Why Do Life Coaches Charge More Than Therapists?
As an entrepreneur coach reach their full potential, I often get asked about the cost of life coaching. One common question is: “Why would a life coach charge more than a therapist?” This is a good question, and understanding the reasons behind the cost can help you see the unique value of life coaching and make a smart decision about investing in your growth.
In this article, I will explain why life coaching might cost more than traditional therapy. We will look at the differences in their approaches, the special benefits of life coaching, and how it can greatly improve your business and personal life.
By the end of this article, you will have a clear idea of why life coaching is worth considering and how it can help you achieve new heights in your career and life.
First, let’s talk about the difference between life coaches and therapists.
Both coaches and therapists have value. However, depending on the issues that are most urgent and important in your life, one might be better than the other.
The Difference Between Life Coaches and Therapists
To understand the price difference, it’s important to know what life coaches and therapists do. First, let’s talk about therapists and then we will talk about the role of a coach.
Therapists
Therapists, including psychologists and counselors, are trained professionals who focus on diagnosing and treating mental health issues. They help clients deal with past trauma, manage mental health conditions like depression and anxiety, and improve emotional well-being. Therapy often involves exploring past experiences to understand and solve depression or other psychological problems.
As a life coach, I have no problem referring potential or current clients to a therapist. There are some things that are just beyond my expertise. Additionally, treatments like EMDR, psychodrama, and other techniques that should only be performed by a licensed therapist.
Life Coaches
On the other hand, life coaches like myself focus on the present and future. The reason is that I am dealing with people who have businesses that are not just providing livelihood for themselves but also for their employees. So if there is a lack of clarity, it can and will wreck them financially.
As part of my work, I help clients set and achieve goals, improve performance, and find fulfillment in various aspects of their life, including career, relationships, and personal growth. Life coaching is action-oriented and usually involves creating strategies to overcome obstacles and achieve specific outcomes.
The best way I can illustrate this is through a home remodeling example.
Home Remodeling For The Mind
Imagine you just bought an older house in a great neighborhood. The location was right and the price was even better. Unfortunately, this mid-century home has seen better days. Shutters are about to fall off. Walls are covered with what you hope to be children’s prints, and there are funky smells coming from the corner closet.
Would you just move into that house or even try to rent it out? I would hope not! We have to put on some gloves and clean up quickly before you would even entertain living in such a place. That’s my job as a coach—hazard cleanup for all the mental clutter inside you that needs to be swept up and thrown away.
I hope you now understand the difference between a coach from a therapist. Now, let’s talk money. Why would a coach charge more than a therapist?
5 Reasons Why Coaches Charge More
I was talking with someone the other day who is struggling emotionally. She said she wished she could have more help for free. I showed her my cellphone and wished Apple had free iPhone giveaways. She understood right away that nothing that is worth something is free.
But often, we don’t really value something we haven’t experienced. And a life coach is viewed as a high-ticket item for the same reason why Apple charges a premium for their devices. In this section, we will discuss the reasons behind the high price tag. Here are the main reasons:
Reason #1: Goal-Oriented Approach
One major reason life coaches charge more is their goal-oriented approach. Life coaching is very focused on achieving specific goals. Coaches work closely with clients to identify what they want to achieve and then create detailed plans to get there.
In addition to my experience as a life coach, I am a certified project manager with years of experience handling multi-million dollar projects. I come equipped with organizational skills. It’s my job to break it all down with easy and simple-to-follow instructions. This approach often necessitates more intensive and personalized sessions.
Example: A business owner wanting to increase their company’s revenue might work with a life coach to develop a strategic plan, improve leadership skills, and enhance team performance. This focused approach can lead to tangible, measurable results that justify the higher cost.
This goal-oriented approach also uses concepts from positive psychology (which we will talk about more later), which focuses on strengths and well-being. Research shows that setting and working towards goals can increase motivation and happiness, which are key elements in life coaching.
Reason #2 : Specialized Expertise
Another reason for the higher cost is the specialized expertise life coaches often have. Many life coaches have backgrounds in areas like business, leadership, or personal development, which allows us to provide very specific advice and strategies.
Example: A life coach with experience in business management can offer insights and strategies that a therapist might not be able to provide. This specialized knowledge is valuable for clients looking to excel in specific areas, such as growing a business or advancing in their career.
This specialized knowledge is particularly beneficial for business owners. Life coaches with expertise in entrepreneurship, marketing, or leadership can give practical advice that directly addresses business challenges. This depth of expertise is reflected in the higher fees.
Reason #3: Accountability and Motivation
A third reason life coaching can be more expensive is the high level of accountability and motivation coaches provide. Life coaches offer regular check-ins, progress tracking, and ongoing encouragement to help clients stay on track with their goals. My clients have the ability to check in with me via MarcoPolo, and that is included in the cost, rather than a therapist who will nickel and dime you after every 15-minute increment between and outside sessions.
For instance, if you’re working with me to manage your overcontrolling mother and maintain your sense of masculinity, you’ll benefit from regular motivational messages, check-ins, and personalized support. These resources are specifically tailored to assist you when your mother sends guilt-ridden messages questioning why you won’t join her for dinner on Sunday.
Accountability is a powerful tool for achieving goals. Studies show that people are more likely to follow through with their commitments when they have someone holding them accountable. Life coaches use this principle to help clients stay focused and motivated, which can lead to higher success rates and quicker achievement of goals.
Reason #4: Immediate and Practical Solutions
Life coaches also tend to focus on providing immediate and practical solutions to problems. They help clients develop actionable strategies and implement them quickly, leading to faster progress and tangible results.
