Life coaching is a fulfilling profession that allows you to positively impact people’s lives while earning a great living. But if you want to build a sustainable, successful coaching business that not only enriches your life but also makes a positive impact on the lives of others, you’ll need to consider additional ways to generate revenue apart from ad-hoc sessions. In this blog post, we’ll explore ten proven strategies to monetize your life coaching practice so you can continue to make a positive impact on the lives of others as you earn enough to support yourself.
What Is the Job Outlook for a Life Coach?
Life coaching is a $1.4 billion industry and growing at a rate of 5.4% per year. This rapid growth combined with its low barrier to entry make life coaching a viable career option for someone with an entrepreneurial spirit.
What Makes a Successful Life Coach?
A successful life coach needs three types of skills: client-facing skills, self-discipline and motivation, and business sense.
- Client-facing skills are things like developing rapport; asking powerful questions; helping clients interpret assessments and set goals; providing incentives and accountability; and leveraging tools, frameworks, and strategies. Ultimately clients want to achieve transformation through your services.
- Since life coaches are generally self-employed, this job requires a high degree of intrinsic motivation and focused discipline. Not everyone can muster the self-regulation that is required of a solo-preneur.
- The logistical needs of running a life coaching business include website creation and maintenance, marketing, recordkeeping, invoicing, creating products and courses, and more. Although these tasks can often be outsourced to talented subcontractors, many brand new coaches take a DIY approach at the start and hire on help as they generate enough income to justify the expense.
Without a balanced dose of proficiency in each area, a coach can’t sustain a business in the long run.
What Do Most Life Coaches Charge?
Life coaching is a broad niche with hourly rates of between $75 and $200. This variance depends on a combination of three factors:
- How many years a coach has been helping clients achieve transformative results.
- The particular niche of life coaching — mindfulness, creativity, or confidence, for example. Learn more about testing a new coaching niche here.
- Whether the coach holds reputable certifications or training in popular methods.
Can You Make a Living from Life Coaching?
Definitely! There are tens of thousands of life coaches making a living through this service-based occupation. 2020 data from the International Coaching Federation pegs average annual revenue for a North American coach at $62,500.
Some coaches, usually after several years of experience, manage to crack the code on a six-figure annual income, though. One example is Gabrielle Smith, a podcast guest, who has publicly shared her annual goal of earning $200k annually once she surpassed $100k.
Since there are only so many hours in a week that can be devoted to one-on-one coaching, to earn higher annual income, it’s key to diversify your offers and include a mix of both passive and active methods. See the list of ten possibilities below.
Another way to earn more money is to simply raise your rates.
Can Life Coaching Be a Side Hustle?
Certainly. Life coaching can be a part time side hustle that complements another nine-to-five job. In fact, this is a very common way that life coaches morph into full time coaching. They begin by taking on coaching clients on the side to build experience and confidence. Then they formalize their coaching business with an LLC, a website, and other professional trappings. Eventually, their income from the side hustle demonstrates the potential to meet or exceed that of their regular job, and they can transition completely into full time coaching.
How Do Life Coaches Make Passive Income?
Passive income is generated when you sell something over and over that you created only once. Options for passive income in the coaching sphere are selling digital products and earning affiliate commissions when your clients make a purchase of someone else’s product.
For example, you spend three months crafting an amazing digital course and make it available inside a user-friendly platform that allows customers to purchase it online and get immediate access. Once you invest the work to bring it to life, that course can be sold over and over to hundreds or thousands of customers, generating a stream of what is now passive income.
10 Ways to Monetize Your Coaching Business
When it comes to your coaching practice, there are more than a few ways to create a steady stream of income. From private coaching sessions to subscription services, we’ll cover the details so you can choose the revenue paths that work best for your goals whether you’re just starting your business or are a seasoned pro.
1. One-to-one coaching sessions
One-to-one, or private, coaching sessions are the most obvious and popular way to make money as a life coach. The 1:1 method allows you to provide personalized support and guidance to your clients while helping them overcome obstacles and achieve their goals. You can attract clients for individual sessions by leveraging your network, offering free initial consultations, and obtaining testimonials from satisfied clients.
To maximize your income potential from individual sessions, try setting appropriate session lengths, incorporate follow-up sessions, and offer session bundles at discounted rates. You can build stronger relationships with your clients by providing tailored guidance and support to earn repeat business and referrals.
2. Group coaching sessions
Group coaching sessions can increase your income by working with multiple clients simultaneously. This approach allows you to help more people at once and encourages clients to learn from one another to build a sense of community. Group coaching can be profitable if you price your sessions reasonably and ensure that the group size remains manageable for effective coaching.
