How Much Do Life Coaches Make in 2023?8 minute read
The coaching industry is valued at $2.85 billion globally, and there are many opportunities for solopreneurs and creators to start a business as a life coach.
Before you embark on this journey, it is natural to have questions, such as: how much money can I make as a life coach? Or, what is the average salary of a life coach?
In today's article, we will cover what life coaching is, how much life coaches make, and how you can increase your rates in your coaching business.
What is Life Coaching?
Essentially, a life coach is a professional who helps clients reach a better version of themselves.
The coach and client work together to improve different aspects like career, self-care, and relationships, which affect the client's daily happiness.
Coaching includes a lot of teamwork between the coach and the client. The coach uses a variety of tools to help the client set goals, overcome challenges, and use their motivations to achieve their goals.
Another important part of coaching is not only reaching short-term goals but also helping clients realize their natural ability to independently make progress in the long term, even without the assistance of the coach.
Life coaches commonly use these methods in their coaching sessions:
- Asking Thoughtful Questions: They reflect and pose questions that prompt deep thinking.
- Active Listening: They interpret both spoken words and nonverbal cues to better understand the client's needs.
- Motivational Interviewing: They uncover the fundamental values behind the client's aspirations to empower them.
- Planning and Goal Setting: They help clients create an action plan to reach their goals.
- Ensuring Accountability: They monitor clients' progress by setting goals.
Some coaches might also incorporate other techniques into their sessions to foster growth, like meditation, breathwork, movement, and energy practices such as reiki.
However, these techniques often require specialized training and are beyond the usual scope of a life coach's practice.
Learn about the pros and cons of starting your own online coaching business: Is Online Coaching The Right Choice? Pros and Cons of Selling Coaching Programs
Different Types of Life Coaches
Life coaches come in various specialized fields catering to distinct personal growth and development aspects.
Health and wellness coaches focus on promoting physical well-being through lifestyle changes, exercise, and nutrition.
Career coaches assist individuals in navigating professional paths, making career transitions, and achieving work-related goals.
Relationship coaches help individuals enhance their social interactions and build healthier connections.
Financial coaches provide guidance on managing money, budgeting, and achieving financial goals.
Creativity coaches support artists and creators in overcoming blocks and finding inspiration.
Leadership coaches work with individuals to develop strong leadership skills and excel in their roles.
These are just a few examples of the main coaching categories out there, but you are not limited to focusing on these niches only.
What is the Difference Between a Life Coach and a Therapist?
A life coach primarily focuses on guiding individuals toward setting and achieving personal or professional goals, emphasizing actions and accountability.
They often work with clients who are looking to enhance specific areas of their life, such as careers or relationships.
On the other hand, a therapist primarily addresses mental health and emotional issues, using various therapeutic techniques to treat conditions like anxiety, depression, and trauma.
While life coaches help clients navigate their present and future, therapists delve into the client's past and present to promote psychological healing and overall mental health.
In contrast to coaching, therapy is a more regulated practice. Therapists hold licenses as mental health experts and can diagnose and manage mental health disorders, such as anxiety and depression.
They are also bound by specific ethical guidelines and legal regulations that mandate privacy and confidentiality.
How Much Do Life Coaches Make?
Since coaching is a business, there is no regulated or set rate you must charge as a life coach.
This makes things a little trickier when it comes to understanding the average income of a life coach.
However, here is some data to help you better understand how much money you can make as a life coach:
Let's start with the official reports first.
The US Bureau of Labor Statistics classifies coaches under the category of educational, guidance, and career counselors and advisors, who are reported to earn an average of $60,140 or up to $98,530 per year.
This data, however, also includes other professions in there, such as school teachers, counselors etc. So it might not give us a 100% accurate representation of the salaries of life coaches alone.
An independent survey reported that executive coaches make around $12,000 to $25,000 per client.
The truth is that coaching is a business, so as the business owner, you have the freedom to choose your own rates and influence your income by the effort you put into promoting your coaching business, acquiring new clients and growing within your niche.
As a business, getting to choose your own rates is great, but you also need to find your own clients. There are a number of life coaches out there who likely make very little as they are starting out and learning how to get clients. Similarly, on the top end, a few of the most successful life coaches will earn many times more than the average.
Your level of experience and expertise can also influence your earnings as a coach. The more past clients you help succeed, and the more experience you gain, the higher your rates can be, and the easier you will be able to attract new clients.
Learn more about getting your first coaching clients: 6 Actionable Tips to Attract Your First Coaching Clients
How to Price Your Life Coaching Business
When considering how to price your coaching business, there are no strict rules, giving you the freedom to set your own rates. However, this flexibility can also complicate determining the ideal pricing strategy for your online coaching program.
Firstly, it's crucial to distinguish between the various coaching services you can provide and how to price them effectively.
1-on-1 Coaching Pricing
One-on-one life coaching involves working with individual clients and addressing their specific needs.
You'll be investing your time and expertise, and prices for a single session can range from over $100 to around $1000.
Is one on one coaching what you are after? Check out this article from our blog: What is One-on-One Coaching and How to Get Started
Pricing structures for 1-on-1 coaching vary, including hourly rates, packages, or monthly subscriptions. Despite the session's duration, remember that your preparation and follow-up efforts also contribute to the value you provide.
Group Coaching Pricing
Here, you guide a group of individuals collectively. Group coaching is generally priced lower than individual sessions due to the shared experience.
