Introduction
Did you know that 18% of small businesses fail due to pricing issues? This highlights a critical challenge for coaching businesses: finding the right price point that resonates with their audience (Small Biz Learning Center) (Fundera). Many coaches struggle to set prices that attract clients while growing revenue.
Without a well-thought-out pricing strategy, coaches either overcharge, scaring away potential clients, or undercharge, undermining their revenue.
Imagine spending months developing a comprehensive coaching program only for no one to buy it because the price is either too high or too low. It can be devastating and is a far too common scenario for many new coaches.
By the end of this guide, you will have a clear understanding of how to choose the right pricing model for your coaching business.
You’ll learn about low-ticket, mid-ticket, and high-ticket models, their benefits, challenges, and how to implement them effectively to ensure your business is economically sustainable.
Low Ticket Coaching Models: DIY Offers
Definition:
- DIY (Do It Yourself): Offers that clients can use independently without requiring repeated input from you.
Target Audience:
- Beginners or those new to coaching
- Budget-conscious individuals
- People looking for a taste of your coaching without a big commitment
Price Points:
- Typically between $9-$97
- For women audiences: $3-$97
Benefits:
- Attracts More Customers: The lower price point makes it easier for more people to buy your services.
- Easy to Sell: With lower prices, customers are more likely to purchase without a lot of persuasion.
- Lead Magnet: These offers can attract customers who might later buy more expensive services.
Challenges:
- Need High Volume of Sales: To make a good profit, you need to sell to a lot of people.
- Less Committed Clients: Lower prices may attract clients who aren’t very serious about their goals.
- Low-Profit Margins: Each sale makes less money, so you need many sales to make a significant profit.
Examples:
- E-books, mini-courses, group webinars, single sessions
Marketing Strategy:
- Broad Audience Reach: Use wide-reaching, often low-cost channels to attract many potential customers.
- Content-Rich Approach: Create valuable, consistent content to build trust and engagement.
- Freemium and Upsells: Start with low-cost or free offers, then encourage customers to buy mid or high ticket offers.
Examples of Marketing Tactics:
- Lead Magnets: E-books, webinars, free trials
- Content Marketing: Blog posts, social media content, email newsletters
- Paid Advertising: Facebook Ads, Google Ads, influencer partnerships
Mid Ticket Coaching Models: DWY Offers
Definition:
- DWY (Done With You): Offers that include more interaction and collaboration with the coach.
Target Audience:
- Individuals looking for more comprehensive solutions
- People with some level of commitment to improving a specific area
- Those who see value in investing a moderate amount for quality content
Price Points:
- Typically between $97-$997
Benefits:
- Balance of Affordability and Profitability: Attracts serious clients willing to invest, while still being affordable.
- More Serious Clients: Higher price points attract clients who are more committed to their goals.
- Scalable: You can combine automated systems with personal interaction to reach more clients.
Challenges:
- Tricky Pricing: Setting the right price can be difficult; too high for some, too low for others.
- Need Clear Value Proposition: You must clearly explain why your services are worth the price.
- Effective Marketing Required: Requires solid marketing efforts to communicate benefits effectively.
Examples:
- Multi-session coaching packages, online courses, workshops
Marketing Strategy:
- Targeted Campaigns: Focus on specific audience segments likely to invest in their growth.
- Value Demonstration: Show clear, tangible benefits and outcomes from your services.
- Webinars and Workshops: Use interactive sessions to provide immediate value and lead to sales.
Examples of Marketing Tactics:
- Email Sequences: Personalized follow-ups, educational series
- Webinars/Workshops: Live events showcasing expertise and value
- Content Upgrades: Free guides or templates with the option to purchase a more comprehensive package
High Ticket Coaching Models: DFY Offers
Definition:
- DFY (Done For You): Highly personalized services where you do most of the work for the client.
Target Audience:
- Highly committed individuals
- Professionals or businesses seeking significant transformation
- Clients who value personalized, one-on-one interaction
Price Points:
- Typically $997 and above, often ranging into the thousands or more
Benefits:
- High Profit Per Sale: Each sale brings in a lot of money, which can quickly boost your income.
- Committed Clients: Attracts clients who are serious about achieving their goals.
- Personalized Services: Allows for highly impactful and tailored solutions for clients.
Challenges:
- Requires Strong Credibility: Clients need to trust you and believe in your expertise.
- High Marketing Efforts: Closing sales at this level often requires significant effort and personal touch.
- Smaller Market: Fewer people are willing or able to invest at this level, limiting your audience.
Examples:
- VIP coaching programs, retreats, intensive one-on-one sessions
Marketing Strategy:
- Niche Audience: Focus on a small, specific group of individuals or businesses willing to invest significantly.
- Personal Branding: Build a strong reputation with testimonials and proven results.
- High-Value Content: Use case studies, detailed success stories, and impactful presentations.
Examples of Marketing Tactics:
- Consultations: Offer free initial consultations to discuss client needs and tailor solutions.
- Exclusive Content: Share case studies, success stories, in-depth reports
- Networking and Referrals: Leverage professional networks and client referrals to build trust and credibility
Creating Sustainable and Profitable Coaching Offers
Self-Liquidating Offers (SLO):
- Explanation: The revenue from initial low-ticket sales should cover the cost of acquiring a customer. This way, the initial acquisition cost is neutral, making it easier to profit from upselling higher-ticket offers.
Economic Sustainability:
- Explanation: Each pricing model should help your business make enough money to cover costs and generate profit for growth and reinvestment. This ensures long-term success and stability.
Integration Strategy:
- Low to High Ticket Funnel: Start with low ticket offers to attract leads and then upsell them to mid and high ticket offers.
- Value Ladder: Offer a range of services where clients can start at a lower price and gradually move up as they see the value and results.
Building Trust and Authority with Your Coaching Models
- Start with Free or Low-Cost Content: Offer valuable, free content to build trust and credibility with your audience. This can be blogs, free webinars, or engaging social media content. Once trust is established, it's easier to sell higher-priced offers.
- Utilize Customer Feedback and Testimonials: Use testimonials and feedback from satisfied clients to build social proof. This is especially effective for high ticket offers where potential clients need assurance of the value they will receive.
- Continuous Improvement: Regularly update your offerings based on customer feedback and market trends. This ensures your services remain relevant and valuable, crucial for maintaining a loyal client base and attracting new customers.
Conclusion
Choosing the right pricing model for your coaching business is about balancing simplicity with your business goals. Starting with a high-ticket offer can provide the capital and validation needed to explore more complex, low-ticket models. It will allow you to generate income in the early days, while building out that more scaleable low-ticket approach. The key is to keep your pricing model simple and scalable, ensuring that each offer is economically sustainable and contributes to the overall growth of your business.
