At Paseda360 Coach Training Academy, we believe that being an exceptional coach goes hand-in-hand with mastering the art of securing payment from clients.
In this guide, we’ll explore the nuances of payment procedures, distinguishing between B2C (Business to Consumer) and B2B (Business to Business) scenarios, and shedding light on the importance of clear communication and professional assertiveness.
B2C: Setting the Foundation for Payment Success
For coaches engaging with individual clients, a proactive approach to discussing payment is best.
Begin by establishing payment terms ahead of service delivery, especially in milestone coaching plans, whereby a client pays over a number of months.
Clearly outline the payment structure, ensuring clients understand the financial commitment associated with each coaching phase.
Add these to signed terms and conditions, and to the invoice.
As a rule of thumb, structure your payment plan so you are always paid ahead of service delivery. You might be paid in increments of £500 for example. If this covers two sessions then your aim is to receive £500, deliver two sessions, and then receive the next £500 before delivering another two sessions.
By addressing payment expectations upfront, coaches can foster a transparent and trusting relationship with their clients.
B2B: Navigating the Corporate Landscape
In the B2B realm, the payment landscape is more intricate. Coaches dealing with businesses must be adept at securing purchase orders. This is a written document that acts as an intent to pay. It must cover the entire fee for the coaching programme, plus expenses, plus VAT.
If you negotiate a payment plan, again, think about how this will align to service delivery.
Understanding payment terms can be tricky. You might set payment terms at 30 days which means you expect payment to land 30 days after you issue your invoice.
Some companies might have payment terms of 60 or even 90 days which means you’ll be waiting a lot longer than your expected 30 days for payment.
Check if payment terms are ‘from date of invoice’ or ‘end of month’ because if it’s the latter, you’ll be waiting even longer for payment.
Emphasise the importance of initiating discussions about financial arrangements early in the coaching relationship, aligning expectations with the client’s procurement processes.
Actively manage your financial agreements, keeping a watchful eye on invoice due dates. At Paseda360 Coaching Academy, we advocate for a proactive approach, recommending coaches to chase invoices on the very day they become overdue. Ask for a date of payment. This not only demonstrates professionalism but also accelerates the payment cycle, ensuring coaches receive their compensation promptly.
Cancellation Policies: Safeguarding Revenue Streams
Coaches should communicate their cancellation policies clearly. It’s important to be mindful of the potential impact on overall revenue when sessions are postponed.
Adhering to your policies helps you to maintain a consistent coaching schedule. Postponed sessions can disrupt subsequent weeks.
If you have one £250 session cancelled twice a month, you’ll lose £6k of revenue across the year.
Professional Assertiveness: A Key to Payment Success
We encourage coaches to approach payment discussions and follow-ups with a blend of professionalism and assertiveness. Clearly articulate expectations regarding payment timelines, reinforcing the commitment to delivering high-quality coaching services. Coaches should view themselves as valuable professionals deserving of fair compensation for their expertise.
Managing Supplier Payments: A Two-Way Street
Just as coaches expect timely payments from clients, it is equally important for them to meet their financial obligations to suppliers promptly. Create a reciprocal relationship with suppliers, cultivating a reputation for reliability and professionalism.
The Psychology of Payment Requests
Understandably, many coaches find it challenging to initiate payment discussions. Address the psychological barriers associated with asking for payment as it’s fundamental aspect of your role as a business owner.
At Paseda360, we stress the importance of recognising one’s own value and the positive impact coaching has on clients, making payment discussions a natural extension of the coaching relationship.
In conclusion, navigating the intricacies of payment in the coaching profession requires a delicate balance of professionalism, assertiveness, and clear communication. At Paseda360 Coach Training Academy, we equip our coaches with the skills and mindset needed to secure rightful compensation through our Coach Club.
By fostering transparent relationships, understanding B2C and B2B dynamics, and upholding stringent cancellation policies, coaches can confidently navigate the financial landscape and thrive in their coaching careers.