Choosing The Right Life Coaching Business Model for Your Online Coaching

Exploring the pros and cons of different life coaching business models

Life coaching business model
Wondering which life coaching business model is perfect for you? Find out more about One-on-one, group coaching and online course delivery.

Maximizing Your Potential Into Profitability: The Best Life Coaching Business Models to Follow

If you’re looking into starting a coaching business, you know that it can an incredibly rewarding career, but it can also be quite intimidating. With so many different approaches or frameworks to life coaching, understanding the various business models may seem overwhelming at first, regardless of the niche you choose.

Selecting from the different life coaching business models to start online should be simple and not a nightmare.

Here’s the fact though: a lot of new coaches do not put in the time to think about how their business is going to look like before they set up shop. There’s no client life-cycle.

Some questions you need to answer when building a coaching business include: how is the client going to look like in 6 months, 12 months or 24 months of engaging with your services?

In this article, we’ll provide an overview of some of the most popular life coaching business models and offer advice on how to get started in your own journey as a successful coach.

You don’t have to be great to get started but you have to get started to be great.

– Les Brown

What’s Life Coaching?

Briefly, life coaches help their clients define and achieve personal or professional goals by providing guidance and support through challenging times. They help individuals

  • gain clarity around what they want out of life,
  • identify obstacles that are preventing them from achieving their desired outcomes, and,
  • create actionable plans for getting there.

Coaching takes place over phone calls, video chats, emails, or even in-person sessions depending on the individual’s needs and preferences.

If you’re considering becoming a life coach yourself then you need to understand the different types of business models available. Each model has its advantages and disadvantages – so it pays to do your research before deciding which one is right for you.


A life coaching business model is an approach to providing professional guidance and advice to individuals looking for self-improvement. It typically involves one-on-one or group coaching sessions, where the coach works with their client on goals that are identified during a session or series of sessions.

The most common types of life coaching models include:

  1. Individualized one-on-one  or private coaching.
  2. Group coaching, under which you may have workshops, seminars, and corporate training programs.
  3. Hybrid coaching which is a mix of individual coaching and groups.
  4. Course model.

Each has its own advantages and disadvantages depending on the situation.

For example, individualized one-on-one coaching allows the coach to work directly with their clients to develop personalized strategies for success; however, it may be more expensive than other models due to the time commitment required from both parties.

Group coaching programs offers many benefits such as cost savings and access to expertise from multiple coaches. However, it may not provide as much tailored support as individualized one-on-one coaching does.

Ultimately, choosing which business model best meets your needs will depend on your specific goals and budget constraints.

I absolutely believe that people, unless coached, never reach their maximum capabilities.

Bob Nardelli

Different Coaching Models

Now let’s explore the different life coaching business models in detail. There are various ways to structure an effective and profitable coaching package and build a successful online coaching business model. Regardless of the business plan or niche you choose, most coaches start with the individualized sessions.

Business Model Pros Cons Example
1-on-1 Coaching Highly customized sessions Limited scalability Private sessions for celebrities and high level executives
Group Sessions Low cost per client, high scalability Less personal interaction Seminars, Workshops
Online Courses Easily scalable, lowest cost per client Minimal human connection Online learning modules

The One-On-One Model

Of all the different models to start online coaching, this is one of the most popular coaching business models listed and it’s model many coaches start their business with this model. It involves one coach working with a single individual, typically referred to as face-to-face coaching or personal coaching.

In this model, the coach works closely with the client to develop personalized strategies and action plans that will help the client achieve their goals. This type of coaching can be done in-person or virtually depending on what best fits into both parties’ schedules.

It’s great for skill development for the coach, understanding what the client needs and for building out the resources or systems you need. Resources include such things as videos, eBooks and workbooks.

It’s a proven coaching model but has limitations of scalability which forces lots of coaches who do this full time to move to the next model.

The Group Coaching Model

Once you’ve gained experience via the personal coaching, it may time to move to the next model. The Group coaching model is another popular way of structuring a life coaching business. This model allows coaches to start an online business that caters to specific groups or demographics with similar challenges, such as young professionals or recent graduates.

