Why have you decided to make the switch from the field of psychotherapy to the rapidly growing coaching industry?
Is it because the opportunity for financial growth in the coaching industry excites you? Do you long to work wherever, whenever, with your days revolving around no one’s clock but your own? Is completing clinical documentation for 25+ patients a week giving you carpal tunnel? Maybe you’ve just decided that you’re ready to serve only a particular population that you’re especially passionate about…
No matter the reason- odds are that you find it important to follow the golden rule when it comes to your clients. That is, you have no desire to wrong them in any way! So why are you doing them such a disservice by charging an hourly rate for your coaching services, rather than offering a range of customizable, convenient, flat-rate coaching packages?
You see, in certain service industries, hourly rates just make sense.
For example, it would be unfair to pay a paramedic per patient, as she must set aside all other activities to be close to an ambulance and available for calls 12 hours a day (a responsibility that remains consistent even though the number of 911 calls made per day varies widely). Likewise, you’d be robbing security guards blind if you paid them per break-in stopped. They’re always present to discourage criminal mischief even though several shifts may pass without any major incidents. These industries are results-oriented just as the coaching industry is, but it doesn’t make sense to charge coaching clients by the hour.
In fact, it can actually be harmful to your clients and your business to charge an hourly rate as a coach.
What makes flat-fee coaching packages superior to hourly rates?
The “Time is Money” Mindset
The time is money mindset is often present on both sides of the exchange when coaches charge by the hour, but it isn’t helpful on either one! Clients may feel pressured to make more progress in less time so that they can save by paying you for fewer hours. Meanwhile, many well-meaning coaches may find themselves working at a slower pace than necessary because it is beneficial to them to do so. (This may even be done subconsciously!)
Flexibility Decreases By the Hour
When you choose to charge an hourly rate for coaching services instead of offering clients coaching packages, you take away your clients’ freedom. You deny them the opportunity to complete their journey at a pace comfortable to their unique lifestyles and schedules. You also take away their flexibility when it comes to what time of day or day of the week they can work through your program. Likewise, you forgo the chance to complete work-related tasks when it works for you, because you must be available when your clients are available.
Coaching Packages Offer Clients More Access Points
Coaches who charge by the hour tend to only provide their clients with services and products that are easy to bill that way. When you provide your clients with a choice of various coaching packages, you’ll also provide them with a variety of access points and products because billing becomes much simpler.
If they make progress more easily when speaking with someone face-to-face, perhaps an intensive set-length session via Skype or Zoom would work best for them. If they are very independent and like to work things out on their own, an online course could be a better option. Of course, you should offer 1 to 1 support to every client when they need it, but some people prefer a little more push and others succeed better with space. Coaching packages allow you to address all kinds of learning styles and offer a wider variety of learning materials for each.
Budgeting Becomes More Burdensome In an Hourly System
Budgeting becomes more burdensome for both your clients and yourself when you charge an hourly rate. It’s easier to predict how many people will seek out your services and purchase a coaching package than it is to predict exactly how long it will take each client to complete their journey. The more accurate your financial projections are, though, the easier it is for you to plan the future of your coaching business.
In a similar vein, you don’t want clients beginning their transformations by trying to calculate how long they will take and, in turn, cost! Making mathematical calculations takes their attention away from the more important matters at hand- your amazing coaching skills!
Hourly Rates Put a Bind On Your Business
There’s one thing that every business- no matter its industry- requires for growth. Can you guess what it is? Increased income! Unfortunately, when you’re charging an hourly rate, more income equates to more work. In other words, the focus shifts away from the value of your work, to the volume of it instead.
When you choose to charge by the hour rather than the coaching package, you miss out on countless opportunities to increase the value of your business by expanding into new territory, simply because you don’t have the time to explore or execute them.
Are You Ready to Leave Hourly Rates Behind & Embrace the Many Perks of Coaching Packages?
Great! Then it’s time to take the next step. You’ll need to create, price, and market your very own coaching packages!
Check out my online course “Package Your Expertise”. In it, I’ll teach you everything you need to know about creating irresistible and transformational coaching packages that will be of true value to your clients and your business!