Can we be real for second...
The person interested in how to become a business coach is a special kind of person who wants to help others and has a need to make an impact .
However, there is always the question of "How much do business coaches make?" weighing in the back of their minds. That's what we are here to answer...
This post covers how much do business coaches make:
• Per Client
• Per Month
• In their 1st
How Much Do Business Coaches Make...Per Client
What you will earn per client is one of the most important metrics for business coaches to realise. It factors in two of the most critical things, the prices you’re charging & how long you keep a client and.
Find the balance
If you’re keeping your clients for a long time but charging them very little, you’re not going to earn that much. If you’re charging high prices but you can’t keep the client then you’re not going to earn a lot either. You want to find the sweet spot between high prices and keeping a client for a long time.
On average coaches are notoriously bad at keeping clients. The ICF reported that most coaches only keep their clients for around 4 months.
When people join or Partner Programme and have been coaching people before and they didn’t realise they were doing things to push clients away, then it was on average 4-6 months before they lost their clients.
When you know how to properly position a relationship you can keep clients 12 months and longer. Pam has had clients stay with her for 8 years!
Pricing
On average you can charge a client $2000 a month for weekly coaching, that’s worth $24000 yearly. If you end up keeping them for 5 years that’s $120 000 per client.
That’s why you don’t need to have thousands of clients you just need the right people who you can serve and deliver high value to the long term.
One thing people often forget, that client pam had for 8 years started pout as a $1000 per month client on biweekly coaching. Then later because she was delivering such great value, she upgraded to a $2000 a month relationship.
By the end of the relationship, she was on a $6000 per month retainer, where Pam would work with the team once a month in workshops and then checking in regularly by phone.
Have a system in place
So you can see how by keeping a client that long and expanding the revenue by working and growing with the business that the client was worth over half a million dollars to pam.
You need to focus on having a system to help you be prepared and find high-value clients . Once you have signed a client you need to follow the client rulebook that we provide you with as part of our Certified Partner Programme.
This will teach you how to avoid the things that cause clients to leave, and how to get your clients to stay with you long-term. By following our proven system you can continue getting a high-end fee and your clients will love paying it because they are getting such great results.
Conclusion
So instead of being an average coach earning $4000 per client because you can only keep them a few months, you want to be charging higher prices and keeping them long-term. Your goal should always be to sign clients that could potentially end up being worth over 6 figures.
How Much Do Business Coaches Make...Per Month
This one is pretty simple.
If on average you charge a client $1,000-$5000 per month per client then the only thing we need to know now is how many clients do you have? Your number of clients is a function of two numbers:
• how many clients you sign per month on average
• how many months each client stays
For example if on average you:
• Sign 2 clients per month
• A client stays 6 months
Then your maximum number of clients is 12 (2 x 6) because of churn (losing clients).
Below is a chart to show what you can expect to earn monthly based on:
• what you charge on average per client
• how many clients you have.
What are the colours?
The colours show the threshold for income percentiles in the USA. The index is on the left. It's a cool way to see how "easy" it is to be in the Top 10%, 5%, 1% of earners. To have a top 1% income you need 12 clients at $2,500 on average. That means signing 1 client per month and keeping them 1 year or 2 clients per month keeping them 6 months.
What is the red box?
After working with 100s of business coaches we have found the sweet spot for number of clients is between 8-12 & usually a premium business coach over time will be able to charge $2,000-$3,000 per client per month.
However this is only if you know how to position yourself and show the value of your coaching.
Business Coach Academy's very own Head of Coach Success Pam Featherstone once had 47 1-1 clients, it was not a pretty sight. She should have been raising her prices much sooner.
How Much Do Business Coaches Make...Per Year
What is the typical amount to earn as a new business coach? if you’re working full time as a business coach, which many of our partners are, we would expect the following amounts for you-
Full-time:
• 3 months – $10 000
• 9- 12 months- $20 000 – 25 000
• 18 months and above : $30 000 a year
These amounts all really depend on how fast you want to scale up your business, and how much time you have to offer up for coaching services. If you are coaching part-time these numbers will obviously be a little lower, and it might take you some more time to reach these income marks.
In our programme we do however really work on teaching you amazing productivity techniques that will help you achieve the most within a limited time. This alone is one of the most powerful parts of our course, as many coaches don’t reach their full earning potential just because they are not able to work fast enough.
Feedback from this section of our course has been overwhelmingly positive, and many of our coaches have told us that they wished they had this information sooner!
