Business & Life Coaching – The Modern Day Gold Rush?

Qualify as a Coach? – Investment or Con?

It is said that in California the people who made the money on the gold rush were the people selling the picks and shovels not those digging for gold. The same could be true in the world of Coaching, with those making the money selling training and profiling tools. Most coaching practices are not full time, with many all but ceasing trading after just a few years

Have you ever thought about training to be a coach and looked at the many adverts for “accredited coach training“? Many people interested in running their own small business will have read the “success” stories of coaches (Executive, business and life coaches) who, with little money but good skills and process, have launched a coaching practice of their own. With significant motivation to run their own business, in the hours that suit them, many of us are led to believe that there is gold in them there hills. Many people personally invest in becoming qualified, on the expectation that anyone involved with coaching would make a lot of money, help people and have a lot of free time. Basic business and common sense logic had just gone out of the window. Completing a “accredited coach training” programme can cost from $200-$5000+.

Many people have taken their redundancy money or their hard earned savings in order to complete training and accreditation and to set up a coaching practice of their own. In the last 5 or so years, newspapers and the professional press have been covered with coaching adverts and stories of people making lots of money and spending little time involved in delivering the required service to a potentially “unlimited” market of people wanting self development for their next career or life decision.

Individuals with little or no business experience, but with the belief that they wanted to “help people” have had some success, and through the power of digital media “pimped up” the stories of success. What is actually happening in the sector is not as rosy as these providers would have us believe. For much of the coaching world is based on the premise of self development leads to success and that the market is almost unlimited. Many of those running today’s coaching qualification courses have at some time run “personal achievement” style courses or journals, and moved into promoting coaching as they felt it was a growth area.

Coaches and the media were claiming that this was the future for business and they encouraged more people to join the coaching phenomenon.

Many people saw an opportunity to make money fast and easily and jumped on the coaching bandwagon, buying training from any high gloss or perceived quality provider. These coaches played their part in the coaching phenomenon, pushing up the already unrealistic earnings potentials to even greater heights. Normal business criteria seemed to be put on hold and coaches ploughed money into this sector partly through fear of missing out and partly through sheer greed. Many believing that it could never end.

The Coaching phenomenon has been compared to the Californian gold rush. Some people did make a fortune but the vast majority who made the trek to the gold fields lost all they had. The people who made the money were, in the main, those selling maps, provisions, or alcohol! – or in the case of coaching – training, personal profiling tools and accreditation.

So it is with Coaching. Product and training companies and those offering services to the coaching world have shown excellent returns, although many are now facing more difficult times on the back of a diminishing market, as coaching is one of the “investments” than many individuals stop spending in when cash is tight.

• The failure of so many coaches has been put down to the lack of business “savvy” – few of the coaches had any appropriate business experience which would have brought a sense of realism to what was happening
• Lack of sales know-how – money was thrown at websites without a full understanding of what was required and the implications of what might happen
• Lack of any financial rigor or cost control – money was for spending and little thought was given to controlling costs and balancing the books
• Lack of solid evidence to show potential clients the actual value that a relationship was likely to bring
• Much like the Time Share phenomenon, many people start on training courses, have to offer free coaching to get the required number of “clients” and experience – and fail to realize that after training it will get harder as why would people pay if they can find a coach under training!

In a relatively short period of time, the term coaching will take on a slightly unsavoury taste as more and more coaches fail to provide themselves with a livable income.

Still want to train as a coach?

And the next or current “Gold Rush”… Social Media Marketing… its already happening

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RapidBI is an organizational effectiveness consultancy based in the UK but working internationally.
© RapidBI & Mike Morrison 2011 - this article/ page is free to copy and use on the condition that an active link back and reference is made to this site and page. Thank you for your understanding and co-operation.

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