How Much Do Life Coaches Make?
Life Coaches solve problems by giving solutions to clients’ needs to achieve objectives. Many confuse life coaching with therapy and counseling. The two deal with the individual’s emotional past that drags them down. It focuses on the future approach to life.
Coaching helps the client realize and unleash their potential. It’s a developing career that attributes its lucrative nature to increased personal growth and self-improvement trends.
This article goes deep to explain the following aspects of what it takes to become a life coach in detail:
1. Coach Salary Data – Understanding the Numbers
2. What the Numbers Aren’t Telling You
3. Coaching Pathways: How To Put Income Potential In Context
4. How Most Coaches Really Earn A Living
5. The Influence Coaching Specialties Have On Your Hourly Rate
6. Why An Entrepreneurial Mindset Is Critical to Success
7. Market Outlook for New Coaches
8. Putting It All Together: Mapping YOUR Course
9. Case Studies – Real Coaches, Real Careers
Coach Salary Data- Understanding the Numbers
As an aspiring life coach, you must surf the internet for research. After all, the internet has it all. But does the content you find make sense? Are they relevant? Do the sources you choose have reputable authority? That’s why this article gets the data from the source with adequate, reliable information.
ZipRecruiter acquires data from top employer job postings and reputable third-party sources. Data derived from ZipRecruiter are up-to-date. This data was updated as of June 4, 2022.
According to ZipRecruiter, as of June 2022, the average annual salary for a Life Coach in the US is $56,151. Let’s do the Math:
365 days = $56,151
1 day = ?
Therefore, a Life Coach salary lies at around $154 per day, on average.
That’s approximately $1,800 per week or $4,320/month.
ZipRecruiter reports that the annual salaries of some life coaches can go up to $324,500 while others get as low as $11,000. But currently, most Life Coaches earn between $25,000 to $48,500 annually. However, the few top-paid Life Coaches make up to $115,000 annually. All the coaches referenced above are from the US.
You may have noted that the average salary range varies by as much as $23,500. This is a clear suggestion that every coach has more opportunities based on your location, skills(marriage, fitness, business, etc.), and experience.
How do Life Coaches decide what to charge?
There’s no single way to determine the amount of money to charge for your coaching services. Read on to understand how outstanding Life Coaches determine the fees, how to get paid well, the help on getting the coaching right, and what to avoid.
How to determine the amount of fees to charge
Your new clients ask you for the amount you charge for your coaching services before anything else. Many upcoming coaches face a rough time answering this question confidently. Perhaps you are afraid of underestimating or charging higher. But you must base your decision on your experience, marketing tactics, and the niche you operate within. For instance, if you are a Business Coach specializing in corporate lead generation, you will definitely charge more than if you worked with a couple battling relationship issues.
Take your bills into account
Well, every business struggles to make ends meet at its initial stages. But at least you should know what to target to sustain your coaching business. If you are uncertain about your expenses, you can come up with a spreadsheet of your monthly expenditure. You may also have to decide on your marketing expenses upfront, as in the brochures, web hosting, advertisements, training, networking events, podcasts, webinars, etc.
4 Important tips for setting life coach charges as a new/inexperienced coach
1. Avoid comparing your charges with others
One of your role model coaches charges more or less than you, right? Don’t go ahead and compare yourself with them. Perhaps their way of approaching the service is perfect at the moment or for other specific reasons. For example, an individual solopreneur may afford a $100/hour rate while a corporate executive officer pays $1,700 or much per session. The latter may have gotten used to the strategy. You are more likely to get depressed or stressed when you imitate that.
Do your best because it’s not a guarantee that higher rates equal better coaching. Work out your rates such that you can anticipate your profit margins. If you are a newbie coach, you may fail to hit targets, but with time, you’ll get consistent and progressive.
