The coaching industry is booming and will continue to grow in the coming years.
If you are a coach or consultant and have not yet hit the “magic” 100,000 GBP annual turnover with your business, then pay attention now!
(And even if you are thinking about starting your own business as an expert, this is very relevant for you!)
Why are these 100,000 GBP annual revenue so important for you as a self-employed person or entrepreneur in the field of coaching or consulting services?
The big goal: Six figures
Well, 100,000 pounds a year is the “magic turnover limit”, at which you usually feel for the first time a strong financial improvement through self-employment compared to e.g. a typical employment. My latest surveys in my target group have shown me that many coaches and consultants have the goal of achieving financial and personal freedom – and that is exactly why they want to earn “six figures” a year. On the other hand, however, it is evident that many do not manage to achieve this level of turnover – and this can usually be attributed to one or more of the following 5 reasons:
1. You are trying to be all things to people
If you are in survival mode, it is usually because you are simply ” replaceable ” like most other coaches, consultants & experts! In other words, your positioning is not clear enough and your prospect doesn’t know why he should listen to you…
And if your potential prospect can’t see WHAT you are an expert for, then you will either not be able to gain his attention.
The SOLUTION looks like this:
To be perceived as a go-to expert, you have to position yourself as a problem solver for a very narrowly defined target group! For example, if you as a fitness coach only concentrate on mothers who want to get back into shape quickly after pregnancy, then you will have no problem not only being noticed by your target group.
2. Your offer is not remarkable
Most coaches and consultants work on an hourly basis and are limiting their turnover because they do not offer a full and remarkable solution! If you are still charging by the hour, then this is also a huge problem, which you have to solve immediately by offering a complete package:
Example: Booking a 3-month coaching package with a weekly consulting session (including e-mail support) instead of the permanent new booking of individual hours that do not take place after all. But even that does not solve your problem if the offer does not promise a solution. You must be aware that you are not selling “coaching” or “advice”, but the delivery of a desired state that your customer wants to achieve through your help.
What you need is a HIGH-VALUE PACKAGE, which must contain and communicate the following points:
- It solves exactly ONE problem of your target group
- Create it for your target group (e.g. “Time management for fitness coaches”)
- It solves the problem within a foreseeable period (e.g. within only 4 to 8 weeks!).
- It is not an off-the-peg solution, but adapted to the client’s situation and therefore has a high chance of success
- There is a “unique approach” that differentiates your offer from anything else on the market and arouses your customer’s interest
3. Your prices are too low!
This mistake goes hand in hand with the previous one! It is very difficult to tell a client to pay you several hundred pounds per hour for coaching or consulting.
However, it is very easy to get high prices if you put together a whole package of offers which alone serves to achieve a specific end result!
A standardized 8-week coaching program for 2,000 pounds is easier to sell than telling someone to pay 250 pounds per coaching session – even if the client would have paid the same total price after 8 individual lessons. I can tell you that low prices are ruining your business!
1. Without high prices, it is very difficult to achieve the necessary 8,400 GBP turnover per month, which is necessary to earn 100,000 GBP per year. However, if you offered a package for 2,000 Pounds, you would only have to attract 5 new customers every month – which is much easier to realize than 100 customers who buy something from you for 100 Pounds!
2. Low prices result in a lack of confidence of your potential customers in your abilities and your offer! A high price is in our life associated with high quality. No one who can afford it will buy the second or third best solution for one of the most important problems in their life – and that’s why you’re practically obliged to charge high prices. This is the only way to show your client that you are the right choice! That is why it is so important that your HIGH-VALUE PACKAGE is sold at a premium price of at least 1,000 Pounds. I even recommend my customers to develop a core offer, which is between 2,000 and 5,000 Pounds.
3. Only high prices leave you enough margin to promote your business online and offline.
4. You don’t have enough sales conversations
If you want to earn money as a coach, consultant or expert, then you have to talk to qualified prospective customers every day, who have a strong interest in you and your offer! What does that mean to you? You need new customer requests every day!
If you don’t have a foolproof system that generates new requests every day like 90% of all coaches and consultants, you will rely on referrals and requests from your network – which means you absolutely DO NOT CONTROL your income!
A SIMPLE MATHEMATICAL VIEW:
If you are a “one-man show” and want to make 10,000 GBP per month, then I recommend you to develop a HIGH-VALUE package for 2,000 GBP and to find 5 new customers every month:
Let’s say you have a completion rate in consultations of 20%. Then you need exactly 25 sales conversations to attract 5 customers for a 2,000 GBP package and achieve a turnover of 10,000 GBP. That means you only have 1 conversation per day every week from Monday to Friday! If you can generate only 1 qualified lead per day, you have 30 leads per month and need to schedule 25 appointments for a conversation. THAT IS ABSOLUTELY FEASIBLE!
Read also the blog post “How Many Leads Do You Need To Grow Your Coaching Practice?“.
All you need now is a lead generation process that generates a request per day – and you earn five digits a month! Unfortunately, most coaches and consultantswaste their time with other things than focusing on lead generation and selling.
5. You are getting distracted by tools and trends
If you spend your time reading about passive income, marketing funnels, information products, etc., then I have unpleasant truth for you: If you can’t sell your service 1:1, you probably won’t be able to sell it “automatically” online…
I know it sounds very tempting to earn an income as an expert by selling video courses, e-books and other things on the Internet. But it’s also a fact that here, too, almost everyone who tries it, and only 1% of all coaches, consultants or experts online really generate a constant five-figure turnover (or more) every month.
Here’s the problem: If you are an expert with 1:1 services and do not yet earn 10,000 Pounds a month, then an “automated online business” will not save you either.
Here are the reasons:
- You don’t know what your target group wants – otherwise, you would offer them an attractive, high-quality package and actively sell it!
- You don’t know how to generate 1-2 requests per day for an initial consultation – how are you going to generate 50 to 100 email addresses per day to build an email list to sell a cheap video course for 100 Pounds?
- If you don’t get your old offer sold in a 1:1 conversation, then you DO NOT know how to get rid of it online, where you can’t even adjust to the prospective customer. Instead, a text or video has to do the job, which will never even begin to be as effective.
- You are busy developing your online product for weeks or even months, WITHOUT knowing if it will be accepted by the market at all. Let me tell you something: 9 out of 10 information products offered online are commercially considered absolute fails.
- Technology is an absolute nightmare in every respect – something is always not working the way it should…
What I can recommend to you is a completely different approach, which gets along without much technology or big marketing budget. This strategy is the fastest and safest way I know to build a highly profitable coaching and consulting business.
You can get to know them for yourself by registering for a free strategy session below: