People become life coaches because they’re driven to help others. But life coaches are more than just good listeners and advisors — they’re entrepreneurs. When you start an online coaching business, you become a marketer, a salesperson, a networker, and a leader.

If you can find ways to package your experience and coaching skills into an easily digestible program, you have the potential to significantly scale this business model.

When you think of all the skills mentioned above, you might feel intimidated, but with the right training, tools, experience and the valuable tips provided in this article, you can set yourself (and your life coaching business) up for success.

• Can You Really Make Money as an Online Coach?
• Types of Online Coaches
• Pros And Cons of Coaching
• How to Start an Online Coaching Business
• How to Expand Your Online Coaching Business

Now, if you don’t know people who might want your coaching services, there are a number of online tools and communities that make it incredibly easy to find clients and teach, on just about any topic area you can think of. Community driven platforms like Clarity.fm and Coach.me provide you with a network of potential clients to interact with, as well an integrated payment solution.

And while it’s one of the most limited businesses as you’re only able to charge for the time you can provide, many online coaches make hundreds or even thousands for their packages.

It’s also one of the quickest ways you can get set up and start generating revenue. All you really need is an account with one of the online coaching communities I mentioned above and expertise to share.

Can You Really Make Money as an Online Coach?

This is the first big question… and the answer is actually a resounding YES. There are many coaches online who are making bank booking their coaching time, either for master-classes or via one-on-one consultations. 

But obviously, this is not the kind of thing that you are going to be able to set up and do tomorrow. It takes effort, work, and a certain amount of credibility to leverage your time as a coach for money. 

How Much Can You Earn

According to Payscale, the median hourly rate that life coaches get paid is $30.42 per hour. But this range varies, from $11.37 at the bottom end, to $103.50 per hour at the top end. 

In fact, annual salaries can go as high as $200,000 in this line of work.

But even though some coaches do make pretty good money, it certainly isn’t automatic… and there are a lot of people out there who have different ideas about how to make money as a coach. 

Types of Online Coaches

Coaching should not be confused with counseling, which requires a specialized degree and licensing. At the same time, coaches help their clients achieve similar goals aimed at helping them improve their lives. The main difference is that coaches tend to focus on specific areas and measurable outcomes.

A business coach helps entrepreneurs expand their business. A life coach helps someone get clarity on their life’s goals and work toward achieving them. A health coach works with people who want help with nutrition and fitness. And so on.

Types of coaching include:

Life Coaching: Ah, starting with the big one right away! Life coaching is hands down the hottest niche in coaching and for good reason. Life coaches act as catalysts for their clients. No matter where they are stuck at, a life coach will hold your hand and guide you along the way until you reach your destination. If you are a life coach, then there has never been a better time to be alive! People are actively looking for a life coach to come and change their lives. So why are you hiding in your homes? Come out and change these people’s lives!

Wellness Coaching: A wellness coach is in a very interesting position. This is the person between a healthcare professional and a fitness trainer. The idea of a wellness coach is to work with a client and slowly guide them through the obstacles which make them regress into self-destructive and unhealthy behavior.

Confidence Coaching: Are you “that” guy or “that” gal in your group? Are you the kind of person who can go and talk to anyone they want? Are you the kind who has no fear and can do whatever they want whenever they want? Or maybe, better yet, you had crippling insecurity but you battled it and became supremely confident and you can teach others to the same. If this resonates with you, if you have an aura of confidence around you, then you may have found your life’s calling right here.

Personal Empowerment Coaching: Have you always been an extremely empowering person? Can you help people around you to come out of their perceived low self-worth and limiting beliefs to achieve a higher and more empowered state? Do you love helping others to come out of their shells? If so then you have what it takes to be a personal empowerment coach.

Business Coaching: This is easily one of the most profitable and hottest coaching niches out there. Do you have a knack of helping people create their own business? Can you help small and big businesses double their profits with your skills and tips? Do you have an entrepreneur inside of you and do you want to share your entrepreneurial knowledge with everyone else? If that’s true then you can definitely become a business coach. The thing about being a business coach is that they are always on demand. So, if you have a proper business and setup in place you will have no shortage of clients.

Career Transition Coaching: Career transition is always tricky for a number of reasons. Usually, people need a lot of adjusting and pre-education before they join their new job. And if it is not that, then people will need someone to help them ace their interviews. It goes without saying that being a career transition coach brings with it a lot of responsibility. You have to understand that these people are literally handing over their careers and professional futures to you. If you welcome that sort of responsibility then this is perfect for you.

