Written by Mission Next Consulting
A quick internet search can find coaches who charge steep fees for their services. The following snippets came from a Reddit conversation discussing different coaching programs:
"I pay 3k a month for my coach. Worth every penny for the value I extract."
"Most I've paid for a coach is $2500/mo. Did it for 2 years. Tripled my business. Well worth it. Not for everyone though. You need to know what motivates you and be coachable."
"I recently met a coach who specializes in helping folks get to a place of professional freedom using a kind of introspective technique to help you figure out what you really want to do professionally, and helps you figure out how to get there. The program consists of weekly one-on-one Zoom calls and homework (I assume) over approximately 9 to 10 weeks. Having met for 3 free sessions, I’m intrigued by his program but am hesitating based on what seems like an extreme price tag. About $6,500 for the program, and this is a majorly discounted price tag as he is designing a condensed program for me. Normally, the highest pricing for his ‘platinum’ package is about $15,000."
From our perspective, these don’t seem to align with how most coaches operate. According to a 2023 study by the International Coaching Federation (ICF), the average cost for one hour of coaching in North America was $272 per hour. Of course, the range of coaching fees varies greatly, but this article will provide enough background to help you understand what normally determines a fee structure.
Let’s begin with a few comments on the coaching industry as a whole. Some professions like lawyers, mental health counselors, and dentists have licensing boards to create educational requirements and address standards of practice. Coaching, on the other hand, is an unregulated industry and therefore, lacks strict formal regulations. This means that anyone can call themselves a coach. How do you know if a coach has the proper education and background to support your objectives?
Colleges and universities play a significant role in higher education by conferring degrees upon students who complete the proper coursework and meet certain academic standards. Beyond degree programs, many accredited institutions also have the authority granted by their state to issue certificates. These certificates serve as formal recognition of specific skills, competencies, or training in particular areas, offering a valuable credential for professional development. Examples include radiology technicians, Emergency Medical Technicians (EMTs), paramedics, paralegals—and coaches!
Maryland is one of many states that “entrusts power” in educational institutions to issue coaching certificates in higher education programs. For example, Anne Arundel Community College confers a Life and Engagement Coaching Certificate for students who complete four, three-credit coaching courses.
There are many for-profit and nonprofit organizations that provide training and education for people who want to become coaches. Private organizations that provide coach training include:
Coaches who receive training from a private organization can start using their coaching skills as soon as they complete their training program. Some coaches continue pursuing a more formal path and have their skills and experience “certified.” See the section on Coaching Certification to learn more about the certification options.
While certificates indicate that a coach has received a certain level of training, a coach’s work and life experience plays a significant role in determining the value proposition of their coaching practice.
A coach with 20 years of practical work experience who owned a regional HR management firm with offices in 4 different states can leverage her business acumen when coaching clients in the leadership space. She can charge more than a coach who recently entered the workforce and has much less work and life experience.
Sometimes coaches develop subject-matter expertise in a particular field. Maybe they’ve been coaching in that field for many years or have developed market share with specific types of clients. A coach who has authored books or lectures in a relevant field will typically charge a premium.
Along with the amount of coaching experience, the age of a coach also plays a role. The 2023 ICF study found that "coaching experience is positively linked to the age of the coach practitioner." The study also found:
"The percentage of coach practitioners with less than five years’ experience is higher in the younger age groups. Almost two in three Millennials (66%) have less than five years’ experience compared with 40% of Generation X coaches and 22% of Baby Boomers."
Does this mean that Baby Boomers are better coaches than Millennials? Absolutely not. The ICF study simply shows that "older coaches" tend to have more experience—and in many cases, clients are looking for this type of wisdom.
Not all certifications are alike. ICF’s 2023 study found "the vast majority of coaches hold a degree-level qualification or higher, including 30% with a bachelor’s degree and 65% with a more advanced degree." In addition to higher educational institutions that provide state-accredited certificates, private organizations offer "certification" to coaches who can show they attended a coaching program and can demonstrate coaching skills.
The International Coaching Federation (ICF) requires coaches to complete 60 hours of coaching training, complete a coaching assessment, and pass an examination to become ICF certified. ICF candidates need to have 100 hours of coaching experience before they can apply. There is currently no requirement for candidates to have a college degree to become ICF certified.
To become a Board Certified Coach (BCC) through the Center for Credentialing and Education, applicants need a college degree in a related field (like business, law, or psychology). They also receive 30-120 hours of coach training (depending on their level of college degree) and pass a written examination. Like ICF coaches, BCC applicants need to have at least 30 hours of coaching experience. BCC coaches typically have over a decade of practical work experience in a related field before they become certified.
The cost of coaching varies widely. It is influenced by factors like education, experience, coach training, and credentialing. While some coaches charge premium rates—sometimes upwards of several thousand dollars for personalized programs—others offer more affordable options. Prospective clients should carefully assess a coach’s background, certifications, and track record to determine if the coach’s approach and fee structure aligns with their goals and budget.
If you have questions, or want to discuss coaching, we'll be happy to engage in a dialogue about how we can help you.
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