How Life Coaches Become Very Wealthy (Part 3 of 3-part Series)

Part 3 of a 3-part Series on How to Create a Strategic Framework for a Multi-Million Dollar Practice…

Leveraging Your Practice to Become Extraordinarily Rich

Life coaches are in high demand. At the same time, the field is becoming increasingly competitive. In order to establish and grow a very profitable practice, you need to employ a number of strategies. We’ve already considered becoming a thought leader and building a high-end clientele. Capitalizing on these two strategies, you can expand your reach and generate additional revenues.

The vast majority of life coaching practices is based on the talents, training and skills of one or a handful of life coaches. While it’s very possible to generate significant revenues with this business model, it usually requires working with the very affluent and billing them well. Even in this situation it’s not easy to generate significant personal wealth.

There are a variety of non-exclusive ways to leverage a life coaching practice. Here we’ll briefly address three of them:

 Licensing your expertise. In one manner or another, you “license” your life coaching approach and/or content to other life coaches. You receive a per-set fee and/or a percentage of their revenues. This is, in effect, an override model. The more licensing agreements you have and the larger they are, the more you earn.

Extensive productization. Taking your life coaching expertise and transforming it into a broad array of products is a highly effective way to dramatically boost your income. Workshops and even larger events are often very powerful ways of generating income and garnering new clients. Webinars, podcasts, DVD sets and books all prove very useful in enhancing incomes while bringing in new life coaching clients.
Venture life coaching. In exchange for fees, you can take a piece of business ventures. By working with business owners, you receive equity in the business. The financial viability of the business and its prospects are major factors in your ability to monetize these equity positions.

Brand extensions. Having meaningfully established yourself, you’re able to branch off into other – usually related – business endeavors. The ability to move beyond your core capabilities is a function of the strength of your following and the ability to logically and emotionally connect the new ventures with your life coaching practice.

With all these approaches to leveraging a life coaching practice, thought leadership has a very potent if not critical role as seen in the table. Simply put, being a thought leader is instrumental and often essential to leveraging your practice, which is regularly the way you can become very wealthy.

For some life coaches, becoming very wealthy is indeed an objective. For others, it’s not. What we’ve discussed in these three columns can translate into significantly greater personal wealth, even a sizable personal fortune. However, as we previously noted, to most effectively create a life coaching practice that can produce such a financial payoff requires some variation or two or three of the three interconnected methods – becoming a thought leader, building a high-end clientele and leveraging your practice. But, that’s rarely enough.

A life coach who desires to accumulate serious personal wealth must also apply – to varying degrees – Millionaire Intelligence (the mindset and core behaviors of the self-made rich and self-made super-rich). Often, only by systematically and strategically adopting Millionaire Intelligence will your efforts translate into real wealth.