Coaching vs Therapy: Which Makes the Most Financial Sense? (2023)

Access the transcript for this episode here.

I got a great question about the earning potential for coaches versus therapists in my inbox. The subtext of the question was, "why become a therapist when coaches earn more?" So I wanted to answer that question with some nuance and decided to talk about it here. I posed this question to my Instagram community and got a ton of thoughtful feedback there, too.

For this podcast and accompanying blog post, I'm going to break down the differences between therapy and coaching, the type of coaching that gives me the heebie-jeebies, and why people are so convinced that coaching is the only way to make money (and hopefully debunk that too).

Coaching vs. Therapy

Coaching and therapy have a lot of similarities. Positive psychology is in both professions, along with a focus on a person's potential and the inherent worth of humans. I used to see more people separate coaching and therapy by the "time" or "tense" of the work. As in, coaching focuses on the future, whereas in therapy, the focus is on the past or present. Like most things, I think the differences are much more nuanced than the "tense" of the work.

I looked into what two large therapy entities, Social Work and the Marriage and Family Therapy Association, had to say about therapy vs. coaching. I peeked into what the two large coaching entities, the International Coach Federation (ICF) and the International Association of Coaching (IAC), thought about the similarities and differences. But, of course, since this is my podcast and blog, I'll be sharing my thoughts as well.

First and foremost, coaching is not regulated by the government. That means while there are organizations that require training and exams for coaching, anyone can call themselves a coach. This means defining coaching is up for debate. The ICF strongly emphasizes clients' future development and their professional and personal growth. The IAC is different, sharing that coaching focuses on personal awareness, growth, and discovery.

While both the ICF and IAC make it clear that coaching is not therapy, there's still a lot of fuzziness in the definition, which could lead to consumer confusion over what they are signing up for when they work with a coach.

I've summarized my findings and interpretations of the differences between coaching and therapy in the chart below. I cover each profession's training, topics that can be covered in session, confidentiality, fees & payment structures, client-coach or client-therapist fit, and the duration of services.

Mental Health Coaching vs. Therapy

Earlier, I shared a subset of coaching that automatically puts me on edge. And that's any type of mental health coaching. While well-intended, whenever a coach offers a mental health diagnosis "coaching," it can be difficult for the client to differentiate between coaching and therapy. It becomes murkier still when coaches use buzzwords that contain potential diagnoses, like "trauma coaching," "anxiety coaching," or "ADHD coaching."

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I don't believe in gatekeeping information. Plenty of ethical coaches can help their clients with specific mental health struggles. When it comes to addressing trauma, there is tremendous value in more people having access to a greater understanding of what constitutes trauma. I fear that a client in duress may turn to a coach when an actual mental health clinician and medical intervention would be more appropriate.

Can a Therapist Be a Life Coach?

Of course, therapists can do coaching on the side of their practice or move from providing therapy to offering to coach. For therapists who practice both therapy and coaching, there should be clear boundaries and differentiators in each of those practices. Clients should not move between being a therapy client and a coaching client. And, coaching clients should never be under the impression they are participating in therapy even if their coach is also a therapist.

When it comes to therapists who've left the field for coaching, the three common reasons are:

  • Income potential

  • Greater control over the clients they work with

  • More room for creative expression in their work

Some cite a greater earning potential when they don't have to be bound by the finger-wagging that comes with charging sustainable rates. Others say they were burned out at agencies and organizations that overworked them and had them working with clients who weren't the best fit. Still, others cited generally feeling boxed in when working as a therapist.

The Cost of Becoming a Therapist vs. a Coach

To get a certification in life, career, or other types of coaching, you can expect to spend between $3,000-10,000. The length of time can also vary but is generally between 3-12 months. A coaching certification comes with training, a number of hours practicing coaching skills, and often sitting for a test or exam.

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Something is compelling about a person who coaches and says, "fuck traditional education. I know in my bones, in my soul that I can help people with X and can and will do it ethically." I've seen many fantastic liberation, equity, and justice coaches that help individuals and organizations change in beneficial ways. I love seeing coaches help clients with negotiations, selling, identity, business, and finance, too!

The cost to become a therapist also varies, but it is between $50,000-$200,000. Between a four-year undergraduate degree, a Master's degree, or pursuing a Ph.D., it can easily be several hundred thousand dollars to become a licensed therapist. Once grad school ends, the therapist will have to go onto an internship or limited license period and accrue between 2,000-4,000 hours of supervised clinical experience. Then, they have to sit for their boards or exams to become fully licensed. Upon full licensure, they must maintain their license with ongoing continuing education and license fees.

There is so much gatekeeping that happens in traditional therapy and higher education. Not only is becoming a psychotherapist a financial investment and a barrier, but many of these institutions exist within racist and patriarchal systems. How these higher education systems are designed can make it harder for people of marginalized identities to access learning.

How Much Does a Therapist Make?

