Passive Income For Life Coaches (9 Ways Life Coaches Make More Money)
5 September, 2024
You’ve had a productive week, finished editing your website, launched your first course, and welcomed eager students. Instead of coaching, you can enjoy a few days at the beach. This is the beauty of passive income for life coaches. It allows you to grow your online coaching business and earn money while you sleep, take vacations, or focus on other projects. In this blog, we’ll discuss how life coaches and consultants can generate passive income, freeing them from daily operations and allowing more time for what they love.
One way to create passive income as a life coach is by using Delphi’s digital clone. This customizable AI tool helps you create, market, and sell digital products like online courses and coaching templates. Once set up, it runs independently with minimal oversight from you.
What Is Passive Income?
Passive income involves earning money with minimal ongoing effort. On the other hand, active income occurs when income is directly tied to time and effort. As a coach, time working with clients, teaching classes, or even speaking on stage is active income. Courses that people can buy any time or income from views on Tiktok or Youtube represent passive income.
All streams of income require some setup and maintenance. Passive income isn’t “effortless,” but it can help you earn more money consistently with less work. For life coaches, passive income helps leverage time and increase revenue without adding hours to a packed schedule.
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Why Do You Need Passive Income as a Life Coach?
Life coaching attracts those who want to help others and positively impact the world. But when you start a life coaching business, it’s vital to remember that it’s still a business, and you need to make money to keep it going. Passive income for life coaches can help you get to a place where you earn enough, so you don’t have to take on work you don’t want to – you have a steady income stream even when you’re not coaching. For example, you don’t have to work with particular clients and can scale down on the hours you put into my coaching services.
The Flexibility of Passive Income for Life Coaches
As a coach, you have a flexible business that lets you work when you want. But passive income takes that to the next level – you can coach less, travel more, or spend more time with your family.
The Scalability of Passive Income for Life Coaches
You can earn more without working more. Your products can be sold to unlimited people, while you can typically coach ten clients.
The Security of Passive Income for Life Coaches
By diversifying your income, you don’t rely on just one income stream to keep your business running. Even if you need to take time off or invest more in my business, you have other income sources than just coaching.
Why Coaching Isn't Always Considered Passive Income
Coaching is only sometimes considered passive income. While you might find ways to streamline your coaching process, the inherent nature of a time-for-money business model will always limit your scalability. Since each coaching session is for a specific client or group of clients, you can’t sell it multiple times.
It Requires Your Time
Most coaching offers include one-on-one sessions or group workshops where you are directly engaged with clients. This model is time-bound. You can only earn income when actively working with clients, and there are limited daily hours to take on new ones.
It’s Personalized to Each Client
Coaching is often highly personalized. While you have one area of expertise you coach clients on; they will each have individual challenges that must be addressed. This means each session needs to be customized to the client, and while that’s highly effective, each is a unique interaction that doesn’t lend itself to passive income.
Scaling Is Hard
If you want to scale your coaching business, you need to get more clients, which eats up your time, or hire someone to join and share the load, which can be a massive management and coaching task. Either way, scaling a coaching business takes a lot of work.
It Requires Continuous Effort
If you sell one-on-one coaching, your clients only pay you if you continue to meet and communicate with them. Suppose they leave or want to take a break from coaching; that reduces your income. While you can put coaching in cruise control mode to a degree, it always requires at least one hand on the wheel.
Scale Your Expertise with Delphi’s AI-Powered Digital Cloning Platform
Delphi is a digital cloning platform that empowers users to capture and scale their unique style, voice, and expertise. It enables professionals like:
- Content creators
- Coaches
- Influencers
- CEOs
- Executives
With Delphi, you can:
- Clone your expertise, time, and availability
- Preserve your knowledge and wisdom
- Mass personalize communication across texting, calling, and video calling
Delphi’s mentorship-as-a-service offers key audience management features, including:
- Mass messaging
- Real-time conversation engagement
- Alerts and notifications
- Analytics and content strategy data
Get started with Delphi today and create your AI-powered digital clone for free. Scale your communication and efficiency to fit your needs!
How To Make Passive Income as a Life Coach? 9 Passive Income for Life Coaches
1. Online Courses: Create a Profitable Course to Sell for Years to Come
Online courses are a game-changer for life coaches looking to create passive income. The online learning industry is booming, with projections estimating it will be worth $200 billion by 2024. This is a prime opportunity to leverage your expertise and experience to create a course that resonates with your audience.
