As a solo coach of any kind, you have a choice between structuring your coaching as a hobby… or setting it up as a business that will let you make your living doing what you love. Possibly with a recurring revenue stream.
One of the common ways to try to set your coaching fees so you make a living wage is to refer back to your salary when you were an employee.
That looks like taking your monthly salary and multiplying it by 12 months and saying, that’s what I need to make a year. Easy, but sadly it doesn’t work. Let’s look at some of the reasons.
Remember a rate of $100 or even $200 an hour sounds great… until you really think it through. After all, that’s a LOT more than you were making as an employee.
However…There are many differences between your take-home pay as an employee and the income you will need to generate as a self-employed coach.
Ask yourself these questions about when you were an employee:
* Were you paid for vacations, sick days, holidays, and personal days?
* Were your taxes already deducted from your paycheck?
* Did your company pay for all or part of your medical insurance?
* Did you have some savings deducted from your paycheck?
* Did your company pay for continuing education and training?
* Did your company supply things like a phone, computer, internet access, and office supplies, plus maintenance and upgrades?
* Did your company pay for all the necessary marketing and support?
* What other benefits did your employer provide that you are now responsible for? Make a list.
Those expenses, plus many others, are your responsibility as a self-employed coach. You can see it’s important to take these into consideration as you set your fees. Don’t forget to look at what your company paid for when you were an employee. Because now you are both the employer and the employee.
Business Skills for Coaches is designed to make it easy for you to work through what it takes to have a successful coaching practice so you can continue to do what you love.
Forgive yourself and those that trained you to be a coach. Even the best colleges still teach us to be employees. That’s how to do the job well. This was rewarded because that’s what you were responsible for as an employee. Now you are both the employee, (the coach), and the employer.
Get clarity on this by scheduling your Free Discovery Session at http://www.BusinessSkillsforCoaches.com.
You’ll be amazed at how intuitive it all is once you find someone to show you how it works. You’ll be taking a big step toward having the business that will let you make your living doing what you love, instead of just a hobby.