The Monetary Value of Coaching, its ROI, and How to Maximize Both

Photo by Riccardo Annandale on Unsplash

When a client or a company-client first time look at coaching as a growth instrument, they ask themselves a valid question: What will I get for my money?


Return on Investment = (gain from investment — cost of investment) / cost of investment

It doesn’t matter who is asking — company or an individual, a client needs a clear picture to make a decision and make sure things are developing in the right way.

The Value of Coaching

Clients come into the coaching agreement with one of the two typical ways of looking at the coaching fees: cost and investment. Unfortunately, it is not enough to change your language and internal belief to “coaching is an investment, not a cost” to immediately create value from a coaching relationship.

As a new coaching client, you might not even know where to start understanding what coaching can and will bring you if you do the work.

As an experienced coaching client and a coach, I believe that coaching does the following for you:

And much more.

How to calculate the Monetary Value?

There are 3 periods in which you might want to calculate the monetary value of coaching and its potential ROI: at the beginning, throughout, and at the end of the coaching relationship. The number is there to inform the coaching relationship. Not to define it.

Both the client and the coach are responsible for gaining clarity regarding coaching value and ROI. And both are equally responsible for checking in whether the coaching relationship is still on track and whether the coaching objectives need an adjustment.

How can you do it?

Here is a short process of how you as a client can approximate the potential Monetary Value of Coaching before speaking to a coach and align it with the coaching investment.

Step 1: What is your current pain point or an opportunity?

Look at what you’ve got at the moment. Typically clients describe those like the following: high churn rate and/or my best people are leaving the company, unfulfilled personal and company potential, risk of burnout and energy management, the need for faster growth (personal and company), reinvention of the company or business streams, better and clearer communication and relationships within the team, fulfillment from the work I do and business I build… you name it.

As you see, the topics range from personal to company topics, from short-term to long-term, etc. Whatever bothers you or inspires you is a good place to start. Don’t overthink it.

Step 2: Desired Future State

Now imagine you reached the best possible scenario; everything is working as it should. What do you see around you? What did you create? What was the improvement? How did it influence your company and your business? What traps did you avoid? What resources did you save?

The trick here is to switch off your inner critic and skeptic and first really dream. The inner critic doesn’t live in the future; it is a product of your past. Your inner critic looks into the past to explain to you why it won’t work.

Step 3: Put a number on it.

What can you measure? A number of hours wasted? Resources spent? Churn rate? Cost of not following this opportunity? Market position lost? Low efficiency? Unstable outcome? There is definitely a number you can attach to it. It doesn’t need to be a monetary value just yet.

Step 4: Put a price tag on it

And here is where we look at the monetary value. How much can you save, gain or create if you achieve the desired state? What will be the capitalization or a valuation of your company? How much money or hours can you save?

The number can also show up differently. Savings on doctors because your body doesn’t suffer from a never-ending burnout. Savings on divorce lawyers, therapists, etc., because you have a healthy and happy family relationship, etc., next to your thriving business.

The trick here is not only to look at the gain but also at the potential loss and its elimination. Here is a simple example:

Your company is falling apart; you might need to close it down. You might be able to turn it around, but let us look at the scenario where you might really need to walk through the path of bankruptcy and layoffs.

Here the value of coaching is in kept relationship with investors, partners, and employees, lower cost of contract closing, and your personal potential of building a new business in the future, which is also achieved by working through the emotional background of the bankruptcy and “failure.”

Even if the current company goes in flames, how much will you pay for not arresting your potential and not losing the next two years on shame, guilt, and rebuilding relationships?

By now, you should have a number.

Step 5: Looking for the right Coach

You meet a coach, and a coach gives you an offer. Ask yourself the following questions:

You and your coach are a tandem that cycles together towards that ROI. You will experience bumps on the road, rollbacks, sidetracks, and open communication, trust, and mutual respect will make sure the ROI is maximized.

Coaches that work with founders and execs need to keep their “impact” on the client’s businesses in mind. If their rate is detached from the impact they are creating for their clients, then you know you are in the wrong place.

As much as you measure the Monetary Value for yourself, they need to know how to guide a client through the same thinking process and help them understand whether coaching as an instrument is worth the money now.

Step 6: Do the ROI reality check

Please note that a coach can not guarantee you a certain ROI or make sure you get there. The work is on you, and no one can “coach you into something” if you pay a certain amount of money.

Do not take loans or hope that coaching will miraculously change the reality you are in. Coaching can be lots of things, but not a magic pill. Hard work is still required.

Do not hope that coaching can substitute certain competency training, consulting, legal and financial advice, etc. Be real, don’t put full responsibility for your success on a coach, and make sure the coach you are about to choose is not overpromising.

How can a Coach help you to maximize your coaching ROI?

Needless to say that “it takes two to tango” — both you and your coach are contributing to the coaching relationship and your success.

There are certain ways how your coach can help you to maximize your coaching ROI. Your coach can help you to:

I hope this process and the tips will help you make an informed decision on the coaching value and the potential investment next time you start a coaching journey.

If you have any questions, don’t hesitate to ask



Executive coach and organizational culture consultant. Asking uncomfortable questions.

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Olga Skipper

Executive coach and organizational culture consultant. Asking uncomfortable questions.