How much a therapist makes per year ranges wildly. To illustrate this picture, I turned to Google and asked Zip Recruiter what an MSW makes in Michigan when traditionally employed vs. when in Private Practice. According to Zip Recruiter, $51,437 is the average salary for an MSW in Michigan, and $72,000 is the average an MSW earns when in private practice. So I'd say that $52k is about what I see MSWs make in my state (and if you're wondering, yes, I'd say they are underpaid).

As I have a full-time private practice and coach other therapists to have sustainable private practices, I think the private practice figure of $72,000 is low. My colleagues, clients, and I regularly earn over $100,000 in private practice. If you are gawking at earning $100,000 as a therapist, I'll invite you to remember that therapists are mid-level healthcare providers. Other mid-level practitioners like nurse practitioners and physician's assistants can expect to make $90-120k for their work in Michigan. Psychotherapists should be advocating for similar compensation for our work.

How Much Does a Life Coach Make?

According to Zip Recruiter, a life coach in Michigan makes on average $50,549. Despite what all of the celebrity coaches will have you believing, coaching is no more of a lucrative field than psychotherapy. Some coaches make a lot, but some don't earn that much. The same goes for therapists: some make sustainable incomes, and others struggle to make ends meet. Having a viable niche, a defined audience and a way for clients to know you exist (aka marketing) are keys to a viable coaching or therapy practice.

The Takeaway?

Let me put it all together and return to the question that brought about this topic. "Why would you be a therapist when coaches make more money?"

BOTH professions are ones in which you can earn a living. BOTH professions require a level of niching and marketing to be successful. BOTH professions have a reason to exist and work to serve people in the capacity they need to be served in. BOTH professions can operate ethically.

We should stop gatekeeping between disciplines, allow therapists to have coaching training, and allow non-therapists to access education on mental health.

Therapists are subject to brainwashing that makes them believe that the only way to earn a good living is to burn their therapy license and move into coaching. I don't see it this way. I think it's more than possible, as I and many of my colleagues and clients are examples of financially successful private practice therapists.

What’s Next for You as a Private Practice Therapist

There you have it! Now you have a better understanding of the differences between therapy and coaching. If you are a private practice therapist and have been wrestling with a few questions in your head about upcoming entrepreneurial decisions, raising your fees, or transitioning to becoming a coach, I’d be happy to chat with you! Book a 75-minute Power Session with me today and we’ll make a plan collaboratively!

Book A Power Session with Me

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  • I got a great question in my inbox last week that I wanted to address today. And the question was, Why be a therapist, instead of a coach when it comes to the earning potential in private practice? In this episode, I'm not covering why someone should or shouldn't be a coach or therapist, but I am going to try and answer what I'm interpreting the subtext of this question as which is, What's the point of becoming a therapist when you can make more money as a coach? In my opinion, there are good therapists and bad therapists, there are also good coaches and shitty coaches. And in general, my background is as a social worker, the ethics and ethos of both social work and coaching are aligned, right, they both emphasize strength and growth and believe that, you know, we should move toward whatever that person's version of health or wellness or achievement is. And for me, personally, Lindsay, I believe that clients and consumers can be trusted to make a decision about whether coaching or therapy is best for them. I think there is a time and place for both of those professions, but it just depends on exactly what you're looking for. But really, for today, I'm going to break down like high level, what's the difference between therapy and coaching, the type of coaching that does kind of give me the heebie jeebies, because I would be remiss if I did not talk about it, and why I think people are so convinced that coaching is this like golden goose or golden egg or whatever that thing is about making money and hopefully debunk it too.

