It’s wild how life coaching has blown up in recent years. The numbers from the 2023 International Coaching Federation report are staggering—over 109,000 coaches worldwide.
Some projections suggest industry revenue could reach $11.7 billion globally by 2032.
It’s almost like everyone and their neighbor is suddenly a life coach these days. It’s no wonder people are raising eyebrows and asking questions about whether life coaching is a pyramid scheme.
The surmise is that many life coaches are making money by teaching others how to become life coaches without actually life coaching anyone.
How true is this? Is life coaching really a pyramid scheme? Let’s talk all about it.
Here’s what we’ll cover in this guide:
- Is Being a Life Coach a Pyramid Scheme?
- Is Life Coaching a Legitimate Career?
- How Much Money Do Life Coaches Make?
- How to Be a Legitimate Life Coach
- Top Legitimate Life Coaches to Inspire You
🚩 Is Being a Life Coach a Pyramid Scheme?
People are side-eyeing the life coaching industry and wondering if it’s just a glorified pyramid scheme or multi-level marketing (MLM) setup in disguise.
This concern is because many life coaches seem to focus on teaching others how to become coaches themselves. This coaching style resembles the pyramid scheme structure, where the emphasis is on bringing in more people rather than providing valuable services.
But while it’s true that some coaches do teach others to coach, this isn’t the core of life coaching.
Unlike pyramid schemes, which rely solely on recruitment for profit, legitimate life coaches provide coaching services to a wide range of clients (such as career people, regular individuals, and couples), not just aspiring coaches.
Let’s break down these differences further based on the following factors:
Business Model
In an MLM or pyramid scheme, the primary way (and, oftentimes, the only way) to make money is by recruiting others. Contrarily, legitimate life coaches make their income primarily from providing coaching services to clients.
Value Proposition
Pyramid schemes promise unrealistic returns with little effort. Life coaching, when done right, is about helping clients fulfill their dreams—whether that’s getting a job, receiving a promotion, managing tasks better, or living without anxiety.
Life coaches help people achieve realistic goals through personalized support.
Product or Service
There is no real product or service in pyramid schemes. If they do have something, it tends to be overpriced and of questionable value.
However, life coaching offers tangible services for personal or professional development. These services can be in the form of one-on-one coaching sessions, personalized strategies, and regular check-ins.
Sustainability
MLMs and pyramid schemes are unsustainable by design. Once recruitment stops, these business models collapse.
Contrarily, the life coaching industry (as competitive as it is) can sustain many practitioners because there’s a genuine demand for personal development services.
Regulation and Recognition
While the coaching industry isn’t as regulated as some professions like law and medicine, reputable organizations like the International Coaching Federation (ICF) provide accreditation and ethical guidelines.
On the other hand, pyramid schemes are illegal in many countries.
✅ Is Life Coaching a Legitimate Career?
Life coaching can be a legitimate and rewarding career.
As a life coach, your job is to do one thing—coach others.
Life coaches help ordinary individuals, career professionals, CEOs, and other coaches succeed in various aspects of their lives.
They work with clients on the following:
- Setting and achieving goals
- Overcoming obstacles
- Providing accountability and perspective
- Improving overall life satisfaction
This can apply to personal relationships, career advancement, health and wellness, or even finding a sense of purpose.
These coaches provide personalized support and practical strategies to help clients reach their potential and navigate life’s challenges.
💰 How Much Money Do Life Coaches Make?
Several factors determine what life coaches earn. These factors include the following:
- Type of coaching package
- Niche
- Location
- Level of experience
- Business model
- Duration
However, the average annual revenue for life coaches worldwide is $52,800. But there’s room to make more as you become better skilled and experienced.
Experienced life coaches can make six- or even seven-figure incomes, but it can take more time for new coaches. You can increase your rates by building your client base and brand reputation.
💡 How to be a Legitimate Life Coach
If you’re considering starting a life coaching career, here are four key things to establish yourself as a legitimate professional.
Build a Strong Foundation
Start by educating yourself about coaching. Read books and take courses on coaching techniques, psychology, and personal development. You could even pursue some formal education in related areas.
Next, define your life coaching niche. Answering the following questions will help you stand out in the crowded coaching niche.
- Are you interested in becoming a career coach?
- Do you want to help people achieve work-life balance?
- Do you care about helping others stay healthy?
Whatever niche you choose, ensure it aligns with your passions and expertise.
