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How Much Does it Cost to Hire a Business Coach? And How Much Should I Pay for a Business Coach?

These may sound like similar questions, but they’re actually different, so I thought I’d include them in the same section for comparison’s sake.

A quick reminder would be that there’s a difference between what a business coach costs and what you should pay for a business coach.

We’ll cover here:

• How much does it cost to hire a business coach?

• How much should I pay for a business coach?

Let’s dive a little deeper!

How Much Does it Cost to Hire a Business Coach?

Business coaches vary.  If you walk into a supermarket and want to make a fruit salad, but there are many different kinds of fruits that you don’t know what to choose.

It’s the same deal with business coaches and their costs. Unfortunately, they’re not all the same.

On average, business coaches will charge between $100 to $350 per one-hour session. 

Of course, that’s industry- and niche-specific and you won’t know how much a coach costs until they tell you. It’s also based on the coach’s experience, which you have no control over.

Please be aware that not all business coaches are equal and just because a business coach costs more does NOT mean that they are of a higher quality.

Some coaches overinflate their impact and charge high amounts and focus on “high income” clients only. It’s true that wealthy clients can afford paying more, but its actually it’s not fair to charge clients based on the thickness of the wallet.  Anyway financial status should not be a blocker to receive coaching if needed.

Look for coaches that charge genuinely and have standard prices instead of trying to price based on your income.

How Much Should I Pay for a Business Coach?

Business coaches consciously hide away their costs until you’re ready to commit for the simple reason that they want you to NOT have an objection to the price. 

At that point, you’re already committed and you’ve visualized the transformation.

You’re willing to fork over the change.

Because for them, they don’t want to have invested all that time for nothing. 

You should not pay too much for a coach that can’t actually do what they say. You should pay a business coach what you view as an appropriate and affordable coaching rate for the services and if one coach can’t match you, then find another. 

I know plenty of fairly priced business coaches that make  impacts and high-priced ones that create a lot of mystique and don’t show their results. Though, they proudly present their successful life on social media. Or offer methods for fellow coaches to make 6 or 7 figure business from coaching.

Pay what you think the transformation is worth.

And, in some cases, if a business coach can help you make more money, then a higher cost can be justified.

Business Coaching Rates and Fees

Business coaching rates and fees are based on many factors. Rates vary based on the size of the client’s company, the executive level, the coaching method applied. Also important factors are the the experience of the coach, and the package you arrange with your business coach. Business coaches can be hired a single session coaching or for an entire package containing 6-10 individual coaching sessions. If results are coming early on, your coach might suggest to close the series earlier. Or if the client needs more sessions, it can be discussed individually.

Are you thinking of hiring a business coach? 

Business coaching is an unregulated industry. As such, coaches can vary in credentials, experience and in the fees they charge for services. The hiring of a business coach is a decision that requires thoughtful consideration of the benefits and costs. You will want to base the decision on a clear picture of the expected outcomes of the arrangement. The coaching must be efficient, focused on the objectives for the individual and company, and produce results. In terms of costs, the coaching will require an investment of time and effort, as well as money.

There are a number of factors that will impact the business coaching rates and fees.  Start with key questions that will help you to understand and establish the business coach cost that is best for your circumstances.

• Are you hiring a coach to solve a problem or to develop your leadership skills or even get help in career transformation?
• Have you established objectives for the coaching experience?
• Are there any credentials or experiences in a particular nich you are looking for in the business coach?
• How will the business coaching be delivered? Over what time period?
• Can I afford the costs that will make this coaching experience successful?

Let’s review how these factors will impact the business coach cost.

The Purpose for Hiring a Business Coach

As per an 2017 Executive Coaching Survey, more than 60% of respondents believed that they need an executive coach to develop leadership capacity. The survey assessed coaching in terms of strength or deficit focus. A strength-based coach focuses on the potential of the client and uses a premises grounded in positive psychology. A deficit-based coach addresses plateaus and weaknesses in behavior that are creating challenges for the client to overcome. This is where clarity of purpose is important when articulating your needs and considering costs. Coaching targeting correction of a a deficit or overcoming a barrier might be more costly than strength-based coaching. About half of strength-based coaches may charge up to $300 per hour or more. More than sixty percent of deficit-focused coaches will have rates starting at $500 per hour or more.

