A little story that has never been told before in this amount of detail.
I have been business coaching for 6 years. In my first year (2006) I did $975K in revenue. Every year since then it has been well into 7 figures:
2006 – $975K – just me coaching
2007 – $2.2M – just me coaching
2008 – $3.75M – me plus 1 part time coach
2009 – $4.75M – me plus 2 part time coaches
2010 – $5.75M – me plus 2 full time coaches
2011 – $6.5M – me plus 2 full time coaches
This year my business will do somewhere between $8M – $10M in coaching fees. There are 4 of us coaching this year and mid-year I will require a 5th coach in Australasia.
I was doing some research on the business coaching industry and it seems that if a coach can do $25K per month in revenue they are regarded as a super star. What a joke. My coaches do $165K per month (approx. $2M in annual revenue) – and they only work 60% of the year.
I even read of people who coach other business coaches and their claim to fame is that they might have done $400K in revenue in one year – and that qualifies them as a coach to the coaches. You have got to be kidding me. That only qualifies someone to advise on how to get a job.
There are even coaching franchises that you can buy for $50K – $200K. As I look at the numbers it seems that the individuals who buy the franchise are not the ones that are becoming wealthy. The only people who are getting wealthy are the franchisors.
Other professions are well entrenched in their business models – accounting, consulting, legal etc. And many of these professional service firms are gigantic organisations dating back decades.
The business coaching profession is relatively new and is very much a cottage industry. I invented a business coaching model that can create real wealth for the coach – the business owner.
The business model is very straight forward. It is 100% group coaching. It was originally called coachingclub and it has now ‘morphed’ into a formal network of Accounting firms – the Proactive Accountants Network. Here is my delivery model:
1. I have 8 businesses (of the same type) in each club
2. Each club meets 4 times per year face to face – with their coach.
3. Each club meets 4 times per year over the phone – with their coach.
4. A very cool online service is provided with loads of industry niche content, forum, cloud reporting system, success library, learning centre
5. An upfront fee is charged to join (2 day strategy session is delivered for this) of $3500 – $9000 – depending which service level is selected.
6. A monthly fee is charged for membership of $750 – $3000 – depending which service level is selected.
Now you have to be good for a client to pay you $10K – $30K per year. Very good in fact. And you must produce results for your clients. Our clients consistently rank in the upper quartile of results against their peers. We track their results every month via our cloud based monitoring solution. A client does not mind paying if they are getting value and their KPIs are improving every month.
So far my business has coached 525 clients and currently there are 290 active clients being coached. The average tenure of a client is 2.5 years and we are just about to roll out a solution which will keep them for double or treble that amount of time. With the clients who are currently ‘out’ of the program we are bringing them back in with different serviced offerings.
As I said each coach manages about $2M in fees and since starting 6 years ago I have billed $24M in revenue. Any business should create wealth for the owner.
Over the years I have had dozens of people ask me about the business model. I freely tell them – like I have told it here. But it will not work unless you know the 4 secrets that have been perfected. What I call the “Secret Sauce”:
1. The detail of what happens in the meetings. The accountability methods. The learning style and the group sharing.
2. The niche market (100% of my clients are Accounting firms) is important but more importantly than who is served it is the content that is delivered. The content MUST help improve the KPIs of the client. The content must be succinct and proven in that industry.
3. The finding and keeping client system. No point building a business unless you can find and keep clients.
4. The online experience. The meetings are one thing (and very important) but the online experience is equally important. Chat forum with their peers, learning centre with video based content, success library with templates and an online KPI monitoring service which benchmarks each client against their peers every month.
Why am I telling you this?
Real simple. I am going license my network and coaching model (for accountants) around the globe. I am looking for around 100 licensees who want to specialise in the accounting profession. My business operates in Australia and New Zealand only at this stage.
You might be a business coach, a consultant or a partner of an accounting firm looking for a new career. Ideally you know how accounting firms work. You need to be a business developer who is great at client relationships. With 1.5M accounting firms in the world we want to make a massive difference to the accountants and their clients. We think the market has capacity for about 600 licensees.
We are looking at English speaking countries first with one licensee per (approx.) 2500 accounting firms. No one in the world does what we do for accounting firms. No one gets the results for the profession and no one gets the results for themselves.
We love business success and our company purpose is to “Get business owners addicted to the thrills of success”.
We believe the right accountants can step up and make a difference to business.
We believe it is the accountant who is the natural trusted advisor.
We believe accountants can make a difference to their clients if they have the right tools, coaching and training. We have all of that – including new advice tools like cloud based KPI monitoring where we consolidate data of SME business right to the accountants desktop or mobile device.
If you are interested in pursuing this opportunity then send a direct email to me (email@example.com) with your CV and reasons why we should consider you. We only want the highest quality licensees to represent us around the world.