A very common question that most freelance trainers and coaches ask. It’s particularly confusing when you first start out.

The problem is that until you’ve been in this business for a while, you’ve got nothing to base a daily rate on. Often what happens is that you think back to what it was like in your last job. What salary you had. You had this salary every month regardless of whether you went off sick or took your allocated holiday.

So it’s easy to see why people may start by working out their daily rate based on their last paycheck by dividing the monthly pay by 5 days and then 8 hours.

This is NOT the place to start. There are many more factors to consider when running your own business. Here are a few to consider:

  • Think in terms of the total revenue you want to have coming into your business each year. Is it £30,000, £40,000, £50,000 or £100,000+.
  • Your total revenue is not your salary. Your total revenue needs to include the other elements of doing your business as well as your salary. This includes the time spent on developing, book-keeping, travelling, net-working, administration, phone calls – and every thing else that you do to run an efficient business. This all adds up and needs to be included.
  • Have a conversation over the phone with a potential client first, before driving to a meeting. This way, you will gauge what they are looking for and have the opportunity to ask how much they have in their training budget for the training. This cuts out time wasters and helps you to ‘qualify’ the prospect.
  • Take a reality check when quoting for work. How much time has already gone into this so far? Did you have an initial hour on the phone? Did you drive and meet up? Did you need to spend time doing an initial training needs analysis? Did you have to prepare the workbooks? Were there other costs that you’ve incurred? You need to cover all the costs of running your business.

So, take a reality check today on how you are pricing your daily rate. If its far too low, then increase it in line with what you want.

 

 

3 Responses to What Should My Daily Rate Be? – Trainer and Coaching Business Tips

  • Interesting, thank you!

    I’m doing research for an MSc in coaching & mentoring on the impact of self worth upon how much lawyers charge per hour. The principles are the same, I think, for coaches.

    Yes, we need to cover our costs and make enough to live off. Should we, though, charge based on what we believe the value of the work is to our client? I imagine our view of that will depend upon how much we value our own work and ourselves. Those of us who often doubt ourselves and question our abilities might tend to charge less do you think?

  • Abby Wynne says:

    I agree with Andrew, you have to start with your own self worth and how comfortable you are asking for money. Then you have to take marketplace considerations into account – no point basing a figure on internal factors alone you need to know what the going rate is so your price is competitive. There are many issues at work here.

  • Wendy Howard says:

    Yes, I definitely think that we charge less if we don’t value ourselves and our true worth. I think for lawyers or accountants, their professions are very much set in that we ‘expect’ to pay for their expertise and never really question the prices they charge for their fees.

    But for coaches and trainers, many don’t recognise the true value of what they offer and there is such wide scope in abilities, qualifications and experience that it can lead to confusion. A quick exercise that I’d recommend to anyone is to sit down and work out their true worth. Take into account your life experiences, your work experiences, your years in education, your qualifications, your work experience and the achievements you’ve made with clients. Now, put a £/$ value to all of that. it will be huge!!!

    Sometimes, you have to spell it out in your own mind first and be prepared to ask for what you know you are truly worth.

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