    So coaching and therapy have a lot of similarities woven into both of these professions are things like positive psychology, a focus on a person's potential, and the value of human relationships and the inherent worth of us as human beings. I used to see more people separate coaching and therapy by, like the focus of the work in like past, present future, as in coaching focuses on the future, but in therapy, you focus on the past or in the present. But I think, like many things in life, it's so much more nuanced than Oh, coaching focuses on the future and therapy focuses on the past, I think there's a lot of difference. A lot of nuance that we're missing here by just lumping it into past or future. So I did a little bit of digging, because I wanted to make sure I had my sources at the ready. And I wasn't just talking out of my ass for debate. And so I looked into two large therapy entities, Social Work, and the Marriage and Family Therapy Association, to see what they had to say about therapy versus coaching. And I also peeked into what two large coaching entities had to say about it, the ICF, which is the International Coach Federation, and the IAC, the International Association of Coaching. And of course, since this is my podcast and my blog, if you're reading this or whatever, I'll be sharing what I think as well. So first and foremost, basically all of these entities or groups agreed that coaching is not regulated by the government. Now, politics aside, and personal political beliefs aside, this means that while a coach can get training, can get a certificate, nobody has to do that, which is why anybody can say, I am a coach. If you've been here for a long time, you've heard me use the example of I ran a 5k. So now I'm going to teach you how to run a 5k. Now I'm a running coach, and how sometimes that can be really helpful to have somebody who is not a personal trainer or not a physical therapist or something like that teaching you how to run and how that could be beneficial to have like peer support. And you could also see how that could potentially be dangerous. You could have somebody teaching you how to run who doesn't know the benefits of having good core strength or good form or the importance of pacing or how to properly nourish your body when you're training for a different type of run. I'm obviously not a runner, so sorry if any if my jargon is off, but I think I'm close enough. So all that to say anybody can call themselves a coach. That's it. And that means defining coaching is essentially up for debate, the ICF that I mentioned earlier, they put a really strong emphasis on the client's future development, their professional growth. So like what they can become, you know, checking things off of a box. People who are ICF coaches might come at me for that. I don't know, again, I'm I let me back up because I didn't say this. I am not an ICF or IAC coach, I'm not the IAC is a little bit more. Based on what I saw on their website is a bit more expansive and how they define coaching, they share that coaching really focuses on not just development and growth, but also knowledge, they put an emphasis on personal awareness and discovery that can lead to growth. While both the ICF, and IAC make it really clear that coaching is not therapy, there's still a lot of fuzziness in that definition, which could potentially lead to consumers or potential clients being confused about what they're signing up for when they work with a coach. So let me just summarize, kind of quickly, you know, bird's eye view bullet points, the differences between therapy and coaching and a few different domains. So when it comes to therapy, training and credentials wise, therapy is government regulated, anyone who calls themself a therapist has to have at least undergrad and two years of grad school, they may go on to get a PhD. So they may have more than those six years of higher education. But they also have to have between 2,000 and 4,000 hours of supervised internship or externship, depending on the the lane that you're in depending on the discipline. They have to have two+ years. So between 2,000 and 4,000 hours of supervised clinical work, they have to sit for exams, or sit for boards. And then they also have to maintain their licensure, which means continuing education throughout the time that they practice. And each therapy profession or therapy discipline, whether it's psychology, counseling, social work, they all have their own governing board and code of ethics that they have to adhere to. And if they fuck up, if they break the rules, they can lose their license, that means they no longer can practice therapy, or maybe they get a slap on the wrist, and they have to be supervised for a while, or they can't practice in a certain way. Coaching on the other hand, as I mentioned, is self regulated. This means you can get a certification through the ICF, or IAC. And those different entities have a code of ethics. But I can't really get in trouble. If I am a coach, like I can't get necessarily reported to a board and have my coaching license revoked because there is no coaching license.

    In terms of topics. I think both therapy and coaching have a broad array of specialties that can exist. You know, I've seen everything from parenting, LGBTQIA, concerns, body image, oppression, liberation, neglect, finance, career, life, all of those things I've seen addressed in both coaching and therapy, the area that I think is really, really important that only exists in the world of therapy and not coaching is anything that has to do with a mental health diagnosis or treatment. Okay, I'm going to come back to that in a bit. In terms of confidentiality, that's also known as privacy. therapists have a legal and ethical mandate to keep everything that is done in a therapeutic setting, private, of course, we all have these asterisks by that privacy, which is if we're concerned about harm to a client, or harm that our client is doing to somebody else, then of course, we do have to break that confidentiality and let appropriate resources know that might be the person's emergency contact, or it might be you know, the emergency room, it just depends on what's going on. And that's where therapists have specialized training and assessing for things like suicidal ideation, homicidal ideation and safety that coaches don't get trained on. And when it comes to confidentiality in the coaching world world, from what I can gather, it's not necessarily required, but I would say it is commonly practiced in terms of fees and payment. You know, both therapists and coaches can do fee for service, but only therapists can have their services reimbursed by insurance providers or can bill directly to insurance. Coaches, on the other hand, they're not covered by insurance. The one thing that I think is interesting is that some therapists are okay doing package sessions, which is pretty common in the coaching world. But I've heard other therapists say, Nope, can't and won't do that, I don't have a strong feeling one way or another, I have just really felt that it makes the most sense to do fee for service or paying at the time of service or paying at the end of the week, or paying at the end of the month, instead of saying to a client, you owe me x-thousand dollars and then I'll see you six times, usually that doesn't really work in the therapy world. In terms of client fit, so the coach and the client or the therapist and the client, when it comes to therapy, research continues to show that the best outcome of a therapist and the client is not how many credentials that therapist has not the school they went to not the professor they trained on or not the research they've done. But whether or not the client and therapist click, that's really it, I know it sounds wild. But that's what the research shows, you can have the best person with the most letters behind their name. And they could be like, super robotic and condescending, or just like kind of weird. And the client might be like, that's not working for me, I'm out of here. The best fit for a client and a client therapy relationship client-therapist relationship. The best outcomes have been whether or not they mesh in terms of coaching, I don't know, I don't read coaching journals. But what I've seen a lot of coaches do is talk about their outcomes as the way to determine fit, aka 90% of my clients successfully negotiate a raise after working with me, right? And so that type of outcome, if I were looking for negotiation coaching, let's say, and I were a client looking for that I would look to what are the outcomes that this coach has gotten for other people so that I might decide whether or not that person is the right fit for me, does that I hope that makes sense. And then in terms of duration, how long you work with a coach versus how long you work with a therapist, it's kind of the same, in that it varies wildly. I think that there are some people who really love working with a therapist, and some therapists who really love working with clients. Long term like superduper long term in my head long term is like anything more than a year. And for coaches, some of them will work with you for a year. And some of them will say like, Nope, I'm gonna do a three-session package. And that's it. So it depends. So that's the bird's eye overview of the main differences between coaching and therapy.

