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The traditional coaching and consulting business model means pitching and helping your clients to solve their problems, and receiving payment by the hours. In addition, whether you sell your services by packages or not, you must book a high amount of clients to hit your income goals. It is exhausting and with the demand, can you give the best results possible for the services you offer?
If you are tired of spending your energy only to find that your coaching and consulting business does not grow the way you planned, it is time to consider the high-ticket coaching offer. You can work with fewer clients but make more profits using high-ticket coaching and consulting business strategy.
This is how I help my clients. They are selling ultra-high-ticket offers and making six to seven-figure leaps in their revenue only by offering multiple $25K, $50K, or $100K+ packages. However, this is not for everyone. Only those who dare to accept the changes and challenges that come with marketing to high-ticket coaching clients.
You can get your expected results with less time and energy by following my best practices. However, before you dig deeper, heed my warning.
Why most coaching and consulting businesses fail
Suppose your coaching or consulting annual target income is $500k. You need to onboard up to 100 clients if you sell your package for $5K each. You need to work with eight clients per month. Imagine how stressful you are handling complex problems from eight different 1:1 clients. Moreover, when it comes to the sales calls, you need to have 32 to 50 calls per month to win those eight clients because the industry close rate is between 20% and 25%. That is so crazy.
Because you need an insane amount of qualified leads, it is almost impossible to achieve the number organically unless you have massive followers. This could also mean you must spend a lot of money on ads and hiring to help you handle the work volumes. Even if you have the best sales team for your business and can cut that number in half, you still need to make 18 to 25 calls to get 5 to 8 clients per month. The model and the numbers do not make sense because too much time, energy, and money are wasted.
You may say that some coaching and consulting businesses already have everything they need to do lead generation. All parts of their business run well, ads convert successfully, and the sales team works brilliantly. However, one important thing to think about is how you deliver your service.
You have to deliver to eight new consulting or coaching clients every month and you still have to serve your existing clients. You also need to work on your old client’s offboarding process—listening to their experiences in having you as their coach, paying attention to their feedback, etc. In addition, you still need to do every other aspect of running your business—such as building and managing your team, planning and executing the marketing, performing financial reporting and other documents, creating strategic planning, etc.
Understand the important fact that companies are willing to pay a large sum of money to hire an outside business coach and consultant—YOU—and help their organizations and their people make strategic decisions, operate efficiently, improve productivity and engagement, roll out new initiatives, etc. The latest data shows that U.S companies spent $58.7 billion last year only on consulting. It is your opportunity to reap some benefit from this trend.
Although the above model may work, is it sustainable? I do not recommend this strategy because your business will always be in a survival mode. Every effort you give out will be used to pay for whatever your coaching and consulting business needs to run well.
Remember, you still have to budget accordingly for ads to scale up and generate enough leads. You also need to hire business development people and salespersons. They will cut your margins—your actual profit from your ‘$5K clients’ will decline tremendously.
“Do not struggle too much for attaining only minimum results—to meet your target income. The time, energy, and resources you have put into your coaching and consulting business must pay off. You deserve a 6-figure income for the valuable coaching services you give to your clients.”
Another essential aspect is that despite having consistent lead gen and your ads dialed in, it doesn’t always mean that you will have a high converting funnel and ad strategy. Many coaches have spent tens of thousands of dollars to create webinars and advertise on Facebook, just to fail miserably. They lose both their investment in their program and the advertising budget.
You must have a high converting landing page, with the right copywriting strategies and perhaps the right video, marketed to the ideal market to succeed. Moreover, all those efforts should be preceded by strategic awareness campaigns for your ads. Then, when you have some clients on board, you have to hit the goal of getting their problems fixed in a certain period—for example, an 8-week coaching program. That is not an easy task as well. It is hard to satisfy these requirements unless you are a digital marketing expert with pro-copywriting skills. I am here to tell you, a webinar and ads series are not the fit for all strategies.
If they are not enough, what is next? What are the best steps for coaches and consultants to run their businesses?
