Business coaching services are always tempting to up-and-coming business owners since it can take a lot of weight off their shoulders and help them make smoother business decisions.
And now that the service is more available on the internet than ever before, it begs the question: how much does online business coaching cost, and how does it compare to traditional in-person coaching?
We'll help you with establishing business coach rates in this article, along with comparisons to some alternatives to business coaching services and details about hiring a business coach, so stick around and discover how much does online business coaching cost.
How Much Does an Online Business Coach Actually Cost?
Business coaching rates differ greatly depending on numerous factors, just like most services. For instance, are you hiring a business coach that works independently, or are you interested in professional coaching organizations? Are you looking for vastly experienced coaches? And many more.
We'll explore those factors later. The ballpark hourly business coach fees are around $75 to $250 but can be as high as $400 in some cases.
An online life coach tends to be on the lower end of that scale, but those won't help you as much with running a business as the rest.
On the other hand, an executive coach will demand much higher fees, while an average online business coach typically lies somewhere in between.
Paying by the Hour vs. by the Month
Deciding whether to pay a coach by the hour or by the month is like buying one item and buying in bulk. Of course, paying for the latter option saves you more money per item, but you need to choose diligently because it's a commitment.
Again, the price varies widely, especially since you'll agree on the number of sessions, but the general monthly rate is around the $1,000 to $4,000 mark with some leeway and these are things you need to consider when trying to discover how much does an online business coach cost.
However, before you go for monthly coaching, think of your needs since there's no one-size-fits-all here.
Hourly business coaching is excellent for brainstorming new ideas and getting invaluable input on elements like your marketing strategy, pricing points, and new strategies.
However, a monthly business coach coaches the business more deeply and will help you with full business analysis, coming up with strategies, implementing company structures, and more.
When a coach works with you for months, they have more time to assess your business model, corporate values, staff, leadership skills, generating more sales, etc. As such, they'll have a clear picture of your situation and give better advice in the long term.
Factors That Affect a Coach's Rate
We've seen how business coaching rates can vary by more than an order of magnitude. But what exactly determines these rates? How does a $100 business coach differ from a $300 one? How Much Does Online Business Coaching Cost?
The most significant factor is coaching experience. Does the business coach have previous clients to vouch for them and their service? How long have they been in executive coaching? Do they have hands-on experience or expertise in the niches they coach?
Of course, it's better to find a coach with some experience in your particular niche, and it's even better if they've previously achieved similar goals to yours. Naturally, though, they'll cost more.
And if the coach is certified by an organization like the International Coaching Federation, they'll rightfully come at a higher rate as well.
You might be tempted to go for a relatively low-cost business coach, maybe even as low as $40 or $50 per hour. But you should consider the coach's credentials to make your coaching experience successful.
What you need out of coaching services also affects the price. Some people need an opinion from their business coach about some decisions, and that's fine.
However, you might need more extensive coaching, which comes at a higher cost since the business coach will spend more time studying your business and catering to your needs.
Lastly, session lengths also affect how much you'll pay. So far, we've only mentioned hourly and monthly business coach rates, but if you don't need that long, you can talk with your coach about half-hour sessions.
How Does In-Person Business Coaching Compare?
There was a time when online services were widely viewed as lower quality. But nowadays, especially after the pandemic, everything is either entirely online or transitioning. So has business coaching caught up?
In-person coaching services used to have a higher price range because of the perceived better quality. However, both forms are mostly level now with some negligible differences. So the main concern here is if the service delivery arrangements affect quality.
It doesn't matter whether they work in an office or through video conferencing for many coaches. The only difference between both methods is that one involves a handshake and a cup of coffee.
It essentially boils down to how comfortable the client is with an online arrangement. If you can maintain your attention through a Zoom or Skype call as you would with an in-person appointment, then you're good to go.
Small Business vs. Large Business Coaching
The size of your business affects your needs and, subsequently, what you need out of a professional coach.
A larger business needs an executive coach to help with manager training. As a result, these companies usually pay much higher hourly wages to their business coaches. And as this survey found, coaching rates correlate directly with revenue.
Smaller businesses don't need that much, though, and can settle for a small business coach to take a more intrusive upon demand.
Small business coaches can also help you with your business plan and brainstorming ideas.
What Do the Stats Say About Business Coaching?
We like to back our facts with some stats for some perspective. And here's what the numbers tell us about business coaches.