Then, get hands-on experience. This allows you to practice your skills, refine your techniques, and build confidence. It can also be a source of valuable testimonials for your new coaching business.
Do the following to gain practical experience:
- Offer free sessions to friends and family
- Volunteer your skills to community events or local non-profits
- Serve as an intern in a coaching organization
Get Certified
Although getting a life coaching certification is not legally required, it can boost your credibility.
Some potential clients look out for certified experts to be assured of their professionalism and commitment. So, getting certified is a way to get on their radar.
More so, certification programs will enhance your professional knowledge and coaching skills. They also offer ongoing opportunities to network with other coaches.
Pro tip: Get certifications from those programs endorsed by reputable organizations like the ICF and the European Mentoring and Coaching Council (EMCC).
Create Your Plan and Packages
You’ll want to map out a solid plan for your business.
Think about what you want.
- What’s your big vision?
- What’s your mission?
- How do you want to set yourself apart? (aka your unique value proposition)
- What specific goals are you setting for yourself?
Perform market analysis to understand your target audience and competition. Include financial projections, marketing strategies, and relevant operational details.
Then, create a range of coaching packages to cater to different client needs and budgets. This might include private coaching sessions, group programs, self-paced courses, or membership programs. You can use this free template pack to develop your first coaching program.
Launch & Promote Your Business
Once your foundation, certification, and business plan are in place, it’s time to promote your life coaching programs.
The following ways are effective to promote your business:
- Create a professional life coaching website to share your skills, value proposition, and services. To maximize your conversions, make it easy for visitors to sign up for your offers.
- Join social media platforms where your target audience is and share helpful coaching content. This will help you build a community of people interested in what you offer.
- Networking can give you the exposure you need to build a successful business. Attend coaching conferences, participate in local business networking groups, and partner with other professionals for referrals and collaboration opportunities.
- Start content marketing to attract potential clients. This can be a coaching blog or podcast to display your expertise.
- Use search engine optimization (SEO) to prepare your life coaching website for discoverability by doing the following:
- Using relevant keywords
- Creating quality content
- Making your site mobile-friendly
- Make the client experience seamless by investing in a coaching software tool like Paperbell. With this app, you can instantly create coaching packages, receive payment, set up appointments, onboard new clients, and track your entire business in one place.
At the end of the day, being a legitimate life coach is about upholding ethical coaching practices, staying committed to clients’ needs, and creating simple systems to support them.
👩 Top Legitimate Life Coaches to Inspire You
Here are five top life and business coaches to inspire you to build a profitable business:
Tony Robbins
As a life and business coach, Tony Robbins is known for his high energy and focus on “unleashing the power within.” He has helped millions achieve life-changing transformations through his seminars, books, and one-on-one coaching.
Tony has coached high-profile clients including Bill Clinton, Serena Williams, and Leonardo DiCaprio, and his net worth is estimated at $600 million.
Marie Forleo
In addition to being a multi-passionate entrepreneur, Marie Forleo has built a successful coaching business focused on helping others create businesses and lives they love. Her approach combines practical business advice with personal growth strategies.
She has different online business training programs. One of these programs is her signature course, B-School, which has helped over 80,000 entrepreneurs.
Gabrielle Bernstein
Gabrielle Bernstein is a motivational speaker and life coach. She focuses on spirituality and mindfulness in her coaching practice.
She’s written multiple New York Times bestsellers and was featured on Oprah’s SuperSoul Sunday as a “next-generation thought leader.” She also has millions of audiences worldwide.
Michael Bungay Stanier
Michael Bungay Stanier, an award-winning author and speaker, is best known for helping leaders become better coaches in their workplace. His approach focuses on asking powerful questions and leadership coaching.
He has written influential books on coaching techniques. His books, including “The Coaching Habit,” have sold over 1 million copies.
Cheryl Richardson
Cheryl Richardson is a life coaching and self-care expert. She focuses on teaching self-care and how people can create balanced, fulfilling lives.
Cheryl was featured on The Oprah Winfrey Show and has written several best-selling books on personal development.
➡️ Ready to Start Your Life Coaching Business?
Life coaching is NOT a pyramid scheme. It’s a legitimate career that provides valuable support to people seeking to improve their lives.
While the industry has seen rapid growth and some questionable practices, many ethical coaches are helping people achieve transformative differences in their lives.If you’re considering becoming a life coach, Paperbell will simplify the process. It’s designed to help coaches set up their businesses from scratch in the time it takes to make breakfast. Get started for FREE.
