Great question! The big question comes back to the major epiphany, what results are you delivering to them? Asking questions around "What's losing 30lbs worth to you?" or "adding muscle or core strength, whats the value of that?" These questions allow you to then price in a way that is valuable to people. Some will have different value sets of what those results are (and you can figure those things out in discovery calls) but finding a way to charge for results verse hourly time blocks is a great way to use this strategy. Because you are delivering far more than money for your clients, you are delivering life changing results.
very helpful. thank you! I follow this practice of value-based pricing and it works better for everyone involved. Without the context of how it helps the client, I can’t understand how you can ethically determine pricing any other way.
You talk about how much more money the client will make and the economic return of at least 10x. Are you referencing the money a client will make as revenue or profit? If revenue, why it and not profit? In case of profit, which profit level to you consider: gross profit, EBITDA, profit before tax, net profit?
Referencing revenue. The main reason is because you can't control the cost of the company to produce, create, and market the business/product you are coaching. They are now responsible for overhead and cost to produce. So focusing on revenue in return is what I advise.
Fantastic video Don Millar it really simplifies the whole coaching business model. I'm going to reframe my whole approach to marketing my services thank you.
If a client doesn’t reach it’s revenue goal as stated in your example of $500k but say they reached to $400 or $375 would you still give back 100% of your fee or would you then prorate the return? And is this something that is stated when agreements are signed? Thank you!
Great question, one way to possibly think about it for your situation (as we don't have full context here) is focusing more around the desired result of the client. That could help you either come to a desired outcome in the moment or a desired outcome they want. Which then can define that promise you want to give them.
Thanks Don. Should you add prices on your website or do you need to have that conversation so you can reassure how the process works and their ROI. How best to get an enquiry and move to the conversation stage?
I advise not adding your prices to your site. Before you can tell your customer what to purchase, you need to know what the problem is to provide them the right solution. Understand the problem to provide the plan and then provide the cost.
Yes! Shaping what that looks like for your offers is important, but finding a way to offer that guarantee is a great way to show your products deliver results your clients are seeking.
This is tough to advise without knowing your full situation. It mainly depends on what you are coaching/consulting them on. If you can focus them on donations that then drives impact that will help you show the ROI. Most non-profits don't have the budgets of large businesses, so price accordingly but confidently that you price in a way that gets them a 10x return in donations. Thanks for the question Sean!
Great insightful presentation Donald, thank you. Sell that money in a fixed process with a fixed timeline that has an economic return, that has a name and price tag on it:) Is the keynote presentation and workbook part of my solution delivery or is this what I prepare when I am clarifying what the problem is so that I can provide them the right solution? Thank you.
It can be both. You can use it to prepare or walk them through the process inside the coaching session. You can also use the workbook as a product you offer to either deliver to them or sell.
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Great stuff!! thanks for sharing!
Thanks for watching!
How can we use this pricing format for weight loss coaching?Since there is no making money to be made (by the client), but lbs to be lost.
Great question!
The big question comes back to the major epiphany, what results are you delivering to them?
Asking questions around "What's losing 30lbs worth to you?" or "adding muscle or core strength, whats the value of that?"
These questions allow you to then price in a way that is valuable to people. Some will have different value sets of what those results are (and you can figure those things out in discovery calls) but finding a way to charge for results verse hourly time blocks is a great way to use this strategy. Because you are delivering far more than money for your clients, you are delivering life changing results.
I had the same question. My clients won’t become coaches most likely so they won’t be making any money.
very helpful. thank you! I follow this practice of value-based pricing and it works better for everyone involved. Without the context of how it helps the client, I can’t understand how you can ethically determine pricing any other way.
Glad it was helpful!
You talk about how much more money the client will make and the economic return of at least 10x. Are you referencing the money a client will make as revenue or profit? If revenue, why it and not profit? In case of profit, which profit level to you consider: gross profit, EBITDA, profit before tax, net profit?
Referencing revenue.
The main reason is because you can't control the cost of the company to produce, create, and market the business/product you are coaching. They are now responsible for overhead and cost to produce. So focusing on revenue in return is what I advise.
Fantastic video Don Millar it really simplifies the whole coaching business model. I'm going to reframe my whole approach to marketing my services thank you.
Thank you for your kind words! I'm glad you found the video helpful in reshaping your marketing approach.
If a client doesn’t reach it’s revenue goal as stated in your example of $500k but say they reached to $400 or $375 would you still give back 100% of your fee or would you then prorate the return? And is this something that is stated when agreements are signed? Thank you!
Great question, one way to possibly think about it for your situation (as we don't have full context here) is focusing more around the desired result of the client. That could help you either come to a desired outcome in the moment or a desired outcome they want. Which then can define that promise you want to give them.
Thanks Don. Should you add prices on your website or do you need to have that conversation so you can reassure how the process works and their ROI. How best to get an enquiry and move to the conversation stage?
I advise not adding your prices to your site. Before you can tell your customer what to purchase, you need to know what the problem is to provide them the right solution. Understand the problem to provide the plan and then provide the cost.
I recommend lowering the volume of the music a little bit. Can't hear beginning of video
This was an excellent episode! I'm a nutrition, fitness, and women's health coach. Would money back guarantee be something to build in packages?
Yes! Shaping what that looks like for your offers is important, but finding a way to offer that guarantee is a great way to show your products deliver results your clients are seeking.
i coach nonprofit leaders. it isn't exactly a direct line to renvue. how would you handle that?
This is tough to advise without knowing your full situation. It mainly depends on what you are coaching/consulting them on. If you can focus them on donations that then drives impact that will help you show the ROI. Most non-profits don't have the budgets of large businesses, so price accordingly but confidently that you price in a way that gets them a 10x return in donations. Thanks for the question Sean!
Thanks@@CoachBuilder
Great insightful presentation Donald, thank you. Sell that money in a fixed process with a fixed timeline that has an economic return, that has a name and price tag on it:)
Is the keynote presentation and workbook part of my solution delivery or is this what I prepare when I am clarifying what the problem is so that I can provide them the right solution?
Thank you.
It can be both. You can use it to prepare or walk them through the process inside the coaching session. You can also use the workbook as a product you offer to either deliver to them or sell.
On a scale of 1 - 10, how confident are you in your Coaching Product Pricing?
I’m confident I’m at an; 8, but, after watching this video, I will be a 10 in no time. 🤓🥸. Thanks Don!
@@wedoebe Love that!