Why Do Coaches Fail at Making Money?

Introduction

Have you ever wondered why so many coaches fail at making money? Well, I have some insights to share with you. However, before we get into it, let me preface this by saying that coaching is still a wonderful profession and can be very lucrative if done right. The reason why many coaches fail at making money is often not because they didn’t try hard enough or were lazy but rather because they don’t know how to build their business in the right way!

Here are the reasons why coaches fail to make money:

Underestimating the amount of effort and time needed to build a coaching business.

• You need to be prepared to work hard.
• You need to be prepared to work long hours.
• You need to be prepared as well as your clients, if not more so.
• You must understand that you may have no income for a few months. This is normal and expected for coaches who are starting out, but it's important that you know this going in!

If you're willing to put in the time and effort required by a coaching business, then congratulations! You're on your way toward making money doing what you love doing most: inspiring others through empowerment and encouragement.

Misunderstanding how to use social media and other digital platforms to effectively market your coaching business.

Social media is a great way to connect with clients, but there is a specific way to sell your coaching services through social media.

It's easy to make this mistake if you are new to your business and want quick results. You feel compelled to "do" whatever everyone else has figured out, and you feel left out or like you're missing something important that other people have figured out about marketing. That's not true—if done incorrectly, social media is even more confusing for coaches than it is for other businesses, because most of us don't feel comfortable selling on social media (or anywhere else).

Social media has its place in the world: It can be used effectively as part of your marketing strategy—if done correctly. If done incorrectly, however, it will negatively impact your ability to earn money from coaching because most people who use Facebook or Instagram aren't looking for more information about how they can improve their lives; instead they're just scrolling through selfies and vacation photos (and yes, I'm guilty too!). So, while these platforms are indeed powerful tools when used properly—they can also be very damaging when used incorrectly! Your outreach needs constant testing and tweaking. What worked yesterday, will not work today.

Not using the right tools and software.

Without the right tools and software, you won't be able to run a successful coaching business. You need to be able to see your clients' progress in real time and have access to their information—even if they're not in front of you. You also need a hassle-free way for them to pay for their sessions and get updates about what's happening with your business.

The best tools I've found are:

• Google Calendar for scheduling and keeping track of client appointments (especially important if you have multiple coaches or assistants)
• A task management system like Asana or Trello so everyone can see what needs doing, who's doing it, what's been done, etc
• Email marketing services like MailChimp or ConvertKit (or both) so people can subscribe via email

Selling cutting edge information with old-school sales techniques that don’t work anymore.

This is the most common sales mistake made by coaches and it’s easy to see why. The old adage "Sell, sell, sell!" still seems appropriate for selling products like cars or computers where the buyer doesn't understand how they work. In today's world though, as we've become more educated and experienced consumers, there are very few people who want to be sold to.

The new way of doing business is not about pushing products on people but rather engaging them in an educational process that helps them make their own decision about whether or not they want your service or product. This requires a different set of skills than simply learning how to close sales by being pushy and insincere but if done correctly can lead to much more satisfying results both financially and personally.

Not using a proven sales funnel – or worse, ignoring it completely.

The first and most important thing to understand about sales funnels is that they aren't just for marketers. They're also for coaches, who should be using them as part of their business model.

A sales funnel is a process that takes you from the top (cold prospect) to the bottom (paying customer). It has several steps, each with its own goal:

• Attract – get people's attention and make them aware of your brand or product/service
• Convert – convert those who are interested in what you offer into paying customers
• Close – close deals and provide excellent customer service so they become repeat customers

Perpetual confusion over what services you actually sell and how much they should cost.

Stop selling products and services that you don't even understand, then charging the wrong amount.

Before you can build a profitable coaching business, you need to clearly define what it is that you sell and how much it should cost. Otherwise, all of your efforts will be wasted—and that's not good for anyone. Here are some questions to consider when determining the value of your products or services:

1.1 Who do I serve?

1.2 What’s their pain point?

1.3 How is this different from what other people in my industry are doing?

1.4 Why would they want me over someone else?

2.1 How does my product or service solve a problem for my audience?

2.2 What does it look like on an individual level (e.g., does it help someone lose weight) or on a larger scale (e.g., reduce stress levels in schools).

