Determining a Fee for the Service

by John E. Glass, Ph.D.

Question

How do you determine the fee for the executive coaching service?

Answer

Do your homework: Review relevant articles in the i/o literature. Go to conventions, workshops, etc. and ask the speakers for references and general guidance.

You generally use time plus expenses (travel and other) for setting the fee. The hourly rate you use should generate revenue that produces a draw or salary that you are comfortable with. First determine your total annual practice expenses. Then estimate the number of annual billable hours. Set an hourly rate that meets your expenses (including your desired draw or salary).

Usually, executive coaching involves more travel to the work site than simply going to and from your office. Any travel time in excess of your usual travel time is fully billed. If you have to wait between consultations on-location, bill for the time (and coffee, if you pay for it.)

There are regional variations in i/o consulting charges. a large firm in new york city expects to pay two or three times as much for i/o consulting as does a medium-sized firm in Bloomfield, CT.

You might consider setting your executive coaching fee at one and a half times your clinical consulting fee. See if this works for you. But do your homework before you quote your first fee to a client.

About the Author:

John E. Glass, Ph.D. is a sociological practitioner with over 11 yearsexperience as a consultant, educator, counselor, educator, and researcher.He is on the Board of the American Academy of Sociological Practitioners, on the faculty of the Institute for Integral Development, a member of the Sociological Practice Association, and a member of the International Coach Federation.

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