How much do life coaches make? - Make money as a life coach

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How much money do life coaches make


It’s time for a very open and honest conversation about how much money coaches make. Pull up a chair because we’re about to spill some tea 🫖


Is it possible to make money as a life coach and how much money can you expect to make in what timeframe?


Sounds like a lot to dive into, but I promise I’ll make it all as clear and simple as possible.


In order to ensure we’re using the most accurate data, we’re going to use The International Coaching Federation’s Global Coaching Study. “The 2020 ICF Global Coaching Study (GCS) quantifies the size and value of the coaching industry worldwide and by region.”


The purpose of the survey was to gather information from as many coaches as possible to help them better understand their own practice and the wider industry.


The survey attracted 22,457 responses from 161 countries and territories so I’d say the data are pretty reliable!


We could use a few other sources like Payscale.com, but that’s a third party that doesn’t have anything to do with the coaching industry and we can’t be sure that the sample group were coaches that accurately represent the industry as a whole.


Can you really make money as a life coach?

Yep!


Consumer demand for coaching is growing at an impressive rate, and the market size has been estimated to be worth $2.85 billion as of 2020. 


This means that the industry is growing and people are making money from their life coaching services. In this post I’m going to dive into how YOU can make money as a life coach too.



How much do life coaches make per year?

The estimated global total revenue from coaching in 2019 was $2.849 billion U.S. dollars, with coaches in North America making on average $62,500 USD per year from coaching alone.


This number comes from coaches who have coaching as their main source of income, coaches who do coaching part-time and coaches who spend some of their time offering additional services such as consulting, counselling, etc. The above number is taken from the hours spent on coaching only.


What does this mean?


It means that your income from coaching can vary and is dependent on how much or how little you want to make.


The question is, how much can YOU make and what variables can impact that number?


How much do life coaches charge per hour?

There’s no standard across the industry that determines what coaches should charge for their time and it’s entirely up to the individual coach what they want to charge. 


This means you get to set your own prices. Want to charge $20 per hour? Go for it!

Want to charge $500 per hour? Yep, you can do that.

Want to charge $1000 per hour? Believe it or not, you can do that too.


The truth is, most coaches don’t charge per hour. Most will charge per session. But again, you get to decide what you want to do here.


Some things you need to think about:


– Do you want to charge per hour or per package (a set number of sessions over a predetermined amount of time)

– If charging for packages, how many calls will be in the package and how long will the coaching run for?

– Do you want to work part-time hours or full-time hours?


there’s a lot of flexibility when it comes to determining how much or how little you want to work and with how much you can charge.


In addition to all of that, most coaches leverage their time and create programs that serve multiple people at once and/or can run in the background (passively) without them needing to spend any extra time coaching or creating beyond the time it took them to develop the passive program initially.


So that’s why it’s really hard to give an accurate number on how much coaches charge per hour. But if you really want a number life coaches tend to charge between $100-500 per hour. According to the ICF, the average hourly rate in North America is $244 per hour.


Some things that will impact the amount of money that you can charge and have people actually pay you for are the niche you’re and and the years of experience you have.


I advise all of my students and clients to charge per package, so that’s what I’m going to advise you to do too.


Caveat: I have one offer that I do charge per hour, and that’s consulting. This is the only time I charge hourly and do one off sessions. I have created a lot of courses and certifications, so people like to get advice from me on what to do for their courses and certifications.


How do life coaches make money?

Let’s play around to see what this could look like for you.


Let’s say you’re a life coach and your offer is 3 months, with a one hour zoom call per week and this offer costs $2000.


If you get 2 new clients per month you’ll make $48,000 per year. Not bad.


If you also had an online course that you created in advance and you sold it continuously (evergreen) that cost $497 and 4 people signed up for that each month that would be an extra $23,856 per year.


That outs your yearly total at $71,856. Pretty dang good.


If you add a group program into the mix, the number goes up again.


Keep in mind that according to the ICF the average number of clients a coach has is roughly 11 at a time. So the more experience you get and the more clients you can handle at once, the more money you can make.


Most successful coaches have multiple streams of income. 


There are a lot of other ways coaches can make money like, for example, Tony Robbins. He’s probably the most well known life coach and makes money from public speaking, writing books, creating courses, and online membership and probably so many other ways I have no idea about.


