Tag: life transitions coach

Why Becoming a Life Coach is Not Necessarily a Good Choice

A good number of my Camino de Santiago Walking Retreat guests come to my little farm here in the well-kept secret southwest of France to get clarity about whether they should leave their current job and start their own business. It is one of the life transitions that I work with most frequently, especially since the pandemic. Of that percentage, the majority are thinking of starting a coaching business.

They often ask me for advice, and obviously, I want to be positive and supportive, but the numbers go against me. The U.S. Bureau of Labor Statistics (BLS) reports that 49.7% of businesses fail within 5 years. In other countries, the failure rates are often similar, but cultural, economic, and policy differences can influence the exact percentages. The estimated figures are:

• 18.4% of businesses fail within the first year
• 49.7% fail within the first 5 years
• 65.6% fail within the first 10 years
• Only 25% make it beyond 15 years

Several key factors contribute to this high failure rate:

1. Cash flow problems: 82% of businesses
2. Strong competition: 20% of businesses
3. Lack of market demand: 35% of businesses
4. Inadequate business planning: 20-50% of businesses

The numbers for life coaching businesses are even more dire. Although life coaching is the second-fastest-growing industry in the world with an average yearly growth of 6.7%, the demand for life coaches is still trending upward, the industry is expected to keep growing at about a 5.4% growth rate and the global market size of the coaching industry is over USD 15 billion, the failure rate of life coaches is notably high compared to many other industries.

It is estimated that over 90% of life coaches fail, primarily due to not having a specific niche or failing to establish a steady client base. This is significantly higher than the general business failure rate. The information industry has a 60.9% failure rate after five years, which affects coaches who also sell online courses. The life coaching industry faces unique challenges such as low barriers to entry, lack of regulation, and competition from unqualified practitioners, which all contribute to its high failure rate. (84 Key Life Coaching Statistics for 2024 Written By Sai C.N.G. Blackbyrn Published on May 26, 2023)

So how do I advise my guests? I explain that the high failure rate underscores the importance of careful planning, strong support systems, and adaptability for new entrepreneurs. If they want to start businesses as coaches, I add that certain niches within life coaching tend to have higher success rates and are considered more profitable. In others, there is either no market demand or overwhelming, established competition. Currently, some of the most successful and in-demand life coaching niches include:

Executive Coaching: This niche is highly lucrative as it caters to high-level professionals and businesses where the stakes are higher. Executive coaches can command premium rates due to the potential for significant financial impact on their clients’ careers or businesses.

Career Coaching: With 40,000 monthly Google searches, career coaching is the second most sought-after coaching niche. It’s particularly successful when focused on specific industries or career transitions, such as “career transition coaching for executives.”

Business Coaching: This niche ranks fourth in overall demand with 34,900 monthly searches. Specialised business coaching, such as “sales coaching for tech startups” or “sustainable business coaching,” can be particularly successful.

Health Coaching: Ranking fifth in overall demand, health coaching receives 22,200 monthly searches. The wellness industry is a $480 billion market, making this a potentially lucrative niche.

Wellness Coaching: With 15,900 monthly searches, wellness coaching is also in high demand. Coaches in this niche can focus on holistic approaches, such as “holistic health coaching for CEOs.

Mindset and Accountability Coaching: This niche is growing in popularity, with 7,700 monthly searches. Mindset coaches help clients overcome limiting beliefs and achieve their goals, which can apply to various aspects of life and business. It is results-focused and often involves regular client check-ins.

Financial Coaching: This niche includes personal finance coaching, debt coaching, and retirement planning coaching. Financial coaches help clients manage their finances better, which can lead to high-ticket engagements.

Relationship Coaching: Relationship coaches assist clients in improving or repairing personal relationships, which can be emotionally intensive but rewarding work

Productivity Coaching: This is an emerging high-ticket niche for 2023, focusing on helping entrepreneurs and professionals be more effective and identify high-leverage activities.

By specialising in these niches and tailoring services to specific target audiences (e.g., executives, entrepreneurs, or high-profile individuals), life coaches can increase their chances of success and command higher fees for their expertise.

Having said that, demand is not the only factor that needs to be taken into account when choosing a niche. Competition is equally important. I’m starting to sound to myself as if I’m trying to teach my grandmother how to suck eggs, but it is seriously alarming that many of my guests are prepared to resign at the drop of a hat from their current positions without doing any market research before they launch themselves into the unknown.

