Is Online Coaching The Right Choice? Pros and Cons of Selling Coaching Programs4 minute read
You heard about online coaching and you are wondering if starting your own coaching business is the right choice for you?
If this sounds like you, or if you are just curious to learn more about the pros and cons of becoming an online coach, this article is for you!
Keep reading below to find out if online coaching is the right path for your business and what are the benefits and drawbacks of becoming an online coach.
The Pros of Online Coaching as a Business
Selling online coaching programs has many different benefits: both for you - the coach - and for your clients. Let's see what are the most popular reasons why people decide to start a new business with online coaching.
High-Profit Margins and Revenue Potential
Online coaching, especially one-on-one coaching, is one of the most profitable eLearning business models out there. Many online coaches charge thousands of dollars for their programs or coaching sessions.
As an online coach, you can set the price you want for your services! High prices and low costs make online coaching a business where it is easy to achieve high-profit margins. Providing personalized one-on-one coaching service offers a high value that coaching clients are willing to pay for.
The profit margin in online coaching is not comparable to other business models, such as eCommerce, where you have many high costs to worry about in inventory, storage, shipping, and so on.
Potential to Impact Other People's Lives
One of the best benefits of online coaching is the deep value you are providing to clients through the sessions. As an online coach, you have the potential to improve your clients' lives and sometimes even completely change them for the better.
The value of online coaching sessions justifies the high prices in the industry, as many times it is impossible to quantify the transformation that the coach is inspiring in their clients' lives.
This is not only a huge benefit for your clients but also for you - the coach. By offering a product or service that has the potential to improve other people's lives, you have the opportunity to offer real value and you will likely feel extremely rewarded from your work.
Low Initial Investment
Compared to other business models, you do not need to invest a significant amount of money to get started as an online coach. In most cases, you can start your own business with less than $100.
Assuming you already own a laptop and have a stable internet connection, all you need is a few pieces of software to get started with your online coaching business.
You can buy a subscription for software like Heights Platform for as little as $39/month, and you also get a free 30 day trial (which is more than enough time to lay the foundation and launch your online coaching business).
A dedicated online course or coaching software (like Heights Platform) is really all you need to start an online coaching business. As for marketing your business, you can gain new coaching clients without spending any money at all!
Check out this article to learn more about how to promote your online business without investing money on paid ads: Get Your First $100k Without Paid Ads: How to Grow Your Online Course Business Organically
You Can Work From Anywhere in the World
All you need to get started as an online coach is a laptop and a good internet connection. This means that you can work from anywhere in the world and have extremely flexible working hours.
Depending on where in the world you are living, you may choose to target different audience types according to your location, however, many online coaches do not limit themselves to a single location when it comes to attracting clients.
This type of online business is a great fit if you are looking for a business opportunity that allows you to travel and not be tied to a fixed schedule.
Whether your goal is to travel the world, spend more time with your family or simply work from the comfort of your own home, online coaching is definitely a great way to reach these goals.
The Cons of Online Coaching as a Business
Like any other business, online coaching also has some drawbacks. If you are considering becoming an online coach, it is important for you to know about the potential obstacles that come with this business, to better prepare yourself for the launch.
Let's see below what are the main "cons" of selling online coaching services:
Hard to Scale
As an online coach, you focus 100% of your time on helping a few clients. Since your income is tied to your time (you are selling consulting, in other words, time with you) you can only work with a limited number of clients at a time.
This makes online coaching a hard business to scale. So before getting started with your online coaching business, it is important to consider this. Are you looking for a business where you can create leveraged income? Do you want to be able to scale your business in the future?
You Need Leads First
As with online coaching you are offering very expensive services, it is harder to convince potential customers to purchase from you. This is why to be successful as an online course you need to build and grow your audience of engaged leads.
If you do not have an audience or anyone interested in your business already, it can get tricky to promote your coaching program and gain new clients.
Building an engaged audience can be done, but it takes a lot of time and dedication. Check out this article from our blog to learn how to grow your audience: 5 Tips to Grow Your Business With Content Creation and Build an Audience Around Your Online Course
No Leveraged Income
With online coaching, it is harder to gain a leveraged income. What is more typically known as "passive income", leveraged income means profits that are not directly bound to your time.
Leveraged income is easier to generate with a product such as an online course, where you work once to create content and promote the course. After that, when people start buying your online course, you are gaining new income without putting in more work, since your online course is already made!
This is what we call "leveraged income", rather than "passive income". If this is what you are looking for, online courses might be a better choice for you.
With online coaching, for each new client, you gain you need to focus a significant amount of your time to help them, so while there is potential to charge a higher price for each client, there is no potential to produce a leveraged income stream. That said, as an online coach, you could always offer something like an online course as an additional revenue stream in the future.
Learn more about the difference between online courses and coaching here: The Difference Between Online Coaching and Online Courses: Which is Better?
There are pros and cons to starting an online coaching business. Overall online coaching offers many benefits including great earning potential, high value and rewards and financial freedom.
Start your 30 days free trial with Heights Platform if you are ready to become an online coach or online course creator!Create Your Online Course Today