In this type of coaching practice, one coach works with multiple clients at the same time in a group setting. Group coaching offers many benefits for both coaches and clients alike.

For example, it gives clients access to a larger network of people who are going through similar experiences and can provide invaluable support and insight into their own lives. It also provides more flexibility for the coach since they don’t have to dedicate large amounts of time catering to each individual client’s needs.

Additionally, group coaching makes it easier for coaches to scale up their business quickly by taking on new members faster than if they were working exclusively with individual clients.

The Hybrid Model

The hybrid life coaching model is the approach that blends both traditional in-person coaching and group coaching. It utilizes new technologies such as virtual whiteboarding and video conferencing, making it more energy and cost-efficient. The hybrid model is an approach where a coach works with clients in person while also offering their services virtually. This can be beneficial because it allows the coach to reach more people and expand their current client base without sacrificing quality service.

This allows coaches to help more people who may need the personal sessions and also be able to offer support to more clients in group settings.

The Course or Program Model

The course model is the next (upgrade) step from the group coaching model. It involves providing a structured program to coach clients that includes multiple components, such as webinars, workshops, and assessments.

This model helps coaches to create an engaging experience for their clients that helps them reach their goals quicker than other methods. Coaches get to also customize the program to meet each individual’s needs.

This type of life coaching business model has several advantages over traditional one-on-one sessions or group sessions.

For example, it offers more flexibility since clients don’t have to commit to regular meetings with the coach; they simply follow along with the curriculum at their own pace mostly online these days. No one watches DVDs nowadays right?

Additionally, this model allows participants to collaborate and learn from each other through online discussion boards such as Facebook Groups and virtual classrooms.

Finally, because programs are often offered on a subscription basis, coaches may be able to generate recurring revenue from these services. To do this you can turn the course into a membership site and charge new clients $97 or more per month for a period of time (say 8 months) for access.

Setting Up Your Business Structure

If you’re just starting out you’re most likely going to start with the personal coaching model, get your hands dirty and work with a few clients. You can start by charging $1500 per client for three months. Please refer to the article I wrote about how to price your services, with the link below:

Life Coaching Fees – How Much Does A Life Coach Cost? Pricing Life Coaching

As you expand your client base you may begin to create an online course or program that will help more of your target audience clients to reach their goals. This could include a series of video lessons, workbooks and other resources tailored to each individual client’s needs.

You can also scale your business by creating multiple levels of access for different types of customers – from one-on-one sessions with high end clients to group courses for larger audiences.

Technology And Online Coaching Platforms

With the rise of technology, life coaching business models have been transformed. From online courses to video conferencing, there are now a range of options for coaches looking to start an online business.

To help you make the best decision for your business model, here is a comparison table outlining three popular ones:

Business Model Pros Cons
Online Course/eBook Flexible and cost effective; scalable; high reach potential Not personalized; no real-time interaction with clients
Video Conferencing More personal and interactive than course/eBooks Can be expensive if done on a large scale
Coaching Platforms Personalized advice tailored to individual needs Requires more setup and time investment


Frequently Asked Questions

How Do I Find The Right Life Coach For Me?

When it comes to finding the right life coach for you, there are a few key considerations. First and foremost, you want to make sure that your life coach is someone who understands what you need out of the coaching relationship and will be able to provide it.

You also want to ensure that they have the necessary qualifications and experience in order to help you reach your goals.

At the same time, however, it’s important to remember that this isn’t just about getting results – it’s also about having a good rapport with your life coach. After all, if you don’t feel comfortable or connected with them then it won’t matter how qualified they may be.

Ultimately, this could hinder both your progress and enjoyment of the process. So take some time to really get to know any prospective coaches before making a decision. Research their background, read reviews from past clients, and talk to them over Skype/phone calls – whatever helps you decide whether they’re the right fit for you.

What Qualifications Do I Need To Become A Life Coach?

If you’re considering becoming a life coach, it’s important to have a clear understanding of the qualifications required. It can be difficult to know where to start, but there are several steps that can help get you closer to your goal.

