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27 | The 100K Myth: Unpacking the Reality of Coaching Income
Episode 2714th September 2023 • Women in The Coaching Arena • Joanna Lott
00:00:00 00:17:15

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First off, let's address the elephant in the room. We've all seen those flashy ads and success stories claiming that hitting the 100k mark is a breeze. But is it really?

Coaching, like any profession, requires dedication, skill, and a lot of hard work.

While a tiny percentage of coaches might hit that 100k mark, those are often exceptions, not the rule.

Don’t get me wrong, I am ambitious and love a big goal and I would encourage you to set a big goal too.

But I also want to share honest information so you don’t beat yourself up about not achieving this financial goal which is supposedly a piece of cake.

The 27th episode introduction [00:00:00] Introducing the podcast episode and discussing the challenges faced by coaches when entering the coaching arena.

The myth of earning 100k per year [00:00:38] Exploring the misconception that earning 100k per year as a coach is easy and discussing the factors that contribute to financial success in the coaching industry.

The impact of experience, credibility, marketing, and identity [00:10:16] Highlighting the importance of experience, credibility, effective marketing, and self-belief in achieving financial success as a coach.

The challenge of wearing too many hats [00:12:29] Discusses the challenge of coaches taking on multiple roles and the importance of focusing on the right tasks to reach their income goals.

The reality of the 500k coach [00:13:41] Explains that the income number associated with being a 500k coach may not reflect the actual profit due to expenses, and encourages coaches to be realistic and kind to themselves.

The journey of reaching 100k [00:14:57] Emphasises that reaching the 100k mark as a coach is possible but requires dedication, time, and continuous learning, and encourages coaches to focus on their own growth and success rather than comparing themselves to others.

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Transcripts

Speaker:

Hello and welcome to Women in

the Coaching Arena podcast.

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I'm so glad you are here.

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I'm Jo Lott, a business mentor

and ICF accredited coach

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Microphone (Samson Q2U Microphone):

and I help coaches to

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build brilliant businesses.

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I know that when you prepare to enter

the arena, there is fear, self doubt,

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comparison, anxiety, uncertainty, shame.

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You can tend to armor up and

protect yourself from vulnerability.

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In this podcast, I'll be sharing

honest, not hype, practical and

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emotional tools to support you to make

the difference that you are here for.

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Dare greatly.

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You belong in this arena.

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Microphone (Samson Q2U Microphone)-3:

Welcome to the 27th episode of

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women in the coaching arena.

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I'm so glad you are here.

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Today we are delving into a topic

that's been circulating in the coaching

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industry since around 2019/2020.

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And it is that it's easy to reach

a hundred K per year as a coach.

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So let's discuss.

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Let's talk about the elephant in the room.

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So we have all seen those flashy ads

and success stories claiming that

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hitting a a hundred K mark is a breeze.

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But is it really

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Coaching, just like any other profession takes skill, hard work,

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dedication, marketing, sales.

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While a tiny percentage of coaches

might hit that a hundred K mark in

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a really short timescale or at all.

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It's essential to understand

that these are the exceptions.

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Not the rule.

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Think of the world of professional music.

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So you might be an amazing singer.

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We've seen them all on X-Factor.

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These people are amazing.

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But only a tiny percentage of them

will become a household name like

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Beyonce, Elton John, Taylor Swift.

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Just because someone can sing or play

an instrument super-well does not

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mean they're going to be selling out

stadiums or winning multiple Grammys.

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And it's just the same

in the coaching industry.

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So while many venture into coaching,

with that passion and skill.

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Not everyone is going to hit

that hundred K mark effortlessly.

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It takes a combination of talent, timing,

hard work, and sometimes a bit of luck.

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There are also several factors

which will affect how much you

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gain in revenue as a coach.

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And this is what they don't talk about.

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So let's talk about it today.

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So firstly, niche and demand.

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So not all coaching niches

will have that same demand.

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While executive coaching or business

coaching might command higher rates.

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Other niches might not have

that same financial potential.

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Most of the flashy case studies you

will have seen branded about are

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either the business coaches, themselves

sharing their own wild success story.

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Or they are showcasing another sales or

business coach client that they perhaps

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have been friends with for a while.

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But of course you won't know that unless

you have been in the industry for a while.

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So it looks super impressive and it

looks like everybody achieves this.

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And this is why I work tirelessly to

share real honest case studies of genuine

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qualified coaches doing real coaching.

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So we're talking a variety of niches,

so you can get a feel of what an

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honest, not hype business growth

journey looks like in your niche.

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I aim to share client stories.

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Whether or not, they feel they

have had an amazing success story.

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Because depending on your starting point,

success will look different for everyone.

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So even if you have gained

your first ever paying client.

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Now that is a huge win if you were

completely petrified to market.

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Completely petrified

to charge for coaching.

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That will inspire people who

also feel like I just want to

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get my first paying client.

