Most of you have seen the reports showing the big difference in hourly earnings between executive, business and life coaches. As a memory refresher, not much has changed since the Sherpa 2012 Earnings Report.
The Basics in Terms of Average Hourly Earnings
Executive coaches: $325 (defined as coaches who work on behavioral issues)
Business coaches: $235 (commonly called consultants, they help clients develop knowledge and skills)
Life coaches: $160 (advisors on personal, wellness, and life issues)
That’s quite a difference in anybody’s world. Of course, businesses have more money to spend on coaching, and it’s tax deductible for them, but there are many other reasons for the differences, that are perhaps a topic for another time.
Using the concept of “return on investment” (ROI) is one of the leading ways executive and business coaches present the long-term benefits of their coaching services to their clients. These coaches understand ROI and show prospective clients how coaching can work for them. Any life coach can use this strategy to their advantage.
Most executives and business owners will invest in a project if:
- the cost can be recovered in one year
- the benefits are repeatable and will last for years
Most businesses won’t buy into something until they have done this type of analysis.
The same is true for many individuals, though they may not be as aware of it as people in the business world are, and they probably don’t call it ROI. So if you frame the benefits of coaching in terms of an investment with a “return” of the expense within a year, and where the client will continue to benefit from working with you for a long time, more prospective clients will respond favorably.
For example, these benefits all last a lifetime and make coaching cost-effective:
- increased confidence
- increased self-esteem
- effective goal-setting
- reduced stress
- career advancement
- work/life balance
- effective life transitions
- better health
You know the long-term benefits your clients get when they work with you. Many of them are priceless. It can help when quoting fees to remember the “return on investment” your clients get for the fees they pay. Well worth it!