The most common question that I get from health coaches is how to price their programs and services. Luckily I have a simple formula for pricing your programs that is going to help you make money and prevent you from going broke. Watch my video to learn more or continue reading!
I totally understand the struggle and the pain that goes into trying to price your programs and services. I was a health coach for five years and this was by far the biggest struggle that I had. I went over it and over it again in my head....what is my value? Am I charging too much? Not enough?
Money is a pretty tough subject for most health coaches because a lot of us got into this industry because we wanted to help people, not necessarily because we wanted to become rich. The thought of charging higher prices to help people who are desperate and suffering might feel a little bit icky, or maybe even a little bit gross. But what you may not realize is that by undercharging your services or even offering them for free, you are actually preventing those people who are suffering from getting the results that they desperately need.
The exchange of money with your client is a massive part of their connection to actually doing the work and getting a result. As you know, you can't actually do the work for your client. They need to do it for themselves, and they need to really want it for themselves. So, in order for them to succeed and get that results, they need to be committed. And that exchange of money is actually a massive part of that commitment that they make to their health. Your client needs to find enough value in what you are offering that they actually want to give something away of value in exchange for what you are offering. And if they don't, it's pretty unlikely that they are going to be committed to your program and even complete it.
Have you ever offered a discount on your services, or maybe even offered to give your services away for free? And what was the result of that client? Did they actually stick with it? Did they actually get a result? I would say like 9.5 times out of 10, they didn't actually complete it, stay the course, or get the result that they initially wanted to get. And you also might have experienced this personally. Think of something that you were given for free. How likely was it that you actually committed to it?
If people aren't committed to your programs, then it's actually a huge waste of your time, but it's actually a huge waste of their time as well. If you're going to spend the energy working with a client, you actually want them to get a result. You want them to be happy and give you a testimonial after working with you. So their investment should be enough that they stay fully present and fully committed to the process that they are signing up for you with.
When it comes to a pricing formula, the first thing you want to do is you want to determine your hourly rate. Your hourly rate is for your reference only - you should never disclose this with your client. And if you have no idea what to charge for an hourly rate, think of the last job you just had, maybe the highest-paying job you've had up until this date. Take that number and double it, and there's your hourly rate. So, let's say your last job was working as a personal trainer for $50 an hour, so I would start at $100 an hour for your health coaching services.
The next thing you want to determine is, how much time are you going to be spending in session with your client in that specific program? So, your program might include a one-and-a-half-hour intake session followed by a one-hour test results session, and then maybe you do four 30-minute follow-up sessions at the end of the program, so that is a total of 4.5 hours.
Now, we can't stop here. We actually need to determine the time that is spent behind the scenes with each client. And this is a big mistake that I see a lot of health coaches making, is that they charge for the in-session time, but they forget about the time that they actually spend behind the scenes with each client. So, let's say that you need 10 minutes prior to a session to prepare, and maybe you need 10 minutes after a session to log notes and maybe send resources to client. And then let's say you're running labs with your clients; you're probably going to need at least an hour to review those lab results and develop a protocol. So, if we consider all that, that's actually going to equal an additional two hours of your time.
The next thing you want to do is determine how much time you're spending supporting each individual client. So, maybe you offer unlimited email support. How much time on average are you spending answering emails with each client? And if you don't know this, that's okay, just come up with kind of a generic average. And then you want to track this over time with each individual client so in the future, you know exactly what this number should be. Let's pretend that it's one hour per client. The next thing you want to do is add in any extras that you might pay for with each client. So, for example, do you offer a welcome gift? Make sure to include that. Do you pay for your clients' lab tests? You want to include that in the price as well. So, let's pretend that in this example, that total is $300.
Finally, let's do the math. So, you want to total up your hours spent in session, out of session time, and the time to support your clients, so in this example, that's going to be seven and a half hours. Now you want to multiply that 7.5 hours by your hourly rate, which in this example is $100, and that equals $750. Now you want to add your extras to the total, so that's going to be $750 plus $300 of extras. So, the price for this specific package is going to be $1,050. Now, this price shouldn't actually be set in stone. This is not going to be the price you charge for an eternity.
