The truth is, with any service where you trade hours for dollars, there is a limited amount of time that you can offer. You only have so many “billable” hours in a day so you have to figure out how to make the most of your time, while still offering a good product and service to your clients.
Creating scarcity is a tactic that is used often in the marketing world. You’ve seen limited time offers, sold out products, and limited memberships before. The reason is, creating scarcity works! It works so well that it is a very common marketing strategy used by everyone from big companies like Coca-Cola to Internet marketers and everyone in between.
The thing is, in a business coaching practice there already is scarcity because time is limited already. A lot of coaches over estimate the amount of time that they will have actual billable hours. A billable hour is a working hour that you can actually bill someone for. In every business these hours are limited far more than one might expect. Most people think they’ll have forty hours a week in which to bill and that is how they set their hourly rate. This is a mistake.
When you are in business for yourself you have more work to do than simply what is billable. Therefore you have to figure out how many billable hours you can reasonably work before you set your hourly rates. Now you see that you have a real problem because it is unlikely that you will be able to work enough hours to make real money that will give you what you truly desire, which is freedom.
Once you figure out this problem you can start figuring out how to fill in the hours with multiple offerings rather than simply one on one coaching. You can create email coaching programs that are automated, automated drip membership sites, an inner circle and the ultimate prize, the cherry on top of the cream, your one-on-one coaching service. As your client moves across each level the number of people allowed to participate gets lower, and the price for entry gets higher.