Financial Coaching Revenue and Funding Models
The business aspects of financial coaching are an important consideration from the start. Having clear revenue and funding strategies that support continued expansion for your financial coaching practice will fund the growth of your program and can help you continue to serve people for years to come.
We provide research, training, and expertise on aspects directly tied to revenue: product offerings, pricing data, and income sources. This information can save you years of trial and error learning and help you develop or expand your coaching practice efficiently.
In this section, we explore the pricing and revenue modules used by various financial coaching stakeholders.
Pricing Models Overview
Individual Client Pricing Models
For those who serve individuals, the NFEC’s Certification program provides pricing models for hourly rates, packages, and value adds. Models are provided based on your experience levels and knowledge – we help you increase the value of your service and provide guidance on pricing to accommodate.
Developing clear pricing models is important for each service you offer, no matter your business model. For example, as an entrepreneur, your pricing models may be designed to work with individual clients and their partners; while a nonprofit pricing model may be designed to show the investment needed by a foundation grant or sponsorship. Although there are a variety of models, three dominate the coaching space: 1) Hourly Rate, 2) Package Pricing, 3) Financial Service & Banking Client Acquisition.
To address the hourly and package models for standalone coaches, we reviewed 137 financial coaching sites in the top 50 Google results for ‘financial coaching’ terms; 26 of those included pricing. Their Package Pricing ranged between $240 to $5,900 and Hourly Rates averaged $257.
Organization Client Pricing Models
Working with third-party organizations refers to a company hiring you as a contractor to provide financial coaching or financial education services. With this model, there are additional revenue centers for which the organization pays.
Working with organizations gives you the opportunity to amplify your earning potential. They typically provide multiple clients at once and there are other revenue streams available, including: financial education programming, reporting, consultation, and program design.
An important consideration to keep in mind is that, besides direct revenue paid by the organization, the ability to gain clients outside the company is also an option. As you build a relationship with the people you are coaching, they may need help outside what the company is funding. This situation gives you an opportunity to build external clientele.
Add Extension Services to Increase Revenue Potential
Most often a financial coach only serves as a person with whom to talk. Compare the average coach to NFEC coaches, and you’ll find that the NFEC offers a wide scope of services intended to help you improve your financial position as you provide more holistic services that can better help people work toward their goals.
When creating the mix of services that you will offer, we suggest being open to all options described on the infographic. Being open to providing services in various ways positions you as a consultant who is willing to accommodate the needs of individual or organizational clients that best align with how they want to work with a financial coach.