The first step is gaining proper education or credentials in counseling or psychology-related fields. While this may not be necessary, having an academic background in these areas will give you the knowledge and skills needed for success as a life coach.

You should also consider certifications and training courses related to coaching specific topics such as career development, relationship issues, stress management, etc.

Having these extra qualifications will give potential clients more confidence when they’re choosing a coach – making them more likely to hire you over someone who doesn’t have any additional certifications.

Another thing to keep in mind is finding ways to market yourself effectively so that people know about your services. This could include things like creating a website with helpful information about life coaching and setting up social media accounts on platforms like Facebook and Instagram.

Additionally, joining professional networks like LinkedIn can open up opportunities for networking with other coaches and potentially landing new clients. Ultimately, being prepared with all the necessary qualifications and marketing resources will make sure that you’re ready to take on whatever comes your way as a life coach!

What Should I Consider When Pricing My Services?

When pricing your services as a life coach, there are many factors to consider. Setting the right rate for your offerings can be key in ensuring you receive adequate remuneration for the work that you do. However, it’s also important to make sure that your prices remain competitive and attractive to potential clients.

You should take into account all of the costs associated with running your business including overhead expenses like marketing materials, office space rental fees, and any necessary equipment or software.

Additionally, think about how much time you will spend providing coaching services and what an appropriate hourly rate would be based on market research. It is worth considering offering packages at different price points if this fits well within your business model as this could help attract more customers eager to invest in their development journey over a longer period of time.

Setting up payment plans and discounted rates may also prove beneficial when setting prices for your services. This way, clients have options around how they decide to pay which can make it easier for them to commit financially to working with you long-term.

Ultimately, finding the balance between charging enough for yourself but not too much so that it becomes inaccessible is essential in successful life coaching business models.

What Technology Should I Use To Provide Coaching Services?

When it comes to providing coaching services, technology is a key component. It can help you manage the business and connect with clients more easily. There are many different options available for coaches when selecting technology tools to use in their businesses.

The most important factor to consider when choosing a tool is how well it meets your needs. You’ll want something that allows you to communicate effectively with clients and store relevant information securely.

Additionally, look at features like scheduling software, video conferencing capabilities, payment processing systems, and customer relationship management (CRM) platforms—all of which can make life easier for both you and your customers.

It’s also essential to take into account the cost of the technology solutions you choose as well as any ongoing costs such as subscription fees or maintenance expenses.

Consider whether there are free alternatives that offer comparable features before committing to any specific product or service. Ultimately, whatever platform you select should be user-friendly so that you don’t waste time learning new systems while trying to focus on working with your clients.

Are There Any Tax Implications For Life Coaching Businesses?

When it comes to starting up a life coaching business, one of the most important considerations is understanding the tax implications. Knowing how and when to pay taxes on your earnings can be essential for staying compliant with the law during this process.

It’s important to understand any applicable laws or regulations in order to meet all of your legal obligations as a business owner. You’ll need to find out what kind of taxes you have to pay, such as income, sales, or payroll taxes.

In addition, you may also need to consider other aspects like filing requirements and deductions that could help reduce your overall tax liability.

Being aware of these potential issues before launching your life coaching business can save you from dealing with costly penalties down the line. It’s wise to speak with an accountant who specializes in small businesses and get advice tailored specifically to your situation.

Doing so will ensure that you are taking all necessary steps toward setting up a successful venture while managing possible risks associated with taxation.


When it comes to choosing the right life coaching business model, there are many considerations. It’s important to understand your qualifications and identify what you can offer clients before setting prices or investing in technology. You’ll also need to consider any tax implications that may be associated with running a life coaching business.

Overall, selecting the right life coaching business model requires careful thought and research. To make sure you have all the information necessary for success, consult an accountant or other professional who can help guide you through the process. When done correctly, taking on this venture can provide both personal and financial rewards.

At the end of the day, finding a life coach who meets your needs is essential for achieving your desired outcomes. With enough effort and dedication, your dream of becoming a successful life coach could become reality!

What do you think?

Written by Michael Allsworth

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