Coaching Blog

Life Coach Salary: How Much Money Do Professional Coaches Make?

Posted by Julia Stewart

Life Coach SalaryWant to know what kind of salary a life coach makes?

I wrote about international coaching salaries in the 2012 Trends in Business and Life Coaching post, based on the new ICF coach survey, which sheds light on the parts of the world where coaches earn the most. But a Sherpa Executive Coaching Survey of international coach salaries just came out, so here's some new info, broken down by type of coach.

It's important to note that executive, life and business coaching incomes vary wildly, (anywhere from free to thousands of dollars per hour) so these averages may not represent what most coaches actually make. However they do offer some clues.

Average coaching salaries according to Sherpa:

  • Executive Coaches make $325 per hour
  • Business Coaches make $235 per hour
  • Life Coaches make $160 per hour

What's the difference between a life coach, a business coach and an executive coach? Sherpa's definition of an executive coach is someone who coaches executives on behavioral issues, which basically means an executive coach is a life coach for executives.

I take issue with Sherpa's definition that business and life coaches are consultants and advisors. Real coaches are neither consultants, nor advisers. Real coaches help their clients think and act more resourcefully, resulting in personal growth and achievement and for that reason, coaches usually make a lot more money than consultants or advisers.

In my experience, new business and life coaches can charge $100 - 200 per hour and veteran coaches with established results can often charge $250 - 600 per hour. What makes the difference is the skill of the coach and who they coach.

It's pretty extraordinary that someone who coaches by phone in their jammies from their home office could charge more than a Park Avenue lawyer, but it happens - if their clients get incredible results and can afford to pay for them.

Here's how: most successful coaches only have a few clients. According to Sherpa,  coaches average between 6 and 6.5 clients per week. When you only coach a few clients, you can be at your best virtually all of the time, which makes it possible to give incredible service and results. That's when you can charge a lot.

So average annual incomes, according to Sherpa, range from $55K to $116K. That's pretty close to past ICF survey averages for a life coach (or business or executive coach) salary.

Learn more about life coach salary rates and how to set your own coaching fees:

 
Get the FREE Life Coach Salary eBook

Topics: business coach, executive coaching, money, Coaches, Business Coaches, Life Coaches, business consultant, life coach salary, Life Coaching

10% of Coaching Schools Go Out of Business Every Year

Posted by Julia Stewart

coaching schoolsThe Sherpa Executive Coaching Summary, a large-scale annual survey on the state of executive, life and business coaching, was just released yesterday, with a startling statistic that 10% of all coaching schools worldwide go out of business every year - every year.

I've heard this statistic tossed about in reference to specific years, but now it's becoming an annual trend? This flies in the face of an old coaching myth, that the real money is in coach training, not coaching. That couldn't be further from the truth.

Why are coaching schools going out of business when the profession of coaching is still growing?

1. One theory is that there are too many coaching schools. As Donna Steinhorn mentioned in her recent The Truth About Coach Training post, 10-12 years ago, there were only a few coach training schools, but now there are well over 100 coaching schools, worldwide. Sherpa says there are actually over 300 coach training schools in the world. In fact, peer.ca, which tries to compile all the coach training schools worldwide, lists 508, as of today.

That means around 50 coaching schools will go out of business this year. Will one of them be yours?

2. Another theory is that many professional coaches, believing the myth that 'the real money is in coach training', started coaching schools when their businesses were challenged recently during Depression 2.0. If that's the case, I'm guessing most of them have/will go out of business, because it is actually much more expensive and time-consuming to run a quality coach training business than it is to run a coaching business.

Personally, I made more money per hour as 'just a coach' than I do running School of Coaching Mastery. Education, done well, is labor-intensive and labor is expensive.

Why do I do it? SCM is a labor of love for me. I have a vision of one million master coaches worldwide and I'm just getting started.

3. Another theory of why 10% of coach training schools go out of business, is that coach training has become a commodity. There is so much competition that schools are competing on price, rather that value. This was further supported by the incredibly high unemployment rates of the past few years, when people were desperately trying to start coaching businesses with little or no money.

When money is extremely tight, unlikely promises, such as the promise of one coaching school mentioned by Sherpa, that you can 'Become a Certified Professional Life Coach in Just 16 Hours' for $397 or $497, or whatever the price du jour is, become alluringly tempting. If such a school also brags about their 3000 successful graduates, you have to wonder about their criteria for 'success'. I've talked to quite a few 'graduates' of these 2-week wonders (because eventually they realize they need more training and contact me) and not one of them has told me they ever got a single paying client.

So in the race to the bottom, some schools, even the huge schools that were founded in the mid-nineties, have become less profitable. And if you're not in it for love, you'll get out if there's not much profit.

School of Coaching Mastery is about to turn five years old in March. We've weathered Depression 2.0 and our international Ultimate Coach Training coach-students are spreading their masterful coaching skills to thousands of grateful (paying) clients. 

I wouldn't close this coaching school for anything. I've got too much work to do to get those one million master coaches out there changing the world for the better.

What do you think? Do 10% of all coach training schools really go out of business each year? Why or why not? I'd love to hear your thoughts in the comments section, below.

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Topics: Coaching, executive coaching, coach training, School of Coaching Mastery, free coach training, Business Coaches, Life Coaches, coach training schools, coaching schools, economy

Career Coaching Spikes Says CNN Money

Posted by Julia Stewart

CNN Money LogoOn September 29th, CNNMoney wrote, "Should You Hire a Career Coach?"

In it, Christopher Metzler, associate dean for human resources studies at Georgetown University, says, "Any time there's an economic downturn, career coaching spikes,"

With job searches now averaging 25 weeks, it's no surprise that the out-of-work are looking for every competitive advantage they can find. And while career coaching is not cheap,  one session averages $161, it more than pays for itself, if you land a great job a few months earlier than you would have otherwise.

There are pitfalls, however. As the article points out, not everyone who calls him/herself a career coach is skilled or qualified to help you reach your goals. And the quality of coach certifications varies widely. Some coach certification training programs take only a weekend to complete, with every participant guaranteed a certificate just for showing up. (I recently spoke to a coach who completed one such program. She confirmed that it was "pretty much a joke.")

Two places you can find career coaches who have pledged their professionalism, are the coaching trade organizations, IAC and ICF. Each has a Find-a-Coach feature. You can also find career coaches at Mastery Coach Exchange, where you can easily connect with and find out about your coach, before trying them out.

Other coaching specialties that do especially well in economic downturns are business and corporate coaching, executive coaching, and money coaching, but even fields like life coaching do surprisingly well, especially now that there are lower-cost options.

Here's the full CNNMoney article on career coaching. Check out their sidebar for more interesting information about it.

Read the Coaching Commons article on the same subject here.

Topics: business coach, corporate coaching, executive coaching, Career, ICF, Coach Certification, Life Coaching, IAC, certified coach, economy, FIND A COACH

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