Why I don't charge by the hour (usually)
Not long ago, a human resources director and I were having a conversation about coaching for one of her organization’s leaders. She read over my ideas for what I could deliver and how much I would charge, and did some math, which led her to question what seemed like a very high hourly rate.
Service providers commonly charge by the hour. A 30-minute massage is less expensive than a 60-minute massage, as it should be. And though I never practiced law after getting my degree, I’m well aware of the significance of the billable hour to the business model of law firms.
But I don’t charge my private clients by the hour*, because what coaches do is different.
I am a believer in pricing transparency, which is why I post all of my packages on my website. I bill for coaching by package for several reasons:
My clients and I have found it hard to set the value of an individual session.
Some sessions feel amazing, and some sessions don’t. Some sessions reach an obvious resolution within the time, and some never do. If there’s a cost associated with an individual session, I never want a client asking themselves whether it was worth it.
Much of the value in coaching happens in between sessions, or even after an engagement is over, when a client has an insight or finds a new technique useful in tackling an old problem.
I pride myself on availability to clients between sessions, by email and via 15-minute "refill" sessions and do not bill for these. I likewise share resources for clients to consider in between sessions and do not bill for these either.
Even in organizations with limited professional development budgets, the value of the coaching engagement as a whole usually far exceeds the investment. (Considering the cost of a failed executive, or a leader who remains stuck, for example.)
The HR director accepted my explanation. I got the project and went on to have a fantastic engagement with the client.
*Exception: past clients occasionally come back and want an individual session or two on a particular topic. I welcome the opportunity to re-engage with them, and will charge hourly for this work.