Executive Coaching: The corporate world is truly hectic and for those in an executive position they have to be “on” all the time. Usually, executives are so swarmed with work that they don’t get basic executive training. They don’t know how to better lead a team, simple team building exercises and how to get the most out of their team. An executive coach can help these people get the most out of themselves and their team. They can help them get a better work-life balance and to function at optimal levels all the time.

Relationship Coaching: Do you love helping people who have no idea how they are going to meet their perfect matches? Do you take great pride in making shy people have the courage to and talk to someone of their liking? If you do then you may have a relationship coach hidden inside you.

Personal Development Coaching: The field of “personal development” has come along a long way in the last decade. What used to be a dirty little secret is now a billion dollar industry. So, with people more willing to seek help through books, videos, and coaches, now is the time to be alive if you want to be a personal development coach. Personal development coaching is a lot similar to life coaching in the sense that it involves helping clients get unstuck and making them reach the state that they want to be at.

Sales Coaching: Sales is the driving force behind any industry and company. If you want to measure how a particular industry is doing you just check their sales and that will give you the answer. So, keeping that in mind, it is not really a surprise that so many big companies and salesmen are seeking the help of coaches in this particular area. To be a sales coach you must have a proven track record in the sales industry and also a robust strategy where you can teach anyone the tricks of the trade.

Performance Coaching: Performance coaching utilizes psychological tactics to help people elevate their general job performance. Performace coaches use business and sports psychology to help an individual perform at optimal levels and to make them more of a team player. More and more corporates are seeking help from performance coaches to help elevate the game of their employees.

Specialized niches can exist within these areas. For example, a life coach can focus on relationships, a business coach can focus on sales skills, or a wellness coach can focus on smoking cessation.

Pros And Cons of Coaching

Pros

• Anyone with people skills and the ability to help can become a coach. Although it’s recommended you take some courses and get certified, the coaching profession isn’t highly regulated yet, which means anyone can call themselves a coach.
• It’s affordable to start. Odds are you already have the equipment needed to start: a computer. You can download Skype for free and buy a quality set of headphones for under $50. You should also have a website, coaching contract and perhaps homework materials, but again, those can be had for a reasonable price.
• You can feel good about helping people in the area you coach in.
• You can do individual or group coaching. Especially for people who can’t afford one-on-one time with you, group coaching allows them a way to work with you, and in turn, you can help more people in less time.
• You can offer add-on products or services to further assist your clients. Many coaches have books and home study products giving them additional income streams. Many of these can be passive income sources.

Cons

• Although not required at this time, getting certified can increase your credibility and marketability. But getting a coaching certification takes time and money.
• You need great people skills and patience. Just because people come to you for help doesn’t mean they’ll do what you suggest. In fact, many people are fearful and resistant to change, so you need to be able to support, encourage and sometimes challenge your clients to make needed changes.
• You’ll spend a lot of time on the phone or video conferencing. If you don’t mind having many appointments a day, that won’t be a problem.
• You need to be in top form whenever you’re with clients. You might feel bad, have a personal issue or other difficulties in your life, but when you’re with a client, you need to be “on” no matter what.
• It can take awhile to build a solid, stable business.

How to Start an Online Coaching Business

The idea of starting a business might sound difficult for some people at first, but with the right tips and experience, you can excel in starting your online coaching business. Below are some tips to help you get started.

Choose your target market

You might know this right away, or you might narrow it down as you gain experience. Think about who you want to serve, and get specific. Do you want to help moms with newborns? Do you want to help single men? Do you want to help corporate leaders? Think about your ideal client.

One of the wrong ideas some people have is trying to think of everybody as their target client. Trying to reach everybody might make you lose a lot of clients. So it is ideal to choose a particular group of people to focus on.

If you don’t know specifics right now, that’s fine. Clarity comes from taking action. As you start offering your services, you’ll learn about who it is that you really love working with as clients, and you can get more and more specific about exactly who you serve.

Select a specific problem you want to help your target market solve

Are you unsure what problem you could help people solve? Think about your life. What do people ask you to help them with? Do you find that people frequently ask for your advice or assistance with a certain problem?

As you choose which problem you want to help your ideal clients solve, the more specific you are, the better. This is for two reasons. First of all, when you’re specific, you can really become an expert at helping that group of people. You can learn a lot about your target market and can niche your services to solve their specific problems.

This leads to better coaching or consulting results. Also, when you are very specific about who you serve and what problem you help them solve, your marketing materials will “speak” to them. You want your ideal clients to hear about your services and know that you’re the coach who can help them solve their exact problems.

If you’re not exactly sure which problem you want to help people solve, check out this free workbook to help you choose your niche. Also, it’s important again to note that clarity comes from taking action. As you begin working with coaching or consulting clients, you will learn what you love helping them overcome, and what you don’t enjoy as much. You’ll discover where you’re getting amazing results, and what energizes you. Your business can evolve as you go.

Critique your idea

Just because you think you have a good idea doesn’t necessarily mean people will actually pay you for it. Think about the problem you want to help people solve. Does it enable you to use your strengths? Do you have knowledge in that area? Can you offer value to others and help them transform their lives? Are people currently paying money to have this problem solved for them? Will your coaching or consulting services help them solve a problem big enough in their life that they’re willing to hire you for help?

Put your idea to the test

You can put your idea to the test by offering free 15-minute consultations to people. In Born For This, author Chris Guillebeau suggests giving brief, free consultations to 100 people. Name your session something catchy that helps people understand what they’ll get out of the session. Then, hop on the phone with them, give them a ton of value, and follow up with them on a later date for feedback.

While you’re doing your free sessions, pay attention to how you feel. Do you feel excited and energized by helping people solve this problem? Or, do you feel drained and exhausted after these conversations? Do you enjoy working with these clients, or have you discovered you need to change your target market? Also, are you helping people get their desired results?

Find your ideal clients

Now that you’ve tested and tweaked your idea, and gained some experience, it’s time to find real clients. Think about your ideal clients. Where do they hang out online? Where do they hang out offline? What groups do they belong to? Which social media platform are they spending time on? You can have the world’s best coaching or consulting services, but unless you know how to get your offer in front of your ideal clients, you won’t have a solid business. Although it can be intimidating, you’ll need to get visible online in order for your ideal clients to discover you and your amazing services.

Build a website

Potential clients need a place to learn about your coaching business, and there’s no better place to sell your coaching and related materials than on a website. Write content that is client-focused and describes how you can help people improve their lives. If you have testimonials, then post them on your website.

Essential website content:

Here is the minimum content I’d recommended you have on your website when you launch.

• A freebie that people download in exchange for joining your email list.
• A few articles (also known as ‘blog posts’). Choose articles that cover core content that your audience really needs to understand. Use your program outline for topic ideas then write the abridged version. Make sure your articles are helpful and compelling as they are each an example of your skill and generosity.
• Details on what you offer clients: Hourly sessions? Online trainings? Workbooks?
  Information on your packages and pricing
  
• Your credentials, qualifications, and experience. Why should potential clients trust you?
  
• Testimonials. Social proof can be your most powerful marketing tool.
  
• Personality! Add photos of yourself and an “About” section to introduce yourself to potential clients. Consider including a short video that shows potential clients how they may benefit from your coaching and whether they’ll mesh with your personality.
  
• A contact form or online scheduler. Let people reach out to you as soon as they decide they want to learn more.

Create a marketing plan

Figure out your best clients and where you can find them, then develop marketing strategies to lure them to your business. For example, if you’re a career coach, you should develop a LinkedIn profile. If you’re a personal training coach, you might want to have videos on YouTube that offer fitness tips or teach specific exercises.

Plan your life coaching services and prices

There are 3 main ways that life coaches charge for their services:

• Per session (usually hourly)
• Per month
• Per package (usually $X/3 months or $X/6 sessions)

Charging clients per custom coaching package is a great option when you’re first starting out. When you know upfront how many months clients sign up for, you can better predict your income and manage your expenses.

You also attract more committed clients – people who take coaching more seriously and are in it for the long haul. More sessions provided during the package means you can have a bigger impact on their lives (and charge more upfront).

Life coaches charge an hourly rate anywhere from $75 to $1000. That’s a huge range. To figure out the right price to charge, consider your:

• Niche
• Amount of experience
• Target market
• Income goals and budget
• Credentials

Do some market research, too — what do others in your niche with similar credentials charge? How much is your target audience willing (or able) to pay for life coaching services?

Here are some examples of pricing for tiered life coach packages from Thumbtack:

One-month life coaching packages from a life coach in Michigan:

• (3) 60-minute sessions with limited contact between sessions: $300
• (4) 60-minute sessions with limited contact between sessions: $350
• (4) 60- to 90-minute sessions with unlimited contact between sessions: $400

6-month packages from a coach in Massachusetts:

• 1 session a month for 6 months: $630 ($120 savings over purchasing individual sessions at $125)
• 1 session every other week for 6 months: $1,170 ($330 savings)
• 1 session every week for 6 months: $1,950 ($1,050 savings)

Make sure to include a coaching contract when new clients purchase a package. Use simple, straightforward language to let clients know what they can expect from your services — and what you expect from them.

