Both therapy and coaching can be fulfilling careers on their own. But together, they can be a real superpower for helping clients. Expanding your services with coaching may bring you more fulfillment and variety in your day-to-day work. 

It can even increase your earning potential.

However, you might wonder how to make the move ethically and legally. Read on to find out how you can integrate these two careers successfully, including:

• How to run a dual practice ethically
• The difference between offering therapy and coaching
• What coaching can offer to clients that therapy can’t
• Why therapists are making the move
• How to go from therapist to coach

The Difference Between Offering Therapy and Coaching

First, let’s break down the differences between offering therapy and coaching as services to your clients.

In therapy:

• You can diagnose and treat various mental health conditions as a licensed mental health professional.
• Your sessions focus on past events in your client’s life and how they affect their life in the present.
• You may address issues like anxiety, depression, mood disorders, or addictions.

Life coaching, in contrast, does not require a license. 

Coaches can obtain certifications from institutions such as the International Coaching Federation (ICF) or the European Mentoring and Coaching Council (EMCC). You can even get a certification in mental health coaching.

However, certification is not mandatory to practice coaching.

[ Read: Are You Embodying These 7 Roles of a Coach? ]

Life coaches don’t spend much time analyzing past events. Instead, they focus on the client’s current life and desired future. 

They help clients set and achieve personal and professional goals through:

• Various coaching models
• Coaching exercises
• Questioning techniques
• Accountability strategies

Therapy and coaching are typically set apart by their approach and focus.

(Image Source)

Therapy addresses and heals past traumas and mental health issues. It provides clients with tools to manage their emotions. 

Specifically, it involves a deep exploration of past experiences to foster mental wellness.

Coaching, however, is future-oriented. It helps clients define their goals and create actionable plans to achieve them. 

Coaching is about envisioning the future and maintaining accountability. It builds on the foundation of emotional stability that therapy provides.

Neither approach is inherently better than the other. These approaches complement each other and offer different tools for healing and personal development. 

Clients may benefit from starting with therapy to heal from past experiences and then moving into coaching to pursue future aspirations. That being said, many go back and forth between the two depending on which approach suits them better at a particular time in their lives.

Pro tip: Make your transition to coaching smoother by automating your business with Paperbell. This platform runs your entire coaching site, with scheduling, payments, packages, and more built right in.

What Can Coaching Offer to Clients That Therapy Can’t?

Coaching is increasingly accepted among mental health professionals as a valuable adjunct to traditional therapy. Research shows that coaching can be highly effective alongside psychotherapy or counseling.

Coaching offers several unique benefits:

• It emphasizes actionable strategies and regular accountability, which motivates clients to stay committed to their goals.
• It also provides a non-clinical perspective, making it more accessible and less intimidating for some individuals.
• Additionally, coaching empowers clients to take control of their lives, fostering self-efficacy.

Additionally, many individuals seek help not only for mental health issues but also for navigating other aspects of life, such as: 

• Careers
• Relationships
• Finances
• Spirituality

Coaching addresses these broader areas in ways traditional therapy typically doesn’t.

With coaching, you can offer a more comprehensive service that supports clients in healing their past and achieving their future aspirations.

[ Read: What Is a Coaching Plan and How Can You Build One? (Example & Free Template) ]

Why Therapists Are Making the Move

Therapist burnout is real. Many people in this field feel constrained by state regulations and insurance policies that limit their earning potential and ability to help clients in various ways.

At the same time, many of them battle the pressure to have it all together as a licensed expert in mental health. They might also feel they would waste the time, money, and effort invested in becoming a therapist if they made the switch.

As John Kim, co-founder of Lumia Coaching, says:

“The guilt of taking out a student loan, maybe quitting a career, borrowing money from family, makes you stuff your feels down as you force yourself to feel some gratitude.”

Also called the “Angry Therapist,” John beautifully describes the internal monologue that might go through a therapist’s head when considering a career change: 

“This is what you wanted. And you’re doing it. So shut up and keep going. It’s not about you anyway. It’s about helping others.”

However, becoming a coach doesn’t mean you’ll be throwing away the years you’ve invested in becoming a psychologist. 

Coaching can complement your existing practice and skills. It expands your capacity to help clients in impactful ways.

Instead of sticking to traditional therapy, you can grow a business and design it however you want. Here are a few reasons why therapists may consider stepping into coaching:

• More opportunities to earn money: Therapy often relies on insurance reimbursements or sliding scale fees. Coaching lets you set your rates and charge for multi-month coaching packages rather than single sessions. You can also host events and retreats or create courses to supplement your income.
• More flexibility: Coaching is not bound by these regulations, unlike therapy, which requires state-specific licensing. This flexibility allows coaches to work with clients from anywhere globally. This expands their potential client base and reach.
• Charging directly: Dealing with insurance can significantly burden therapists, involving rejected claims and extensive paperwork. Coaching eliminates this headache as clients pay upfront. And it’s easy if you use Paperbell.
• Diversifying your services: As personal development gains popularity, there is an increasing demand for life coaches. By offering coaching services, you can serve clients seeking help beyond traditional therapy in areas like career advancement or spiritual growth.

