220 | Live Money Coaching: How to Raise Your Rates with Confidence

Today’s money coaching session is with Nicole, whom you met in episode 218. Sometimes when we air these there will be more than one client in them and it just so happens that these first two episodes are just Nicole.

Nicole is a very unique client, the majority of my clients have more traditional businesses with a product or service that they sell. You might recall if you listened to her session in episode 218 that she works as a medium. So this is not the kind of business where you hire people right out of school and mentor them into a client-facing role, like lawyers and accountants do. Nicole really can’t replicate herself.

And you’ll hear me say to her in the session that she doesn’t have a business, and then later I refer to it as a “practice” versus a business, and what I’m trying to communicate to her is not that there is something wrong with how she makes money it’s not to be disparaging in saying “oh you don’t have a business”. No, it’s not a business because there isn’t a set of systems that are outside her that can make money without her being there. A lesson for you here as well, if you make money doing something where you can’t replicate yourself – is that – she is the only one delivering the service that makes her money and you have to take that into account in your pricing. Pricing has to be high when she’s working with people because she is the non-renewable resource.

So I’m really working with Nicole to uplevel her own expectations of herself to earn money. That tends to be a very common theme in my money coaching. I’m constantly, and you’ll hear this, giving her suggestions for higher pricing or how her newly designed offer might look, but the point is not that she should go do exactly what I’m telling her to do. I’m not a marketing coach for mediums, I’m a money coach and she’s the only one out there in the world doing it. So she’s the only one who really knows how her offer should look but it’s evolving. She doesn’t know where to start and that’s where I can help. The point is to go out and start making high priced offers and putting financial boundaries in place that are much different – and HIGHER – than her boundaries and expectations have been in the past. The offer will definitely shape shift over time, the specifics I’m sure will evolve and ebb and flow. But actions get results, and then you deal with those results and see if you need to make changes.

Over the 10 or so sessions I’ve coached Nicole so far, her ideas and offers that she’s making to people have been different nearly each time I’ve seen her! And that’s great. But in every case she’s making more money, mostly working with brand new clients in brand new and elevated ways, and that’s what we want.

And all of those lessons are universal to business and money, given the way she’s making money. So if they apply to you, great, that’s fantastic. If you know someone to whom these lessons would apply – share this episode with them.

If you’d like to get your own money coaching, I’d love to meet you and see you in the sessions, just email coaching@hendershottwealth.com.

[INTERVIEW]

Hilary Hendershott: I’m thinking about how you would position yourself or niche yourself because there has to be tremendous value in what you’re offering and then the credentials. Honestly, if you had a credential, it would devalue you because they would just slot you into, “Oh, that’s what you are,” right? “Oh, you’re a certified coach. Oh, but you’re going to help me talk to my dead grandfather. That doesn’t jive for me.” And I’m not saying you’re a medium. Correct. So, just be thinking about those places in life that are of highest value to people: health, money, loved ones. And that doesn’t mean that’s all you do. I’m not going to limit you. But the only thing that matters is because as soon as you’re crystal clear about what this very special place for you is, this offering is, and so you create the podcast that way and you’re integrating that into your practice, I mean, people are just going to fall over themselves referring you. And again, like I said, you having an almost level one website, it almost adds to the mystery, right? It’s like, “Perfect. Perfect. Like, forget the website. I am way too big and in the clouds and doing way too powerful sh*t to worry about my website, right? Like, you’re lucky to fill out my contact form.”

Nicole: Yeah. It’s true. That’s why I’ve never marketed. I don’t love the idea of marketing because it’s just, yeah, it’s a different business. I did start reading the E-Myth. By the way, I’ve been reading it. I now work on the business so I’ve been in the business but I don’t have a widget to sell.

Hilary Hendershott: But that’s why I wanted you to read it is because I want to be able to say to you, you don’t actually have a business. It’s not a business, which means you’ll never sell it. You’ll never have employees who do what you do. You might have an iconic assistant, like some crazy person who just runs around, gathering, like, creating you, “Here’s what’s on your calendar today. No, done with this session. She needs to eat. Everyone out,” right? Like, I can see a $100,000 assistant running around taking care of you but there’s never going to be a junior, which means we have to get your prices high because you don’t have an exit value. And so, if you’ve taken what you’ve taken out of the E-Myth, you can skim it. But I just wanted to be able to say to you with love and respect, you don’t have a business. You have a practice.

