You have had it. You have decided that your life, and your career could be better. You have made the decision to seek out and hire a professional coach. Good for you! According to the ICF (International Coaching Federation) Global Coaching Client Study, 99% of clients were “somewhat” or “very satisfied” with their coaching experience. In this same survey 80% of clients saw improved self-confidence, and 70% reported improved work performance. Chances are good that you will find working with a professional coach as a positive experience, with good return on investment. If you have thought this through, you recognize the importance of finding a coach that is experienced, certified, and hopefully a coach that has expertise in your field. But what about payment arrangements? Many professionals charge by session time, but lately some coaches have been bundling their services into packages. Which is the better way to go?
To answer this question, let’s start with the coach’s perspective. Here is a little know secret in the coaching industry – new clients are difficult to sign. Why is this? Based on my personal experience as a Career, and Executive coach, I think there are a couple factors. I think for some clients the sticker shock of professional coaching session rates can be unexpected. According to conference-board.org executive coaches rates for professionals 2 to 5 levels below the CEO the average coaching rate (61%) fall between $300 to $400 per session. (Keep in mind executive coaches tend to charge more than general career coaches.) For Career Coach rates, theundercoverrecruiter.com states to expect a rate between $100 to $500 for a single session. Short story, if you are looking to hire a coach for less than $100 per session you will be hard pressed. Another reason that signing new clients can be difficult is that coaches don’t do a good enough job of explaining the benefits of coaching. We in the community of coaches need to do a better job of clearly stating the measured benefits from coaching. Without question the numbers are out there that support engaging with a professional coach has measurable benefits. We just need to state them clearly. But getting back to the primary question, is it better to hire a coach by session time, or by a coaching package, since signing new clients can be challenging, from a coach’s perspective there are benefits for the coach of signing a client to a multi-month package. According to Michelle Schubnel, of Coach and Go R.I.C.H, “There are a number of reasons why. Here are the two biggies: #1 – It makes your income more stable and predictable. You can forecast your revenue and not be worried that all of your clients are going to suddenly complete on the same month. #2 – Clients who sign up for a 3+ month coaching package are willing to make an investment and a commitment. They take coaching more seriously and therefore get better results. These are the kinds of clients you want to work with. “In considering these points, you can see that signing a client to a multi-month “package” has business benefits for the coach, but I also agree with Ms. Schubnel’s comment that since a larger commitment exists with the client, they tend to reap greater benefits also.
But let’s consider the client perspective when considering paying by session time, or “package”, as the client is the other half of the coach – client relationship. People are not the same. They are individuals. And in the same way, clients are different in their levels of comfort, fiscal liquidity, and the amount of bandwidth they have to devote to working with a Coach. Add into the mix, that there are some clients that are simply curious of what the coaching experience will be like. They want to “test the waters” so to speak. For this last group a commitment of over a thousand dollars is probably a non-start. For those with limited resources, or those that are simply curious about the coaching experienced, a payment plan by session probably makes the most sense. They can pay as they go, or might even consider an option of a month or 4 session commitment. This is a great way to preserve resources, but still have the benefit of working with a coach for a limited amount of time. In my own practice, for years I have offered a month’s worth of service as a baseline to build from. Most clients really like this option.
There is another group of clients that is important to discuss. This is the type of client that thinks, and feels that getting unwavering support is the most important aspect of hiring a coach. This is especially true in a job search. A job search can be humbling. This is true regardless of your income, or your level of responsibility within an organization. When you do a job search the rubber meets the road. You are putting yourself to the test to truly see what your market value is. What your work experience is worth, and what your education, and certifications are truly worth in the market place. This can be humbling indeed. Some clients are drawn to coaches that take a larger amount of money upfront, but give the client a commitment to stay with them until they are hired into their next job. This commitment can be huge to the client, as they know no matter what happens they will continue to get the help, and support from their coach. It adds stability at a time where all else seems to be uncertain. For this type of Client, a coaching “package” can be comforting, and very attractive.
But there is a down-side to opting for a coach package. In short, in comes by definition. Because the services are bundled into a set “package” the client may end up paying for services, and deliverables that they don’t really need. For one example, consider job interview prep. Some clients may need extra help on job interviewing (some may need a LOT of help), but others message themselves well, and do a good job of presenting, and selling themselves in an interview. The same may apply with many other line items, or modules within a coaching package. The down side is if it is part of your package, you are paying for it. Whether you need it or not.
Is it better to pay a coach by session, or buy a coaching package upfront? The short answer is “it all depends”. If you have limited resources, or unsure of how much bandwidth you can commit to working with a coach, then a shorter commitment, or “pay as you go” probably makes the most sense. If you like having a list of deliverables up front, and a set dollar amount for the work done, then a “package” arrangement might be a good option. This may also be a good option if you are going through life changes, like a job search, and find comfort in knowing a coach will stick with you through thick, and thin, until you achieve your goals. Just remember, the fees will most likely be higher upfront. In my own practice (AscendProCoach.com) I strive to be flexible, and to try my best to meet the needs of the client. For many years I only offered services based on session time. But recently in response to the need for some to bundle services in a package, I have created three levels of coaching packages. And yes, I do offer a package with unlimited support. But I will also continue to offer services based on session time. As a professional coach, I want to do my best to meet the client’s needs. Whether engagement is under a coaching package, or based on session rate, it is always good to know your options. As always, the client is the ultimate decision maker. My job as a professional coach is to support, provide good options, and to accommodate my clients.
