I am often asked how much business coaching costs.
Most of the time I answer by telling the person that is the wrong question…
The better question is, “How much do you value growing your business?” or “What are you willing to invest in the growth of your business?”
Expense or Investment?
Hiring a new employee or paying for advertising can be perceived as a cost/expense or an investment, depending on your perspective. Investing in a business coach should be considered the same way. If you view coaching as a cost to your business, it might not be the right fit for you at this time.
So what does it mean for coaching to be an investment? Well, this means that your coaching program should result in some sort of measurable return for you and the business. This return comes to you in three primary ways:
- Increased revenue/profit
- More free time
- Reduced stress
Business Coaching Fees
Over my 20 years of coaching small and medium-sized businesses, I have seen coaching program fees range from $100/month to $100,000/year. That’s a huge difference!
Why the difference in fees? It comes down to differences in:
- Coaching program philosophy
- Resources to support education and growth
- Time with the coach
- Quality and experience of the coach
As with any investment, if there is a positive return on investment (ROI), the amount of money invested is not that important.
The other differentiator between the costs of programs is the contract length, and whether you are contractually bound for a long period of time regardless of your results, or if your coaching agreement is month-to-month, which motivates your coach to get you results quickly.
Popular Coaching Programs & their costs
Let’s explore the three most popular coaching programs in the marketplace right now. In general, the fees will vary based on the experience of the facilitator/coach. You should expect better and faster results from a coach with 20 years of experience than one with 2-3 years of experience.
Vistage is a CEO Roundtable/Mastermind format program with annual contracts that run between $20,000-$30,000 per year depending on a few factors like business size and location. There are fairly strict requirements you must meet to be eligible for a seat in a Vistage group.
EOS, the Entrepreneurial Operating System, is a top-down approach to structuring the business’s leadership and management systems. EOS Implementers typically charge by the meeting, anywhere from $2500-$5000 per day, with a typical annual investment of $25,000-$40,000. The fee structure varies based on the experience of the EOS Implementer. There is very little customization to the system for EOS.
ActionCOACH is the most popular bottom-up coaching system. This bottom-up approach focuses on building a solid foundation on which you are able to grow/scale your business. Coaching fees range from $750 per month to $5000+ per month. Programs are customized for each client and fees are based on how quickly the owner wishes to make progress.
Most ActionCOACHes have monthly agreements versus the annual agreements most other business coaches require. This is a big differentiator and keeps everyone engaged and accountable for results.
If you want some help figuring out which type of program makes sense for you, let’s grab a cup of coffee and figure it out based on where you are and where you desire to go.
Author: Mark McNulty, Hall of Fame Business Coach