You know by now that I am a storyteller at heart. So allow me to entertain you with Anie’s story – you might even pick up an insight or two:

Annie’s Story: From Corporate Burnout to Relationship Guru

Annie was one of those people. The ones who crushed it at networking events, could close deals before their second cup of coffee, and always had a calendar so color-coded it looked like a kindergartener’s art project. She’d worked her way up the corporate ladder at a Big Tech firm in New York, pulling six figures and rocking power suits so sharp they could slice through any poorly-worded email.

But something was missing.

At first, Annie chalked it up to burnout. Then to her ergonomic desk chair that definitely wasn’t as lumbar-supporting as HR promised. But deep down, she knew: her job just wasn’t it. And one Tuesday morning, while scanning LinkedIn over a cold, forgotten oat milk latte, she stumbled upon a post that would change her life. It read:

“Follow your passion and the money will follow. Become a life coach today!”

Her heart leaped. Yes! A life coach! She was great at pep talks—her coworkers said so all the time. And really, how hard could it be? You just had to tell people to believe in themselves and charge $200 an hour for the privilege. Easy. She slammed her laptop shut and submitted her resignation before her boss could rope her into another “quick” strategy meeting that lasted three hours.

Step One: Diving In head-first

With visions of being the next Brené Brown dancing in her head, Annie got to work. First, a website. Naturally, she spent two weeks obsessing over the perfect tagline. It needed to be inspirational yet edgy, professional yet approachable. She finally settled on: “Transforming Your Life, One Pep Talk at a Time.”

She slapped on a photo of herself smiling in a designer blazer and hit publish. The next day, she checked her analytics. Zero visitors. No problem, she thought. Success takes time. She decided to spread the word on Instagram, posting a selfie with the caption:

“Ready to change lives! DM me for coaching rates 💪 #LifeCoachLife #Lifelessons”

One like. From her mom.

Step Two: Coming up for air

Annie’s first client was, technically speaking, herself. A week into her entrepreneurial journey, she realized she hadn’t done any market research. Sure, life coaching sounded cool, but what kind of coach was she? Career? Fitness? Mindset? Would she have to buy a ring light and start doing TikToks?

She scrambled to take an online course: “The 7-Day Life Coach Bootcamp.” It promised to teach her everything she needed to know. But by Day 3, Annie felt more confused than ever. Her biggest takeaway? People loved niche coaches. There were burnout coaches, money mindset coaches, even coaches who coached other coaches. What could I do that’s niche enough?

Her revelation came during an awkward dinner party, the kind where the wine flows but the conversation doesn’t. Annie casually mentioned her new life-coaching venture, adding she was thinking of focussing on relationships, only for her friend Lisa to snort into her sauvignon blanc.

“Oh, Annie, you’re single. Who’s gonna take your advice?”

The table erupted in laughter. Annie, however, didn’t. She was too busy having an epiphany.

“Helping Singles find Love,” she whispered. “That’s my niche.”

Step Three: Treading Water

There was just one teensy problem: Annie’s own love life was a dumpster fire. She’d had more bad dates than a rotten fruit aisle and ghosting had practically become her love language. But hey, what better way to connect with clients than by being relatable?

She rebranded overnight. The website now read: “Annie: The Relationship Coach for Real People.” Her Instagram bio declared: “Helping you find love without losing your mind (or dignity).” And as luck would have it, she got her first real client the next day.

Her name was Marcy, a woman in her late 30s who’d been ghosted so many times she was convinced her photos on dating apps were haunted. Annie gave her the only advice she could think of: “Be confident and show them who’s boss. If he doesn’t text you back, send a GIF of a cat waving goodbye. Works every time.”

It didn’t. Marcy texted Annie the next week: “That GIF idea bombed, but your pep talk helped me block the guy. Thanks, Coach!”

Marcy’s testimonial on Annie’s website read: “She gets it. Annie’s like a best friend who actually answers your texts.”

Suddenly, the ball started rolling.

Step Four: Surfing the Wave

Word spread. Annie’s brand of coaching—equal parts tough love, meme-worthy humour, and practical advice—was a hit. She hosted webinars with titles like “How to Stop Dating Those Walking Red Flags” and “Texting Like a Queen: Flirty but Not Desperate.” Her inbox overflowed with clients looking to get unstuck in their love lives.

But Annie wasn’t just telling people what to do. She was learning. She devoured books on psychology, attachment styles, and the science of attraction. She even went on a few dates herself—not for romance, but for research. (Though one date, a charming book editor named Ryan, did stick around. Research success?)

