Most people associate coaching models with acronyms like SMART goals. This is especially true if they have completed a coaching certification program, where this term refers to a map that guides clients through the coaching process.
While these models will be useful in your sessions, business model coaching is essential to growing your business.
Let’s explore what business models are in a coaching business and what their distinct benefits are.
What is a business model?
a business model is a company’s plan to make a profit. A well-crafted document outlines not only the product or service a company offers, but also the intricacies of how it generates revenue, acquires customers, and stands out in the marketplace.
It encompasses the entire customer experience: from the way products are priced and presented to the channels through which they reach consumers.
What is a coaching business model?
In the case of a coaching business, the basic model seems like you make money by offering coaching services to people who need them.
For example:
- a business coach provides services to entrepreneurs who need to overcome certain limitations to successfully run their business.
- a health coach can provide coaching to a person who has difficulty maintaining a healthy diet.
- a relationship coach can offer services to individuals or couples who are experiencing problems in their relationships.
- A executive coach can offer services to busy executives running Fortune 500 companies.
It is important to note that the model in this case does not refer to what type of coach you are (that would be your niche or specialty). Instead, it refers to what you offer in exchange for money.
Some coaches combine different business models, while others stick to one model.
There are equal opportunities to make money with all coaching business models, but they all have their pros and cons.
5 Coaching Business Models to Try in 2024
There are different types of life coaching business models to consider. However, it is important to note that you are not tied to a particular coaching model in your business.
Often the one that makes the most money is the one that works best for you personally and of course for your customers.
You may decide to have multiple coaching revenue streams or switch to a different business model later as you gain more experience with what works for you.
In the beginning, you may like to do private one-on-one coaching. However, over time you will realize that it leaves you feeling exhausted and that you need to find ways to implement scalability into your coaching model.
The opposite could also happen. You may start out coaching groups, but later discover that you are much better at coaching on an individual level.
Therefore, don’t assume that once you’ve chosen a model, you’re stuck with it forever.
1. Private coaching
This is the coaching business model that most start their practice with. (If you’ve had formal coaching training, it’s likely you’ve had to do one-on-one coaching for credit hours.) It’s also the easiest place to start, because you don’t necessarily have to create modules and manage cohorts like you would do that in a group.
By beginning private coaching, you will also begin to notice the patterns your clients are dealing with. This allows you to experiment with other forms of coaching models, such as group coaching or offering products.
This model can be extremely lucrative because your brain and your time are the most expensive things you have. As such, private coaching is typically seen as the highest quality service a coach provides.
Furthermore, it is usually (but not always) easier to sell an expensive product to one person than a cheaper product to multiple people.
However, there are some disadvantages to private coaching. The main one is that it is not scalable. Because you work one-on-one, your income is limited by your time.
If you don’t have private clients and you don’t actually coach them, you don’t make any money. You are also extremely limited in the number of clients you can take on (we are not machines).
Finally, private coaching may not be a good coaching model for individuals who thrive in groups. For example, extroverts may be better at group coaching because their strengths lie in managing group dynamics, not one-on-one interactions.
2. Group coaching
The natural progression for many coaches is to move from offering private coaching to offering group coaching. It’s more scalable because it’s a one-to-many coaching model, meaning you’re helping multiple people at the same time.
If done right, it can help you make more money without burning out like some coaches experience with private coaching.
There are a number of ways you can run group coaching at different price points to meet the needs of your audience:
- Long-term group coaching. This is usually a series of sessions done in a group format.
- Intensive group coaching. Intensive coaching usually refers to a one- or two-day workshop in which several people participate.
- Short online workshop. You can also do short, one-off coaching sessions online, depending on what your market demands. For example, they may ask you to cover a topic that can be covered in 90 minutes instead of a four-week group coaching course.
Of course, this model only works if you do well in groups and enjoy teaching on a larger scale.
You also have to keep in mind that with this model you actually have to sell to more people and close the deal.
This can be more difficult in the initial phase. That is why many coaches choose to start with private coaching.
3. Sell products
This model is extremely scalable and offers you a form of passive income.
The work is done up front and then you can keep making money from it for as long as you want. Furthermore, with this model you do not trade your time for money, as with private or group coaching.
For example, you write a book once or create a course on demand and then offer it for sale for as long as you want.
This allows you to reach many more people, because an on-demand book or course will not cost someone nearly as much money as signing up for private coaching.
The disadvantage of this is of course that you have to sell multiple products to generate the same income as from coaching.
Plus, the sales and marketing never really ends. Once you create a product, you have to continually let people know it exists.
Nevertheless, it’s still a model worth considering as your business grows and expands simply because it’s so scalable.
4. Online coaching
The rise of the internet has made it much easier to start a coaching business with little overhead.
If you handle all your coaching conversations online, you don’t have to rent office space. Moreover, using an online coaching business model, you can expand your clients far beyond your local area.
This is usually a matter of personal preference that can be determined by what’s going on in your life.
For example, self-described financial therapist and coach Bari Tessler decided to move her entire practice online only after the birth of her child, so she didn’t have to sacrifice time with him.
5. Personal coaching
Some coaches still prefer to coach in person and meet clients in the office or at home. This can also look like doing live events or retreats, depending on how far they want to go.
Personal sessions are a good option if you do well with other people and want to add a more personal touch to your coaching. It’s also a great model if you hate dealing with technology and prefer to stay within your local community.
Many would argue that you are limiting yourself by sticking to the local community. However, it comes with several benefits, including cheap ways to advertise and less perceived competition.
In fact, some coaches make more money by downsizing and going local than they do by trying to reach a lot of people online.
Again, this depends on your preferred coaching business strategies and how you can best serve your market.
Build a profitable coaching business that your audience will love
Coaching models have more to do with your personal preferences, values ​​and market than the actual model itself. But the most important question to ask is: what impact do you want to make on your clients’ lives?
The more experience you gain in your practice, the better you will be able to determine which model works best for you and your clients.
You can accelerate your coaching skills and unlock the secrets of the pros in our free masterclass, Become a Mindvalley certified life coach. Here you will learn how to maximize your impact, abundance and freedom in your practice.
The bottom line is, you’re not building businesses here; you are forging empires of transformation.
