other jobs we have in our community and the people that need us, so we can serve
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  those outside of our circle Okay, my friends, tell me in the comments below if you have a high-ticket coaching offer, if you don't, how much you would like to charge, and what the transformation is.
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  I'd love to hear.
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  Take care, and we'll talk to you next time If today's episode encouraged you, my book, Burning Brightly, is the next step to answering God's call to build a business through faith and confidence.
• 13:21
  Grab your copy and the free companion workbook through the link in the show notes.
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  The world needs more women willing to burn a little brighter.