    Now, earlier in this podcast, I said there is a type of coaching that automatically has my antenna go up and has like the goosebumps, and the red alarms and all of the things going off in my head. For me personally, that's any type of mental health coaching. That is, anytime somebody says something like, I'm a trauma coach, I'm an anxiety coach, I'm an ADHD coach, I'm a sex coach. All of those things may be very well-intended. And I do believe that in many cases, that type of coaching can be done properly and ethically. But anytime a coach is putting a mental health diagnosis into their coaching, it can be really difficult for the client or the consumer to differentiate between coaching and therapy. Right. And that is where I really have trouble is that I don't want clients who might be struggling with trauma, or struggling with anxiety or struggling with ADHD. They're desperate to get help and because therapists are, this is my opinion, generally not great at marketing themselves a coach's language because they speak not in jargon language in academia rigamarole, but because coaches have a generally better way of saying I do this, I help you with that, they might be more drawn to them, not knowing that they aren't getting mental health diagnosis or treatment. And that is incredibly problematic. I think if a coach is doing any of these things, they have to be really, really clear about what they do and what they don't do. Because I do think it's possible for somebody to help somebody with ADHD as a coach or to help somebody with anxiety as a coach. without engaging in unethical behavior, right, any of us can go to the library and pick up a book on coping skills for anxiety and it's not therapy, none of us expect that that's going to be therapy, but there are going to be a lot of tools in there that a therapist might use. But that is the one type of coaching that gets me a little creeped out. And I think is really, really important to differentiate both for the coach and the client. And just in general, I would love to see there be a bit more regulation there.

    Alright, so can a therapist be a coach, if you have learned nothing from my rambling, of course! Lots of therapists can be coaches, some of them have completely left the field of therapy because they do say, look, there's more flexibility or creativity that has allowed me to safely raise my rates or create a one to many model or create courses. And they also don't have to be bound by all the finger-wagging that comes with charging a sustainable rate as a therapist, other therapists who've turned to coaching say, look, I was burnt out I was at agencies, I was at organizations who were throwing, you know, 40, 50, 60 clients on my caseload, I had no say over who I couldn't, couldn't see. And I was just burnt out, I was toast, I moved into coaching, cool. Then there are other people who just say, Look, I just felt way too boxed in, I was in an academic setting. And all I was allowed to do was 12 sessions of CBT, I literally had to just do manualized CBT. And I was bored, and just didn't get to feel like I was my full creative self. And so I moved into coaching. But yes, therapists can be coaches, I'm not going to spend a ton of time on this. But in general, you want to keep everything separate. I'm not a lawyer, this is not legal advice, but do not move coaching clients into therapy clients, or vice versa. Do not do that, that do not pass go, that is not good. That's also not my lane. So I'm not going to spend a ton of time there. But like, if you're thinking about offering coaching, cool, just make sure that like there is a very firm line so that you don't get into trouble with your therapeutic governing boards. Now, I want to talk about money, because why are we here if we're not talking about money? Look, it costs a shit ton of money to become a therapist, it just does. In the United States where there is a high emphasis on education, but no financial, emotional, psychological safety nets to get higher education. It's costly, both financially expensive, and emotionally and psychologically expensive to become a therapist, right? I mentioned earlier that to become a therapist, you have to have a four-year degree, a master's degree and a lot of therapists have PhDs. So we're talking anywhere between like $50 to $200k. Easy. I mean, I think anybody pursuing a master's degree or Ph.D. can easily rack up several hundred thousand dollars of student loan debt. Plus, then you add into that, the years of working in a limited license, where you're making, you know, shit for money. And you're, you're basically working for free. And you have to do that for two to four years, depending on your licensure and depending on how much you can work. And then you have to sit for an exam, and then you have to pay for continuing ed, and then you have to pay for your fee renewal. It's expensive to be a therapist when it comes to being a coach. As I mentioned earlier, you can call yourself a coach right now, You can say I'm the coach of making stovetop popcorn on Thursday nights. Yeah, I'm joking. But that's also me. I'm not trying to be an asshole to coaches. I'm really, truly not. Because coaching can be an amazing thing. I've had coaches, and we'll continue to have coaches, I've had therapists, and we'll continue to have therapists. Both of these entities can and should exist together. And I think it's more important for us to think about how can they complement each other, then how are they different and which one is better than the other, but I wanted to address the money piece, which is why we're talking about how much it costs to become a coach. So anyway, you can be a coach for $0 You can call yourself a coach right now. But if you want to get a certification in coaching, you can expect to invest anywhere between $3,000 and $10,000 and anywhere in terms of time between three and 12 months. Now, both therapists and coaches can go on to specialize and that also costs more time and more money to get additional certifications or additional training or to specialize. So this is a baseline of the cost of becoming a therapist or coach, but it can always go higher. The other thing I want to say about coaches and about therapists is that there's something really powerful about a person who says, fuck traditional education, I'm not going to play the game of going into higher education. Because I know there's so much gatekeeping that happens. And, as I mentioned, it's not only a financial investment in barrier for a lot of people to become traditional psychotherapist. But we know these academic institutions have continued to perpetuate like rigorous academia, Q moustache and T with my pinky up, that looks like systematically promoting and tenuring people who walk, talk and act like people who already are in academia in therapy, right? We know that the people who are therapists do not adequately, adequately represent the demographics of the United States, right? There are mostly women in therapy. And there are mostly white women in therapy, it is changing, for sure, slowly, but surely more men, more non-binary people. And more people of color are moving into becoming therapists. But just like so many other things in our society, and in our culture, there's a ton of gatekeeping that happens that can prevent somebody from going into therapy. So I do want to say, if you're a person who said, Nope, don't want to do traditional therapy, I have no interest in that. Or maybe you started down that path and saw that, like the writing was on the wall, and it wasn't going to be good for you. And you know, in your bones in your soul, that you can help people with something and ethically right you can, you can not tow that line between providing mental health care without a degree. I think that's amazing. I've seen a lot of liberation and oppression and justice coaches come out of the woodwork and really stand in their power and say, I know I meant to do this. I know I'm called to do this. And they don't have a traditional coaching or therapy degree. That's fine. I'm all about doing what feels best for you, as long as you are doing it in a way that is not harming others.