High-ticket coaching and consulting business best practices
After you know the reasons why most coaches and consultants in this industry fail, you need to take a different course of action that works to make your 6-figure business a reality.
Indeed, so many people will love to hear your insights and watch your videos to gain more knowledge. You are the expertas a former CEOs, CFOs, COOs, or other C-level leaders, you understand these busy people. You know that, the busier the people are, the higher their position, and the higher their income. However, it also means that they are willing to pay a high ticket price for a quick applicable solution from an expert. Your ideal clients value time over money.
On the other hand, those who are struggling financially have more time but less money, so they can check your free webinar, but they still feel reluctant to purchase your $5K program. It is so frustrating.
You can position yourself to sell ultra-high-end services and get a better result. Having the same goal of $500K, you can have a $50K program. This means you only need ten clients to work with within a year. In short, you work with a single client each month.
Since the industry close rate for sales calls is between 20% and 25%, you only need to have five qualified sales per month to get one client. This is much more reasonable to do from the side of high-ticket coaching and consulting business marketing.
If you decrease the price to a $25K program, your workloads are still reasonable, and you are only required to have ten qualified sales which will convert to two monthly clients.
In addition, you will work less if you scale to a $100K coaching program or more. I have three clients who closed six figures deals early this year. Moreover, two of them closed two six-figure deals each. Therefore, I can confidently say that this high-ticket coaching and consulting business strategy works.
The margins you get from high-ticket sales are also high, even when you spend $3K to $5K for ads. However, the case will be different if you sell low-end sales but have to spend the same amount for ads. Thus, the ascension model will only work if you upsell it on the backend after you sell the low-end package at the beginning. Yet, think again about the complexity of your work since not all low-end clients are willing to pay more in the end.
For every offer, you need different levels of marketing, funnels, and even team members for the upsell process. The more complexity, the more moving parts, the more things that break, the more people to manage, etc. It is a losing game compared to if you build a high-ticket coaching or consulting funnel from the beginning.
Start selling a high-ticket coaching program
Again, start high and focus on your higher caliber market. In addition, clients who see your values and expertise are willing to pay you up to the six figure for your time. They are ready to do the work because they are focusing on the return on their investment. In short, clients willing to pay you $50K are more likely to take the action than someone paying you $5K.
In an ultra-high ticket coaching and consulting business strategy, you need fewer qualified leads and fewer sales calls. Still, you will have higher profit margins, attract better clients, and maintain a more sustainable business with better quality deliveries.
It is relatively more straightforward to onboard one or two ultra-high ticket clients per month rather than onboard eight low-end clients simultaneously. You can focus more on each client and dedicate your time to addressing your client’s needs and solving business problems. Performing this way, you can give your services better than any other competitors can in your industry.
“You can see that from all perspectives—leads, sales, cost to acquire, delivery, profitability, sustainability of your business, workforce or team to support your business, etc.—high-ticket sales are proven more reliable.”
The easiest way to realize the high-ticket coaching and consulting business model is by creating awareness and attention to the importance and value of your coaching program. Build your marketing campaign programs through events, blogs, webinars, direct mail, and social media—you name them. Do what works for you and analyze it.
One practical initial step to creating your 6-figure business is checking out our LinkedIn Lead Gen Mastery. I will personally assist you in using the platform to scale up your coaching and consulting business. Once you gain your prospective clients’ confidence in you and your services, while being present in the biggest platform for professionals, it is easier for them to purchase your program.
Where else across the internet can you find a community of experts, professionals, and entrepreneurs—your target market—gathered in one platform except on LinkedIn? Optimize this social media, and you will be surprised at how this social media platform can give you ultra-high-end clients—people who strive to develop their businesses by using your services and expertise.
Remember to keep everything simple because achieving big does not always require complex and exhausting work. Let us work together to create a business you have always wanted. Get your first 6-figure revenue with enormous passion but less time and energy. Lastly, you can have more time to keep your life in excellent balance.
What will be your first step in creating your coaching and consulting business? Share with me below in the comment, I would love to hear from you.
