The $500k Plan for Coaches. It’s Easier Than You Ever Imagined with Mike McMahon
In this article, I’m going to share with you why $500K for Coaches is easier than you ever imagined.
I’ll also cover some common mistakes coaches make that cost them hundreds of thousands of dollars a year. And what you need to create Irresistible Offers.
If you’re like most coaches some of these challenges will sound familiar.
- You struggle to get high paying clients.
- You coach your guts out only to hear “Your great! When I’m ready I’m calling you.” But they never call.
- You’re not sure how much to charge or how to show the value you deliver.
- You think you must compete on price to get clients.
- You have people sign up for a strategy session but then they ghost on you.
- You still haven’t broken the six-figure mark, or your income fluctuates wildly month to month.
If any of this sound familiar keep reading because you’re in the right place.
As I mentioned in this article, I’m going to show you…
- The 5 Most Common Mistakes That Keep Coaches from Achieving $500k.
- I will share a case study showing how a client hit $500k selling courses & coaching.
- I will also share a case study showing how another client hit $500k selling coaching only.
- Plus, How to Create An Irresistible “Yes” Offer.
- And much, MUCH more….
Before I go any deeper into this you might be wondering why I’m qualified to write this. Without boring you with a bunch of details I’ve been selling for over 30 years. In that time, I made a great living as a straight commission salesperson. Along the way, I stepped up to management and started building sales teams. I also earned a reputation of turning companies around.
Several years ago, I got recruited by a startup coaching company to create their sales process and build their team.
I made the first two sales in the company’s history and I recruited and trained a wonderful sales team. We took the company from zero to $7 million annually in the first 6 months.
The same things I teach my sales teams and do myself will work for you.
Enough about me. Let’s dig in. As I said I’m, going to show you why $500K for coaches is easier than you ever imagined. As well as some of the common mistakes coaches make that cost them hundreds of thousands of dollars a year. Plus, what you need to create Irresistible Offers. Keep reading and let’s dive right in.
The first mistake I see a lot of coaches make is being a Jack of All Trades. Instead of picking a niche they try to help everyone.
I understand as a coach we can help almost anyone. The problem with this is you’re positioned as a generalist. We all know the specialist is the one that gets paid the most. They are also the ones that have people coming to them. They don’t go out and beg for clients.
This mistake alone cost most coaches a couple hundred thousand a year.
That brings me to the second and third mistakes which are Undervaluing Your Service. And giving away free coaching sessions to try to get clients.)
What you charge says everything about how confident you are with what you do. When you undervalue your service, you hurt yourself and your clients.
One way you see this is coaches giving away free sessions hoping to get clients. I’m not saying you can’t get clients giving away a free session. But in most cases, you coach your guts out only to hear “Your great! When I’m ready I’m calling you.”
Then a few weeks or months down the road you find out they hired someone that charges more and isn’t even as good as you.
I always say big problems take big checks. Please understand this is not about being greedy. When you get paid more you can invest more time with the client and give them world-class service.
Besides the more people invest to work with you the more invested they are.
The fourth mistake for coaches, especially new ones, is trying to figure everything out on their own. That’s the slowest and most frustrating way to grow your coaching business.
Remember you’re in business for yourself not by yourself. Take the short cut and find someone that’s already done what you’re trying to do and get help. The time and frustration you save will be worth the investment. As a even better investment opportunity, we percent you with this post about Precious Metal IRAs.
I do have a warning though. When you hire a coach for yourself you want to make sure they’ve already done what you need help with.
Some so-called “coaches” make their money coaching coaches but have never had other clients. Worse yet, some are only teaching what they’ve read. While others are teaching what they learned from another coach that coaches, coaches. I’m sure you get the idea.
The fifth mistake I see struggling coaches make is lack of focus.
You may have heard of this as Shiny Object Syndrome.
The real reasons for the lack of focus is not knowing what to do. You want to grow your practice and you know you need clients, but you don’t know how to get them. So, you try something that sounds like it will work but it doesn’t, so you jump to something else.
It’s possible you’ve already tried several things that would have worked, but you gave up too soon. Or something would have worked if you’d have known how to tweak it a certain way.
When you’re getting started you want to get good at something before you add another process to the mix. As you gain experience you can add more processes and scale your coaching practice. Stick with something long enough to be certain if it will work or not. Many times, the breakthrough comes right after you were about to give up.
