Getting Immediate Cash In Your Business as a Coach at the start of your business?
So many coaches feel that they have to start out with a low end offer (maybe $37) and when the client trusts them enough, they can then offer them their higher ticket offers where the “real” money is.
BUT, at the start of your Coaching business you NEED money in the door! So this low offer to high offer funnel arrangement can actually kill your business as there is such little cashflow coming in to keep the business afloat..
When you are fairly well established and cashflow is not an issue, you can then think of offering lower end offers to “scale” your business..the video below explains the 3 ways in which coaches can present their offers to the market and it all depends on where you are in your Coaching business.
I mention in the video above to access the Cheatsheet for the pros and cons of what to offer as a coach – I now detail all those pros and cons below:
HIGH END OFFERS OUT OF THE GATE ***** (RECOMMENDED FOR STARTER COACHES)
PROS
You need way fewer clients to make more money.
Probably the FASTEST way to make the most money and cashflow into your business as your High Ticket offers generate excellent profit margin. This is IDEAL for coaches who are getting started and need cashflow!
THIS IS THE EASIEST FUNNEL TO BUILD – Landing Page – Case Study – Survey & Application and Thankyou page
You need to be extremely clear on your clients journey with you from start to finish and very clear on your program details to ooze that confidence on the phone/zoom calls to close those sales!
CONS
You have to learn closing skills and aim for converting at least 1 on 5 on the phone
You have to spend quite a bit of time on the phone on strategy calls and closing clients so you need to be comfortable and confident with that. In the process, you must not lose sight of serving your existing clients.
You will not get as many testimonials so quickly purely down to the mainly reduced numbers you take on.
You need to be extremely confident in you and your program and your ability to offer that transformation.
LOW END OFFERS OUT OF THE GATE – FUNNEL ONE
This is a great way to cast your net wide and draw in large numbers of your ideal client to then filter down to the fewer higher ticket clients who then go on to buy your High Ticketed products.
However be aware that if cashflow into your business is the most crucial thing you need right at this time (eg. IF YOU HAVE JUST STARTED A COACHING BUSINESS!), offering these low end offers can be the slowest path to cash! Be warned – these low end offers can actually kill a business if you are just starting out BUT low end offers can be used to SCALE up once there is plenty of cash in your business.
PROS
- Your 1:1 calls are minimised and your lower end offers do the heavy lifting for you; people more naturally upgrade into your higher end programs as they grow trust with you. The trust is all down to the amazing content that you give at your lower end offers where you have also over delivered.
- You can help MORE people as your lower end offers also offer transformations in their life.
- You do not have to be such a good CLOSER on the phone as you do with higher ticket offers.
- You have way more clients and the word can spread way quicker to get testimonials too from this larger pool of people – success breeds success!
CONS
When you run ads, you will, very unlikely make any money on your lower end offers as the ad costs themselves can exceed the costs of the offer. If you get a 2% to 6% conversion on your sales page, you are doing well.
It is highly advisable to offer an Order Bump so when people check out on your sales page, they tick an Order Bump which could be an extra masterclass, a report, swipe file, a bit of software (anything relevant to your niche) – this is designed to Self Liquidate your ad costs – this funnel is called an SLO – Self Liquidating Offer.
Then after a certain percentage have taken your Low Ticket offer and a lower percentage taken you up on your Order Bump, you can then offer a One Time Offer (OTO) on the next page in the funnel.
Essentially a more complicated funnel!
Low end offers can be the slowest path to cashflow; they are often used to SCALE up once there is plenty of cash in your business.
FREE OR PAID CHALLENGE
Some coaches start off with a Free Challenge or a Challenge with a small fee (and perhaps refundable). Many more experienced coaches still use Challenges but maybe paid or refundable. This does several things:
PROS
Builds up testimonials super quickly so that you then have the credibility behind you to start charging
Draws people into your funnel so you can upsell at the end.
Can suit beginner coaches as this enables them to build the confidence in what they coach and the results they can get for people before seriously charging!
Can enable you to get to know your niche much better and know the ways in which you can fine tune your offers.
CONS
You can attract a lot of time wasters if you offer the Challenge completely free so I suggest either a small fee or a refundable fee after running an initial free one to get reviews. Once you charge a small fee, many are not interested in getting their small fee back anyhow as they are blown away with your content.
You need to have a very clear offering that your people on your challenge know they are going to be presented with at the end. Your very clear next offering on your ascension ladder needs to be threaded throughout the Challenge and needs to be congruent with the content on the Challenge.
You need to keep people engaged though out the Challenge as the numbers can drop off as the Challenge proceeds. You need to be strict and set rules and Agendas and make homework for your participants and check people have done their homework along the way. Setting up a pop up Facebook group can be great for free Challenges where people can interact and ask questions and get the links to your calls.
Extra Resources: Want me to personally help you?
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