Venturing into coaching can open up new entrepreneurial pathways for you. You can explore different niches and gain more autonomy in your practice.

As Michele Schwartz, an occupational therapist, says, “Being able to work in the life coaching field gains me credibility, higher hourly rates, and without the insurance paperwork and oversight for my clients.”

Besides, you’ll be free to combine these two methodologies in a way that works best for you. As Naomi Anold, an award-winning coach, points out:

So, how do you make the switch?

How to Go From Therapist to Coach

Here are some important steps to consider when expanding your services with coaching:

1. Get trained: Consider obtaining a coaching certificate to learn coaching methodologies and skills in your chosen coaching niche.
2. Research state laws: Adhere to your state’s licensing laws for therapists. Contact your licensing board if you have any concerns.
3. Revise your agreement: Create a separate contract for your coaching services that outlines what you offer.
4. Check your insurance: Make sure your liability insurance covers coaching sessions. If it doesn’t, add coaching to your policy.
5. Get a coach or mentor: Seek guidance from experienced coaches or dual practitioners on working with coaching clients and running your practice.
6. Pick up some marketing skills: Learn online marketing strategies to help you create visibility for your new services.

If you’re unsure how to combine therapeutic techniques with coaching, consult a lawyer who understands state regulations regarding your license. This step is crucial as navigating the transition to life coaching can be complex and legally sensitive.

Finally, to make it easier on yourself, use Paperbell to run your new coaching business. Paperbell gives you everything you need to both land and coach your new clients on a single platform, including:

• Creating unlimited coaching packages and offers with custom session availabilities for each
• Displaying your packages, testimonials, FAQs, and more on a beautiful coaching website
• A user-friendly client portal to manage bookings, payments, intake forms, and more 
• Automating contracts, emails, and booking reminders

This means you spend less time managing your schedule and your inbox, and more time supporting your clients and growing your business.

How to Run a Dual Practice Ethically

Offering both therapy and coaching services can be tricky for one reason:

You cannot treat and coach the same person simultaneously. 

Clients must be clearly categorized into one service or the other and educated on the differences:

• Ensure they understand that coaching is not a substitute for mental health counseling or psychotherapy. 
• If it becomes clear that a coaching client needs therapy, talk to them about transitioning them or referring them to another therapist.
• Explain the change in roles and what the client can expect from the new service. 
• Revise your contracts to make the distinction clear. 

Integrating some coaching techniques (like goal-setting or accountability) into your therapy process is much more straightforward. That being said, it’s usually the other way around that leads to confusion. 

Using therapy techniques in coaching sessions may blur the boundaries and create ethical dilemmas.

To solve this, some dual practitioners suggest setting up two separate LLCs and websites for therapy and coaching services. If you’re looking for a way to run a more integrated practice, it’s best to speak to a lawyer and your licensing board to ensure you can keep your license and serve clients the best way.

Automate Your Coaching Practice With Paperbell

Wouldn’t it be nice if client management ran itself in the background while you made an impact on your clients?

That thought inspired Paperbell, the all-in-one client management software made for coaches.

Paperbell runs your day-to-day processes, from payments and contract signing to scheduling, and more. It keeps all your client information in one place while conveniently linking your entire website to your client management system.

Try Paperbell now for free to transition to a coaching business with ease.

FAQs About Going From Therapist to Coach

Can a therapist be a coach?

Yes, therapists can become coaches and offer both services. However, you cannot treat and coach the same person simultaneously. You’ll need to get trained in coaching methodologies, research state laws, revise your agreements, check your insurance coverage, and clearly separate the two services.

Can a life coach be a therapist?

No, life coaches cannot practice therapy unless they hold a mental health license. Therapy requires state-specific licensing and allows professionals to diagnose and treat mental health conditions. Coaching doesn’t require a license and focuses on future goals rather than past traumas.

Can I be a coach with a psychology degree?

Yes, you can be a coach with a psychology degree. Coaching doesn’t require specific degrees or mandatory licensing, though certifications from organizations like ICF or EMCC are available. Your psychology background can complement your coaching practice and enhance your ability to help clients.

What tools do coaches use to sell their packages?

Coaches use client management software like Paperbell to automate their practice. It handles payments, contract signing, and scheduling, and keeps client information organized. They link complete coaching websites to client management systems, making it easier to sell and deliver coaching packages.

Editor’s Note: This post was originally published in May 2024 and has since been updated for accuracy.