Nicole: That’s exactly it. And that’s why I went, and then I feel so lucky that people will come to me, especially in this place. It’s like, “How the hell am I in this? There’s no way people do intuitive stuff.” People come to me routinely for readings and it’s like a secret, “You do readings?” And I’ve never marketed that. That’s just perpetual. I’ll clear you. I’ve got a mediator and I’ve got all these other things I do but people, honestly, the bulk of my work is, “Let’s talk about spiritual stuff,” and it’s like a secret because they can’t tell their bishop. They can’t tell anybody in their ward. I support these people that are just dying to have a voice. So, I really don’t have a business. And no one’s been able to figure out how to market me, by the way. So, I shouldn’t be so hard on them because I can see how this is not something that can really be cookie-cutter at all.

Hilary Hendershott: No. So, what you’re describing to me, these people coming to you persistently, continuously, and yet here you are like, “No, I’m a divorce mediator.” Like, I’m a mediator. I want credentials, right? Like, I really have this image of almost the universe trying to say to you, “This is where you belong,” but there’s been like this forcefield up of like, “No, I don’t deserve it. I don’t deserve money. I want to be a divorce mediator.” Like, a divorce mediator is so pedestrian compared to what you really do. And maybe you keep some elements of the divorce mediator thing in there. Like, that’s one of the super-spiritual things that you do. But you have to figure out a way to talk about it so that my brain doesn’t go to the $50-an-hour person my parents paid back in 1987 that didn’t do sh*t for us, right? So, spiritual conscious uncoupling or something like that, right? But I’m just inviting you to let yourself be with the people who are trying to come to you, the people who are trying to pay you more, the people who ask for you continuously.

I’m betting there’s a theme there. If you really let it percolate and incubate, there’s something that wants to be birthed. Once it does, it’ll be like, “I can’t believe I’ve been holding this out for so long.” That’s what I hear you describing to me.

Nicole: Yeah. I’ve been called fairy godmother. You have the answer.

Hilary Hendershott: And I just want you to free yourself up in terms of what the engagement looks like because there are people out there. You use the term fairy godmother. Maybe you have an annual contract, right? “$60,000. I’m your fairy godmother for a year. I’m on call. Here are my boundaries. I work for you from nine to six Pacific Time or Mountain Time or whatever. We can do a couple full days, whatever.” And for you, for most business owners, I really push them into consistent pricing. I’m not going to push you into that. I want you to have a minimum because I have a feeling with your intuition, you’ll meet some people and you’ll go, “My price is $25 for the year.” Other people, you’ll go, “My price is $70 for the year.” And I just want to set you free to do that. So, I don’t want you to be encumbered by rules or consistency or anything like that. This idea of, “I don’t deserve the money. I don’t want to be rich. Hilary, I don’t want to be a greedy b*tch. That’s enough. Oh, a million dollars, that’s enough. That’s enough.”

It’s like insane, right? Because we look at the oak tree. And the oak tree needs nutrients and water. And no one ever says, “That oak tree has taken too much water,” and yet literally water is a zero-sum game, right? Every drop of water the oak tree takes doesn’t go to an… Except the water is everywhere. It’s everywhere. Right? The Earth recycles, creates, consumes, right? And it’s the same with money. It really is the same with money. And it may feel artificial in the beginning to begin to demand to get paid. And there’s a phrase I use. So, people all the time ask me for free financial advice and kudos to them. But of course, if I give it to them, they’re not going to value it because people value what they pay for. And I just say, “Thank you for asking. I actually get paid to give advice.” And I don’t know how that would sound coming out of your mouth. It would be different words but it is something I firmly believe. I know if I give it to them for free, it drains me and they don’t value it.

Nicole: Yeah. 100%. And I almost like I need a manager or someone to I’ll just say, “Hey, you got to call Suzy or call Hilary. Call somebody,” and in the line they schedule them and we’ll take care of the payment. I hate the money part of it. I really do. You schedule, you pay, I love that. It’s already paid before they walk in the door.

Hilary Hendershott: Yeah. So, then we need to add $100,000 to our $300,000 so that you can pay for this person. So, we’re at $400,000 of target business revenue for you. So, we’ll begin to create whoever that person is and she’s unique and eccentric in her own way.