It’s best to market your group coaching sessions in settings where community ties are already strong. You can try social media marketing, email marketing, or collaborating with other industry professionals to attract clients. By offering a structured program and setting clear participant expectations, you can create a valuable group learning experience that appeals to a broader audience.
3. Workshops and seminars
If you’ve already had success with community building online, it may be time to consider providing a more personalized experience with workshops and seminars. Hosting coaching workshops and seminars helps you reach a larger audience, improve credibility, and generate additional income. These events are usually held in-person or online and focus on specific topics related to your coaching niche.
For best results, you should thoroughly plan your events by considering attendance numbers and potential sponsors. Remember to map out the event’s content and itinerary to visualize the value you intend to provide.
You can charge for workshops and seminars based on their duration, content, and target audience. If you want to provide a VIP experience, you can invite guest speakers and include add-ons that offer value to attendees and contribute to your overall income stream.
4. Courses and membership programs
Creating online courses or launching a membership program can give your life coaching practice a more consistent income to carry you through slow booking periods. You can create a passive income stream while reaching clients globally by developing a course or program that’s courses based on your niche expertise. It should focus on helping your clients achieve one goal. Some monetization options include offering pre-recorded or live lessons, resources for gaining certifications, ongoing support, and even monthly swag.
Promote your courses or membership program through your website, social media, and email marketing. You can also use platforms such as Teachable or Kajabi to host and sell your courses. With a well-designed course or membership program, you can provide valuable content to your clients while expanding your reach. It’s a great way to increase your earnings without trading your time for dollars.
5. Corporate coaching and training
Many organizations hire life coaches to help their employees improve in leadership, communication, and work-life balance. If you can coach in a corporate setting, you can double or triple your group coaching rates.
To attract corporate clients, use LinkedIn and tailor your marketing to address the specific needs of the organizations you want to work with. Your content should showcase your expertise and provide social proof that your methods work. It also helps to establish relationships with human resources professionals and decision-makers within companies to increase your chances of securing corporate contracts.
6. Affiliate marketing
Affiliate marketing involves promoting products or services from other companies and earning a commission on sales made through your referral links.
As a life coach, you can recommend tools, resources, or products that align with your professional values and benefit your clients. Join affiliate programs that resonate with your audience and integrate your recommendations into your content and coaching services.
Success in affiliate marketing requires building trust with your audience and providing genuine recommendations. You can also partner with companies that offer products or services relevant to your niche, such as online courses, books, or coaching tools.
7. Digital products
One of the best ways to help clients or people needing more time to get ready for coaching sessions is by creating and selling digital products such as ebooks, worksheets, or templates that complement your coaching services.
These products can provide additional value to your clients and generate passive income for your business. Ensure your digital products are well-designed, informative, and relevant to your target audience.
Select topics for your digital products that align with your niche and offer valuable insights to your clients. You can create a diverse income stream that supports your coaching business by providing high-quality digital products.
8. Public speaking and guest appearances
Speaking at conferences, events, or on podcasts can help you establish yourself as an expert in your field. Public speaking engagements often come with speaker renumeration. And guest appearances on podcasts or webinars can increase exposure for your practice. You may even receive compensation for participation.
To make the most of these opportunities, you can do things like:
- Build a compelling speaker profile that attracts events that are in alignment with your business.
- Develop engaging presentations or workshops that resonate with event participants to establish your authority.
- Promote the event to expand your reach while making valuable connections.
- Contact event organizers and podcast hosts to pitch yourself
9. Licensing your coaching program
If you have a coaching program that has proven results, consider licensing it to other coaches or organizations. This approach allows you to earn royalties for using your program to create an additional revenue stream. Develop a comprehensive program that includes training materials, resources, and ongoing support for licensees.
Make sure your program maintains its quality and effectiveness by providing ongoing support and updates to your licensees. Licensing your coaching program can expand your reach and generate long-term passive income.
10. Hosting retreats or a mastermind
Organizing and hosting retreats or mastermind groups can be a fun and unique way to monetize your coaching business. These immersive events bring together like-minded individuals to share their experiences, learn from each other, and receive guidance from you as the coach.
Retreats and mastermind groups can also be very lucrative, especially when held in inspiring locations or with high-profile guests. Plan your retreats or mastermind groups carefully by selecting interesting venues, developing engaging itineraries, and ensuring that the event offers unmatched value to participants. By providing memorable and transformative experiences, you can create a loyal following that can sustain your business long-term.
How to Generate Multiple Streams of Coaching Income: Free Worksheet
By exploring and implementing these ten monetization strategies, you can build a sustainable and thriving life coaching business. Thanks to these multiple income streams, you can continually refine your offerings and provide tremendous value to your clients.