Life Coaching has grown into a 2 billion dollar industry in the past few years.
Part of the reason it’s grown so much is because there’s been an overall trend in society where people have the desire to live a life that is fulfilling as opposed to merely just existing. Because of this, life coaching has thrived and is continuing to do so.
But what exactly do life coaches do and how do they make money?
Most of the time, life coaches offer guidance, direction and coaching to an individual or a group with the goal of helping them improve their lives. (This includes finances, relationships, careers, health and more). Many life coaches work one-on-one with clients over the phone or in person (usually includes weekly sessions) while others create courses that they sell. Some do a combination of both. Sometimes coaches get paid by the hour and other times by a set program fee.
Life coaching can range from helping clients achieve their dream career, to creating loving relationships, to realizing their life’s purpose or even improving their mental, physical and emotional health.
There really is no limit as to how much money a life coach can make.
The barrier of entry to being a life coach is currently very low and anybody can call themselves a coach without prior education or accreditation.
But this doesn’t mean that there are a lot of successful life coaches out there. It takes a certain amount of grit and skill to run a life coaching business successfully, as it does in all types of business.
Life coaching is a broad industry, as it can mean any type of coaching that improves your wellbeing and life. There are dozens of smaller niches inside of life coaching that many coaches specialize in.
Some other coaching niches include, health coaching, relationship coaching, financial coaching, career coaching, dating coaching, parenting coaching, and more.
5 Main Ways That Life Coaches Make Money
Let’s go into some more detail as to how life coaches make money. With the right ambition and skills, life coaching can be a very lucrative and fulfilling career.
If you are considering starting a life coaching business, this helpful illustrated guide will show you exactly how to do that.
1. One on one life coaching
This is usually the best way to start making money quickly as a life coach. In the beginning phase of a life coaching business, it’s important to gain experience and get the word out. The fastest way to do this is to talk to people wherever you go to let them know that you are a life coach.
Some good places to find one-on-one life coaching clients are,
– On social media platforms (Facebook, Instagram, LinkedIn, etc). Many life coaches have built up their practice by only using social media in a way that gives value to people.
– Networking events. While some life coaches swear by networking groups, others find them to be less than helpful in finding clients. However, there are ways to network with other professionals that can really help you get one on one clients.
2. Group Coaching
Similar to one on one coaching but in a group setting. This is great when a life coach wants to leverage their time and still be active in the life of a client. Group coaching can be very lucrative, however, there are some downsides to it as well.
The positive part of group coaching is that it’s usually more affordable to a client and more scalable to a life coach. They also work well in an online setting which is what a lot of coaches are looking for these days.
3. Paid memberships
Some coaches make money by offering a paid membership in a Facebook group or in an online platform. Usually the cost is pretty low per month, and members are able to be on weekly calls, ask questions and get support as needed. Paid memberships are a good option for life coaches when they have a steady following of people that are willing to pay for a monthly or yearly subscription to receive insights and knowledge on a specific life coaching topic.
Courses are a wonderful way that life coaches make money. However, these only work if 1. you have a large audience that you can promote your courses to, or 2. pay for advertising on a consistent basis in order to get the courses in front of the right people.
Courses are usually sold to an email list or social media following and it usually a good longer term strategy.
5. Speaking Engagements
Some life coaches have a dream of being a public speaker. So their main way of making money is speaking engagements. Very often, this can go hand in hand with selling courses and books. While it can be tough breaking into public speaking, it’s also very rewarding. A lot of life coaches take on speaking engagements after having built up a solid audience on various platforms.
1. How Much Do Life Coaches Make?
According to ZipRecruiter, the average annual pay for a life coach in the United States is $75,342. The salaries range all the way from $11,000 to $335.000. This just indicates that the pay range varies greatly for a life coach.
While there is a big opportunity for life coaches, given the fact that there really are no credentials that are a must right now, the success of a life coach will be directly related to their ability to sell and market themselves. (And, of course their ability to help people).
In other words, the sky’s the limit as to how much a life coach can make if they are committed to working hard and gaining the skills necessary to run a highly successful business.
2. What Do I Need To Be A Life Coach?
You don’t really “need” anything particular to be a life coach, other than the desire to help people and a specific skill that you can pass on to others.
Many life coaches obtain a certification but a certification is not a must to be a life coach.
If you have a great desire to work with people, improve their lives and you have a skill that you feel many people would benefit from, life coaching might be for you.
3. Is Life Coaching A Viable Business?
Life coaching can be a viable business. However, it will only work if you understand all aspects of running a business.
The problem that a lot of coaches run into is the part that is business related and pertains to sales, marketing and business growth. Because coaching in an of itself is a heart-centered business, it’s easy to view all aspects of the business as such. But only the people that are serious about having a life coaching career do well in the business.
You’ve got to remember that you need consistent sales in order to call it a business. Because without it, your coaching business will not be a business. It will just be a hobby.
You need three things in order to have a successful career as a coach:
- Commitment to doing whatever it takes
- The ability to sell and market yourself
- You have something that people want (aka, you offer great services)
If you have all three of those things, you can absolutely crush it as a life coach.
If you want to be a life coach or you’ve already started a life coaching business, check out this masterclass. In it, I tell you exactly how to start your business and the 5 steps you can follow to get clients.