The point is that as a coach, you’re not limited to making money solely from the 1:1 hours you spend with a client in real time. You can leverage your expertise to create other streams of income that will not just increase your bank account but also position you as an expert in your niche.


3 tips to make money as a life coach

1. Tell as many people as possible that you’re a coach.


This doesn’t mean walking into starbucks and handing out your business card to everyone in there. I mean Find ways you can position yourself in front of people in places where people are looking for coaches. For example, I have a podcast, Instagram account, YouTube channel, LinkedIn account, blog and pinterest account. These are all places I can spend time telling people what I do and help them achieve the results they want to achieve. I don’t spend all day every day on all of them. I’ve chosen to spend my time in the places I enjoy the most and that have people specifically looking for exactly what I offer. You definitely do NOT need to overdo it in the marketing department. That’s a really fast track to burnout.


The places you go to tell people you’re a coach might look different to me. Maybe you go to in-person events or you might reach out to corporate businesses.


Start talking about who you are and what you do. And don’t make it difficult for people to experience the results you provide. I see so many coaches offering “freebies” to get people onto an email list, so they can send them emails they will hopefully open, so they will maybe think about working with them. That’s way too many steps and usually the freebies suck and don’t serve any purpose.


Build a community that you genuinely care about and that you want to serve, without the expectation of something in return.


2. Be very, very, very, very, very clear on the result you help your client achieve


“feel more aligned” or “connect to your true self” or “stop feeling stuck” are NOT results.


All of these are things that may happen to your client on their way to achieving a specific result. And on their own these mean nothing to a client if they can’t be tied to a specific result that your client truly desires. 


The result you help your clients achieve needs to be specific, desired and measurable.


“Lose x pounds” is a result.


“Get a C-suite job that pays over $150k per year” is a result.


“Improve your relationship with your partner” isn’t exactly specific but it’s specific enough.


Your client might feel more aligned, connect to their true self or stop feeling stuck on the way, but they’re not the end goal.


Being crystal clear on the result your help your clients achieve and being able to articulate that results AND it’s benefits in a way your best-fit client understands will make it a lot easier for you to sell coaching. You’ll be able to talk about what you do easier which will make it easier for someone to understand and say yes to your offer.


The number two thing I see that holds coaches back from making money is that they try to sound really clever with the type of coaching they offer but it just leads to confusion from the people who it’s meant for. And confused people don’t buy.


(Refer to point 1 above for the number one thing I see that holds coaches back from making money.)


Listen to THIS PODCAST episode to learn more about what I mean.


3. Develop your coaching skills


Learning how to coach people effectively and ethically will help you stand out in a saturated but growing industry. The coaching industry is unregulated and there’s no standardisation for education requirements. Most coaches don’t pursue any coaching education which means that those who do stand out with the coaching skills and business knowledge they’ve gained (as long as they’ve studied at a reputable coaching school). 


You’ll also gain the confidence to share your skills and knowledge with the world. This is the number one reason that the majority of Created Coach students chose to study coaching in the first place. They all have unique skills and abilities, but they wanted to take their profession deeper and truly learn the art of coaching and become masterful at it.


Most importantly, developing your coaching skills and making the time and energy commitment it takes to complete a coaching certification equips you with the skills you need to show up in the most ethical and effective way for your clients. Coaching isn’t just giving advice. It’s not therapy. It’s more than just listening while you wait for your turn to speak.


Most people aren’t born with natural coaching skills. And coaching is a skill. It can be taught and learnt. Most people don’t know how to truly listen. Most people don’t know how to engage in powerful questioning. Most people don’t know how to work with the unconscious mind. Most people don’t know how to find out what their client wants to work on in the session. 


That’s why it’s important to develop your coaching skills. So that you can learn, practice and experience the tools and skills that will help you be an extraordinary coach who helps their clients achieve amazing results.


So, what’s next?

Now that you know how coaches make money and what to expect for yourself, that’s where The Created Coach Method comes in. 


The Created Coach Method certification provides you with a proven system for coaching your clients based on neuroscience, positive psychology and modern mindset techniques. Whether you’re stepping out or stepping up, this is your elite guide to becoming a highly qualified & in demand coach with the perfect amount of strategy, skills and support for you.


You can learn more HERE and if you have any questions, you can send us a message HERE.


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11/28/2022

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How much money do life coaches make?