Sherpa Coaching continues to update executive coaches (focus on behavior change) about the hourly executive coaching fee. This update also includes hourly fees charged by business coaches (focus on knowledge and skills).
In having various conversations with colleagues, I have begun to wonder if there is a collision happening here between the executive coaching fee, ego and ethics? For some, how much one charges reflects the worth of that particular individual. More dollars, more worth.
Years ago I revisited my fees and adjusted them to reflect marketing conditions and my own personal financial goals. As the economic motivating driver is not in my top 50% of my motivating values, charging high fees was not of particular interest. I preferred working with forward thinking business leaders who saw the value in my solutions.
I have listened to some executive coaches talk about their fee structure. Their egos do appear to get a boost when they state “Well, I charge $500 an hour and my clients gladly pay.” My first thought is good for you and my second thought is “Hmm, ego have we?”
Then there is this issue of business ethics or positive core values. Is what you are charging ethical? Of course, some might say I charge what the market will bear. And I can appreciate that position. Please understand, I believe in capitalism, 100%. My issue is how higher executive coaching fees may be a reflection of ego and a potential lack of ethics.
What concerns me is those executive coaches who say they work with struggling entrepreneurs or SMB owners and their fees only add to those struggles. There is a movement to bill for monthly executive coaching retainer services which may lessen the hourly rate impact. I actually employ that strategy with some of my executive coaching maintenance clients.
Since my fees come from the profits of my clients as well as from their own discretionary funds, I am very cognizant of the impact on their bottom line. Yes as some colleagues have encouraged me, I could charge much more given the results my executive coaching and sales coaching clients quickly experience, but then I would be having a collision between my business ethics, my personal core values and the executive coaching fee structure.
So if you are considering or revisiting your own executive coaching fee structure, please take a moment to think about if your fees are in alignment with your business ethics, your values and not a reflection of your own ego.
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