It’s a fact that business coaches can make a very good living.
Most successful business coaches earn a handsome six-figure income, including many coaches that I’ve trained personally–folks who have gone on to earn $200K-$300K per year or more.
If you’re considering breaking into business coaching by buying a business coaching franchise, you probably have one question on your mind: can business coaching franchisees expect to achieve such awesome results?
It’s an important question. Particularly because, in my experience, business coaching franchisees–as opposed to independent business coaches–often struggle to put together a business coaching income that exceeds what they could have done working a 40-hour per week job.
Why Does Buying a Business Coaching Franchise Set You Up to Underperform?
The answer is simple: the ongoing fees and dues that business coaching franchises collect are often excessively high.
Consider the study I conducted a few years back of the actual performance of franchisees and their regional managers in one of the largest business coaching franchise brands.
The study involved 7 territories in the UK and 5 territories in the U.S. The average coach earned the equivalent of $81,113 USD — not bad…EXCEPT when you factor in the costs…
Overhead–including marketing, IT, insurance, taxes, software, accounting/legal: $2,000 per month.
Monthly royalty: $1,000-$1,800 per month. To keep it simple, let’s say $1,500.
Over the course of a year, this is $24,000 per year in overhead, $18,000 per year in royalties and franchise expenses…for a net income of just $39,000 per year.
Who would knowingly invest six figures to have a $40,000 a year job and no ability to walk away, due to the liability of ongoing royalty payments? The fact of the matter is that business coaching franchises are often too cost-prohibitive to be a wise investment. So if you’re considering buying one, be sure to do your due diligence and make sure the franchise you’re considering has numbers that are considerably higher!
Who would knowingly invest six figures to have a $40,000 a year job and no ability to walk away, due to the liability of ongoing royalty payments?
For a more detailed breakdown of the study I mentioned above, as well as comprehensive information on all the ins and outs of buying a business coaching franchise, read our FREE ebook, The Business Coaching Franchise Buyer’s Guide. You’ll discover all the questions you should ask and what you should look for before you invest in a business coaching franchise.
I just closed another account! My conversion rate has been 85%, 6 out of 7 Complementary Coaching sessions closed since November––four months. This was the biggest one so far, $3,000 per month for my Platinum program for 2 hours of coaching per week. I got a $6,000 payday on Thursday. It’s awesome!
I have been trying to become a business coach my whole life in some form or fashion. I spent so many years doing the wrong things. I can’t tell you how liberating this is to know that if I were to stop acquiring clients right now, I‘d be working 13 hours a week and I’m making about $200,000 per year.
I sat down the other day and literally almost started crying because of how much this is impacting me. I feel like a loaded weapon. I have another call tomorrow with a $10M company and not going in for less than $3,500 for 2-hour and 2,500 for the 1-hour coaching program.
So I just want to say to Eric and the team, I’m so grateful and happy. Thank you so, so much!
Over the past weeks, I’ve been SO encouraged by how our global network of 6,000+ business coaches have run like first-responders to the front-line of the battle for the survival of small to midsize businesses! But many of them are asking the same question: “I know business owners need coaching now more than ever–but how do I go about selling business coaching during a crisis?”
The truth is, the COVID-19 crisis isn’t going away on both critical fronts: public health AND the global economy. As businesses have been forced to close their doors to slow the spread of the virus, the U.S. Chamber of Commerce estimates that 25% of small firms have temporarily shut down. And one in 10 SMBs say they’ll have to close down permanently in less than a month.
But we’re hearing amazing stories from coaches who are leading their business-owner clients through the Crisis Leadership Model:
SHOCK => ADAPT => EXECUTE => SCALE/FAIL
Businesses that were about to close their doors have been adapting, executing, and scaling faster and bigger than ever — because of you, the business coach!
Why Business Owners Are More Willing to Talk Now
However, the #1 challenge for business coaches right now is how to explain your value to business-owners facing imminent collapse so they’re willing to pay for your help.
Business owners are answering their phone and talking to business coaches with an eagerness we haven’t seen since the great recession of 2008-2010!
Business owners are answering their phone and talking to business coaches with an eagerness we haven't seen since the great recession of 2008-2010!
Business owners who wouldn’t give you the time of day just one month ago will now gladly talk with you for 30 seconds to 30 minutes IF you know what to say.
What to Say When You Get Them on the Phone
You MUST know how to position your value within 30 seconds flat, or it’s game over. If you do, you’ll be able to book a Complimentary Coaching Session and land a paid coaching gig.
Here’s the script our coaches have been using over the past couple weeks:
“Hi ________, my name is _______ with ________ Business Coaching. Right now I’m helping my business-owner clients leverage the opportunities in this crisis by right-sizing their expenses, while quickly adapting their business to drive revenue and hold onto their best talent at a time when everyone else is downsizing, hiding and watching their businesses fade away. Would you be open to some help with this?”
And, THEN, you’ve gotta be ready to discuss the relevant “Silver Bullets” — the solutions we offer to the challenges business owners face. For example: the Break-Even Plan, Revenue & Profit Budget, Cash Gap Plan, USP & Guarantee, Tactical Marketing Plan, Sales Management System, Key Performance Indicator System, to name just a few.
Let’s keep serving, giving, and pouring ourselves out this week!
Want more great tips like these? Join our FREE weekly coaching sessions each Monday! Coaching Through Corona: How the World’s Top Business Coaches Are Helping Their Clients Survive and Scale Through This Crisis. Register HERE.
Just months before 9/11 happened, I had left my job as a pastor to become a full-time business coach.
