If you are tired of working under someone else, over the constraints of working in a 9-5 job and craving something new, exciting and flexible, business coaching might just be the career you’ve been looking for. The thing about business coaching is it isn’t just rewarding both professionally and personally. It’s also incredibly flexible and liberating, and is a role that doesn’t ask you to work long hours and make family sacrifices in order to earn the kind of salary you need to live the life you want. Perhaps the most frequently asked question people have before deciding to become a business coach is: can you make a good living as a business coach? There are a variety of factors that go into determining whether or not you do make a good living as a business coach, such as whether you go solo or join a brand, start-up costs, ongoing costs, return on investment and more. However, perhaps the most important thing to know is when it comes to business coaching, how much you earn is entirely up to you and what you’re willing to put into it. Let’s discuss what it means to work as a business coach and whether or not you can make a good living below.
Go Solo or Join a Brand?
When asking if you can make a good living as a business coach, it’s important to differentiate between going solo as a business coach, or joining a brand and buying a franchise. Unfortunately, 75-90% of all startups fail, which is why many modern entrepreneurs choose to carry out their dreams under the safety and security of an established brand. When you invest in a business coaching franchise, what you’re really investing in is a proven system that gets results. You’re buying into successful methods of operation that have been tried and tested, as well as buying into the marketing and advertising that’s connected with a well-known brand name.
Upfront and Ongoing Costs
Upfront and ongoing costs are determined on whether you join a brand or go solo with your business coaching. Just as an example, here is what you can expect to pay upfront and in terms of ongoing costs when you join a business coaching franchise:
An upfront license and training fee
This upfront payment can cost between $27,500 to $300,000. This is the cost of the initial license to own and run the business coaching franchise, as well as the training fee.
Monthly royalty fees
Royalty fees usually begin straight away, however some business coaching franchises have started delaying royalties to give their franchisees time to find their feet. Usually, this amnesty is 3 months. After this, royalties can be a fixed monthly amount, or based on a percentage of how much you earned that month.
When investing in a business coaching franchise, some franchisors may ask you to buy a website, software, marketing and branding materials.
Return on Investment
In order to determine your return on investment as a business coach, you need to consider a variety of factors, such as your invested time, money and training. If you choose to go solo as a business coach, you may not be initially outlaying as much money as you would buying a franchise, but you will be investing a lot of time, and you won’t receive the same kind of training. When you join a business coaching franchise, all the training you could need is provided, and you won’t have to spend as much time setting up your business, creating a marketing plan and generating leads, because all of those tools will already be handed to you from the get-go. This is priceless as you’ll be able to start recouping your invested money in no time as you start securing clients from the very start.
How Much Money Can You Actually Make as a Business Coach?
How much money you can make as a business coach depends on a variety of factors, some of which we mentioned above. However, the below numbers are based off how much money you can earn as an ActionCOACH business coach, just as a point of reference.
In terms of rates, our programs work on a monthly retainer rather than hourly rate. Typically, an ActionCOACH has a monthly revenue of around $25,000 with approximately 20% of that as outgoings, leaving 80% retained.