If you’re not ready to dive in and start selling full packages, consider offering free or discounted mini-sessions to your friends and family in exchange for testimonials and candid feedback. This can also be a great vehicle for word-of-mouth marketing.

Market, market, market

Getting your first client will likely be the hardest. Use your personal and professional network to help. Consider offering free 15 or 30-minute coaching sessions to entice people to try you out. Start a blog or write articles for other blogs and media that provide tips that can help you gain exposure and credibility. Another great way to get clients is by offering workshops.

Become a legit business

When you’re ready to make your coaching or consulting business the real deal, it’s time to become a legit business. I recommend testing your idea first, before you spend tons of time and money investing in something that turns out to be nothing more than an “expensive hobby.”

At conferences for entrepreneurs, you may have met many people who have paid thousands of dollars to have websites and business cards designed for them, but they have not yet built their informational products or actually offered their coaching or consulting services to anyone. In my opinion, it’s better to get out there, take action, and see if you have an idea that people would pay you for, before you spend a ton of money and time making it look like a “real business,” only to discover later that it’s not a viable idea.

When creating your legit business as a coach or consultant, you can build a simple website that looks professional, and states who you are, who you serve, and how you can help your target market. It’s also a good idea to have a formal contract for your clients to sign when they purchase your services.

This legal contract can discuss things such as your cancellation policy, refund policy, and expectations of your client. And, it’s wise to treat your business like an actual business. Have systems in place to keep track of the financial aspects of your business.

It’s time to choose a business entity type for your life coaching practice.

If you’re starting your new coaching practice on your own, you’ll probably want to choose between:

1. Sole proprietorship: Unincorporated business with one owner (you!)
2. Limited liability company (LLC): Registered business with limited liability for all members

What’s the difference between a sole proprietorship and an LLC? Without getting too bogged down in legalese…

• Liability
  • In a sole proprietorship, a sole proprietor (you, personally) is responsible for all of the debts and liabilities of the business. If your business runs into financial trouble, you’re on the hook.
  • In an LLC, the business itself is responsible for the business’s debts and liabilities. If you intermingle your personal funds with LLC funds, it can result in the loss of your limited liability protection.
• Costs
  • An LLC costs more upfront because you’ll need to register with the state and pay initial registration and annual maintenance fees
  • A sole proprietorship has minimal initial costs
• Regulations
  • An LLC is more heavily regulated than a sole proprietorship and, depending on your state, you may need an operating agreement for an LLC
• Taxes
  • Sole proprietors are taxed as self-employed
  • LLCs follow typical corporate tax structures

Once you register your business, you may also want to get business insurance for your coaching practice. It’s not a requirement — and you’ll hopefully never need it! — but it can help protect you in case of emergency and/or lawsuit.

Here are some types of insurance to consider:

• Malpractice insurance: Life coaching is a big responsibility. If your advice causes a client harm or you share their confidential information with others, they might sue you for professional negligence. A malpractice policy can help cover legal defense costs and any settlement or damages.
• Business owner’s policy (BOP): This general policy covers both commercial liability (a client gets hurt at your office) and property damage (your office goes up in flames)
• Cyber liability coverage: If you keep personal and confidential client information on file, cyber liability coverage can help you out if you get hacked (and sued). It can also cover the costs of restoring your computer (and your reputation).

At this stage, make sure you have a rough idea of your budget. Life coaching can be a mostly-digital business, which helps keep startup costs low. Here are some of the costs to budget for:

• Business registration costs
• Membership dues if you choose to join a coaching organization like the ICF, IAC, or ACA
• Marketing tools and campaigns (Email marketing, paid social and search ads, and more)
• Website design and hosting/domain name (Will you use a template or pay for a custom design? What platform will you use? Each of these can add costs)
• Insurance
• An office if you choose not to work from home or public spaces
• And, of course, a reliable phone, computer, and internet service to meet with clients through video chat or over the phone

Grow your business

Now that you’re helping your ideal clients solve their problems, and they’re getting amazing results from your coaching or consulting services, you can scale your business. You can continue to offer 1:1 private coaching or consulting services, and exchange dollars for hours. Or, to leverage your time, increase your hourly income, and reach more people, you can offer services in a group format. You can also build online products such as e-books or courses. With those, the work is ‘front-loaded,’ meaning you do a lot of work upfront, but can then collect income for a long period of time.