2. Freebies or Lower rates
Your former coaching academy probably encouraged you to volunteer for a start. That’s the best way to begin as you advance. Remember, you need the skills, experience, and trust. However, if your profession includes Life coaching as a qualification, you can charge from the word go. If you also think that your start is worth charging, go ahead. You’ll readjust accordingly as you progress.
3. You should feel in exchange for discounted and free sessions
Coaching offers great value to your clients, whether you are compensated or not. Get your early freebies and discounted clients through your future coaching agreements. That way, they’ll appreciate the chance and help you with service promotion.
Furthermore, you may ask your clients, whom you don’t charge, about what they can offer you in exchange for your coaching service. For instance, a social media manager client can help you great more leads through social media marketing.
4. Offer discounts when necessary, not as a client wishes
Most prospective life coaching clients are so persuasive. The prospective will narrate how they are in dire need of the service. But you don’t have to forget that it’s a business you’re doing. To overcome this, you may change your strategy so that the number of sessions you offer may vary according to the client’s budget.
Life coaching payment methods and how to evade hidden charges
Working with clients in your country is simple. You’ll incur transparent fees like direct debit, PayPal, and cheque fees. However, transacting with international clients calls for attention.
Your clients can directly debit into your account or pay online. Online transactions are safe and easy to set up. But it depends on who the client is. Always go for the best deal. Nowadays, there are hidden international transaction fees. The charges may affect you or the client. Additionally, payments you receive in your currency attract extra fees made online.
How payment service providers hide their fees
Currency exchange rates are bound to fluctuate. Your service provider uses the mid-market rates to determine the worth of what you receive. The key players here are local banks and the service provider.
For instance, if the USD and GBP mid-market exchange rate is .774GBP, then every $1 earns you a $.77pence. However, PayPal, Stripe, and banks have no mid-market rate charges. They rather complete transactions at poor rates according to the mid-market rate, lowering your real earnings.
How do you have to charge for group coaching?
It’s not simple to determine the appropriate rates for group coaching. It wholly depends on your niche, demographic, and how you handle the service (zoom meeting or live streaming and so on?). You’ll charge more for a low-budget community group and low-income group than for a corporate and business group. However, most of the established life coaches conventionally apply the following techniques:
Say you offer a one-on-one series of seven coaching sessions for $1400. So you may charge every client a quarter of that, i.e., $350, hence earning you $2450. Therefore, you have to target four or more in the group, or you will earn the same amount as one-on-one sessions. You can vary the percentage and the cost as you wish.
You can also charge fees upfront for the groups instead of charging per session. That’s how you get a definite number of sessions to commit per series. To reinforce this further, you can come up with a refund policy.
How efficient would it be if you offered coaching rates per package session?
You can offer package sessions instead of charging per session, hourly or monthly. The clients will commit themselves for a certain period for the entire coaching experience. Dividing the service into packages makes your job affordable also since your client chooses their best fit.
Here’s a list of suggestions you may want to consider as you package your service:
- Per-hour sessions. An hourly rate seems cheaper to the client, and they’ll sign in for more sessions.
- Packages help you gauge where the client may fall into. If you offer four, six, and eight sessions, for example, attentive clients but find budget limiting them will take four sessions.
- You may offer this and specify the number of sessions per month. But you never know what may happen to the client midway. Rescheduling will cost you often.
How and when to increase your coaching fees
You should understand this message entirely, especially if your coaching business is established already. Read and understand these ways that’ll enable you to raise fees appropriately.
1. Do thorough market research
Study what other established coaches charge, especially in your field. But don’t forget that you shouldn’t compare yourself anyhow with others.
2. Review your client base
How’s your progress? Have your clients benefited from your service? Your clients should show significant changes before upgrading your coaching service fees.
3. Have you upgraded/ added up your qualifications?
It’s worth raising your rates if you have added more skills and courses. Adding more courses makes the service lucrative and attractive to the clients. Additional accreditation raises your value and credibility.
4. Do you have social proof?
Social proof boosts your legitimacy and credibility too. You should always place them somewhere on your website and portfolios.
