Coaching can be one of the most rewarding and lucrative businesses you could start…
But, as you may know, you can’t just be a coach, consultant, expert, or trainer, and make a lot of money.
Your business must be a HIGH TICKET business.
One HUGE problem I see many coaches and consultants face is they don’t know their worth.
As such, they give away free strategy or clarity calls…
And don’t charge enough.
So, in this week’s newsletter you’ll discover how to charge what you’re worth, so you can make more money, and give yourself and your family the lifestyle they deserve.
Why Free Strategy Session Don’t Work
I know a lot of the “gurus” out there swear by giving away free sessions…
And on the surface it makes sense.
If you give away a full session and coach someone to help them achieve part of their goals, they’d be crazy not to work with you long term and pay for your time, right?
In my experience, a high percentage of people who take you up on a free session do so because it’s free.
So what’s the best way to close new clients?
I shot you a quick video where you’ll discover:
- Why free strategy sessions are BAD for positioning
- Why it’s hard to balance how much value to give in each call
- How to set up a filter to ensure you only speak with qualified prospects
- My 4 step qualification process that makes the above filter work, and more!
So you now know why free coaching or consulting is a bad idea, but that’s only half the battle.
Your next problem could be charging too little for your time.
So let’s talk about that.
3 Reasons Why Undercharging Hurts Your Coaching Business
In my opinion, high ticket pricing is the only way to run a business.
Because low ticket prices create all kinds of issues.
One HUGE problem is your ability to spend money on marketing and advertising.
If your fees are low, there’s no way you can outspend your competitors for clients.
And this is just the beginning.
Here are 3 other reasons why undercharging hurts your coaching business.
- A new client doesn’t add much to your bottom line.
If you’re going after cheap clients with a low cost offer, you’ll likely see a big client turnover as they aren’t very committed.
You’re constantly having to hunt for new clients but if your margins are low, one client doesn’t make much difference to your business.
Versus, high ticket clients which could mean an extra few thousand to your business.
- Naturally, if one client doesn’t make a huge difference to your business, you need far more clients to make 6 figures.
Rather than 20 $5K clients to make $100K, you’ll need 200, $500 clients.
Remember, Business is a game of margins not volume.
- The less they pay, the less committed they are, as I mentioned above, but they also value you and your expertise less.
Versus, high ticket clients who are committed and truly value your time, expertise, and what you have to offer.
They know real results take time, and they’re not afraid to put in the work to get what they want.
How To Calculate What Your Time Is Worth
No matter how much you want to make per year, your time has a specific value.
If you don’t know what that number is, you’ll likely invest your valuable time into tasks that won’t take you closer to your goals.
Put another way, if you invest your time into a task so you can save $50 an hour, but your time must be worth $200 an hour…
Then you haven’t saved $50. You’ve lost $150, because you could have earned $200 and outsourced the task for $50.
So, if you want to calculate how much your time must be worth in order to hit your income goals…
In the above video, you’ll also discover WHY you may not be charging what you’re worth and more.
How To Know Your Worth and Ask For It
As you saw in the last video, your goal should be to ask for as much as the market is willing to pay.
If your clients are getting value and a good return on investment, then they’ll have no problem paying you what you’re worth.
Price is only a problem in the absence of value.
That’s how I’ve been able to go from charging $5K an hour, to $10K, and now to $25K per hour.
Because they’re not paying for my time, they’re paying for the value I bring to the hour.
Stay away from free sessions…
Know what your time must be worth…
And always charge as high as the market is willing to pay
Until next time… go high ticket,
P.S. – If you want to charge what you’re worth, then you won’t want to miss the S.M.A.R.T. Challenge™…
Where over 3 mindblowing days, you’ll get the exact blueprint I’ve used to sell over $100 million in coaching and consulting in just a few short years.
You’ll also surround yourself with hundreds of high level coaches, consultants, and experts, as you get my favorite strategies for SCALING, SYSTEMIZING, and SUSTAINING your business in any economic climate.
Everytime we run the challenge we step it up a notch, and if the last challenge is anything to go by, then this one will be a force to be reckoned with.