325: Get Your Pricing Right For Your Coaching Offer - #GrowYourLife

Listen, if you are an online coach or mentor, getting your pricing right is one of the most important things that you can do. On this episode of the Grow youw Life podcast, I'm going to break down pricing strategy that's going to work for you. I've been building online coaching, mentorship training, consulting businesses for the last 22 years. And every single day I work with my clients in my Wealthy Coach Academy program to show them exactly, step by step what, what to do to get more clients, get more leads, and ultimately make multiple six and even seven figures in their businesses. For those of you that I have not met yet, thanks for being here. And we have tons of episodes of this podcast, the Grow youw Life Podcast, both on our YouTube channel and on podcasting platforms that you can check out. I also post weekly videos on YouTube that are not part of the podcast. They're just training videos that you can watch that are absolutely free on my YouTube channel. So make sure to go check those out as well. Now, when it comes to pricing, first off, it's important to get it right. The problem that I see a lot of coaches do is they either overprice or underprice what they're doing. If you're underpricing, people aren't going to take you seriously. And here's the big kicker. You're not going to make enough profit, you're not going to make enough money to be able to actually sustain your business. You're going to get burnt out. However, if you overprice, nobody's going to buy from you. And so sometimes I've seen people create different offers, but they price it in a way that is actually not going to work for them, depending on what the offer is. When it comes to different offers, we split it out into two different categories. We have our programs, okay? And then we have our lead in products. And so a lead in product can even be free. However, we're noticing that if you attach just a small price tag to it, like $4.95, that price tag actually deters people that are not serious about taking action away from your program. And listen, it can become really addicting to say, I got a lot of numbers, I got thousands of leads and things like that, but if they're not converting to sales into your paid program, it's ultimately not going to help you. Now, you're not going to make six figures on 495 products. In fact, you're hardly going to even break even on that. What this does is this is what qualifies the person who's going to end up joining your programs? Now, there's different price points for programs that I've seen, and what I like to do is I like to break it down monthly and then extend that out by at least 12 months. What does that 12 month factor add up to? So I've seen programs for. I would say the minimum that you should probably do for a program is $47 a month. I've seen some people do $27 a month for a program, but the problem is, is that again, you don't make enough profit to be able to sustain that $47 a month you're going to be making right around. Well, give or take $7 times 3, 36 you're gonna be making right around 5, 500. I don't. I don't do, like, quick math very well. I'm sure some of y' all are better at this. Right? On $570 a year off of this. Okay. And so this is. That's enough to be able to make a profit with a program on. That's not a lot of profit, but it's enough that it's going to sustain things for you in your business and the amount of people that you're going to get. Now, I also like to price programs out to where maybe they are. $2,000 a year or $10,000 a year. Now, what determines if we're going to be doing a $2,000 a year program, a $10,000 a year program, or a $500 a year program? Well, what determines it is how many people you want to get in and who you want to qualify. So pricing is a qualification factor. It's a boundary on what you offer. And so the more you charge, the less people are going to come in, but also they're going to be more qualified and less headaches for who is actually coming in to a qualified program like that. And so I want you to consider that as well with your price point. And you could break this down to, you know, 800 to $900 a month. If you do do the math that. What's 800 times 12? 18. 8 times 12 is 96. So you're right under $10,000 right there, $9,600 at $800 a month. Okay. If you go $2,000, you're looking at right around 166 to $197 a month. And these are monthly charges for programs that you can do. You can even charge weekly on this and at those different price points, $47 a month. Yeah, you can even do $97 a month. You're going to be able to make enough money that's going to sustain and build your business and have recurring revenue with a membership that does this. Now you might be saying well what am I going to offer monthly with that? Well again it's access to your training, it's access to coaching with you, it's access to resources that people get. And you don't need to have them all built before you launch something like this. But you do want to make sure that you get your pricing right. So this is the price points that we actually see that are working really well for most people that are just starting out and they want to get into group coaching. Again. I like a $4.95 lead in offer. $4.95 and then I like 47 to $97 a month. Now if you're more experienced, you already have a membership, I want you to raise your prices. I want you to bump them up to at least 150 to $197 a month. Get to that point. I would still do a 495 lead in. I think that that's great as far as that goes. And then consider adding a high ticket program on top of it for 800 to $900 a month. And what this is is this is an elite program that people can upgrade from this level into this program to get more access with you, more commitment. And ultimately this is going to help you with your profit margins. If you have these programs built out this way and you offer that to people and you have a lead in offer that's 495, you can sustainably build a business to seven figures. We actually use this exact model to build music coaching business to over a million dollars per month in people that were coming in recurring revenue. We would actually do we actually have over a hundred people per month that we're doing this thousand dollar level right here. And then we would have multiple different levels of people that were coming in on these other levels. And all of this added up to being over a million dollars a month, which is incredible to be able to create. It was sustainable. It was, it was amazing. Now there was other stuff as far as investments and things like that that were going on that would that sustain that million dollars a month. But just from the coaching business alone, it did right around $400,000 a month. Between 400 and $600,000 a month. And so combined building a business like that to a million dollars a month is absolutely doable. When you Follow price points like this. Now, for most of you, you're not at the million dollars a month you're getting started, okay? So if you're just getting started again, you, you got to keep things profitable. And what's amazing is by doing an offer that's 4.95 with a lead in that gives you enough that you can run advertising. It pays for part of your advertising and then your program because the people are qualified that come in from that are going to end up being your profit margins. Now one thing that I will say, long term, it's hard to be able to create the kind of sustainability profit that you want on just a $47 program, on just even $197 program. So adding high ticket offers in there helps you expand your profit margins into that. Now here's why I tell people this. You hear all these different programs, this is why you need to learn how to streamline creating the content for your program so that you're not taking all this time and effort and energy and hours and hours and hours to create all of this content for people in your programs, all of this stuff that you're doing. I have two kids and I spend a lot of time with those kids and I'm not working all day long. I utilize pricing like this and my programs to be able to build a seven figure coaching business that I get to work from home, I get to invest when I want to, and I get to create the kind of lifestyle that I wanted to all along by doing this. And so if I was just starting out today, these are actually kind of the price points I would look at for most people about the four net $4.95 lead in offer. I'm actually leaning towards doing that more than you doing a free lead magnet anymore. And so like, think about that, free lead magnets, especially if you're running advertising, you know you're losing money each lead that you get, whereas you can make back a little bit of that, plus you're qualifying people better. It's a win win on multiple fronts for this. And the algorithm prefers paid offers that are a little cheap. It's cheap because if you charge more than that, you're not going to actually make more margins. It's just going to cost you more in ad spend. Like if you charged $100, it still might cost you $200 to get somebody to register. If you charge $5 though, you might only cost you $10 to get somebody to register. They might be saying, well, I'm still losing $5 yeah, but you make that then on the back end of this because for every three people that sign up for that three to four people, you can get somebody to sign up at $47 a month, at $197 a month, and you'll make your profit margins on top of that. Okay, so this is what I think is best for price points and what you can learn from this. Now here's the other thing too. Don't be afraid to change your prices. Don't be afraid to adjust them. A lot of times when it comes to price points, we're afraid to make adjustments because we don't know how people are going to to respond. Instead, it's better to adjust it and then let the marketplace settle out so that then people realize, okay, that's what the new price point is going to be and give people an opportunity to sign up the old price point and then raise your prices. Don't be the cheapest option on the, on the market. I still think a low ticket lead in offer is good. I think it's actually a really good thing. But don't be afraid to raise your prices over here and that's going to help you make more profit as well on people. All right, listen, if you're a coach or mentor, I'd love to work with you on my Wealthy Coach Academy program. You can try it out for 14 days, check it out, see if it's for you. Go through all the trainings. We got bonus trainings. We have an AI version of me that you can communicate with inside of my program that you can talk to, ask questions 24 7. I'm in there personally as well. Not my AI me personally in our Facebook group that responding, reviewing your sales copy, reviewing your messaging, your ads and all of that to help you get results in your business. This truly is a program where I personally come alongside you and walk you through every step of getting the results that you want your business. And I'd love to help you and work with you with that. Click one of the links in the description below and that will go through the sequence of how to get into our program. All right, we'll talk soon. Have a good one.