4 Kinds of Income You Can Create in Your Coaching Business

So many entrepreneurs I speak to are excited about the idea of earning income beyond one-on-one coaching.

But did you know there are actually 4 kinds of income you can earn?

Let’s quickly run through the 4 kinds of income:

1. Active Income – where you work one-on-one with your clients.

2. Passive Income – no investment of your time in delivering the product (e.g. home study program)

3. Residual Income – get paid each month (e.g. membership program, affiliate income)

4. Leveraged Income – work with groups of people e.g. group coaching

So what kind of income should you focus on?

It’s often easiest to start with Active Income. It’s the easiest thing to sell, and it allows you to really get to know your ideal client.

Passive Income is great but don’t be fooled. You still need to spend time marketing the program. And the sad truth is that many programs (that don’t include support) end up sitting on people’s computers.

Residual Income such as a membership program can be great too. Just keep in mind that the monthly fee is typically quite low so you need enough people in the program to make it pay off (which means you need enough people on your email list/network to market to).

What about Leveraged Income? Group coaching programs allow you to help more people for the same investment of your time. And the synergy of a group can be a great experience.

But there can be drawbacks, especially for the participants.

Have you ever been in a group coaching program where you felt lost in the crowd? Or the structure was so rigid that you felt you couldn’t adapt things to work for you? Or the people who sold the program weren’t the ones supporting you in the program?

I’ve been there. Those experiences led me to stop delivering group coaching programs. But then I realized that I didn’t have to do it the typical way. In fact, I could take what I didn’t like and turn it into fuel for an amazing experience.

Like keep my group small so I can give each person lots of attention.  And use a hybrid model that includes some private coaching for an extra level of deep support.

And build a real community with accountability and connection, so everyone can learn and share together.

Another important key with group programs is to have the right blend of structure and support, So you lead clients through a journey that gives them structure while providing the support to tailor things to them.

That’s where the power of a Signature Program comes in. You have a clear step-by-step system that guides clients to a tangible result.  A program you become known for, that becomes your #1 source of revenue.

What about you?

What kind of income do you want to add to your business? Will you focus on Active Income, Passive Income, Residual Income or Leveraged Income?

And what strategies will you put in place to ensure you both earn great income and deliver an amazing experience for your clients?

If you want to speak with me privately about the best income streams for your unique business, and explore how I can support you in creating that, then let’s talk.