In June of 2001, I spent $10,000 for a week of business-coach training and in July started spending my last bit of savings (just $5,000) to market myself and land clients.
Where were you sitting on September 11, 2001, as hijacked planes tore through the twin-towers in NYC and the Pentagon?
I was sitting across the table from Richard and Paula, the owners of a struggling family restaurant.
I was doing a “Complimentary Coaching Session” explaining how my business coaching could save their restaurant and give him the freedom to pursue his dream of running for public office.
I can still picture the booth we were sitting in when one of their wait-staff came to our table. Two planes had just ripped through the North and South towers of the World Trade Center complex in Lower Manhattan.
Needless to say, the meeting ended abruptly.
I drove home thinking, “What in the world have I done? I’ve just left my job as a pastor and put my entire financial future on the line to become a business coach and now this!? What will I do to feed my wife and four kids?”
Just Keep Going
Maybe you’re feeling that way right now as the Coronavirus is raging through the earth, taking out small businesses by the thousands, leaving millions unemployed in its wake?
For me, in September 2001, it was too late to turn back. I had nowhere to go and nothing else to do but rush right into the economic collapse like a first responder.
And that’s exactly what I did.
I had nowhere to go and nothing else to do but rush right into the economic collapse like a first responder.
It was a brutal street-fight for the next few weeks. Within 48 hours of the 9/11 attack, I had lost my first and only two clients. One was a deli in a nearby mall food court. The other was a small contractor, who made me give back his first $2,000 coaching payment the day after he agreed to start with me.
But, I kept going. I JUST KEPT GOING.
I was determined to help these business owners who were getting brutalized by the panic and almost instantaneous drop in consumer spending, post 9/11.
As I did so, an amazing and curious thing happened. Business owners began to see the value of my business coaching. And they started paying me! It felt like a miracle.
Amazingly, by the end of September 2001, I had banked $10,000 in coaching revenue — EVEN as the 9/11-induced recession was delivering blow after blow to the economy.
I kept going and in 2002 had my first $25,000 month.
In 2003 I had my first $40,000 month and added my first associate coach. That year, I banked over $400,000 in revenue AND took a total of 8 weeks off from my coaching business.
In late 2004, I banked my first $85,000 month. By then we had developed a sterling reputation in our community and I had recruited and trained 7 associate business coaches.
Then, in 2005, I sold my business coaching firm for $1 million dollars to four of my seven associate coaches, realizing an 800% return on invested capital and completing the first successful transfer of a business coaching firm in the history of the fledgling business coaching industry.
Now Is the Time to Act
Why do I tell you this? To impress you?
No! I want to share an important lesson with you.
It’s time to take action!
Like a first-responder, you can run right to the scene of the economic disaster wreaking havoc in the world of small businesses.
If you just serve, give, and pour yourself out, you will be rewarded down the road.
Are you looking to become a business coach? Don’t miss our FREE ebook, How to Become a Business Coach–and learn the skills and strategies you need to succeed in this business.
If you have any coaching clients in the U.S., then I’m sure you’re hearing a ton about the $2.2 Trillion stimulus package known as the CARES Act and, specifically, the Payroll Protection Program (PPP) with about $350 Billion available in mostly forgivable loans to American SMBs (plus, a second such bill that recently refilled the coffers with another $310 billion!).
A lot of what you’ve been hearing is crap (sorry!) A bunch of rubbish being published by people lacking expertise. A lot of it outdated after 24 hours, etc.
As with anything run by the U.S. government, it’s wildly complicated and constantly evolving, of course. 🙁
That said — I’m SO grateful that Chris Duzich, one of our Certified Coaches’ Coaches has taken it upon himself to study and understand the implications of this bill. (FYI — Chris started his career at PWC after completing his master’s degree in Finance and attaining his CPA license, so he’s got serious financial chops.) Chris is also one of our most accomplished coaches, billing more than $40,000/month in coaching fees and has been helping lots of his clients apply for PPP funding over the past week.
This past week, Chris and his team have helped 12 businesses apply for $2.7 Million dollars of loans through the PPP.
AND, he’s got another $600,000 in his pipeline. AND the banks are loving the files that Chris and his team are producing. Less back-and-forth with the lender means his clients are getting their money FASTER!
Less back-and-forth with the lender means his clients are getting their money FASTER!
You need to get to the right bank and FAST. Many of the larger banks are completely buried and working preferentially with only their top-tier customers.
You MUST get the application filed correctly the first time. Incomplete or inaccurate submissions will result in significant delays.
The SBA loans are on a first-come, first-served basis. You and your clients cannot afford delays. Delays will result in their getting NOTHING because the $500+ Billion is going very quickly.
Needless to say, if they go out of business, you lose the coaching revenue.
Calculating the Revenue Potential
Of course, you may be wondering, “How much money can my client even get from this?”
Let’s say your U.S. client’s annual payroll is $120,000, and all of their employees make less than $100,000. You multiply their average monthly payroll of $10,000 by 2.5. Their maximum loan amount is $25,000.
This money can be used by your clients to retain valuable employees and ensure that when America is back to work, your client will be back to business as usual, and you retain your coaching fees.
Chris is offering members of Coaches’ Coach and their clients complimentary consultations to help walk you through the process. So book in with him and let him help you!
We want to help YOU help your clients get 2 month’s worth of payroll covered so you can help your clients stay alive!
By the way, ongoing insights to business coaching thought leaders like Chris is included for all Coaches’ Coach members! For more great tools and timely insights, get a FREE 30-day trial of our comprehensive coaching system today.