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It doesn't always need to be a

really fancy success story because

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yes, well, some people will fill

their client roster with clients.

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There will be other people who have

that personal, emotional journey

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to go on as well as learning the

practical elements of marketing.

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I want to show real professional coaches

across that wide range of niches, rather

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than you see the adverts and compare

yourself to the fact that this business

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coach is raking in seven figures.

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And you think you should be able

to do the same and you're doing

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career coaching or something in

a completely different industry.

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You just cannot compare those things.

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It's also good to think about what

is the average wage in the workplace.

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So most of the time, it's nowhere near

that a hundred K and you may have worked

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for years to reach whatever level you

were previously at in the workplace.

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So, yeah, just be kind to yourself

and know that it is going to take

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some time to build up your business.

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And it's sadly something that not

many people have any awareness of

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when they're doing the coach training.

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I've just come off a

discovery call myself.

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She just had no idea and never asked

the question of her coach trainer at

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the time as to how many people succeed.

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But when she did ask the question he

said that 20% of people succeed in

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running their own coaching business.

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So at least he was honest when she

actually asked the question, but it's real

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shame that people aren't aware that there

is a whole nother learning curve to go on

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after gaining that coaching qualification.

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And just like the coaching

qualification took time, practice,

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dedication, skill, courage.

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Your coaching business building

journey will say, take the same.

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So who came up with this

a hundred K goal anyway?

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Don't get me wrong.

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I am ambitious.

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I love a big goal.

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I'm not saying that if this is your goal,

this is bad because I have a big goal too.

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I want to share honest information.

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So you don't beat yourself up about

not achieving this big financial

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goal that is supposedly easy

because it does take a lot of work.

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And it's also likely to

require a lot of investment in

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business coaching and support.

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Maybe systems.

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Maybe ads.

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So, if you think you are the only

one failing and everyone else

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is raking in these big figures.

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Just know that you are not alone

and that is completely untrue.

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It's that tiny percentage

of people achieving it and

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usually it's business coaches.

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And I know that's awkward for me to say

it because I am now a business coach who

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helps other coaches build their business.

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This is a true passion for me after

running my own career coaching business

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and executive coaching business.

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I'm not being able to find

any honest, genuine support to

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build my business at the time.

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Well, actually I say that but I did

find an amazing career coach called

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Fay Walis who listens every week.

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Hello Fay.

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Who agreed that I could buy three

mentoring sessions with her.

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It took so much courage to email her.

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And I was really, really

relieved when she said yes.

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And I'm so, so lucky.

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Cause it wasn't what she was doing.

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You know, she wasn't doing business

coaching, but she genuinely shared how

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she had got to where she had in her

career coaching business, which was

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exactly what I wanted to do at the time.

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So it really did give me the courage.

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Confidence.

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She had real belief in

me that I could do this.

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And that meant a lot.

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Since then I'm super lucky that

now Fay is all in on her HR niche.

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She refers other coaches along to

me who contact her for mentoring.

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I really got the entrepreneurship bug and

have all of the training and experience to

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be able to help you to see an honest, real

approach to building a coaching business.

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If you are HR professional, do

you look up Fay Walis if you

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haven't already, she is amazing.

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So rather than run and not want to be

associated with the hype in the coaching

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industry, which I definitely wanted to do.

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I chose to stand up to the hype and

offer honest support to other qualified

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coaches who are building their business.

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So it means a lot to me to create

for you what I wish I knew when

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I was a newly qualified coach.

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And to be honest, what

I still wish I had now.

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I think it's easy for me to continue

talking about newly qualified, but

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actually a lot of the people I work with

have been quantified for absolutely years.

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We all still need support

to grow that business.

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To continue to generate leads

and enquiries into our business.

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That is ongoing and that

will always need to be done.

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And I'm so lucky to be

able to do this work.

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Because if you are similar to me,

Whatever niche you have chosen is

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probably due, to your own personal story.

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So that is often what I find

dictates, where you decide to put

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your passion, put your energy.

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What problem are trying to solve?

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It's often you like three or four years

ago, wishing you had had this support.

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So the second thing that impacts

your ability to earn a hundred

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K is experience and credibility.

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So new coaches often need more

time to build their reputation.

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Gather testimonials.

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Case studies.

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Refine their coaching offer.

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Niche.

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Build up an audience.

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Because it's easy to look at what

someone else is charging or services that

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offering but often they're in a completely

different business phase to you.

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What you can do is sell one-to-one

coaching or higher ticket services because

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that will really help you to sustain your

business and learn how to create an offer.

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That gives that personal touch.

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Your service is hugely valuable and

this period in your business is such

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a valuable period, especially when the

online market is full of online courses.

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And you can stand out by

giving that personal support.

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Our third point is marketing and outreach.

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So a significant part of a coach's

income is determined by their ability

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to market themselves effectively

and reach that target audience.

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It has very little to do with

their own coaching ability.

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So more coach training will not help.

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When you are qualified, the next thing

you need to do is learn marketing

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so you can get real paying clients

and they will be the best on the job

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learning for your further development.

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As you do progress as a coach and

as yes you do want to do more coach

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training, but you will have real impact

and real paying clients to work with.

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Our fourth point which impacts on

this hundred K is your identity.

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So it's not just about being the best at

marketing and being the best at coaching.

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It's also about your self

belief, confidence, money

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mindset, your entire identity.

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And it does take inner work and a

lot of it to build your business.

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I know that from myself and the

amount of work I've done and the

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women I work with who perhaps

undercharge massively, or certainly

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want to at the start of the program.

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And there are so many reasons for that.

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Women are often expected to

do caring, work for free.

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If you talk about money, it's kind

of disgraceful for a woman, whereas

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a man can say, yeah, I want this

big goal and we'll say good on you.

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That's great.

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Providing for your family.

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Well done.

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Whereas women often get shamed for talking

about big financial goals or money.

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So, I don't want this episode to

put you off going for that big goal.

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You go for it.

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Well, I don't want is you to use this

myth that's branded around in the

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industry that it's super easy and

if you can't achieve it, you must

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be not committed or doing something

wrong because that's not the case.

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Our fifth point is systems and a team.

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So another challenge, many coaches

will face is wearing too many hats.

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You are suddenly the marketeer,

the coach, the finance person, all

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of the things and therefore your

time will be seriously stretched.

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So it isn't always easy, especially

without those good systems, paid

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ads and team, a nurture sequence

set up and all of those things.

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So again, be kind to yourself.

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I'm not saying it's not possible to

reach a hundred K without all of this.

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What, I am saying is it depends on the

time you have available and it depends on

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how you are focusing on the right things

that are going to get you to that goal.

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Versus focusing on the, behind the

scenes stuff like the website or

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the emails and all of that stuff.

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Because yes you do want it all

done, but to really get that income,

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it's about contacting people and

building those relationships.

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So why does the a hundred K myth persist?

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Well, I guess it's a catchy number.

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It's a milestone that many entrepreneurs

will see branded around, not just coaches.

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And it's also good to think

about the reality of that number.

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I heard recently, a coach who

is bringing in 450,000 a year.

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Actually paid herself 50,000 in

that year, because there were so

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many other expenses associated with

generating that amount of income.

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So do you know, your profit margin is the

highest a year or so into your business?

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And as you grow, those

expenses will mount up.

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So you may be already earning the

same as someone earning or branding

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themselves around as a 500 K coach.

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Be kind to yourself, be realistic know

what this is all about in the industry.

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It's just a catchy number.

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Just like the four minute mile.

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No one is going to be scowling at you

saying you're doing a terrible job if

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you don't do a mile in four minutes.

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In conclusion, while reaching a hundred K

or more is definitely possible as a coach.

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Especially year on year

of cumulative growth.

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It is crucial to understand the work,

dedication and time it will require.

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And if you do bust through that

quickly, huge congratulations, a small

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percentage will, and that is amazing.

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I will be cheering you on.

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No matter where you are on the scale

of this hundred K myth, it is a journey

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filled with learning growth and you have

a genuine passion for helping others.

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Take one step at a time and know you

will reach that part when the cumulative

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effect starts taking off and all of

your actions start coming together and

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bringing you more consistent clients.

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Thank you for joining me today on this

episode of women in the coaching arena.

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If this episode resonated with

you, please share it with a

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friend or leave me a review.

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Or drop me a line.

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I would love to hear from you.

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joanna@joannalottcoaching.com.

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Remember that success is a journey.

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Not a destination.

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Because I guarantee you, the moment

you hit that a hundred K mark.

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You will start thinking about.

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The 200 K mark, the 500 K mark.

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The million dollar mark.

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The goal will always keep moving.

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Keep learning strive to be

the best version of you.

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And get it in perspective also as

to what you really need for you.

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For your family?

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I truly believe that women can earn

so much more than they think they can.

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So do go for it.

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Set that goal.

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Know that it is possible for

you and just be a bit more easy

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with yourself on the timescale.

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Like, I always say at the end of

every episode, trust yourself, believe

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in yourself and be the wise Gardner

who keeps on watering the seed.

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Thank you so much for listening to this

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episode of Women in the Coaching Arena.

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I have a mess of free resources on

my website joannalottcoaching.com.

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That's Joanna with an A

and Lott with two T's.

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joannalottcoaching.com.

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And I'll also put links in the show notes.

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Let me know if you found

this episode useful.

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Share it with a friend and

leave me a review, and I will

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personally thank you for that.

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Remember to trust yourself, believe

in yourself and be the wise Gardner

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who keeps on watering the seed.

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Get into the arena dare, greatly and try.

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