How to Charge What You’re Worth - 4 Principles To 10X Your Packages As A Coach or Consultant
sent by Siddharth Anantharam | May 25, 2023
sent by Siddharth Anantharam
May 25, 2023
Earlier this quarter, I hit a unique milestone in the growth of my coaching practice.
I realized that a client’s average investment to work with me for 1 MONTH today was what they would pay to work with me for an entire YEAR, just 3 years ago.
But here’s the best part – not only had I 10’xed my coaching income per client but also reduced by time commitment by 50% while delivering 20x the kind of results.
You cannot connect the dots looking forward, you can only connect them looking backwards.
— Steve Jobs
This newsletter was written to connect the dots and share 3 powerful principles that have helped me charge what I am worth in lesser time while delivering incredible value to my clients.
Too many talented coaches and consultants I know struggle with pricing their services effectively. They undervalue themselves, undercharge for their expertise, and find it challenging to communicate the true value they bring to the table.
Reasons Why You Might Struggle With Charging What You’re Worth As A Coach:
1. Your LIMITING BELIEFS Around Money: Money has it’s own energy and if you secretely believe that you don’t deserve a certain sum of money, you will repel any opportunities to earn it or attract it. Another way of thinking about this is to ask yourself-
Have I invested an uncomfortable amount of money to hire your own coach or towards your growth ? If not, why?
2. You say YES to everyone: The fear of losing potential clients forces you to lower your prices, compromise your value and say YES. But when you say YES to everyone, when you offer a little MORE for a little LESS, not only are you increasing your time but also lowering your perceived value in the market.
3. You DOUBT your CONFIDENCE: When you constantly doubt your ability to drive results for your client, you end up setting prices below what you are worth. When you don’t realize the value of what you are really offering, you link what you charge to your own emotions instead of your client’s results.
4. You COMPARE Yourself With The Market: If your coaching package is defined by what others in the market are charging, then chances are that you are probably undercharging.
Pricing where the market is at means you’re pricing for market efficiency. Over time, in an efficient market, more competitors will enter and offer more for less unless there is no room for any lesser.
Here are 4 simple principles that will help you charge what you are truly worth:
1. Filter For Your Dream Clients
If I told you that you could wake up tomorrow to coach your dream client, who comes to your mind? Most coaches haven’t asked themselves this question.
It’s not just enough to know who your dream clients are. What you really need to understand are:
– Their impossible goals.
– Their secret desires
– Their hidden fears
– Their strengths and the shadows.
Then you need a filter to focus your efforts on your dream clients.
When I asked myself this question I realized that my dream clients are the Michael Jordans and Kobe Bryants of the business world. They are GameChangers who envision something that most others don’t see and are willing to seek it with great commitment and courage. They are coaches, entrepreneurs and creative visionaries who have their own superpowers but also their own share of struggles.
Your dream clients lead to your dream checks – amounts that make very little sense to everyone else but only you know why you can charge that – because you truly get their unique goals and challenges and that gives you LEVERAGE to create tremendous value that most others cannot.
2. Be Obsessed About Delivering 10X Value
Once you know who your dream client is, you want to be obsessed about creating exponential value for them. You are constantly listening to their challenges to see how you can support them even better.
Only when you have sufficiently increased your value will you find it easier to exponentially increase your price.
Asking myself these 4 key questions led me to create two incredible programs ie two incredible opportunities to add even more value for my dream clients.
1. The Coaching Lab – a group coaching program designed to support new coaches on the art, science and business of coaching.
2. The Breakthrough Weekend – a group coaching intensive for entrepreneurs, leaders and creative visionaries to create greater freedom across their life and business.
Here is the crux – Most coaches prefer the easier route of charging lower prices to sign clients. But very few coaches are willing to ask the harder question,
How can I 10x the value I create for my clients and in turn charge premium prices for it?
3. Find Your Leverage Using The 20% Rule
One of the best things I started doing two years back was to review the quality of my clients and specifically start measuring 2 things:
1. What results did I create for my clients?
2. What income did I earn as a result?
This review really opened my eyes to the standards I was setting for myself AND my clients. It gave me new confidence of the results I had generated for some of my best clients including what I had done differently there and how they had responded.
Most importantly, this helped me find my unique leverage as a coach – the kind of clients who get maximum results working with me and who I enjoy working with the most.
A leveraged worker can out-produce a non-leveraged worker by a factor of one thousand or ten thousand. With a leveraged worker, judgment is far more important than how much time they put in or how hard they work.
— Naval Ravikant
Then I used the insights from this review to raise the bar.
1. What needs to happen if I only chose to work with more clients like these?
2. What would I like to get paid for this?
I am still experiencing the benefits of this shift. Not only am I creating bigger and better results for the clients I work with but I am also enjoying myself more than ever!
4. Know Your Largest & Minimum Check.
If you wish to increase your prices as a coach, you need to be crystal clear about what you want. Money likes directed-ness – so you need to be specific about what you want it to be.
1. What’s your Largest Check?
Your largest check is the total amount you have received from one customer during this period even if it involves multiple purchases.
2. Your Next Largest Check:
What would you like your largest check to be in the next 12 months? Set this as your upper benchmark. Depending on your level of comfort, you can choose to increase it anywhere between 20% to 100% from your previous largest check. This gives you something to shoot for while filtering for your dream clients.
3. Your Minimum Check:
Now with your upper benchmark in place, you need to set a lower benchmark so you can laser focus your time and efforts even more. What is the lowest check you are willing to receive for your work in this next year? Commit to creating packages where no check is smaller than than your minimum check.
As a coach, remember that you are in the business of creating transformations, not transactions. Which is why your packages will never increase linearly, they have the potential to increase exponentially.
In summary, in order 10X your packages as a coach, you need to:
Which of these principles do you most want to apply in your own coaching practice?
Share with me in the comments below.