Nicole: As I sit here and what’s been hitting me in the epiphanies is the recognition of like I’ve saved people’s lives. I’m not kidding.

Hilary Hendershott: Do you recognize the amount of stuff you do in the world because you feel sorry for people?

Nicole: I do. And that’s exactly why I do it. My marketing strategy, when I started this, I just want to solve their pain. I just want to heal their pain. That’s it.

Hilary Hendershott: Okay. Except it makes you a magnet for people who are in pain. So, of course, people are multifaceted and you can be attracted to the place where they’re in pain or you can be attracted to the aspect of them that wants transformation and elevation, right? So, I’m not saying don’t help those people. I’m saying what you’ve asked me for is a shift in perspective to – I’m looking for people who want transformation, elevation, guidance, like I provide guidance, saving lives maybe, right, being available for people to text and not pay you. Probably not anymore, right? Like, everything I say you get to do with it what you want. Again, no confinement, all empowerment. But, I mean, I’m just looking at the list of people who pay you and it says, “Joanna, elderly lady $75 for half an hour.” And so, you told me $200 an hour, but it looks to me like the average is more like $137 or something like that, right?

Nicole: Yeah.

Hilary Hendershott: So, last time we talked, I said I am going to ask you what is the rate at which you’re willing to raise your prices. Did you think about that, or have you had time?

Nicole: No, I have. I’ve been really consumed with this. So, I’m thinking I can do $200, $250. And then people I know that could pay me more, $350. So, I like that I get to, in a way, I’m a good guesser of what they can afford to pay me. If they lead with, “How much do you charge?” I know that price is an issue, right? So, that doesn’t mean I charge them less. It just means I have to have a conversation about, well, this is what I charge. It’s like a part of me knows, on some level, I’m supposed to help them. There’s a lot of people that have a lot of money. I can say $1,200 or something. So, if I get a celebrity group, I think I could probably start… I would love to start doing a podcast or having something to record but I think if I start teaching a little bit, and I’ve got someone like I’ve never done a 90-day program or something. They do like a half hour a week or an hour a week. And it’s about conversing with the divine. It’s something about them getting in touch with their own spirituality or their own intuition. Something like that is what I wanted to do. That wouldn’t be hard for me to do. But if I did like three 90-days, the groups, a year, I could probably make that $

100,000 or $150K right there. I want to get out of just the hourly rate.

Hilary Hendershott: Yes, yes. And that’s why I’m talking about an annual retainer, right?

Nicole: I like it. I like that.

Hilary Hendershott: I mean, you know the answer to this but if you do a 30-minute session with someone for $150, how much does that take from you? Like, first of all, there’s the transaction cost of just having to be there. Are you doing all these in-person?

Nicole: A lot of in-person or on a Zoom.

Hilary Hendershott: I mean, I meet with people on Zoom all day. So, I know there’s a cost, right? There’s the rigidity and conformity. There’s everything I can’t be doing. So, I don’t know. I just feel like, I mean, you said, “I feel like I should be helping people.” And of course, I don’t want you to deny your intuition. I’m just asking you to expand into that. And really just think about it. Like, for $150, I mean, $150 we got to get to $400,000 in 2024. It’s like, I don’t know. I almost would rather you have naptime. And again, you have to push back on me because you’re the one in relationship with your intuition and this spiritual presence that you have. So, you have to tell me, and you don’t have to tell me today but let’s just be…

Nicole: When I look at that, though, there’s nothing to push back on because I already know. Like, again, first thing I met you, “Oh, I love this lady.” I already know that there’s a huge event occurring. And so, I feel like God’s saying, “The money is going to be there. Don’t worry about it. And just start trusting and getting your system in place.” I need to be seen and heard and that’s the podcast. That feels like it’s the first thing for me to start focusing on and just get out there. I can do all that. I just have to start being able to be seen. I’m hiding. I’m in my office all day. And so, if I’m on camera, if I’m heard. So, nothing you’re saying to me I’m pushing back on. I’m leaning in. I felt like God’s saying, “Do this. Hilary’s your girl.”

Hilary Hendershott: Are you comfortable with how you’re going to communicate your price increase to people and what schedule you’re going to do it on? Do you want to talk that through?