    So let's talk about money. I don't know I'm singing so much today. It could be the extra cup of coffee I had, it could be that like, I'm still basking in the Leo Full Moon, which is all about like being up on stage and looking cute and being bright. I don't know. I'm sorry for anybody who doesn't like it when I sing into the mic. But here we are. Where was I? Making money? Okay, how much does a therapist make? I don't know. That's why I Googled it. I live in the state known as Michigan and I Googled what an MSW a person who has a master's in social work in Michigan makes. And according to zip recruiter, the average MSW in Michigan makes $51,437 When they're traditionally employed, and about $72,000. When in private practice, I can tell you in my line of work, as a financial therapist, my background is in social work, who also has a coaching practice that helps other therapists with their private practice. It's not unreasonable, unreasonable at all, for a full-time private practice therapist to earn over six figures. It's just not it's like very, very doable. And I usually don't use six figures stuff because it hits too reductive for me, but I just want to say that $51k and $72k to me feels low. Let me back up. $51k sounds right, if you're traditionally employed or woefully underpaid. $72k in private practice sounds slow to me. To compare or contrast this to other mid-level health care providers, like say nurse practitioners and physician's assistants. In Michigan, again, I just looked at my state because the little self-centered folks who are nurse practitioners or physician's assistants can expect to make between $90 and $120k. $90 and $120k compared to $51k like, why are we as therapists okay with this? Why are we okay with this with making like, literally half or 40% of what other mid-level health care providers make I don't know. Actually, I do know. But that's a different episode for a different day. Now, how much does a life coach make? Well, my cuties despite all the noise, about how easy it is to become a life coach and click your heels and go to sleep, and wake up with your inbox overflowing on autopilot, can you hear my eyes roll? I'm actually according to ZipRecruiter, a life coach in Michigan makes $50,000. So basically the same as a therapist. Just like there are therapists who are going to earn more than other therapists, there are going to be coaches who make more than other coaches. But I do not want you my thera-friend, if you're a therapist, to think that you have to move into coaching to earn a good living. Us therapists have picked up that we cannot have a sustainable practice if we charge rates if we charge the way that we do. In other words, like, we need to be more confident and competent to say, Hmm, $51,000 is not enough money. For somebody who's a mid level health care provider, it is not we need to advocate for more money. So if you're in private practice, you probably need to throw the middle finger at these insurance companies who are reimbursing you pennies on the dollar, you just might need to, you might need to say I can only do good therapy work when I am taking care of myself financially and energetically. And that means I need to raise my rates. We also have to nurture parts of ourselves outside of being therapists, we have to take time off have joy, have fun, go back and listen to my episode on burnout. I talked about that a lot.

