expressed opinion entrepreneur Contributors are their own.
Coaching has become very popular over the past few years. For many coaches, this is a powerful consulting business, enabling them to work in a variety of organizations and small businesses with a view to helping them achieve their goals and overcome any obstacles along the way. Other coaches see it as a flexible, long-term sustainable way to generate income. Slow and steady wins are known to all – and coaching service is no exception.
Consolidating your revenue stream and understanding the best revenue model for your online tutoring service is critical to your success. You need an income model that is adaptable, scalable, and not too labor-intensive.
I’ll discuss the best revenue model I’ve found and why it works. Let’s take a deeper look at how you can generate income as an online coach:
Related: 4 Steps to Grow Your Coaching Business to $1 Million a Year
1. One-to-one tutoring
This is where most coaches start their careers – because it’s a straightforward way to generate revenue while keeping expenses to a minimum. It’s also a great way to build client relationships that are stronger than those built in group coaching sessions. Most coaches who do one-on-one coaching are more than happy to schedule 25 or more clients back for weekly or bi-weekly appointments.
2. Group coaching
Another way coaches generate income is by offering group coaching sessions. From a numbers game, group coaching means more people in the same period, which means more hourly earnings.
Let’s say you charge your customers $150 an hour. If you have 10 clients in the course instead of one, using the one-on-one coaching method to get $1500 per hour at $150, you can earn $1500 in an hour.
Once the coaching business becomes more established in the industry, group coaching is often attempted. One of the advantages of group coaching, like individual coaching, is that you can operate on a subscription-based model. This means that clients will pay you weekly or monthly for the duration of their coaching experience with you. Regular recurring income that most coaches opt into.
3. Online courses
This is one of the most important and practical ways to monetize your coaching skills. Simply put, an online course package is where an instructor can create a series of audio, video, and text content snippets and stitch them together into an online course. These courses are usually sequentially designed programs of broader, more in-depth study.
Course packages are billed differently than one-on-one and group tutoring. In this case, the instructor will charge a one-time fee for each online course. These can be flat fees or tiered fees. For example, if your online courses have beginner, intermediate, and expert levels, it would be wise to charge for grading. For example, a client pays $400 for a beginner course, then $750 for an intermediate course, and $1000 for an expert course.
Related: A 6-Step Plan for Growing a Successful Coaching Business
4. Consulting Services
Many coaches attract companies by offering them consulting roles. Typically, this is the same way a business hires a strategy or management consultant. The idea is to enable coaches to train and coach team members for X days or X hours in a month.
The coach has a fixed amount of time dedicated to that client. This is a great way to manage time and collect income up front. But companies may not always need coaching services, so if you go this route, you’ll want to make sure you have a steady stream of businesses signing up for your service in different months.
5. Live events – virtual or in-person
Live events are traditionally live live conferences, performances or retreats. They have become increasingly popular on the Internet after the pandemic.
Face-to-face coaching is also valuable because people are more willing to share ideas and experiences this way, and the coach can gain a lot of information from it. It may not always be proportional, but live events are costly. Think venues, reservation systems, catering, recording equipment, lighting, etc. This is where the volume of coaches will be lower, but their profit margins will be much higher.
On the other hand, virtual live events also bring many benefits. As a coach, you can still (as in person) analyze a person’s body language, tone, and general mood. Virtual events are cheaper than in-person events, but if you can attract a decent number of attendees, you’ll be rewarded with little effort.
6. Mixed models
This is one of the newest and most sought-after revenue-generating categories—hybrid models. This is where many of our coaches run their business and we see the value they get out of it.
In the hybrid model, you can charge $50 for the course fee or $5,000 for the full coaching program. You might think this price range is unattainable, but if you choose to sell a range of coaching services, it probably is.
The idea is to sell ready-made courses online, run individual and group tutoring sessions, and add some live events to your calendar. Now you can provide people with ready-made solutions and a very practical coaching experience. This expands your revenue range and gives clients the opportunity to choose the coaching style they prefer.
I would choose the hybrid model as the best revenue model for online coaches today. It intelligently brings agility, scalability and longevity to the business. I think the best way to maintain and manage a mixed revenue model is to invest in a quality coaching platform that can handle all business operations tasks.
Related: 5 Ways to Make More Money as a Coach or Consultant
Online coaching is a big part of the pie, and its revenue model doesn’t disappoint. Whether you have one or more coaching income streams is entirely up to you. There are only two things I urge you to do: First, make sure that whatever you implement is scalable and adaptable. Second, you choose the best online coaching software to help you manage your operations, content, marketing and customer base.