Set Your Fees

Setting fees for your life coaching practice is one of the most challenging but crucial decisions you'll make. It involves balancing your financial needs, the value you deliver, and the current market rates.

Here is a step-by-step guide to setting effective and sustainable fees for your life coaching services.

 

1. Calculate Your Financial Needs (The Floor)

 

Before looking at the market, you must establish your financial floor—the minimum you need to charge to keep your business running and make a living.

 

A. Determine Annual Income Goal

 

  • Target Salary: What is the annual income you need to draw from the business? (e.g., $70,000)

 

B. Calculate Annual Expenses

 

  • Business Overheads: List fixed costs (e.g., website hosting, scheduling software, insurance, training, professional supervision, office rent). (e.g., $5,000)

  • Taxes: Factor in self-employment taxes (often 25%–35% of your income). (e.g., $70,000 * 30% = $21,000)

  • Total Annual Need (A + B): $70,000 (Salary) + $26,000 (Overheads/Taxes) = $96,000

 

C. Determine Available Coaching Hours

 

  • Max Annual Coaching Hours: How many hours per week will you dedicate to client-facing coaching (not admin, marketing, or training)?

    • Example: 20 client hours/week * 48 weeks (allowing for 4 weeks off) = 960 annual coaching hours.

 

D. Calculate Your Hourly Minimum

 

  • Minimum Hourly Rate: Total Annual Need / Annual Coaching Hours

    • $96,000 / 960 hours = $100 per hour (This is your financial floor.)

 

2. Research the Market (The Range)

 

Your fees must be competitive, but remember that rates vary widely based on niche and experience.

Experience Level Typical Session Rate (45–60 min)

Why the Variation? 

New/Entry-Level$75 – $150Building experience, gathering testimonials, proving value.

Intermediate/Certified$150 – $350Established practice, clear niche, proven track record.

Expert/Specialized$350 – $1,000+Deep specialization (e.g., Executive, High-Performance), high demand, guaranteed results.

Action Step: Look up 5–10 coaches in your specific niche (e.g., career, health, leadership) and note their listed rates or package prices. This gives you a clear sense of the market ceiling and floor for your specialty.

 

3. Structure Your Fees for Value

 

Coaching should almost always be sold in packages, not single sessions. Packages communicate commitment, allow for deeper transformation, and stabilize your income.1

 

 

 

A. Define Your Standard Package

 

Clients need time to see results (typically 3–6 months).

  • Standard Package Example (3 Months):

    • 12 weekly sessions (12 hours of coaching)

    • Initial 90-minute intake session

    • Email/text support between sessions

    • Total Fee: $250/session * 12 sessions = $3,000

    • Note: If your hourly minimum is $100, $250 is a healthy, sustainable rate.

 

B. Create Tiered Pricing

 

Offer 2–3 tiers to allow clients to choose the level of commitment they are ready for.

Tier Duration

 Focus/Features

Total Fee (Example)Starter Tier

4 Sessions (1 month)Focused on clarity, defining 1 goal. No support.$700

Signature Tier12 Sessions (3 months)Deep transformation, unlimited email support, 1-on-1 access. (Your core offering)$2,800

Premium Tier24 Sessions (6 months)Signature Tier + specialized assessments, bi-weekly 15-min emergency calls.$5,000

 

C. Offer a Discount for Upfront Payment

 

Always provide an incentive for clients to pay the full package fee upfront (e.g., 10% discount) to improve your cash flow and secure their commitment.

 

4. Test and Adjust Your Rates

 

Your rates are not fixed forever; they are a working hypothesis based on the value you deliver.

  • Start Slightly Lower: If you are a new coach, price yourself at the lower end of the Intermediate range ($150–$200/session) until you have 5–10 testimonials and 100+ coaching hours.

  • Raise Your Fees Strategically: A good rule of thumb is to raise your rates by 15%–20% every time your client list is full (80% capacity or more). If clients are saying "yes" too easily, your price is likely too low.

  • Use the Discovery Session: Use your initial free/low-cost discovery session to screen for clients who understand and value the investment.

Crucial Takeaway: Never apologize for your fee. State it clearly, confidently, and link it directly back to the transformative value the client will receive.