5. How about your expenses?
If your clients appear physically and you have to rent a bigger office, you have enough reasons to raise your rates. The more the clients, the more employees you hire, like VAs (Virtual Assistants) and social media managers.
But when you raise the rates, do it professionally
Every career has ethics and professional codes of conduct. Therefore, when you decide to increase your rates, take the following into consideration.
- Communication is a golden rule in the coaching business. You may lose more clients if you ignore it than inform them.
- Charge all the new clients who come after the increase to avoid them learning of the old rates.
What the Numbers Aren’t Telling You
Factors Influencing Life Coaching Salaries
There are big salary gaps in the coaching world. A life coach somewhere earns $60/hour while another one makes $120/hour. Here’s a list of the factors you may find helpful for your coaching journey.
Seven key factors to consider when figuring out your coaching fees
1. Your mode of delivery, i.e., one-on-one, online, phone call, and so on.
2. The period your sessions take. Do you take it part-time or full-time?
3. Do you offer group or personal coaching sessions?
4. Your specific niche or target audience and what they can afford
5. Your expertise, experience, professionalism, and credentials. A life coach with one year of experience cannot charge the same as a coach with ten (veteran or seasoned) years of experience, and it’s common sense
6. Your business overheads
7. Your location and client’s. The cost of living depends on your geographical location and the clients. A life coach in Texas cannot charge the same as one in India, for example
However, the study shows that the huge gaps in the salaries, especially in the US, mean a lot. From the reliable Coach salary report, The International Coaching Federation (ICF), most Life Coaches offer part-time services. No wonder statistics show that the current average annual salary is $62,500, yet most Life Coaches actually earn around $30,000(as of 2020).
So most of the established Coaches know the dos and don’ts of the game
ICF report indicates that around 6% of Life Coaches with a decade or more experience provide three or more diverse services. These activities include online training and group coaching. However, around 34% of life coaches with a year or less experience in the field diversify their services. In a nutshell, this career path calls for consistency and resilience before it’s lucrative and fully developed.
Coaching Pathways: How to Put Income Potential in Context
Becoming a life coach is like choosing among goods with different price tags in the supermarket. Whoever wants and affords popcorn buys it. And whoever wants and affords a home theater stereo buys it. But whoever aims higher, just like any other profession, is likely to achieve it through mass action.
What you should know about it and respective income
1. Every Life Coach chooses how they work
As aforementioned, the huge salary gap depends on whether you are a part-time or full-time service provider. Every coach aspires to hit the $5k-$25k/year mark. Another patch of Life Coaches do coaching certification courses to apply in other industries. Therefore, when establishing your coaching salary anticipations, set your goals about coach training and certification first.
2. Every Life Coach has their purpose
Some life coaches aspire to ditch their 9-5 jobs when coaching gains momentum. There’s a rising admiration for freedom of work whereby you work when you want at your rates. ICF report shows that approximately 67% of life coaches do coaching as a side hustle.
Do you wish to attain or exceed the average coaching salary?
Specialization and niching are very important:
Group coaching- group your clients, especially those with similar interests. You’ll attain a larger client base while establishing mutual accountability.
Podcasts and Public Speaking- This allows you to reach many clients while enhancing unending creativity effectively. Some clients would love to commit themselves to watch and listen as you speak live.
Membership- You can increase your client base using tools and resources based on a membership subscription. Members subscribe to enjoy unlimited offers.
Outings and workshops- Your clients would love to enjoy memorable moments with you. Coaching is all about fun and giving value at the same time.
Publishing- Are you a passionate writer turned life coach? Enhance your writing with your part-time job. You can convey the message through books, ebooks, email lists, blogs, audiobooks, etc.
3. Your rates depend largely on your life coaching type
Notably, business Coaches have the highest salary scales. Respective corporates sponsor most of the clients in the category. And the coach finds good reasons to charge more as well.