As a new health coach, I actually don't recommend listing your prices on your website, and I actually recommend increasing your prices with every few testimonials that you get. And so, as you get more testimonials and raise your hourly rate, you're just going to complete this formula again. There it is. It's that simple.
Okay, so now that you know how to price your signature program, you might be wondering about scaling it and actually turning it into a group program. So, if you want to know how to do that, make sure to grab my free Launch Your Group Program checklist!
Let's start at the beginning. What is a signature program? A signature program is what your business is known for. It is a program that is branded to your specific niche that you sell to your ideal client. And remember, without something to sell, you don't have a business at all. You may have a brand, you may have an online presence, but unless you are selling something, you actually don't have a business.
I see a ton of coaches making the huge mistake of selling one off sessions or single sessions. So basically they are exchanging an hourly rate for something like a 60 minute session with no commitment from the client to go any further than that 60 minute session. This is not a successful business model for health coaches. And that is because typically as a health coach, you are actually not licensed, which means that people's extended health benefits will not cover your services. One off sessions actually require very minimal commitment from your client, which means that you have way less of an opportunity to actually get them results and to actually prove the method that is going to get them that result. And without the ability to get your clients results and ultimately get testimonials, you don't have a proven method, which means that no one's really going to seek you out for anything.
If we look at things from a money perspective, getting enough clients in the door to actually pay your bills and have a little bit extra enjoy your life is virtually impossible. Let's say you want to hit $5,000 a month in your business and let's just say you charge $100 an hour for a one hour session. That means you need to sell 51 hour sessions every single month in order to hit that $5,000 a month goal. And remember, when you sell one off sessions, there's very little commitment on the part of the client involved. So there's a good chance that many of those people who you are seeing in that month, you may not see them again at all, or maybe not again for several months. And that means you need to bring a lot of new clients into the door and have to work really hard on marketing to attract those clients to you.
If this hasn't convinced you yet, here are 3 reasons why you NEED a signature program.
1) it gives your business the ability to sell something that is way more valuable than just simply a one off session. It gives your brand an identity and something that you are known for.
2) it requires your clients to pay a much higher price point, which means ultimately they are going to be more committed to working with you, which means you have more opportunity to actually get them a result and actually get those testimonials that will help you bring more clients in the door.
3) you actually have to get way less clients to hit that 5K a month, which means that you are less likely to be overwhelmed, you're less likely to burn out, and you don't have to juggle a million clients at once. And if this sounds good to you, give me a hell yes in the comments below.
Okay, so let's discuss how you actually create a signature program. So first things first you need to ask yourself the question, what is the ONE thing that I solve for my ideal client? Not five things and not 10 things, not 15 things. So you want to think of the one result that you could get for your ideal client that they would consider a huge win and they would rave about to all their friends.
When it comes to naming your signature program, you want to make the name of the program very specific so that the name speaks for itself. So when you say the name of your program, people know exactly what type of result they're actually going to get from that program.
The next thing you want to do is you want to determine how long your signature program is going to be. Now there is no secret sauce for the ideal length of a signature program, but don't make it too long or too overwhelming because that could actually turn off your ideal client from purchasing. I find three to six months tends to be best for a signature program. If you're doing just standard traditional health coaching, three months works pretty well, but if you are a type of coach who's running labs, then I would probably go on the longer end of that maybe more four to six months to allow for the time it takes to send out labs and receive results. And of course some of the errors that come along with working with labs.
And the final thing you want to do is determine what your signature program is actually going to include. How many sessions will you offer? What types of tools and resources will you give to your clients? What type of support are they going to receive from you? And don't make the mistake of adding too many sessions into your program to try to increase the value. People are actually pretty busy these days and they worry less about the time they get in a program. What they care about most is the results.
All right, so now go create your bad ass signature coaching program!