The real problem is most coaches don’t have a process that will scale so they struggle with feast or famine. As soon as they get full things are great, but they stop prospecting. Then when they lose a client, they start it back up, but it takes a little time and they lose another client.
And the cycle continues.
If you’re going to fill your practice with clients. High paying clients that will help you hit $500k at that. You need what I call an Irresistible Offer. Something that when your ideal prospect hears it, they can’t help but say “YES!”.
But before we do that, we need to make sure the math works. A lot of coaches I work with have never taken the time to make sure what they offer will get them where they want to be. One simple way to do that is to multiply your fee times the number of clients you have. If you charge $1000 a month and you have 10 clients your monthly income is $10k and your annual income is $120k.
The question you want to ask yourself is “Will my fees allow me to reach my goals?”
Think about what your goal for the year is….
I’m talking about $500k but your goal might be $100k, $200k or even $300k. Your goal might be to break $1 million dollars.
Whatever your goal is your offers must add up to help you get there.
For example, if you want to make $300k and your monthly fee is $1k you need to have 25 clients. (25 X $1k = $25k X 12 = $300k)
Let’s face it. Working 1 on 1 with 25 clients each month may be a bit much.
You need to consider how many hours it will take you with that many clients to deliver results. Keep in mind any prep time before a call and wrap up time after as well as any follow up you do. As you can imagine the time adds up fast.
Let’s take a quick look at the first case study I mentioned. This is a coach I helped with their $500k plan that sells a course with coaching.
When this coach came to me, they had figured out how to hit 6 figures, but it was a struggle to do more.
They had a program that delivered great results, but they didn’t seem to be able to take their practice to the next level. In fact, most of their sales were at their lowest price offer.
They offered their program in 3 different levels.
- The top package included 12 coaching sessions and the course for $5k.
- The mid-level package included 6 coaching sessions and the course for $3k.
- The entry-level package included group coaching and the course for $1k.
They sold more of entry-level than anything and their best year was $108k.
They didn’t sell very many of their top offer and in fact, averaged 4 clients at the $5k level for $20K a year. They did a little better with their mid-level offer and 12 clients would usually take it at $3k for $36k a year. They would usually sign up an average of 1 client a week into the group solution for a total of $52k for the year. All that was a total of $108k per year. It wasn’t terrible but they were spending almost $2k a month in ads to get the $108k so their take-home was closer to $80k a year.
I took them through my Client System for Coaches. We repackaged what they were doing with a combination of 1 on 1 and group coaching along with their course.
We kept the fixed fee and the specific amount of time but changed from a 12-month program to 6 months. We raised all their prices, a LOT.
The prices I am showing you are the paid in full prices. They do offer a payment plan for each level with a higher fee.
The new pricing of their top package is $25k. It includes weekly coaching as well as access to the group and the course. We planned on them getting one per quarter which would be $100k a year.
The mid-level offer is $10k. It includes 8 coaching sessions, access to the group and the course. We planned for 25 per year for $250k.
The entry-level is $3k. It is group only and includes the course. We planned on 50 per year for $150k.
Which adds up to $500k
What they are doing 6 months into the program is 4 at $25k, 15 at $10k, and 28 at $3k for a total of $334k. That means if they keep up this pace, they will hit $668k for the year.
The best part is they are doing this with the same ad spend. They did hire a salesperson and are on track to pay that person about $120k for the year.
Because they are selling their coaching along with a course, they already had a lot of the right pieces in place.
But I want to show you another case study that involves a coach that only sells coaching. They sell their coaching for a monthly fee as most coaches do.
When they came to me, they had two offers. Weekly coaching for $1k a month and bi-weekly coaching for $500 a month.
They had 6 clients paying $1k and 4 paying $500 monthly. Their total monthly was $8k for $96k per year.
They had never broken six figures. For some reason no matter what they tried they couldn’t seem to keep more than 10 clients at a time.
I took this coach through my Client System For Coaches. We repackaged up what they offer and helped them sell the value of what they do. I showed them how to position their prices in the terms of how much it costs their client if they don’t have their help. That enabled us to raise their fees quite a bit.
We stayed with the traditional coaching model on a monthly fee with an annual contract.
But we added a group coaching element to their offer.
This way they had something to offer clients that wanted help but couldn’t afford the higher-priced plans.
- Their top-level is now a $10k per month weekly coaching program.
- Their mid-level is $5k per month bi-weekly coaching program.
- Their entry-level is $1k per month group coaching.