    But the TLDR, the summary here to answer that person's question of Why would you ever be a therapist, if you could be a coach because coaches make more money is I don't think that's true. Normally do I not think that's true? I know it's not true. But you have to do what's best for you. If you think as a therapist, the only way I can make more money is if I you know, shred my therapy license and become a coach. I just don't think that's true. I think there are many, many ethical ways that are in alignment with your values. I, my colleagues, my clients are living breathing examples of having a sustainable practice. As a therapist. It's just true. We can earn good livings. You don't have to burn it all down and become a coach in order to make money. If you want to you can. You absolutely can. There's nothing wrong with that. I really hope that I have not negatively talked about coaches because like I said, I do coaching to just like there are snake oil coaches out there, there are snake oil therapists out there. We see them all the time. So do what feels best for you. But if you feel like the only way you can make more money is by burning your therapy license. I just disagree.

    Let's take a deep cleansing breath here because I was all sorts of worked up. I'm sorry, that happens sometimes. Happens a lot actually. Who am I kidding? Let me say one more thing before I go. If this chit chat today had you going like huh, I wonder if I can try to tweak some things in my practice so that I can build out something that's more sustainable or more profitable, you should maybe consider booking a Power Session with me, a power session is a one time 60 minutes session where I will get on a zoom with you, my thera-friend, and jump right into the things that are sticky in your practice or confusing or you feel like you can't think through. Think of it as a brainstorming and strategy session for your business. They're super fun. When you book I'll send over an intake form and you can kind of share with me the two or three questions you really want to dive in on. I'll record the video, of course, we don't have to record it. I'll record the video and send it to you. And along with that, I'll send you a summary of what we talked about. Because I know for me, I like to be fully present in my coaching or in my therapy session. So I want the same for you. And then I'll take notes and send it your way. The price of these is going to go up in April of 2022. So I strongly encourage you to book a session with me now if you're thinking about it. If you're like wow, today was helpful. I think I need to raise my rates or I think maybe I need to niche down or I think I need to get more clear on why being a therapist is so important to me. Then let's talk let's chitty chat here. MindMoneyBalance.com/PowerSession is the way to get it, it will be linked in the show notes. And again, the cost of those is going up in April of 2022. By about like 20% to 25%. To be honest, I realized I was doing a lot of work and not charging enough for them. So get them while you can. Cool. Thank you so much. To the person who sent that question over. It was such a needed conversation. And if you were on Instagram last Thursday, when I put those polls do you all also had a lot to say about this? Take care. I'll see you next week.

    Transcribed by https://otter.ai

FAQs

Is life coaching better than counselling? ›

Coaching is action orientated, vs counselling is coping orientated. Coaches want to help you recognise what you think vs counsellors also want to help you realise how you feel. Coaching helps you set and achieve goals vs counselling helps you recognise and solve your problems in life.

Is coaching worth the money? ›

While you can certainly work toward your goals on your own, there are several reasons why paying for a coach is worth the money. Working with a qualified coach can: Help you discover what's holding you back and find the motivation to move forward. Challenge your assumptions; help you find truth and meaning.

Why do coaches charge more than therapists? ›

The majority of coaches work with a very different business model to most therapists and that's why they charge way more. As well as having a clearly defined niche, coaches are very clear about the value they are giving to their clients and do not trade hours for money.

What are the differences between coaching and counseling? ›

Counselling concentrates on the person's past and deals with healing emotional pain. It is therefore geared towards understanding and resolving the past. Thereby, helping someone move forward and be able to reach their individual potential in life. Coaching focuses on the present and the future.

Is a life coach considered a therapist? ›

While therapists are trained mental health professionals who are in the regulated field of healthcare and require licensure, life coaches do not have mental health training and are not equipped to diagnose or treat mental health conditions (unless a life coach was previously trained as a therapist, which is also common ...

Can a life coach also be a therapist? ›

1 | State Laws and Rules

professional counselors who offer coaching services should understand that, legally, they are still practicing counselors. Be aware that licensing boards do not necessarily differentiate between counseling and coaching activities.

What is the main benefit of coaching? ›

Coaching has been known to boost confidence, improve work performance, and build effective communication skills. The benefits can be even more vast and specific to an individual.

How does coaching add value? ›

People undertaking coaching will feel valued and invested in, as someone is giving their time and expertise to help them. Coaching helps people discover their own motivation as it taps into their core values. Coaching principles underpin a management style that leads to a high performing culture.

How do coaches make the most money? ›

5 Ways to Make More Money as a Coach or Consultant
  1. Create a niche for yourself. ...
  2. Create a digital footprint. ...
  3. Focus on network marketing. ...
  4. Offer complementary services. ...
  5. Build long-lasting relationships.
21 Oct 2016

What is a fair price for coaching? ›

Hourly-Based vs Value-Based Pricing

Many coaches charge based on an hourly rate. New coaches typically start at $50-$75 per session. Meanwhile, experienced coaches may charge $100-$200 per session. Then there are package deals that may come in at $1200-$2400 per bundle (but more on this later).

How much should a coach charge per hour? ›

New coaches that are just starting out charge around $50 – $75 per session. More experienced coaches charge $100 – $200 per session. There are also coaches that charge by the package ($1,200 – $2,400) so there is quite a range.

How much is too much for a life coach? ›

For personal coaching, the cost varies with the coach's expertise and reputation. The typical range for personal life coaching is from $75 to $200 per hour, with an average cost of $120 per hour.