Example: A life coach might help a client improve time management skills by developing a detailed schedule and providing tools to track productivity. These practical solutions can lead to immediate improvements in the client’s daily life and work performance.
This focus on practical solutions is one of the hallmarks of life coaching. By addressing specific challenges and providing concrete strategies, life coaches help clients make rapid progress. This immediacy and practicality can be especially valuable for business owners who need quick and effective solutions to pressing problems.
Reason #5: Comprehensive Support
Finally, life coaching often involves comprehensive support that goes beyond the individual sessions. Coaches may offer additional resources, such as workshops, online courses, and personalized materials, to support the client’s growth and development. I have a provide my clients access to my coaching portal which is filled with hundreds of articles, as well as workbooks and videos.
Comprehensive support can significantly enhance the coaching experience. By offering a range of resources and opportunities, life coaches like myself create a supportive environment that fosters continuous learning and growth. This level of support is often reflected in the higher fees.
The job of the coach is to permanently alter how you view not just your challenges but your opportunities. Once you overcome your fears and see your potential, nothing should get in your way.
The Science and Psychology Behind Life Coaching
Now that we’ve explored the main reasons for the higher fees, let’s look at the scientific and psychological foundations of life coaching that support its effectiveness.
Positive Psychology
Life coaching often uses ideas from positive psychology, a field created by Dr. Marin Seligam that focuses on strengths, well-being, and what makes life fulfilling. Dr. Seligam is also one of primary authors of the concept of learned helplessness. Anywho, positive psychology emphasizes the importance of setting goals, having a growth mindset, and building on strengths, all of which are central to life coaching.
Research in positive psychology has shown that setting and working towards goals can increase motivation, happiness, and overall life satisfaction. By focusing on strengths and positive outcomes, life coaching helps clients achieve a more fulfilling and successful life.
Positive psychology also highlights the importance of positive emotions and relationships in achieving well-being. Life coaches often use techniques such as gratitude exercises and strengths-based interventions to help clients build positive emotions and strong relationships, which can contribute to their overall success and happiness.
Neuroplasticity
Another important concept is neuroplasticity, which is the brain’s ability to reorganize itself by forming new connections. This supports the idea that people can change their behavior and improve their skills through consistent effort and practice.
By working with a life coach like myself, you will engage in activities that promote neuroplasticity, such as setting goals, practicing new behaviors, and receiving feedback. This leads to lasting changes in behavior and mindset, contributing to the client’s success.
Neuroplasticity underscores the potential for growth and change at any age. Coaches use this principle to help clients develop new ways of thinking and behaving, which can lead to significant improvements in their personal and professional lives. This scientific basis adds to the credibility and effectiveness of life coaching.
The job of the coach is to permanently alter how you view not just your challenges but your opportunities. Once you overcome your fears and see your potential, nothing should get in your way.
I hope this provides more context to the value of life coaching. If not, here are some other benefits that come from working with me or any other professional life coach.
Four Unique Benefits of Life Coaching for Business Owners
Slaying it all day every day comes easily for those who have accountability and support. And for business owners like yourself, life coaching offers four unique benefits that can justify the higher fees.
1. Enhanced Leadership Skills
Life coaches help business owners develop and refine their leadership skills. This includes improving communication, decision-making, and conflict resolution abilities. Strong leadership skills are essential for driving business success and fostering a positive work environment.
Enhanced leadership skills can also have a profound impact on a business. Effective leaders can inspire and motivate their teams, drive innovation, and navigate challenges successfully. By working with a life coach, business owners can develop the skills they need to lead their organizations more effectively.
2. Strategic Planning and Goal Setting
Life coaches assist business owners in creating strategic plans and setting achievable goals. This involves identifying long-term objectives, breaking them down into manageable steps, and developing strategies to overcome obstacles.
Strategic planning and goal setting are critical for business success. Life coaches help business owners develop clear, actionable plans that align with their vision and objectives. This structured approach can lead to more effective decision-making and better business outcomes.
3. Work-Life Balance
Maintaining a healthy work-life balance is crucial for business owners to avoid burnout and maintain overall well-being. Life coaches help clients find a balance between their professional and personal lives, ensuring sustained productivity and happiness.
Achieving work-life balance is essential for long-term success and well-being. Life coaches help business owners develop strategies to manage their time and energy effectively, ensuring that they can meet both their professional and personal needs. This balance can lead to greater satisfaction and reduced stress.
4. Improved Decision Making
Life coaches provide business owners with tools and techniques to improve their decision-making processes. This includes analyzing options, considering potential outcomes, and making informed choices that align with their goals and values.
Improved decision-making can have a significant impact on business success. Life coaches like myself assist business owners like you in developing critical thinking and problem-solving skills. Through this support, you can make better decisions that drive growth and innovation in your business. This enhanced decision-making ability can justify the higher investment in life coaching.
The image below summarizes these benefits. Next, I will share my final thoughts.
Final Thoughts
Entrepreneurs have a funny way of overestimating their abilities and underestimating their weaknesses. And if you, as a leader, find yourself repeating issues you thought you should have resolved years ago, working with a life coach for business owners like myself might be your best bet. The benefits of enhanced leadership skills, strategic planning, work-life balance, and improved decision-making can have a profound impact on your success and well-being.
But a word of warning: don’t be too quick to hire a coach. Do your due diligence to find a coach that aligns with your life philosophy and appears competent to help you meet your goals. Read through their blogs or any other material that gives you an idea of their personality as well as their competency. Not everything that glitters will give you the gold that you want.
Also, I encourage you to listen to an episode of my entrepreneur podcast, where I share insights and tips on personal development, business success, and achieving a fulfilling life.