The time has never been better to start an online business as a coach or consultant. When you bring your expertise online, you can reach people around the world and influence many more people than you could in a traditional business.

How to Expand Your Online Coaching Business

Offer Something for Free

People are likely to engage with your brand when they receive something for free in return, who doesn’t like something free. This is what we call a “lead magnet.”

Lead magnets should be available instantly and promise easy results. For example, a video with your most effective and quick coaching tips that viewers can implement immediately. A lead magnet showcasing your expertise helps get people into your nurture sequences — and in turn, creates more long-term, high-value clients.

And since most people can’t turn down something free, it’s one of the fastest ways to gain interest. Plus, you can speed up the cycle with a Messenger bot and put your entire funnel on autopilot. Anyone can do it — business coaches, life coaches, spiritual coaches — and a bot can be set up in 24 minutes.

Use Facebook to Make Personal Connections

When people stumble upon your Facebook page, give them the chance to connect with your brand. Personal experiences can be delivered via Messenger and can help potential clients access information at all times. You can also use them to send thank you messages, webinar reminders, and more.

The personal nature of messaging helps people feel valued. And this type of connection leads to higher conversion rates. Besides, once you get set up, connecting with potential clients becomes inexpensive and labor-free.

Network with the Right People

One great way to amplify your coaching business is to connect with other businesses and communities in your niche. You can use Facebook groups and online communities to find like-minded professionals to talk with and share knowledge. 

Are you a wellness coach? Search for active wellness-related groups on Facebook and get involved in the conversation.

Once you’re in these groups, answer questions to show yourself as a resource. You’ll find that others will tag you in questions they know you can answer. These are where virtual word-of-mouth referrals come from. 

Staying active in Facebook groups lets you connect with businesses that you can cross-promote. And collaboration brings more business than competition.

Host a Webinar

Webinars are still an effective way to educate your audience and bring in more qualified leads. As an online coach, you can use them as a way to showcase your personality and help people decide if you’re a good fit.

You may think webinars are dead, but they’ve simply just evolved. Allison Prince, Founder of 0-100K, uses ManyChat and marketing agency Messenger Funnels to promote webinars to promote her coaching business. 

The results? She tells Messenger Funnels:

“It took me 10 months to get to $1 million, and then after we started going heavy on Manychat with Messenger Funnels, we got to $1 million in 99 days”. 

Raise Your Prices

Raising your prices may seem odd if you’re trying to grow your coaching business, but it may be time. Once you have an established clientele, you can justify your value. 

As a coach, you want your clients to take your program seriously. And they will if they are paying enough to want the most out of it. When clients mentally commit to taking your advice, they see better results. When they see better results, your business thrives.

Know your competition, how you compare, and when you deserve more. Charging more for your services can lead to more time to focus on fewer quality clients. Personalization is the expectation of hiring a coach, after all.

Don’t Overpromise

As an online coach, you will compete with other coaches who talk a big game. The age of Instagram has plenty of people hoping to make seven figures in minutes without leaving home. And some coaches claim to have the “magic pill” for them.

Even if you have had great success with your own business, do not promise clients the world. Promoting results that are not attainable will lead to future service problems — and you don’t want to be seen as a scam. 

Clients will not hold back when it comes to reviewing a business that they feel scammed by.

Find ways to upgrade your skills

You can’t help others improve without improving yourself.

Life coaches value personal growth and professional development. Continue to seek out learning opportunities to stay on top of your game. This includes:

• Continued training from an industry association like ICF or IAC
• Attending industry events like ICF Converge, the Art of Coaching Conference, or smaller, local coaching workshops
• Speaking on panels or webinars about your experiences — then listening and learning from other speakers and audience members
• Reading the latest books, articles, and research in your niche
• Participating in online communities to find education opportunities
• Finding a mentor in the life coaching community — and offer to mentor industry newcomers
• Asking for feedback from your clients — then learning from and acting on it

When you continue to invest in yourself and your skills, you invest in your business. As you pick up more skills and get results for more clients, you’ll be able to grow your business faster (either by charging more or by reaching more people).

Finally

• You don’t start a coaching business for the money – you do it to have a fulfilling life. Once you figure that part out, money comes naturally.
• Move your business forward in some way every day (except weekends and holidays – because breaks are important).
• Let go of needing to do it ‘right’ according to someone else’s standards. Turn off all the noise and external influences that make you feel fearful about your ability to build your dream coaching business. You can do this! YOUR way IS the right way! Find your way and trust yourself.
• No matter what, just keep going. Running a coaching business is a long term project and long term commitment is needed to see it through.