Nicole: Yeah. So, I think what I’m going to start doing with new clients is just say I’m $250 an hour. So, when they text me to say, “Can I get a session? How much you charge?” “$250 an hour.” And I can do that. That’s not a problem. That’s your text. I’m comfortable with that. If they say, “I thought it was $150,” “Well, I raised my rates.” But I think if I’m on a podcast with somebody talking about what I do like, “Who are you? What do you do?” I’ve never really been interviewed like that. I think that’s when I can really say, “People retain me for a period of time. They’re going through something.” So, I can see myself sharing like the bigger picture of who I could be for the world in the context of the podcast situation.

Hilary Hendershott: Yeah, but that’s how you market it, not with bullet points.

Nicole: Right. Exactly.

Hilary Hendershott: Not with copy on a website, right?

Nicole: No. And if you look on the website, Instagram, none of it really says me. Have you noticed that? And I think that it was by design because I feel like, like you said before, you need to figure out who you are, and once you get that, your special offering, whatever that offering is, that’s the brand. And the rest of the stuff is going to be deleted anyway because that’s not my brand.

Hilary Hendershott: And Instagram is a place where people will. It’s like a credibility vote, right? They’ll go, “Okay. She has an Instagram.” I mean, you could do short-form stuff on there. You could go, “I just met with a client. This is what I saw. This is what I shared with him. This is what I told him to do.” Namaste. I do agree with you. Let’s get you on video as fast as possible. I just emailed my podcast team. I’ve got another gal who literally teaches people how to bring business into new businesses using podcasts. I think you’re a little advanced for her normal client but I’m going to find out if she has a methodology that she teaches that you could parlay. What I’m looking for is a low-cost production team for you. So, you can just turn the camera on, record audio and video, send it to them, and they edit it, they publish it. You shouldn’t be bogged down with this. And it might be a cost in the beginning, like I pay $4,000 a month, but you don’t need that. You don’t need that. We need to start you at $750 a month or something like that and get four or six episodes out with a clear call to action. And so, then as fast as possible, the podcast is paying for itself.

Nicole: That’s what feels like the right thing to do, getting the system, the money system, the bank in line. I’m reading. I’m watching all your stuff. I’ll do everything you tell me to do. But I think the podcast is like, that feels so compelling like I’ve got to start doing that. And in those conversations, people find me. People find me.

Hilary Hendershott: I’m just doing $400,000 divided by 12. So, $33,333.33 a month. That’s our revenue target. And that is $8,300 a week. So, when you start to think from those numbers, can you afford a $150 30-hour session? No, because you need to be looking for the bigger ticket item, right? And again, you’re going to have people slotting in underneath you doing what you do, who are earning nothing right now. And they’re going to watch you earning $400,000 a year and go, “I can take that 30-minute session for $150. I’ll do that.” Right? Like, there are other intuitives on the planet. They’re not like you, right? But we’re revving you up in terms of accessibility.

Nicole: Yeah, got it.

Hilary Hendershott: Let’s get that podcast. Think about the pricing. I just want to share with you in January of this year, a friend of mine, she interviewed me on her podcast, and then her podcast blew up. The woman is iconic now. And she just texted me and said, “I’m doing a mastermind. It’s $6,000. I don’t know if I should even invite you because of what’s happening with your daughter but there’s a calling in my heart to invite you.” And I said, “You know what? I’ve been wanting something like this. It feels right. I have the time. I’m going.” That was one text message. She made $6,000, right? So, sh*t like this is happening all the time. It’s all in relationship. You do not need to worry about like this question about, “How do I market myself?” Just put it on a shelf for now. You might consider reaching out to let’s say 100 of the people you have text messages for and say, “I’m doing a 90-day conversing with the divine.” It’s $9,500…What did you think you would charge for it?

Nicole: I was thinking maybe I get 30 people and I was looking at $2,500 for a 90-day. Okay.

Hilary Hendershott: No. It’s $5,000 at least.

Nicole: So, alright, $9,000, $9,500.

Hilary Hendershott: Five. It’s five minimum.

Nicole: Okay. Five people minimum. Gotcha.

Hilary Hendershott: No, $5,000 minimum.

Nicole: Okay. Got it.

Hilary Hendershott: You’re teaching people how to talk with God.

Nicole: Yes, yes. Yes. See, this is where I need you.