According to a famous study by Metrix Global, business coaches produced a 529% return on investment and helped in other non-quantifiable ways.
Here are some more interesting figures about business coaches and how they helped develop leadership capacity among 30 surveyed business leaders:
- 77% showed that coaching had a significant impact on at least one of their business measures.
- Productivity was the most impacted measure at a 60% average increase.
- Customer satisfaction and employee satisfaction were equally raised by 53%.
- Work quality (40%) and work output (30%) increased.
- 20% of respondents showed financial benefits as a result.
The Benefits of Online Business Coaching
So why should you opt for online coaching programs over traditional in-person business coaching?
There are numerous advantages to choosing online, and we've highlighted the biggest ones for you in this part.
Ease of Scheduling
Another small but great benefit of online executive coaching is that it's much easier to schedule. We all know how annoying it is to call secretaries to schedule appointments, especially when your or your coach's schedules are busy around that desired time.
But scheduling an online appointment is more flexible because you don't have to waste time commuting. All you need is internet access and a device.
Commuting is often a cumbersome waste of time, especially if you live in a big city where you have to drive daily through rush hour.
If your average one-way commute is an hour-long, you'll save yourself two hours that would normally go to waste if you go online. You can use this time to relax and prepare for your appointment, and you'll undoubtedly be more focused.
No Geographic Limitations
For most people reading this, the world's best business coaches don't live within driving distance, effectively eliminating access to them. In addition, it can be frustrating not being able to book with a coach because they're based in another city.
But when you're finding business coaches online, you're not restricted by your location. Instead, you can find the best coaches in the world online and easily meet with them virtually.
Another sub-point is that if you're a frequent traveler, you'll still be able to meet up with your business coach, as long as you have internet access. So whether you're at home or a resort, you can enjoy the benefits of coaching.
If you're meeting with your coach in person and they come to your office for an appointment, everyone in the building will notice.
And while many people wouldn't mind this, some would prefer to keep their coaching sessions a secret to avoid spreading a lack of confidence or anxiety.
For high-profile business owners, being seen attending coaching sessions can also lead to some negative consequences, such as gossip.
Luckily, this is easily avoidable when your appointments are virtual since it all happens in a quiet, private environment. And you shouldn't let other peoples thoughts and opinions impact your mission towards a successful business.
Picking the Right Online Business Coach
Picking the right business coach can be overwhelming at the start, but it's much easier when you know what you're looking for.
If you're looking to share your thoughts with a professional and get some feedback or pep talk, you might be better off with a less intrusive and less costly business coach or even a life coach or career coach.
But if you need some well-measured feedback and intrusive help from an experienced mentor, you'll have to search a bit harder.
First, ask yourself how much you can pay for coaching and set your expected outcomes out of your budget range.
It'd be best to look for a business coach with previous experience in your niche, your business size, and who's achieved your goals before.
This will take some correspondence between you and your prospective coach before things come together. Ask them about their previous experiences and how they can help your business.
You can also ask a prospective coach what they expect from your end so you can get off on a good start.
Alternatives to One-On-One Coaching
At this stage, you might be curious about other options at your disposal, so we've highlighted the best alternatives to one-on-one training or business coaching services for you to compare.
Cheaper and less specific, group mentoring can give you great insight into what other businesses are struggling with, how they overcome their day-to-day obstacles and other valuable solutions
And while you might get some feedback during group mentoring, it won't cater to your specific needs.
Books are an invaluable source of information, and we'd definitely recommend you pick up a few for inspiration.
However, books alone won't solve your business-running problems.
Frequently Asked Questions
How Much Do Online Business Coaches Charge?
Business coaches charge around $100-$350 per hour on average. However, this number is very malleable and can be higher or lower depending on your business's industry, the niche, your specific goals, and more.
The Bottom Line
Business coaching is the best investment for aspiring business owners at a loss. And if you're comfortable with technology, you'll be delighted with online coaching over traditional face-to-face arrangements.
A business coach can nourish your leadership skills and help you at many different depths, from giving you feedback on important executive decisions to brainstorming new strategies with you.
And when you opt for online coaching, you have access to the best coaches in the world without location-based limitations from the comfort of your home. In other words, no time is wasted scheduling or commuting.
But to make the experience worthy, make sure to pick your business coach diligently. Ideally, find a coach with previous experience in your niche who's achieved goals similar to yours before. Now you should have an understanding of how much does online business coaching cost.