Leveraging Existing Expertise
The beauty of online courses is that you already have the knowledge you need. You've worked with clients, so you know their pain points and how to address them. This puts you in a perfect position to design a course that is both effective and valuable. You'll want to set up an evergreen sales funnel to make this income stream passive. This is a sales process that operates on autopilot.
Creating a Passive Income Stream
Start by creating a self-study course, then drive traffic to it through SEO or paid ads. Once people are in your funnel, use an automated email sequence that leads to a webinar where your course is sold. Building an evergreen funnel takes time, but the payoff is substantial, you could earn six or seven figures.
2. Brand Partnerships: Get Paid to Promote Products You Already Use
If you have a social media presence, brand partnerships can be another lucrative source of income. Brands are always looking for influencers with engaged audiences to promote their products. You don’t need millions of followers to get started; even micro-influencers (with 10,000 to 100,000 followers) can land profitable deals.
There are various ways to monetize these partnerships. To generate passive income through ads, you could:
- Create content for a set fee
- Earn a commission on sales through affiliate links
- Use platforms like YouTube
While building a large enough following to monetize effectively takes time, it can be a great way to earn money with minimal ongoing effort.
3. eBooks: Sell Your Expertise to Build Authority and Income
The eBook market is growing, with an estimated 1.1 billion readers expected by 2027. Writing an eBook can be a powerful way to establish yourself as an authority in your niche and create a steady stream of passive income. The key is to write about a topic that aligns with your coaching services. For instance, if you coach on stress management, you could write a book on morning routines that reduce stress.
The potential income from eBooks can be five figures but remember that because they often sell for lower prices, you need to sell a significant volume to make a substantial income. You can create your eBook using tools like Canva and sell it on platforms like:
- Amazon
- Etsy
- Your website
4. Affiliate Marketing: Earn Passive Income by Promoting Other People’s Products
Affiliate marketing lets you promote other people’s products and earn a commission on every sale through your link. This can be incredibly profitable if you promote high-ticket items like courses, where commissions can range from 50% to 75%.
Affiliate marketing can be an excellent way to earn passive income if you need more time to create your products. You can start by joining affiliate programs related to your niche and promoting them through your:
- Website
- Blog
- Social media
Like brand partnerships, an evergreen funnel can make this income stream more passive.
5. Outsourcing Your Coaching: Scale Your Business for More Income and Time Off
As your coaching business grows, you might max out with one-on-one clients. If you want to scale your business without burning out, consider outsourcing your coaching. Hiring and training other coaches can expand your offerings and generate more income without doing all the work.
This method is the least passive because it requires managing your team but allows you to scale your business significantly. Plus, with a team in place, you can take time off and focus on other areas of your business.
6. Membership Sites: Create Recurring Income by Building a Community
Develop a membership platform offering exclusive content, such as:
- Live webinars
- Discussions
- Downloadable resources
Provide regular value to keep members subscribed. Use social platforms, like Facebook groups, or create your own using resources like:
- Kajabi.com
- Podia.com
- A web hosting platform like WordPress
To maintain high retention rates, host regular events, provide personalized content, and actively engage with your community. The success of your membership site relies on equal parts value and relationship-building. As you build know-like trust with your members, they are likely to also invest in other resources like courses or coaching.
7. Masterminds: Generate Income While Building a Support Community
Like a coaching program, hosting mastermind groups is not purely passive but more scalable than one-on-one coaching. Running a mastermind involves gathering with clients for:
- High-level brainstorming
- Networking
- Support
These groups often command premium prices and can generate significant income while fostering community and collaboration. You can provide live and asynchronously interaction without booking too many calls by leveraging platforms like:
- Slack
- WhatsApp
- Facebook Groups
8. Digital Products: Create and Sell Resources to Your Audience
A course is a digital product, but other options are available for coaches to sell. If there’s a way to package up your expertise, you can sell it to build passive income. Some digital products could be Worksheets and assessment templates. For example, a leadership coach could create an interactive, online (or downloadable) leadership assessment tool for a low-ticket price that you sell through a landing page or on the back end of a free resource.
