Let The Buyer Beware
I've been talking to several business coaches / consultants lately - both inside and outside the fitness industry. Something that really astounded me was how few of them were willing to put their money where their mouth was.
No guarantees...but even worse...
...No equity option as a means of compensation.
See, a money back guarantee is great in most transactions - but in consulting it's still not the safest way to go for the business owner. Let's look at this for a minute:
If you offer a money back guarantee to your clients and they don't get the results you promised - they are typically not much worse off then they were when you first began working with them. In fact, depending on the guarantee (eg. - 20 lbs. of fat loss in 10 weeks) - they may be better off and still get a refund (10 lbs. of fat loss.)
If you're a studio owner that's business is in trouble and pay a business coach $500-$2000 (that you can barely scrape together) for advice on how to "right the ship" - if you don't get the results you were promised - you may not have a business anymore.
By my way of thinking, a better "guarantee" would be equity as compensation. If your business normally nets $2000 per month and the business coach's impact helps you increase that to $5000, then he / she should get a piece of the $3000 increase.
Is this option for everyone? Definitely not.
If you're business is already enjoying success, the fee may not be a problem.
If the advice results in a significant increase in profit, the coaching may cost more.
But, realistically, the people who probably need the coaching / consulting the most are the ones who would have the greatest difficulty affording it. And if the business coach has more at stake (like their compensation) - don't you think they are more likely to work hard to get you results?
Please don't take this the wrong way. You don't need to use this approach to hire a coach or consultant. But if you're strapped for cash, this might be the option to get the help you need. Either way, I'd be far more inclined to hire one who at least offered this option.
They're willing to put their money where their mouth is.
No guarantees...but even worse...
...No equity option as a means of compensation.
See, a money back guarantee is great in most transactions - but in consulting it's still not the safest way to go for the business owner. Let's look at this for a minute:
If you offer a money back guarantee to your clients and they don't get the results you promised - they are typically not much worse off then they were when you first began working with them. In fact, depending on the guarantee (eg. - 20 lbs. of fat loss in 10 weeks) - they may be better off and still get a refund (10 lbs. of fat loss.)
If you're a studio owner that's business is in trouble and pay a business coach $500-$2000 (that you can barely scrape together) for advice on how to "right the ship" - if you don't get the results you were promised - you may not have a business anymore.
By my way of thinking, a better "guarantee" would be equity as compensation. If your business normally nets $2000 per month and the business coach's impact helps you increase that to $5000, then he / she should get a piece of the $3000 increase.
Is this option for everyone? Definitely not.
If you're business is already enjoying success, the fee may not be a problem.
If the advice results in a significant increase in profit, the coaching may cost more.
But, realistically, the people who probably need the coaching / consulting the most are the ones who would have the greatest difficulty affording it. And if the business coach has more at stake (like their compensation) - don't you think they are more likely to work hard to get you results?
Please don't take this the wrong way. You don't need to use this approach to hire a coach or consultant. But if you're strapped for cash, this might be the option to get the help you need. Either way, I'd be far more inclined to hire one who at least offered this option.
They're willing to put their money where their mouth is.
posted by Pat Rigsby at 12:22 PM
<< Home