What is one of the major differences between coaching and therapy? ›

Therapists manage mental illnesses and diagnoses, coaches do not. Coaches work with clients for short periods of time. Therapists can work with clients for long stretches. Often therapists are focused on the past and present, while coaches are future-oriented.

What is one significant difference between coaching and counseling? ›

Coaching only focuses on the present and the future. Counselling exclusively focuses on the past. Counselors offer advice and on what to do, whereas, coaches do not.

What is the biggest difference between mentoring coaching and counseling? ›

One way to view these terms is through their relationship in time. Mentoring looks at the future and at potential; coaching looks at the present and how to improve to a future state and is more skill focused; and counseling looks at the past and how to improve for the future.

What can life coaches not do? ›

Under the law, coaches cannot do any of the following: Bill their services to health insurance companies. Offer the breadth of care and services provided by therapists. Diagnose or treat mental health conditions.

Who is the best life coach in the world? ›

Tony Robbins

Anthony Robbins is perhaps the most famous American author, coach, and speaker in the world today. His seminars have impacted over 50 million people from 80 countries and have been turned into a Netflix documentary film called I Am Not Your Guru.

What is a life coach compared to a therapist? ›

Life coaches identify and describe current problematic behaviors so the client can work to modify them. Therapists analyze their client's past as a tool for understanding present behaviors. In other words, therapists focus on “why” certain behavioral patterns occur, and coaches work on “how” to work toward a goal.

Is being a life coach stressful? ›

Being a life coach is fulfilling and rewarding, but it can also be really challenging. Even though coaches might have more coping tools than your average bear, they're still prone to a lot of the same things the rest of us struggle with, and their profession puts additional stressors on top of that.

What is the most important skill in coaching? ›

Coaches need to be able to show empathy and be good at building relationships, including building rapport. Good coaches also have strong communication skills. For more about developing communication skills in general, see our pages: Communication Skills, and Developing Effective Communication Skills.

What makes coaching so important and why? ›

Coaching encourages employees at all levels to ask for feedback and take proactive action to improve their performance. Openness to constructive feedback promotes a healthy work environment where concerns are tackled head-on with positive solutions.

What is the value of coaching? ›

The Benefits of Coaching in Organizations:

Helps identify and develop high potential employees. Helps identify both organizational and individual strengths and development opportunities. Helps to motivate and empower individuals to excel. Demonstrates organizational commitment to human resource development.

What are the 5 main characteristics a good coach should have? ›

5 Traits of a Good Coach
  • They master the art of “active listening” ...
  • They're willing to share skills, knowledge and expertise. ...
  • They act as a positive role model. ...
  • They focus on helping others to “problem solve” ...
  • They value ongoing learning and growth.
4 May 2020

What are 3 qualities of an effective coach? ›

  • An effective coach is positive. ...
  • An effective coach is enthusiastic. ...
  • An effective coach is supportive. ...
  • An effective coach is trusting. ...
  • An effective coach is focused. ...
  • A good coach is goal-oriented. ...
  • An effective coach is observant. ...
  • A good coach is respectful.

Do coaches really make money? ›

The question everyone really wants to know the answer to is can you actually make money as a coach? The answer is a resounding YES. You can make lots, actually. The International Coach Federation (ICF) reports that the average hourly pay rate for coaches is $235/hour.

Can you make money from coaching? ›

Coaching is a great way to make money online and grow your new business quickly. You can always add courses or other types of services over time. People often ask how to make money coaching online, but I just outlined exactly how I did it.

Can you make a lot of money as a coach? ›

The pros of private coaching:

–>It's instantly profitable, especially if you keep your overhead costs low (i.e., not renting expensive office space!). If you are signing several clients a month at $2,000-$4,000 each, then you are making right around six figures annually in your business. Go you!

How much does a 3-month coaching program cost? ›

For most new coaches in most industries, this price usually comes to around $1,500 for a 3-month package.

What should be included in a coaching package? ›

A coaching package offers more value to a coaching client.

For example, you can include email or Voxer coaching, access to a resource library, access to bonus training, or even check-in emails and calls. This helps your client get the most out of the coaching experience.

Why is coaching expensive? ›

Anything customized or tailored is expensive because the person cannot resell that product or service. So whenever you hire a coach for one-on-one coaching sessions know that for that entire hour or so that coach is solely dedicated to your success. They are carving out that time and space for you and you alone.

How many clients should a life coach have? ›

According to the ICF, active coach practitioners are serving 11.7 clients at a time. For life coaches with 10+ years of experience, the average number of active clients is 15. But for life coaches with less than a year in practice, their average is 6 clients.

How much should I charge as a personal coach? ›

A Personal Trainer is a Coach that will help you reach your fitness goals and will cost between $50-$100 on average for a Private session and $15-$40 for a Group session.