Step Five: Hitting the Rapids

Within two years, Annie went from a scrappy solopreneur to a full-fledged relationship guru. She launched an online course, “Swipe Right on Yourself: Building Confidence Before Love,” that sold out in 48 hours. She started a podcast where she and guests dissected real-life dating disasters. People loved her no-nonsense approach.

Unlike other coaches who preached affirmations and manifestation, Annie kept it real. Her tagline evolved again: “I can’t promise you’ll find ‘The One.’ But I can promise you’ll never waste time on ‘Not It’ again.”

By year three, she was a sought-after keynote speaker, sharing stages with TED Talk alumni and bestselling authors. Her relatability was her superpower. Annie never pretended to have it all figured out—she just knew how to guide people to figure it out for themselves.

Final Step: Floating in Calm Waters

One evening, after wrapping a virtual coaching session, Annie sat down at her laptop and opened her bank account. For the first time, she saw a number that made her do a double-take. She was officially earning more than she ever had in corporate.

The irony wasn’t lost on her. She’d quit her high-paying city job chasing passion and ended up with a career that was just as lucrative—only this time, she didn’t dread Mondays.

As she closed her laptop, Ryan walked into the room holding two glasses of wine. “Celebrating something?” he asked, handing her a glass.

“Just that I’m living proof you don’t have to be perfect to help people,” she said with a grin.

And that, dear story lover, is how Annie went from burnt-out corporate drone to the queen of relationship coaching—one awkward dinner party and questionable GIF at a time. After all the negativity I started this article, I had to make this story a bit more inspiring.

What is clear from Annie’s story, is that to become a successful coach these days, you are going to have to work extremely hard. Most likely harder than you ever did in your corporate job. Without any guarantees.

A slightly less onerous option for new coaches may be to choose a niche with less competition. There are a number of brand-new niches due to evolving societal needs and technological advancements. Here are some of the key trends:

• Virtual Coaching: This trend continues to dominate, with coaches leveraging technology to conduct sessions online, making coaching more accessible and flexible for clients worldwide.
• Hybrid Coaching Models: Combining in-person and virtual sessions, hybrid models cater to diverse client preferences and enhance personalised coaching experiences.
• AI-Powered Coaching: The integration of artificial intelligence in coaching is on the rise, offering data-driven insights and personalised coaching solutions.
• Niche Coaching: There is a growing demand for specialized coaching services that address specific client needs, such as career transition, mental health, and resilience.
• Eco-Coaching and Metaverse Coaching: Novel niches like eco-coaching, which focuses on sustainability, and metaverse coaching, which helps clients navigate digital realities, are emerging.
• Mental Health Coaching: With increasing awareness of mental health issues, there is a rising demand for coaches who specialise in building psychological resilience and well-being.
• Augmented Reality Coaching: This emerging trend involves using augmented reality to enhance coaching experiences, offering immersive and interactive sessions.
• Video Marketing and Social Media Coaching: Coaches are increasingly using video marketing to engage clients and promote their services on platforms like Instagram and TikTok.

These trends reflect a shift towards more personalised, technology-driven, and super-specialised coaching services that cater to the diverse needs of clients in today’s fast-changing world.

Some of my guests ask me about my own approach. My situation is a bit different, as I am not a coach in the classical sense. I am first and foremost a retreat host, and I specialise in helping people who come on my retreats make their way through life transitions. I did not set out to become a life transition coach, but as walking the Camino de Santiago is part of my retreats and many people who walk the Camino are going through life transitions, it happened organically. In addition, I have gone through several life transitions myself.

So my niche is Life Transition Coaching and I use Mindset Coaching to share my values: gratefulness, kindness, friendship and faith. As I am also a writer, so writing, especially journaling, is my main medium and this extends to a couple of online courses. I guess, because of my medical background, physical and mental health will always be the driving forces behind any coaching/counselling/mentoring I do.

One thing I have learned during the last 15 years, it that this business is not static. On the contrary, it is in continuous flux. What worked last year, might well not work this year. So recently, I have embraced AI-enhanced writing with open arms and now also AI-Powered Coaching.

If you decide to attend one of my signature retreats, From Troubled to Triumphant: Finding Solid Ground During a Life Transition here in the sun-drenched southwest of France, do not expect any sugar-coated answers. I’ll give it to you straight, and explain exactly what to do to avoid ending as one of the 90% who failed.

Dr Margaretha Montagu – MBChB, MRCGP, NLP Master Pract cert, Transformational Life Coach dip, Counselling cert, Med Hyp Dip and EAGALA cert