Why It Is Almost Impossible To Make Money As A Coach (Unless You Do This)

By , Small Business Consultant and Marketing Strategist

Solo-E Certified Solo Entrepreneur Expert

Michele A Scism - Small Business Consultant and Marketing Strategist

Are you still trading hours for dollars? You and I both know, that at the end of the day, there is a limited amount of time that you can offer. You only have so many “billable” hours in a day so you have to figure out how to make the most of your time, while still offering a good product and service to your clients.

Playing “hard to get” (or creating scarcity) is a strategy that marketers use to create urgency and help people along to a buying decision. You’ve seen limited time offers, sold out products, and limited memberships before. The reason is, creating scarcity works! It works so well that it is a very common marketing strategy used by everyone from big companies like Coca-Cola to Internet marketers and everyone in between.

Why you don’t need to create scarcity.

The thing is, in a coaching practice there already is scarcity because time is limited already. A lot of coaches over estimate the amount of time that they will have actual billable hours. A billable hour is a working hour that you can actually bill someone for. In every business these hours are limited far more than one might expect. Most people think they’ll have forty hours a week in which to bill and that is how they set their hourly rate. This is a mistake. A good guideline for coaching is very best case, you can bill 30% of your week. You’ll spend another 60% on marketing and 10% on admin tasks (if and only if you have an amazing team).

Why most coaches don’t make money.

Once my clients get this, they realize they have a real problem because it is unlikely that they will be able to work enough hours to make real money in their businesses.

Once you figure out this problem you can start figuring out how to fill in the hours with multiple offerings rather than simply one on one coaching. You can create email coaching programs that are automated, automated drip membership sites, an inner circle and the ultimate prize, the cherry on top of the cream, your one-on-one coaching service. As your client moves across each level the number of people allowed to participate gets lower, and the price for entry gets higher.

Michele Scism is a decisive, driven and committed entrepreneur who helps successful business owners create passive income streams so they can stop working so hard and start enjoying the benefits of entrepreneurship.

Michele’s business expertise has been highlighted recently on NBC, CBS, Fox, Entrepreneur.com and Forbes.com. She is an international speaker, best-selling author and the Founder of Decisive Minds.

She is a serial entrepreneur who knows how it feels to fail miserably at business, at one time the bank actually called demanding their $1.5 million back, and also knows how it feels to sign the contract to sell your company for $9 million dollars. For business building tips visit http://DecisiveMinds.com

© Copyright 2013 Michele A Scism
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