How many hours a week does a coach work? ›

Work Environment

Full-time coaches may work more than 40 hours a week for several months during the sports season. Work schedules for coaches and scouts vary and may involve irregular hours, including evenings, weekends, and holidays. They may need to travel frequently.

What is the average age of a life coach? ›

67.5% of all life coaches are women, while 32.5% are men. The average age of an employed life coach is 34 years old.

How long should a life coaching session be? ›

Coaching Sessions of Moderate Length (30-60 minutes)

Several reasons make such sessions popular. First, the attention span of most people cannot be sustained beyond this length of time, so that session takes full advantage of this window before the client becomes exhausted and his or her attention starts drifting away.

How do you know if a life coach is good? ›

Life coaches need to be approachable, personable, friendly and helpful. They should be enthusiastic, empathic and have a sense of humour and patience. Possessing these qualities are important in helping coaches to gain new customers, but also new business contacts.

What is the main difference between coaching and counseling quizlet? ›

Counseling is typically the most formal. Coaching is less structured and occurs daily. Mentoring is voluntary and less formal.

What's the difference between coaching and therapy? ›

The primary difference between a therapist and a coach is that, generally speaking, therapists tend to focus more on the past or present while coaches tend to focus more on the present and the future. Therapists are often more focused on cognitions while coaches are often more focused on behaviors.

How is coaching different than counseling? ›

“Therapists diagnose and provide professional expertise and guidelines, and coaches help clients identify the challenges, then work in partnership with clients to obtain their goals.”

Why is it important to know the difference between coaching and counselling? ›

Counselling concentrates on the person's past and deals with healing emotional pain. It is therefore geared towards understanding and resolving the past. Thereby, helping someone move forward and be able to reach their individual potential in life. Coaching focuses on the present and the future.

Which is more effective coaching or mentoring? ›

Coaching is more performance driven, designed to improve the professional's on-the-job performance. Mentoring is more development driven, looking not just at the professional's current job function but beyond, taking a more holistic approach to career development.

Which one is better coaching or mentoring? ›

Career coaches can help you understand yourself better, improve your mindset and equip you with the skills to handle future challenges and situations. Compared with mentoring, coaching is typically more structured and tailored to specific outcomes, as opposed to general personal development.

What is the difference between coaching and counseling in the workplace? ›

The difference between coaching and counseling is all about perspective. Coaching asks: Do you need help with attaining your work goals; whereas, counseling states: You need help in addressing this issue that hinders your performance in the workplace. One is to inspire and motivate; the other is to improve and correct.

What's the difference between a counselor and a life coach? ›

Coaching only focuses on the present and the future. Counselling exclusively focuses on the past. Counselors offer advice and on what to do, whereas, coaches do not.

Do life coaches actually help? ›

While people may report subjective benefits after seeing a life coach, there have also been studies that have shown that life coaching can be beneficial in a number of areas: One study found that both individual and group coaching was helpful in reducing procrastination and improving goal attainment.

What is the success rate of life coaching? ›

What percentage of life coaches are successful? Only 10% of life coaches are successful because it is estimated that over 90% of coaches who are just starting off fail because they do not have a niche.

Whats the difference between a therapist and a life coach? ›

Life coaches identify and describe current problematic behaviors so the client can work to modify them. Therapists analyze their client's past as a tool for understanding present behaviors. In other words, therapists focus on “why” certain behavioral patterns occur, and coaches work on “how” to work toward a goal.

What can a life coach not do? ›

Coaching does not focus on the past; rather, life coaching focuses on the present and creating the future that a client hopes to achieve. Life coaches are not consultants. A good life coach will not tell clients what to do or prescribe specific courses of action based on their own desires.

What is a fair price for a life coach? ›

Most life coaches charge somewhere between $75 and $200 per hour. However, you can find coaches who fall outside of that range.

Are life coaches well paid? ›

As of Nov 13, 2022, the average annual pay for a LIFE Coach in California is $55,978 a year. Just in case you need a simple salary calculator, that works out to be approximately $26.91 an hour. This is the equivalent of $1,076/week or $4,664/month.

What type of person needs a life coach? ›

8. You're facing a major transition. If you're about to change jobs, move to a new city or get out of a relationship, you need a life coach. You don't want to burn out your family and friends with discussions about your upcoming life changes, and you want to make your transition as easy as you can.

Who is the most successful life coach? ›

Tony Robbins

Anthony Robbins is perhaps the most famous American author, coach, and speaker in the world today. His seminars have impacted over 50 million people from 80 countries and have been turned into a Netflix documentary film called I Am Not Your Guru.

Can you do coaching and therapy at the same time? ›

Therapy and life coaching give the client the needed support during times of trouble and many accredited therapist today have taken on both roles to help their clients improve the overall quality of their mental health and their lives.

What is the difference between coaching and therapy ICF? ›

Coaching focuses on visioning, success, the present and moving toward the future. Therapy emphasizes psychopathology, emotions and the past to understand the present, and it works more with developing skills for managing emotions or past issues than does coaching.

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