CalculatingCalculating Your Net Worth, Not Self-Worth
“How much should I charge, Barbara?” The million-dollar question. Pricing your services is no easy task.
The word “worth” is often thrown around, but I think it’s important we acknowledge your “worth” extends far beyond business. You have a net-worth and self-worth. In this article, we are referring to your net-worth as a self-employed individual.
Odds are you’ve seen the phrase “comparison is the thief of joy”. In this case, consider it your friend. In any business, you must be acutely aware of your competition: what services are they offering, what are they charging, what demographic are they targeting? You must look at your experience, education, time commitment, even where you live.
The cost of living is absolutely a factor here, friends! Make sure you also take into consideration taxes, business expenses, and continued education. Now, deduct those expenses from your earnings. Are you paying yourself a livable wage? How many hours are you prepared to work for a week? What salary are you not only comfortable with, but happy with making?
How many clients are you comfortable working with at one time? Let’s explore an example here:
What's the average?
The average salary in your field is $72,800/year, working 40 hours a week. If you are comfortable with 10 clients a month, you would need to charge a minimum of $600/month for your services. That would be one hour, per week, per client, for a total of four hours a month. (40 hours total) Your hourly rate is $150.
You must find that happy medium, in which you in no way feel taken advantage of, yet you’re remaining competitive. Remember, what you offer as a life coach is an extremely personalized experience. In life coaching, you are not paid for a single service. You are paid for the value you deliver to your client.
Here are five key takeaways as you determine the cost of your services:
1. Never allow yourself to feel taken advantage of. In order for you to create and deliver high-quality content, you must
2. Do the math. Your monthly/course fee is not your salary. Your salary does not include business expenses.
3. Remove guilt from the equation. Discounting your services can discount your credibility. Coaching is not a necessity, it is an investment.
4. Remember, your target audience is prepared to pay. Trust me when I tell you, someone searching for a life coach is not shopping on the value menu. They understand quality over quantity.
5. Know your value. You must believe in yourself before anyone else will. If you can’t speak confidently, struggling for clients much less significant income.
Lastly, I want to touch on a second very common question. “How do I respond when someone tells me my services are “too expensive?” This is a scenario in which you must remember to value yourself. It will require confidence, and may even cause you to feel uncomfortable. Reducing your rate to please someone else will only cause you frustration.
Please leave me your thoughts in the comments, I’m also interested to hear your feedback!