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Sell PRODUCTS… Not Services
In my series of articles in this magazine I’ve been discussing strategic marketing and its importance in helping coaches as well as small business owners to generate more leads and close more sales.
Previously, I explained how any coach can employ “systems” to create a coaching business versus simply trading their time for money… which is nothing more than having a JOB!
Coaches today need a system for generating leads… a system for converting those leads into paying clients… a system for getting their clients quick results (especially financially)… and a system that provides the coach with ongoing support and resources.
Today, let me explain WHY this is so important for coaches to know and understand. 99% of coaches I speak with charge by the hour. If you do as well, one of two things will eventually happen. You will either starve to death… or you will burn yourself out.
You can’t LEVERAGE time… it’s finite and there is just so much of it to go around.
I assume you would like to build a lucrative coaching practice, and if you consider a low 6 figure income as “lucrative,” then keep charging by the hour.
But if you would like to know how I helped build 4 multimillion dollar coaching companies, then listen to what I’m about to say VERY carefully.
Coaching is a SERVICE… and you CAN’T get rich selling services. You can make a decent living, but you can’t build a lucrative coaching practice that will top 7 figures (there simply aren’t enough hours in the day).
For example, to break the 7 figure mark coaching 8 hours per day, 5 days per week, 50 weeks per year… you would need to charge $500 per hour. I would estimate that maybe 10% of all coaches are even remotely close to this hourly rate.
But now consider this. That figure is assuming you’re booked solid 8 hours every day… every week… all year long. That’s not going to happen, and if by some miracle it did happen, it’s not sustainable. When will you have time to do lead generation to keep your pipeline full of clients?
As some of them drop off (as they inevitably do), how are you going to replace them?
Here’s the deep dark secret that top coaches don’t want you to know. Sell PRODUCTS… not services!
And I’m not necessarily referring to the junk products you see most online marketers peddling these days, such as an online 3 series webinar course on SEO… or how to use Facebook and so on.
There’s nothing wrong with doing that, but many of these types of products sell for around $97… up to maybe $497. If you want to make BIG money doing this, you better have one MASSIVELY large database to market to.
Most coaches don’t! Not to mention most coaches don’t have a product to sell to begin with.
So let me help you out here, and tell you exactly how I help the 500 plus coaches I work with worldwide overcome this major obstacle to building a 7 figure coaching practice.
Last week, I outlined 8 simple strategies that coaches can use to easily find more than $100,000 in less than 45 minutes. Finding them this large amount of money quickly and effortlessly obviously makes it fairly easy to sign up prospective coaching clients.
But here’s what’s even better about these 8 strategies. They actually work… and produce extremely lucrative results for the businesses that implement them.
Since these strategies come from the coach, and are then implemented with the coaches help, guidance and expertise, WHY doesn’t the coach receive a portion of the additional profit they produce for the business?
Our coaches typically negotiate a monthly retainer with their coaching clients of at least $997 per month on a 12 month agreement. For that investment, the coach typically provides 45 minutes of one-on-one coaching time every week.
Sounds like time for money, doesn’t it? That’s because it is time for money… IF that’s all they charged!
But our coaches also negotiate a 20% profit contingency that entitles them to collect 20% of ALL additional profit they help EACH of their clients earn over the term of the agreement.
The 8 strategies we teach them to implement have a track record of producing approximately $500,000 in additional revenue every year.
So do the math… if you’re coaching a business with a 50% profit margin, and that business generates an additional half million dollars in additional revenue in the first year alone, you receive $50,000 of that additional profit… PLUS your $997 monthly retainer which is an additional $12,000 over the full year.
That’s $62,000 in one year… for ONE client… and for working with them a grand total of 3 hours per MONTH!
And now that you have those 8 strategies in place, you can begin to implement additional strategies in year 2 that will continue to increase your contingency fee. Or if the business is happy where they’re at after year one, you still continue to collect your contingency fee for however many years you were able to negotiate in the agreement (often 5 years).
Those 8 strategies are basically a PRODUCT you implement with every business you coach. You simply repeat the exact same strategies with every business you work with, year after year.
Now you’re on your way to seven figures, and this is just one methodology coaches can use to build a million dollar plus coaching company.
Next month I’ll provide you with additional ways you can create a product through your actual coaching services.
So until next time,
About Adrian Ulsh
Adrian Ulsh is the CEO for Leader Publishing Worldwide, the largest online provider of coaching services worldwide. Adrian currently works with more than 500 coaches in 24 countries advising them on building 6 and 7 figure coaching practices.
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