The Level of Executive

The coach acts as a partner who facilitates the individual to identify goals and the actions needed to reach those objectives.  Whether in a corporate or small business situation, the preferred coach will be one who has reputation in the business area. According to the 2008 Executive Coaching Survey, the cost of coaching increases with the level of the executive who is using the service as well as increases in revenues of the company. Companies who provide coaching to top-level executives pay fees that can range from $200 per hour to over $500 per hour with most spending in the higher price range. The median rate was $425 per hour. Smaller businesses pay a wider range of fees than the big companies, who are paying more for top-level executives. Industry type varies in terms of coaching to mid-level leaders. Non-manufacturing and public sector employers provide more coaching to middle tier leaders than financial services.

The Credentials and Specialties of the Business Coach

Coaches set their own rates. According to the 2016 Global Coaching Survey by the International Coach Federation (ICF) the average income of a coach in North America was $61,900. About 45% of surveyed coaches were not planning to increase fees soon while 63% were optimistic they would have an increase in client sessions. The greatest concern is the threat to the credibility of the field when unqualified persons call themselves coaches. In fact, without having a clarity call with your prospective coach, you cannot find out if you have the chemistry that requires an efficient cooperation. Most coaches offer a free consultation before you commit and pay for any package.

Many coaches will have credentials through professional coaching organizations like ICF, prove thought leadership through their presence in media, and have a reputation of successful outcomes. The qualifications and years of experience will impact the fees that the coach will be able to charge. Coaching programs do exist but they can vary widely. According to the 2017 Executive Coaching Survey, the trend has been for coaches to have ten or more years of experience. Coaching rates have stabilized, if not declined in the past two to three years.

Rates will vary by type of coach. Estimates are that executive coaches earn about $325 per hour, small business coaches earn about $235 per hour. Business coaches will be able to address a wide range of issues, including leadership, accountability, teamwork, one-on-one training, or seminars. Those with the most expertise will be able to charge more for their services.  Most businesses are finding business coaches through networks, Google or LinkedIn, which may be causing more calibration of rates.

The Service Delivery Model

Just as business coaches vary in credentials and skills, they may offer different types of business coach rates based on the service delivery model. Coaches use different service delivery arrangements: in person or online. As a result of the Covid 19 pandemic, most coaches switched to online business coaching.

While face-to-face meetings offer the most advantages for developing a relationship with the coach, these sessions will be the most costly and time intensive. Due to safety regulations, the in-person meetings has been prices much higher. Most face-to-face arrangements will involve meetings lasting about 30 to 90 minutes at rates that can range from $200 — $500 or more per hour.

According to an article in costhelper.com, many coaches will offer the services in packages. For example, four half-hour sessions a month for $200-$300, or eight 90-minute sessions spread over 5-6 months for $800-$2,000. An executive leadership transition coaching  may be as much as $750-$1,000 or more per month, depending on what’s included in the package.

With technology, there are more options for interacting. Some coaches will agree to the use of email or webinars to maintain accountability and provide ongoing support for their clients. Online services are becoming increasing available and offer true value. These sessions increase access to business coaching to people in different regions. Typically, the sessions will last for about one hour and occur monthly over the course of a year. It is best to begin the online arrangement with a 90-day plan with a monthly rate.

Price at the Best Fit for Your Context

Business coaching fees can vary depending on a number of factors that include the size of your business, level of executive, the coach, your purposes, and the arrangements for service delivery. Whether you are estimating costs in terms of hourly business coach fees or establishing business coach rates for a package of services, you will want to be intentional in setting the parameters that will be the best fit for your circumstances. It is important to remember that, of your business costs, your best investment will be in your most important assets — you and the people who bring your vision to reality.

 

References:

2016 ICF Global Coaching Survey: Executive Summary. International Coaching Federation. Retreived July 9, 2018 from

https://coachfederation.org/app/uploads/2017/12/2016ICFGlobalCoachingStudy_ExecutiveSummary-2.pdf.

Executive Coaching Fee Survey.(2008) Council Perspectives: Insights from the Conference Board Council on Executive Coaching.  Retrieved July 9, 2018 from