Coaching Business

How Profitable Is A Coaching Business? (Updated for 2024)

Pat Walls

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Updated: September 19th, 2024

How Profitable Is A Coaching Business? (Updated for 2024)

So you want to start a coaching business?

And the first question that came to your mind was, “well, are coaching businesses actually profitable?”

With a market size of $15B - there’s plenty of business to go around.

Especially considering:

You could start a coaching business with as low as $5
Based on our data, coaching businesses generate an average of $3.12M per year
You could see gross margins as high as 80% with coaching businesses

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a coaching business.

Let’s dive in!

Is a coaching business profitable?

Yes, a coaching business is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $3.12M per year with an estimated gross margin of 90%, you could expect to recover your investment within 7 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your coaching business.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your coaching business is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a coaching business worth it?

If you’re wondering if a coaching business is worth it, the answer is a big YES. With coaching businesses, you have the potential to earn $3.12M per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $15B, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a coaching business to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful coaching businesses case studies.

Examples Of Profitable Coaching Businesses

Here are a few examples of profitable coaching businesses, and a few more details about them:

1. Website Rental Coaching ($504K/year)

The daily workload at his 9-5 job at General Electric as an HR left Luke unfulfilled from his career, and while he was searching for a profitable side gig, he realized that websites are like digital properties. With a top-ranking lead generation website, he could rent it to local businesses and earn a steady monthly income. Luke quit his job at the 6-month mark and hit six figures by the one-year mark of starting this business.

Is it profitable? Yes
How much money it makes: $504K/year
How much did it cost to start: $8K

I Quit My Full-Time Job & Started A $42K/Month Website Rental Business

Luke Van Der Veer's Website Rental Coaching business teaches people how to create passive income by renting lead generation websites to local businesses, which has helped him generate $42,000 per month as of April 2022.

Read this case study

Read by 12,277 founders

2. Healthpreneur ($6M/year)

Yuri Elkaim, the founder and CEO of Healthpreneur®, came up with the idea for his business after receiving numerous requests from health professionals in need of business advice. Realizing that there was a lack of business education in the health industry, Elkaim decided to provide coaches and health professionals with the coaching, systems, and processes they needed to build successful online coaching businesses. With their flagship product, the Health Business Accelerator Program, Healthpreneur® has helped their clients generate over $217 million in revenue and aims to transform the health and lives of 1 billion people worldwide.

Is it profitable? Yes
How much money it makes: $6M/year
How much did it cost to start: $0

How I Make $500K/Month Coaching Health Professionals Generate More Income

Healthpreneur® founder Yuri Elkaim's coaching company has helped naturopaths, functional medicine doctors, dietitians/nutritionists, therapists, online fitness coaches, and health, life, and relationship coaches through transformational coaching paired with predictable systems, frameworks, and processes, generating $217 million for their clients.

Read this case study

Read by 2,822 founders

3. MentorCruise ($480K/year)

Dominic Monn came up with the idea for MentorCruise while facing the challenge of finding a mentor during his own career development. He realized that mentorship was a major problem for many professionals, so he built a coaching marketplace where career professionals could turn their knowledge into a marketable coaching business and mentees could easily find a mentor. Despite the challenges of building the platform while balancing his studies and a full-time job, MentorCruise now makes around $24,000 per month in commissions and processes over $120,000 every month for its mentors.

Is it profitable? Yes
What's the gross margin? 80%
How much money it makes: $480K/year
How much did it cost to start: $0

How I Built A $24K/Month Mentorship Marketplace

MentorCruise is a career coaching marketplace generating $24k MRR and processing $1M annually for mentors, with most traffic and sales coming from SEO and organic sources, currently looking to expand to the B2B market.

Read this case study

Read by 6,452 founders

Learn more about starting a coaching business:

Where to start?

-> How much does it cost to start a coaching business?
-> Pros and cons of a coaching business

Need inspiration?

-> Other coaching business success stories
-> Marketing ideas for a coaching business

Other resources

How much can you make with a coaching business?

With a coaching business, you can make an average of $3.12M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $5. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 7 months.

How much does a coaching business make a week?

Based on our data, average weekly revenue for a coaching business ranges around $64.9K. As such, you could see monthly revenues of $260K.

To know if your coaching business achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your coaching business.

How much do coaching businesses owners make?

The income of a coaching business owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established coaching business is about $64.9K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a coaching business owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Coaching Business Profit Margins

Generally speaking, a coaching business can expect profit margin of around 90%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a coaching business, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, coaching business owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, coaching business owners can ensure long-term sustainability and profitability for their business.

Coaching business owner salary

The salary of a coaching business owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established coaching business, in a prime position, might see an average weekly salary around the ballpark of $58.4K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a coaching business may be a promising business to start - but the success of your coaching business mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable coaching business.

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Starting A Coaching Business: Everything You Need To Know

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