2.3 Does it offer convenience or savings?

2.4 Are there other benefits besides getting rid of pain points (like having fun).

2.5 And how do I know if something works—or better yet, if people actually want it enough so they'd pay for it!

Undervaluing your work and services by not charging enough (or charging at all).

• Not charging enough: This happens because coaches are afraid to charge what they're worth, and as a result, they sacrifice their income by undervaluing their work. They may have a hard time getting over the stigma of being paid for something that is "supposed" to be their passion or calling. This can also lead to a lack of confidence in charging for what you do, which ultimately results in doing it for free or at a discount (or having an unsustainable business model).
• Charging too much: On the opposite end of the spectrum from undervaluing yourself is charging too much for your services. It's important not to fall into this trap either, because it can discourage clients from purchasing from you, especially if they feel like they aren't able to afford your services. In addition, if someone feels like they don't fit into your ideal clientele because their budget isn't high enough or for whatever reason—even if it's not true—they'll assume that there isn't any potential value in working with them at all since there isn't any value in working with someone who wouldn't want me anyway...

Lack of focus, consistency, clarity, and authenticity in marketing messaging.

This is the one that trips up most coaches. They want to be everything to everyone and end up being nothing at all. It's a tough spot to be in because you're trying to market something that isn't easy to explain or understand at first glance. You need a clear message and an authentic voice that can resonate with your target audience (which we'll get into later on). If they don't hear anything close enough to what they need from you within your first few attempts at communicating with them—they're gone forever!

Not knowing how to understand your target audience’s needs or identify their pain points.

One of the biggest mistakes coaches make is not understanding their audience’s needs or identifying their pain points.

The first step in your business is to identify who you want to serve and understand what their needs are. This could mean asking them questions like:

• What challenges are you facing?
• What do you wish was different?

No coaching business model – that is, no clear plan for building a coaching business that actually generates income.

For many coaches, this is the biggest problem they’ll face when trying to make money with their coaching practice. They work hard and do great work with their clients but they don’t have a plan for how to build their enterprise so that it makes money in the long term. In other words, they don’t understand how to create an actual business out of what they love doing most: helping people improve their lives!

A lot of coaches think that having a coaching business means just charging what you feel like charging (which often ends up being way less than you need) and seeing who walks through your door. This approach might work at first but eventually it will hit a wall because there won't be enough people willing or able to pay enough for your services in order for you to build up any kind of sustainable income stream from them alone.

Forgetting about your own basic needs (like health, family time, rest) when it comes to working long hours for little or no pay.

You’ve probably heard the saying, “you cannot give what you do not have.” That applies to coaches as well. If you are not taking care of yourself and your needs, how can you expect to be able to help others? You can’t!

So why would any coach ignore their own basic needs when it comes to working long hours for little or no pay? It makes no sense!

Waiting for the perfect time or circumstances instead of taking action now!

There is never a perfect time or situation to start. The right time to start is now, yesterday, tomorrow and every day from there on out. I’ve seen so many coaches fail at making money because they wait for the perfect time or circumstances instead of taking action now!

If you want to make money as a coach then don’t wait for the perfect time or conditions before you get started on your first project!

You need to take action immediately. You can always tweak things later but if you don’t start now then nothing will ever happen!

There are many reasons coaches fall short in making money from their businesses but most can be overcome with the right expertise and support!

Coaches need to be aware of the challenges they face. If you're not aware of what's holding you back, it's going to be difficult for you to take action. Being able to clearly identify any issues is a key first step toward overcoming them.

Coaches need to be aware of the solutions available for any challenges they face. There are lots of tools out there that will help you get unstuck and move forward! It's important that coaches are using these tools effectively, so it's critical that they know what they're doing before jumping into things headfirst.

Coaches also need support while working through problems related to their business growth so they don't feel stuck or overwhelmed by what feels like an impossible situation (which could lead them down an unhealthy path). It is possible for coaches who feel stuck or overwhelmed by these feelings because there's no one around who understands them well enough yet still wants support during this time period where nothing seems like it works out right away no matter how hard people try "doing" something differently."

Conclusion

There are many reasons coaches fall short in making money from their businesses but most can be overcome with the right expertise and support!