That could start a sales funnel for more extensive ticket offers. These digital products, downloadable and accessible worldwide, provide value to clients while generating revenue with minimal effort on your part.
9. Blog, Newsletters, or Podcasts: Use Content Creation to Build an Audience and Generate Passive Income
If you’re looking to generate passive income beyond social media, excellent tools are:
- Blogs
- Email newsletters
- Podcasts
These formats help you connect directly with potential clients and build a community, offering great opportunities to promote your online coaching courses.
Monetizing Your Blog
For blogs, you can make money through ads and affiliate links. To be successful, focus on creating high-quality, engaging content that resonates with your audience. Here’s an idea to get started:
- Share valuable insights or tips related to your coaching niche
- Use affiliate links and offer sponsored posts to generate income
- Consider offering exclusive content through a subscription model.
Monetizing Your Newsletter
Newsletters can be profitable through affiliate links and paid subscriptions. For instance, you can:
- Include affiliate links and partner with brands.
- Use platforms like Substack to charge a monthly fee for exclusive content or coaching memberships.
Monetizing Your Podcast
Podcasts are similar to newsletters in terms of audience building. To earn money:
- Provide engaging content to make listeners click your links.
- Use ad reads for sponsored brands that fit your podcast’s theme.
- Focus on growing your audience to attract higher-paying sponsors.
Keep in mind that most sponsorship deals require a large number of monthly downloads. Hence, prioritize growing your audience before you start focusing on monetization.
What Life Coaches Make the Most Money?
According to ZipRecruiter, the best Life Coach jobs can pay up to $65,500 annually.
High Paying Life Coach Jobs
1. Program Trainer Salary Range
$46,500-$65,500 annually. Program Trainers earn a consistent salary across different locations and experience levels. The job market for this role currently needs to be more active, and opportunities for advancement are limited.
2. Personal Coach Salary Range
$56,000-$64,000 annually. Personal coaches help clients improve their personal and professional lives by setting goals and making lifestyle changes. They regularly meet with clients to track progress across various areas, from organization to fitness.
3. Transition Teacher Salary Range
$37,500-$61,500 per year. Transition teachers assist students with disabilities as they move from school to work. They teach, provide resources, and report on progress, requiring a background in special education and knowledge of local programs.
4. Profile Coach Salary Range
$38,500-$58,500 annually. Profile coaches earn consistent salaries regardless of experience or location. The job market for this role could be more active, and related job titles may offer more opportunities.
5. Transition Specialist Salary Range
$39,000-$57,000 annually. Transition specialists help students plan their careers, focusing on the right combination of education and experience. They work in educational settings, providing counseling and job search assistance.
6. Life Enrichment Director Salary Range
$37,000-$56,000 annually. Life enrichment directors coordinate activities and programs for assisted living or senior care facility residents, aiming to improve their quality of life through social events, hobbies, and fitness programs.
7. Life Enrichment Manager Salary Range
$31,000-$51,500 annually. Life enrichment managers earn consistent salaries with few advancement opportunities. The job market for this role could be more active, and exploring related job titles might offer better opportunities.
8. Success Coach Salary Range
$35,500-$51,000 annually. Success coaches train clients or employees to succeed in specific areas, whether in business or education. They may work one-on-one with individuals to identify goals and paths to success.
9. Transition Coach Salary Range
$38,000-$48,500 annually. Transition coaches assist clients through significant life changes, such as career shifts or personal losses, by teaching life skills and self-care. Certification is typically required for this role.
10. Family Coach Salary Range
$37,000-$48,000 annually. Family Ccaches help families navigate challenges, earning consistent salaries and some job opportunities. The role involves working closely with families to improve their dynamics and outcomes.
11. Life Skills Trainer Salary Range
$30,000-$44,500 annually. Life skills trainers assist people with traumatic injuries, particularly brain injuries, in performing daily tasks. The job requires strong interpersonal skills and may include certification in nursing assistance.
12. Life Skills Coach Salary Range
$32,000-$42,000 annually. Life skills coaches help individuals develop essential skills and receive consistent pay across experience levels. The active job market offers moderate opportunities for those interested in this role.
13. Life Skills Specialist Salary Range
$30,000-$36,000 annually. Life skills specialists teach life skills to children or adults, often working in camps or urban settings. A bachelor’s degree in social sciences is typically required, with teaching and leadership experience being advantageous.