Experience matters, too- It’s obvious that the more your experience, the higher your rates. The narrower you niche down, the higher the specific coach rates. How? In the US, a less experienced (a year or less) life coach earns around $130/hour while a 10+ veteran or seasoned coach bags approximately $300.
What that means
You have to be unique, authentic, and offer pure gold to earn your target of $500/hour or so. Niche down and strategize well. There’s always a thing about what sets you apart.
4. Your intent determines your income
Treat it as a business, and you’ll reap a lot. Equip yourself with all the requirements; training, life coach certification, strong internet connection, a good laptop, etc. Then strategize as you will never plan again. Come up with a manageable and reasonable budget. Market yourself, thanks to social media and search engines.
What is the Market Point of View for New LIfe Coaches?
It becomes attractive and more lucrative day by day. As of 2020, ICF reported that more than 71,000 life coaches existed worldwide. That’s an increase of 36% from 2015. Yet technology, which primarily enhances online outreach, is disruptive and dynamic. COVID-19 puts a lot of people under stress and distress. So there are enough clients and coaching ventures to engage in. The trajectory has it.
But then, before you begin, you should train incredibly well. It’s entrepreneurship, so you must strive to give a value proposition.
It’s also quite fortunate that Coaching is unregulated. You don’t have to showcase your academic qualifications or training in order to become a life coach. Alyse Parker has no relevant professional coaching credentials. Certification limits competition, earn more credibility and social proof.
Putting it All together: Mapping Your Course
You’ve read this article this far for two reasons, perhaps- you want to become a life coach or are newer to the field. Let’s find out some answers to your curiosity.
How will you budget for the venture?
As a newbie, you may decide to take the risk and stake a little amount. So you’ll probably charge $80/hour. That’s one session already. Working full time is equivalent to 40 hours a week (9-8 for five days) and 2,080 (52×40) hours a year. Assume you don’t observe holidays etc., just weekends.
$80/hr × 2080hrs = $166,400
How amazing is it? You’ve realized how you can reap more from coaching. Read on for more insights.
The number of weekly hours does not equal the number of client sessions. That is, 40 hours a week do not equate to 40 client sessions. From ICF, you’ll realize that, on average, an life coaching guru does 12 weekly client sessions.
- A coaching hour takes more than an hour. You’ll have to prepare for the session, refine your notes, and communicate with the clients before the session kicks off.
- Content marketing and creation eat into your time. As a coach, you’ll always do anything possible to retain and attract more leads. It’s an activity that consumes most of your time.
- If you serve two duties like podcasts, creating an email or newsletter, etc., and coaching, you’re most likely to take a lot of time to prepare. Remember, credibility and uniqueness determine your prosperity.
- You must keep your records up-to-date. You’ll take longer drawing plans, refining records, updating blog posts, testing your tools’ efficiency, etc.
Being the executive of your business means more roles on your bucket list. You must possess reputable decision-making attributes.
The above requirements take you to the next essential assignment. The case studies.
Real Coaches, Real Careers
1. ALICE KOECH: THE SUCCESSFUL INTROVERT
Your Personal Coach Credit Dr. Alice Koech Coaching.
BEFORE: Educational background; Ph.D., MA Counseling, MA Christian Education. A struggling mother who has faced all odds in life to emerge victorious. A professional mental therapist who has made an impact in her home country, Kenya, and in Kansas City.
NOW: A Kansas-based Life and Business coach who diligently offer one-on-one and group coaching packages for clients at Dr. Alice Koech Coaching. She manages an online community called Successful Introvert Entrepreneurs Community. In this community, she educates, unites, and helps introverts of all walks of life grow and prosper in their endeavors.
Life coaching is an emerging and lucrative career. Many people are making good fortunes out of coaching. This is one career that needs no regulation, license, or qualification. However, you must consider a few factors to limit competition, showcase your credibility and earn client trust. You can earn a salary in this field in many ways and strategies. You only have to get serious and gain momentum as you progress. Many people in the US are earning good money out of it.