Pricing can depend on group size, and some coaches charge around 30% of their 1-on-1 rate per participant. Flexibility in payment options, such as per session or through packages, exists.
Learn more about group coaching: How to Successfully Run Group Coaching Programs in Your Online Business
Masterminds involve small groups with similar goals, facilitating peer support and idea sharing. Prices depend on group size, meeting value, and frequency.
Exclusive masterminds can cost $10,000 to $30,000 annually, while larger groups might have lower monthly fees.
Learn more about masterminds: What is a Mastermind? How to Create a Mastermind Group for Your Online Coaching Business
Different Pricing Structures for a Life Coaching Business
When choosing your coaching pricing strategy, you should consider the nature of your services, clients' needs, and desired outcomes.
The goal is to create a pricing structure that reflects the value you deliver while fostering long-term client success.
In this article, we go deep into these coaching pricing strategies: How to Price Your Online Coaching Programs
Charging per hour is common, and suitable when the coaching topic requires a limited number of sessions or if coaching isn't your primary focus.
However, it may not be ideal for long-term growth, as the value of coaching lies in outcomes rather than time spent.
Monthly retainer pricing suits ongoing, continuous learning or goals that require extended periods to achieve.
This is suitable for clients with ongoing needs, like personal fitness training.
Coaching Program Packages
The most effective strategy for goal-focused coaching is offering packages of sessions. Structuring packages based on clients' desired outcomes is compelling.
This approach aligns both your needs and clients' transformational goals, creating a mutually beneficial arrangement.
How to Make More Money as a Life Coach
If you already have a life coaching business or want to start your own one but are curious to know how you can make more money than the averages previously described in the article, then keep reading below.
By implementing these strategies, you can elevate your income potential and establish a thriving coaching practice that benefits both you and your clients.
Here are a few tips you can use to increase your base life coaching salaries, charge higher rates, and justify your high pricing with value:
Diversify Your Product Offerings
To increase your income as a life coach, consider diversifying your services beyond one-on-one sessions.
Creating additional streams of revenue, such as selling online courses, ebooks, and other digital products related to personal development, can provide a passive income source.
This allows you to reach a wider audience and leverage your expertise without the constraints of time-bound coaching sessions.
Developing high-quality, valuable content can establish you as an authority in your niche and attract clients who are willing to invest in your offerings.
An online course is the perfect example of a product you can create to diversify your income and build a leveraged income stream.
- The Difference Between Online Coaching and Online Courses: Which is Better?
- How to Add an Online Course to Your Coaching Business
- Find the Right Business Model to Start Selling Online Courses
Once you create your course, it has the potential to generate recurring income forever - without requiring much ongoing work from your side!
While with coaching, you are trading your time for money, online courses are self-paced learning programs where your customers do not need constant input from you. Plus, if you promote your online course the right way, your income will start scaling.
To build a great online course, you need a great online course platform, like Heights Platform. You can use Heights Platform for your whole coaching ecosystem as well!
Learn more about how you can use Heights to sell courses, digital products and run your coaching and community business: Create Online Courses, Digital Products, and Membership Communities
Get More Experience or Certifications
Continuous improvement in your skills and expertise can justify higher rates.
Consider pursuing advanced coaching certifications or attending workshops to specialize in a particular area.
These credentials enhance your credibility and give you the confidence to charge premium rates. As you gain more experience, you'll be able to offer more targeted and effective solutions to your clients, making them more willing to invest in your coaching services.
Revise Your Pricing Strategy
Regularly assess and adjust your pricing strategy based on the value you provide and the results your clients achieve. You can gradually raise your rates by gaining testimonials and success stories.
Introducing tiered pricing with different service levels and benefits can also attract a broader range of clients looking for tailored solutions.
Remember that clients are often willing to pay more when they see the tangible benefits they gain from your coaching.
Promote Your Coaching Business the Right Way
Effective marketing is key to attracting clients who are willing to pay higher rates for your coaching services.
Develop a strong online presence through social media, a professional website, and content marketing. Showcase your expertise by sharing valuable insights and success stories.
Utilize client testimonials to demonstrate the transformative impact of your coaching. Collaborate with influencers or partner with related businesses to expand your reach.
Consistent and strategic marketing efforts can help you stand out and position yourself as a premium life coach.
Collect Success Stories and Testimonials
Showcasing success stories and testimonials on your website and in your marketing can provide concrete examples of how your life coaching services can make a positive impact.
These stories showcase real-life transformations and highlight the value that coaching brings to clients' lives.
By sharing personal anecdotes and testimonials from individuals who have experienced growth, achieved their goals, or overcome challenges through coaching, you can illustrate the tangible benefits of working with you and therefore attract new coaching clients!
Today we talked about becoming a life coach, how much life coaches can earn, and ways to make more money as a life coach.
As we have seen, life coaches can earn different amounts depending on their experiences, marketing and pricing strategies.
Some studies said the average could be around $60,000 to $67,000 per year. But these amounts are not fixed – you can charge what you think is right for your services, and keep in mind some years you may do better than others.
To earn more money as a life coach, you can offer various services like online courses or get more experience and certifications. You can also adjust your prices as you get better and show results. Promoting your coaching business well is important too.
If you are looking for a platform where to build a grow your online knowledge ecosystem, then Heights Platform is a clear choice. With Heights Platform, you can create and sell online courses and manage your coaching business in one place. Plus, you can sell digital products, membership sites and build thriving online communities!Create Your Online Course Today