The plan is for 1 top level for $120k, 4 mid-level for $240k and 12 entry-level for $144k. That’s a total of $504k.
They’ve been working on this for almost 7 months now. They haven’t enrolled anyone into their $10k per month program. But they are finding it easier than they thought to get people into the $5k plan. Right now, they have 8 clients at $5k and 10 in their group at $1k per month for a total of $50k per month.
That means if nothing else changes they are on pace for $600k per year. They are thrilled.
They told me is they didn’t believe me when I said it was easier to sell coaching at a higher price point. But to their credit, they decided to try it anyway.
They also said the best part is they work less than they were before since their clients are bi-weekly. By the way, they have done this without any ad spend whatsoever.
The thing to keep in mind is – Time is your most precious resource, so the numbers need to match your availability. They need to fit your schedule and what you’re willing to do.
If you’re going to sell your solution as a program you need to know how much time it will take your client to get results. If they need 8 weeks to get results your program is an 8-week program. If they can get results in 6 it’s 6. You also must know how much time it takes you to deliver the program.
Ask yourself what’s the best result I can help my clients get and how long will it take them to achieve it?
If you’re selling traditional coaching it all comes down to how much time you plan to offer and the frequency. Some coaches charge, and get, $5k for 30 minutes twice a month. Others charge that for a single 30-minute session a month. The choice is yours.
So, with all that in mind let’s look at what you need for an irresistible offer.
Irresistible offers need to match what your clients are struggling with and get them results. Think about what you can put in the package that will get your client a quick win. Maybe it’s a 1 on 1 session or a Deep dive that helps them get clarity or better understand how to put in place the solution. You want to think quick start to get and build momentum.
What bonuses can you add to (or pull out of) your existing offer to increase the perceived value? In most cases, your core offer already has too much in it and it’s a great source for bonuses. Look at what you’re offering and think about what you can pull out and turn into a bonus.
If you’re just getting started. Think about the most common objections people have. Then create bonuses that overcome those objections. Templates and scripts tend to be good bonuses. Bonuses are important because people will buy because of the bonuses and a good rule of thumb is to have 3 bonuses.
Put the one you feel has the least value in the middle when you’re presenting them.
Besides, the 3 bonuses offer a fast action bonus. Your fast-action bonus is only available if they sign up right then and it’s best if it’s a big one.
If you help your clients with marketing your Fast Action bonus could be if they sign up right then they get a done for you lead magnet and funnel worth $5k. Or you may be willing to offer a VIP day or half-day valued at $5k or $2.5k.
Sometimes it helps to offer something like a Full Pay Savings, or Quick Decision Savings. Present it by saying something like: The people I love working with who get the best results are the people that decide fast. If you decide today the investment is: (think 20% discount).
It doesn’t matter if you’re offering a course or traditional coaching. It’s amazing how many people are willing to pay in full to save money. For example. If your monthly coaching fee is $5k that’s $60k for the year. The full pay savings would be $50k so they save $10,000 dollars. Be prepared to offer it if they ask if you have any discounts or if there is something you can do with your fee.
The best way to make this work regardless of the coaching model you sell is by creating your $100k offer. Ask yourself. What does it look like? What does it include? What result do your clients need to achieve for this to be an easy “YES!”?
Make it easy for them to say “Yes” by giving them a “Yes” or “Yes” decision. For example: Have more than one offer. In my case, there are 3 ways to work with me. My VIP which is all 1 on 1, My Hybrid which is a mixture of 1 on 1 and group and my group only program. By having them choose which way they prefer to work with me they are saying “Yes” or “Yes”. See how it’s not an either, or scenario?
When you streamline your offer so it’s crystal clear what result you help your clients get. And you price it based on the value it brings to your clients. You will find that it’s much easier to sell and sell for a higher fee.
The key to making this work is for you to own your expert status. The confidence you have in the solution you offer is what your prospect is buying. Believe in yourself first. Remember you are the expert!
I hope by now, you realize hitting $500k or even breaking past $1 million is easier than you ever imagined.
If you’re done trying to figure it out on your own and you’d like to explore what getting help looks like schedule a spot on my calendar at https://theclientsystem.com/book/
About Mike McMahon
Mike McMahon is a Master Sales Coach who specializes in helping coaches and consultants master the art of enrolling high paying clients without being pushy, salesy or slimy. You can learn more at www.salesmasteryforcoaches.com
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