Related Reading
How Much Money Can You Make as a Life Coach?
Life coaching can be lucrative, with earnings varying widely depending on experience, reputation, and the ability to diversify income streams. According to Glassdoor data, life coaches in the U.S. make around $61,003 per year. Nevertheless, earnings can range from as low as $10,000 to as high as $350,000 annually.
The most successful coaches with a strong reputation and a broad client base can earn upwards of $250,000 per year, excluding additional income from books, workshops, or online courses.
Do Life Coaches Need Certifications or Licenses?
Unlike many other professions, life coaching doesn't require a formal license or certification, which lowers the entry barrier. This makes it accessible to many people, from hobbyists to those pursuing it as a full-time career. The flexibility in defining what it means to be a life coach allows for various avenues of income, such as:
- Blogging
- Public speaking
- Running social media channels
What Makes a Life Coach Successful?
Success in life coaching hinges on creativity and continuous self-improvement. The most prominent life coaches consistently expand their knowledge and explore new ways to provide value, which helps them stand out in a competitive market.
4 Tips For Growing Passive Income For Your Coaching Business
Know and Cater to Your Audience
First things first, you need to know who you’re talking to. Understanding your audience isn’t just important, it’s crucial. Who are they? What are their pain points? And most importantly, how can you help them? Let’s say you’re a coach who specializes in helping start-ups. You know these entrepreneurs struggle with budgeting and building an audience in the early stages.
You may create:
- Digital guides
- Membership programs specifically tailored to address these challenges.
The more your offerings align with your audience's needs, the more valuable they become. And guess what? When your products hit the mark, you’ll see more:
- Engagement
- Sales
- Passive income
Focus on Your Top Marketing Channels
Here’s a little secret: marketing isn’t about being everywhere. It’s about being in the right places. It’s easy to fall into the trap of thinking you need to be active on every single platform, such as:
- SEO
- LinkedIn
- TikTok
- Instagram, you name it
Focus on What Works
But let’s be honest: As a coach, you’re busy enough already. Imagine you’re a business coach who specializes in LinkedIn ads. If you’re spending time trying to grow an Instagram following, you’re likely wasting energy.
Instead, double down on the channels where your audience hangs out. Focus on three marketing channels that are most effective for reaching your target audience. Show up consistently, add value, and watch your visibility and ROI grow. Less stress, more results.
Choose a Few Income Streams to Diversify
It’s tempting to try and juggle multiple income streams, after all, there are plenty to choose from. But here’s the thing: less is often more. Instead of trying to do it all, start by selecting a few income streams that make the most sense for your business and that you can manage without burning out.
Mix and match in a way that feels sustainable, whether it’s:
- Creating online courses
- Writing e-books
- Offering subscription services
And if one stream doesn’t work out, you’ve got others to fall back on. The key is to balance your efforts, so you’re not overwhelmed but still diversified enough to protect your income.
Speed Up Content Creation with a Digital Clone
Now, let’s talk about a game-changer: creating a digital clone. Imagine having a version of yourself that can handle content creation while you focus on other aspects of your business. Sounds futuristic, right? But with tools like Delphi, it’s possible.
Using AI to clone your knowledge, expertise, and personality, you can generate content that sounds just like you without lifting a finger. This digital clone can help you produce:
- Blog posts
- Social media content
- Newsletters and more
All while maintaining your unique voice and style. It’s like having an extra set of hands to help you scale your business, leaving you more time to focus on strategy, client work, or even just taking a well-deserved break.
Create Your Own Digital Clone with Delphi Today
Delphi is a digital cloning platform that helps users capture their unique style, voice, and expertise, enabling them to scale personalized 1-on-1 interactions. It empowers professionals like:
- Content creators
- Coaches
- Influencers
- CEOs
- Executives and more
With Delphi, you can:
- Clone your expertise, time, and availability
- Preserve your knowledge and wisdom
- Mass personalize communications through texting, calling, and video calling
Delphi’s mentorship-as-a-service offers advanced audience management features, including:
- Mass messaging
- Real-time conversation engagement
- Alerts and notifications
- Analytics and content strategy insights
Create your digital clone for free today and scale your expertise with AI customer support designed to enhance communication and efficiency!