AUTHOR: Brian Kail, MBC, CPC is a Certified Career, and Executive Coach
To answer this question, let’s start with the coach’s perspective. Here is a little know secret in the coaching industry – new clients are difficult to sign. Why is this? Based on my personal experience as a Career, and Executive coach, I think there are a couple factors. I think for some clients the sticker shock of professional coaching session rates can be unexpected. According to conference-board.org executive coaches rates for professionals 2 to 5 levels below the CEO the average coaching rate (61%) fall between $300 to $400 per session. (Keep in mind executive coaches tend to charge more than general career coaches.) For Career Coach rates, theundercoverrecruiter.com states to expect a rate between $100 to $500 for a single session. Short story, if you are looking to hire a coach for less than $100 per session you will be hard pressed. Another reason that signing new clients can be difficult is that coaches don’t do a good enough job of explaining the benefits of coaching. We in the community of coaches need to do a better job of clearly stating the measured benefits from coaching. Without question the numbers are out there that support engaging with a professional coach has measurable benefits. We just need to state them clearly. But getting back to the primary question, is it better to hire a coach by session time, or by a coaching package, since signing new clients can be challenging, from a coach’s perspective there are benefits for the coach of signing a client to a multi-month package. According to Michelle Schubnel, of Coach and Go R.I.C.H, “There are a number of reasons why. Here are the two biggies: #1 – It makes your income more stable and predictable. You can forecast your revenue and not be worried that all of your clients are going to suddenly complete on the same month. #2 – Clients who sign up for a 3+ month coaching package are willing to make an investment and a commitment. They take coaching more seriously and therefore get better results. These are the kinds of clients you want to work with. “In considering these points, you can see that signing a client to a multi-month “package” has business benefits for the coach, but I also agree with Ms. Schubnel’s comment that since a larger commitment exists with the client, they tend to reap greater benefits also.
But let’s consider the client perspective when considering paying by session time, or “package”, as the client is the other half of the coach – client relationship. People are not the same. They are individuals. And in the same way, clients are different in their levels of comfort, fiscal liquidity, and the amount of bandwidth they have to devote to working with a Coach. Add into the mix, that there are some clients that are simply curious of what the coaching experience will be like. They want to “test the waters” so to speak. For this last group a commitment of over a thousand dollars is probably a non-start. For those with limited resources, or those that are simply curious about the coaching experienced, a payment plan by session probably makes the most sense. They can pay as they go, or might even consider an option of a month or 4 session commitment. This is a great way to preserve resources, but still have the benefit of working with a coach for a limited amount of time. In my own practice, for years I have offered a month’s worth of service as a baseline to build from. Most clients really like this option.
There is another group of clients that is important to discuss. This is the type of client that thinks, and feels that getting unwavering support is the most important aspect of hiring a coach. This is especially true in a job search. A job search can be humbling. This is true regardless of your income, or your level of responsibility within an organization. When you do a job search the rubber meets the road. You are putting yourself to the test to truly see what your market value is. What your work experience is worth, and what your education, and certifications are truly worth in the market place. This can be humbling indeed. Some clients are drawn to coaches that take a larger amount of money upfront, but give the client a commitment to stay with them until they are hired into their next job. This commitment can be huge to the client, as they know no matter what happens they will continue to get the help, and support from their coach. It adds stability at a time where all else seems to be uncertain. For this type of Client, a coaching “package” can be comforting, and very attractive.
But there is a down-side to opting for a coach package. In short, in comes by definition. Because the services are bundled into a set “package” the client may end up paying for services, and deliverables that they don’t really need. For one example, consider job interview prep. Some clients may need extra help on job interviewing (some may need a LOT of help), but others message themselves well, and do a good job of presenting, and selling themselves in an interview. The same may apply with many other line items, or modules within a coaching package. The down side is if it is part of your package, you are paying for it. Whether you need it or not.
Is it better to pay a coach by session, or buy a coaching package upfront? The short answer is “it all depends”. If you have limited resources, or unsure of how much bandwidth you can commit to working with a coach, then a shorter commitment, or “pay as you go” probably makes the most sense. If you like having a list of deliverables up front, and a set dollar amount for the work done, then a “package” arrangement might be a good option. This may also be a good option if you are going through life changes, like a job search, and find comfort in knowing a coach will stick with you through thick, and thin, until you achieve your goals. Just remember, the fees will most likely be higher upfront. In my own practice (AscendProCoach.com) I strive to be flexible, and to try my best to meet the needs of the client. For many years I only offered services based on session time. But recently in response to the need for some to bundle services in a package, I have created three levels of coaching packages. And yes, I do offer a package with unlimited support. But I will also continue to offer services based on session time. As a professional coach, I want to do my best to meet the client’s needs. Whether engagement is under a coaching package, or based on session rate, it is always good to know your options. As always, the client is the ultimate decision maker. My job as a professional coach is to support, provide good options, and to accommodate my clients.
AUTHOR: Brian Kail, MBC, CPC is a Certified Career, and Executive Coach
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