Coach Business Building — How to Increase Your Coaching Income 50 Times or More
No kidding. Whether you are a life coach, business coach, career coach, or whatever kind of coach this concept to multiply your income applies. And it’s actually easier to do than what most coaches have been doing. Growing a coach business this way is easy!
In fact, most coaches have been taught the wrong way to build their business. Read on.
Most coaches are “trying to sell coaching”, and because they’ve never been any good at selling anything, even selling coaching hasn’t worked. But, here’s a twist that’ll make that easy.
As a coach you were probably taught that you help people develop out of the box thinking, break through thinking. So, let me challenge YOU to a little out of the box thinking, to go where no coach usually goes to discover what’ll take you to totally new levels of income.
I can remember when I started my own coaching business, and was so excited about what I could do to take people to new levels, but quickly discovered that I wasn’t any good at getting new clients. In fact, my excitement quickly turned to despair and frustration.
For my first year or so I didn’t make as much as I had made back in corporate America. It was frustrating that I was supposed to be able to help other business people grow rapidly, but wasn’t doing it myself. It was plain frustrating. And even my wife was asking if I knew how to help these clients since I wasn’t doing it that well myself.
But, then I decided that if I was going to be able to do this, I’d have to find a coach myself. So I did. Whenever I found someone doing something better than me, I hired them. That was the turning point. Step by step, I climbed out of despair, and into success. Most of the time the breakthrough was something simple. Just a little tweak, and especially a slightly different way of thinking that made the difference.
Most of the time my problems were in my beliefs about how to do something. For instance, I believed that “to market” my coaching I had to tell people about me and what I do. WRONG. Marketing is about helping others discover that you’ve got a solution for their pain and how valuable that is. That won’t happen the way most coaches TELL about themselves. It isn’t about you, it’s about the customer.
That was the first step. I went from one client every 6 months to about 75% of everyone I met with. But that’s another story. That wasn’t where I was going with this article.
I had been selling “coaching.” I had been trying to fill my hours, and even after doing that, “the filling of the hours” I mean, I discovered that that wasn’t really where I wanted to be. I was busy, and, quite frankly, overworked. What I wanted was to have the kind of money I had always wanted while having the time to enjoy it with the people I wanted to enjoy it with. Right then I was just plain overworked, and didn’t have the time to enjoy any of it with anyone.
It was when I discovered how to leverage my time that things started to happen. The first step was when I moved from one-on-one coaching to doing some mastermind groups that things started to happen. The aha moments hit me full blast.
I had been selling my one-on-one coaching based on about $150/hour for small business coaching, to as high as $250/hour for larger businesses. I also discovered that I was spending 60+% of my time marketing and selling. Which meant that, for a full time 40-hour week I was making around $75/hour, and sometimes less.
That was one-on-one thinking. But when I started one-on-many thinking things started to change. In my first mastermind group I cut my monthly fees in half, while targeting a group of 10. In the next three weeks I sold out the first mastermind group by just announcing it in a few networking events every week, and that translated into somewhere around $750/hour.
There were a couple of things that made that so easy. The first was that I started selling not just coaching, but a specific measurable result for the program. It painted such a clear picture what they would get, and how valuable it was. But, now the price was just starting to be within reach of the market that wanted it, but had perceived they couldn’t afford it.
That’s also when I started showing other coaches/consultants/trainers some of the things I had learned along the way. One of the coaches I worked with had also been having trouble selling her coaching. She had sold 2 $5,000 coaching jobs in her first 6 months. That’s not exactly paying the bills. She ended up offering a $250/month intro to coaching group, and found about 100 people a month setting in her Intro to Coaching programs, $25,000 a month, 1 hour a week for a month, or around $6,000 per hour.
This stuff really works when you
- Sell a program with a targeted, measurable outcome. The value can almost be seen and felt.
- Find a price point that works for everyone, the customer perceives it as very affordable, almost can’t afford not to do this at that price. And, with the one-to-many approach, it makes you, the coach a LOT more money for the time.
- The one-to-many approach not only leverages your “coaching” time into many times more dollars per hour, and it also leverages your marketing time.
After that I discovered that by lowering my mastermind prices even further it was perceived as even more affordable. As long as you are “selling value” rather than your time, it’s perceived as “can’t afford to not have that.” The sales go up and up. People line up to get into the next group.
I lowered the price, but at the same time reduced the amount of time in the group. There is a sweet spot for your pricing. As you lower the price sales go up, however, now you have to sell more to make the same amount of income.
But, here’s the next thing that sort of falls out of this right into your lap. The lower price ones take longer to get results, and after sampling your wares, several from these mastermind groups will want to kick this up a notch, to hire you for one on one coaching.
But, be flexible. Some will now want you desparately, but still may find it hard to go the full one-on-one coaching fees, so, find a place that works for everyone. For instance, work in one, or even two, one-on-one coaching sessions a month to help that client move ahead of his mastermind group faster. He’ll love it, and . . . be sure to let the mastermind group know of that person’s progress during each mastermind session. As they see that client move ahead of them, more and more from the mastermind group will want to move toward the one-on-one coaching.
But, back to the overview of the mastermind groups. When I looked at the results of that first mastermind group, I discovered that I could make a lot more than I had been making with one-on-one coaching, and do only 3 mastermind groups a year. That would work out to be 2 hours a week per mastermind group, 6 hours a week, and still be making several times what I would have made with one-on-one coaching.
So, that was just the first aha moment about leveraging time. And, as I said, the next step was an even lower priced mastermind group (with even fewer hours), and then I added in the fact that several wanted some form of one-on-one coaching, so my income kept going up. But I also started restricting how many people I would take for one-on-one coaching. I didn’t want to fill my hours.
Over time, I’ve found more and more ways to leverage time to higher and higher levels, which allows me to work with more people more easily, while also reducing the hours.
One of those was a membership site for only $29/month. When I first turned this on my goal was to make this the most valuable thing they could get their hands on. So, I spent extra time even providing some almost one-on-one virtual coaching, knowing that this would grow the group through the value that it was delivering.
I made available most of my books, and created workgroups that were working on similar problems. Then as I coached one, or answered a specific problem that became a historic step by step how-to that was there for others to follow in the future, taking even more pressure off of me for my time, while at the same time increasing the value to those in attendance.
A membership site at $29/month times 500 people that takes 5 hours or less to support in a week can be a good return on your time as a coach.
I challenge you to think out of the box, leverage your time.
If you’d like to explore how to do that join us at
To Your Coaching Success
Alan Boyer, The $100K Small Business Coach