Contracts form the backbone of a professional relationship. An effective and well-written contract will clearly state the duties of both parties and will put an expiration date on the agreement.
Why would you want a contract to expire? Mostcoaching contract templates include a section for start and end dates, but the reason these contracts have end dates might surprise you.
Whether it is a contract for a coach, an actor, or a professional athlete, expiration dates may sound like they guarantee unemployment after a certain period of time. However, it is at the moment of expiration that the person employed through the contract has the most leverage.
If the contract signer has done well and the company or person wants to retain their services, they will typically have to pay a higher fee. If this increased fee is refused, the person who signed the contract is now free to seek other employment at a better rate.
Similarly, if a coach is performing poorly, the company may wish to cut its losses and not renegotiate or extend the contract.
There are several reasons a person can and should extend a coach's contract. These include:
If the coach is performing well and the fee is reasonable, there is no reason not to extend a coach's contract. In addition, hiring a new coach comes with a whole new set of challenges. Even simple things, such as adapting to a new coach’s style, can be difficult, and it can be equally difficult for a fresh coach to get used to a trainee they’ve never worked with before.
Once the coach-trainee relationship has blossomed over the original contract period, it becomes possible to build upon the foundation they have built. By extending a coach’s contract, you can take the relationship to the next level and expand into new areas of expertise.
Maybe when the contract started, the coach only needed five hours a week with the client. Perhaps over time, these sessions have blossomed into a full-time job. In cases such as this, the coach and the student will want to renegotiate the contract so it reflects the changing nature of the relationship.
Additional language can refine the scope of work and how it has changed. For example, a coach may have started by working as a tutor and now is responsible for planning complex training modules. This change in the scope of work is typically reflected in a new pay rate.
While it may seem prudent to simply make contracts yearly, extending them to longer periods can help incentivize the coach to stay around and perhaps work at a lower rate, due to the stable nature of the position.
Conversely, a coach who is gaining a reputation may want to sign a one-year contract in the hopes of negotiating a higher pay rate next year. This is just one of the reasonscoaching contracts are important.
Successful negotiation is a critical component of extending a contract, and the new contract needs to reflect any changes with clear language. The goal is for both parties to feel understood and protected, and while a coach must protect their own wallet during negotiations, forgetting that the trainee is their customer issomething a coach should not do.
Kevin Gallagher is the CEO of The Contract Shop®, a contract template store for creative entrepreneurs, freelancers, coaches, and more. His background is in helping online businesses grow, having previously worked at Allbirds managing part of their operations. He is proud to report that his digital artist wife Mandy is a happy customer of The Contract Shop®, and his main motivation is to help as many people like her as possible with the tools that they need to confidently manage their businesses.
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