All service-based entrepreneurs reach a point where, after years of professional development and experience, we want to transition from offering pro bono or reduced-cost services to clients. This pivotal point allows us to turn our hobbies, passions, and skills into a paid side hustle or full-time paid career to do more good in the world.
On our November 14th Mastermind, we explored just that: the challenges in transitioning pro bono clients into paying clients. We explored this from multiple angles, including marketing (writing articles), pricing packages, deferred sessions (contracts), referrals, and explaining coaching to clients.
Marketing
A couple participants discussed using LinkedIn to post and gaining extra exposure through its publishing feature (see ‘How to publish on LinkedIn’).
However, publishing articles on LinkedIn isn’t the only option. One participant mentioned starting an Instagram account to post short-form content. For long-form content, here are some alternatives:
- Medium
- Elsevier (for academic publication, step-by-step publication guide here: https://www.elsevier.com/researcher/author/submit-your-paper )
I’ve found success with answering short-form questions on platforms similar to Instagram and Quora in China. As a result, my following on the Quora-like platform grew from zero to over 10,000, with an annual view count exceeding 5 million views. Meanwhile, my “Instagram” equivalent generated 18 coaching demos (chemistry sessions) in the last 30 days.
As a Project-Based Coach who assists scholars and young professionals through self-reflection and accountability, I target social media questions about CVs and resumes. Using Rolfe’s reflective model, I ask: “What?”, “So what?” and “Now what?”. This approach immediately addresses a problem and showcases the potential of the coachee. Moreover, it helps the coachee reflect on future frameworks for their success that may necessitate further coaching, such as overcoming procrastination, homesickness, imposter syndrome, or career development.
Alex Hormozi says, “in business, when one problem is solved, unintentionally, another is created.” Therefore, lead generation can be something other than the problem you are paid to solve. It could help solve problems before paid coaching begins.
Example One: Potential problems a coachee may have before needing Coaching for Promotion:
- Lack of clear career progression path
- Not enough experience or skills for the desired role
- Unaware of the requirements for promotion
- Lack of confidence or fear of rejection
- Difficulty communicating their value and accomplishments
- Uncertainty about how to ask for a promotion
- Lack of mentorship or guidance in their professional development
Example Two: Potential problems a coachee may have before needing Weight Loss Coaching:
- Lack of motivation or discipline to stick to a diet or exercise routine
- Struggling with emotional or stress eating
- Not knowing how to properly plan and prepare healthy meals
- Difficulty managing time, leading to prioritizing convenience over health
- Lack of understanding about the importance of a balanced diet and regular exercise
- Health issues that make exercise difficult or painful
- Lack of support or encouragement from family and friends
Example Three: Potential problems a coachee may have before needing Procrastination Coaching:
- Difficulty prioritizing tasks
- Lack of clear goals
- Inability to break down tasks into manageable parts
- Fear of failure
- Perfectionism
- Lack of motivation
- Difficulty maintaining focus
- Inefficient work methods
What is your specific area of expertise, and what keywords could you target for coaching? Think of what problems you could assist with before they need you.
Pricing Packages
The idea of pricing often elicits awkward laughter. When we inquired about the reasoning behind a colleague’s pricing decision, their response – that it was arbitrary and based on feelings – amused us. However, we must remember that in a capitalist system, pricing is subjective and dependent on what the market is willing to pay. Although the response may seem frivolous, it is entirely accurate. Pricing is utterly contingent on markets (supply and demand).
We dissected and examined different pricing methods to determine how to position ourselves.
Set or Unlimited Packages
One coach in our group, who charges for a three-session package, had their coachee defer the third and final session. This deferral indicates that the coach struggles to facilitate the last session, causing stress due to the responsibility to complete the coaching sessions with the client.
Another coach employs an unlimited coaching approach akin to a gym membership. This approach allows the client unlimited access to the coach, preventing the aforementioned situation. Instead of a set number of hours, it’s a number of days with unlimited access based on both parties’ availability.
Rates for Corporate Clients
In discussing pricing, a participant mentioned that B2B clients usually have higher rates, which can vary depending on the corporation. A notable coach in the United Kingdom charges anywhere from 2,000 to 10,000 pounds per corporate client. However, for B2C clients, the rates tend to be somewhat lower for one-on-one.
We reflected on how to set rates, whether B2C or B2B. One conclusion was that as a service provider, the company pays you roughly 60% of what they are selling your service for. This could be a good benchmark for pricing flexibility. 60% is considered fair market value, and not 100% sell rate is a starting point for negotiations, allowing for adjustments to between 70-80%. This would mean the client gets a bargain compared to a corporation, but you would also get a pay raise.
Importance of Recommendations
Recommendations were identified as crucial, with one participant sharing her strategy of using ex-colleagues for referrals. Despite the competitive and stressful nature of the industry, this has proven effective.
However, coaching’s unique and subjective nature raises specific questions. What value are you providing in a coaching service that depends entirely on the coach’s facilitation? As coaches, we can’t guarantee a particular outcome like a consultant or potentially even a teacher can. Our role is to guide the coachee and navigate various objectives, frameworks, and challenges to achieve a custom outcome. However, it’s important to note that this depends on the coachee.
Additionally, an interesting question was raised about referrals. How would you introduce coaching to a friend who has yet to learn it? How can we present that clearly to illustrate what the person would do with a coach? And how can we frame that language to inspire confidence rather than suggesting therapy or psychiatry, which may carry a negative stigma? How do we create empowering language to encourage referrals?
Using a Script
We suggested using a script to help clients understand coaching and how to explain it to others. This is particularly important because coaches and clients sometimes struggle to articulate the value of coaching due to its ambiguous nature.
A Harvard article provides an in-depth guide on how to write an effective elevator pitch. It explains that an elevator pitch is a brief and compelling speech about your professional background and experiences. It is a crucial tool for networking and job searching. The article advises keeping your pitch within 30-60 seconds and focusing on critical skills and qualifications. It also emphasizes the importance of being persuasive, positive, flexible, and adaptable to different audiences. The article also highlights the importance of practicing your speech repeatedly until it feels natural and maintaining a high energy level while delivering it. It concludes with several examples of elevator pitches and critical takeaways for creating a successful pitch.
- Understand what an elevator pitch is: A brief, persuasive speech that you can use to spark interest in what you do. It should be about who you are, what you do, and what you want to do if you’re job hunting.
- Craft your pitch: Keep it short, compelling, and focused. Share your skills and qualifications that add value in many situations. Mention your goals but don’t get too specific. Tailor your speech depending on who you are speaking to.
- Practice and refine: Practice your elevator pitch until it feels natural. Be positive and flexible. Don’t speak too fast or in a monotone. Be prepared to modify your speech based on the situation and audience.
In conclusion, transitioning from a pro bono or reduced-cost service to a paid one is critical in every service-based entrepreneur’s journey. This transition involves a complex blend of carefully considered marketing strategies, well-thought-out pricing packages, and a clear understanding of the value of the service provided. Remember to leverage the power of referrals and prepare a compelling elevator pitch. The journey may seem challenging but remember: you are not alone. As a community of coaches and service providers, we can learn from each other’s experiences and grow together. See you in two weeks!
Please feel free to comment if I’ve missed anything in this summary or if you’d like to contribute to the discussion. We’re here to learn from one another and welcome your insights and perspectives!
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