Coaching fees vary from coach to coach. However, several studies have been conducted to determine the range of fees as well as the average fee. In addition, surveys have revealed the variety of arrangements or packages of services coaches typically include or "bundle" as part of their fee for service.
In this brief article we summarize some of these findings. This summary is meant to provide general information, and individual practices may vary significantly. This page is meant as guidance for people unfamiliar with coaching as well as information for coaches wondering about establishing a fee structure.
Survey Results About Fees
A 2006 survey of 5,415 coaches from 73 countries found these typical hourly rates (figures in $US); $299 for executive coaches, $196 for small business, $161 for career coaches, and $136 for life coaches.
A 2004 study survey of 2,529 coaches revealed that 70% charged over $100/hour, 25% above $200/hour, and 10% over $300/hour (all figures $US).
Steve Mitten, an experiened coach, an expert on the coaching "money conversation," and former President of the International Coach Federation, estimates that coaches typically charge $200-$400/month for personal/life coaching (usually three sessions, approximately 30 minutes each); $400-$600/month for small business coaching; and that organizational coaching starts at $500/month.
Senior executives, according to Coach Mitten can expect to pay a minimum of $600-$750/month and beyond. Many senior coaches working in organizations, Coach Mitten estimates, charge $15,000 for six month’s work comprised of several hours a month (usually two calls of one-hour) bundled with an intake assessment or an initial on-site interview.
For the most definitive article on fees, which includes details from all survey studies and the most up-to-date reports from coaches, is available to members of the Peer Resources Network. The article is: Carr, R. (2005, updated 2008). Coaching statistics, facts, guesses, conventional wisdom and the state of the industry. Peer Resources: Victoria, British Columbia.
|How is Pricing Determined?
Beginning coaches often have very little guidance as to how to price their services. This can sometimes be an advantage to potential clients. Here are some pricing strategies used by coaches to determine their fees (as identified by Steve Mitten):
- Pricing based on insecurities
- Pricing on what is considered "fair"
- Pricing on what the client can afford
- Pricing based on the going market rates (often from reading articles like this one)
- Pricing based on knowing what competitive alternatives to which clients have access
- Pricing based on Return On Investment (ROI).
What is Included in the Fee?
A wide variety of services and support options are available to clients, and some coaches include a variety of coaching "bundles."
For example, fees can be stated "by the hour," or "by the month." Fees are typically stated for a certain number of sessions per month (three to four is the standard number). The fee may include a free introductory session, unlimited email support and limited between session telephone contacts (typical for those coaches who meet face-to-face with clients).
Some coaches set their fees by a process or program such as a six-month or year-long program covering a range of activities, topics, and skills.
Some coaches like contracts and more fixed schedules. Some coaches state a range of fees and agree to negotiate the actual fee based on client circumstances and needs.
More experienced coaches may be less flexible in fee structure because of their perception that the "money conversation" with a client could be a demonstration of an area where a client is, in fact, experiencing difficulty. A discussion about money (or complaining about the fee) is a symptom of a deeper, more long-standing issue for the client.
Some organizations have been established to provide what is known as "pro-bono," scholarships, or no-cost coaching for clients. To learn more about this visit The Coaching Commons.