Episode 47: QnA: Is a 1:1 business model scalable and profitable?

Welcome to The Rachel Kurzyp Show.

I received so many questions about my recent decision to retire my offer suite and only have my 3-month 1: 1 coaching program, that I decided to share my answers here on the podcast.

Most of the questions I received fell into three loose topics all around scaling, income and credibility so that’s what we are going to focus on today.

I’m going to share another episode in a few weeks that goes through the sales and marketing strategy I created for my 1:1 coaching program that resulted in my biggest revenue month to date. 

So keep an eye out for that episode.

OK, let’s dive in.

Question #1 – I’m so excited that you’re offering 1:1 coaching BUT are you going to be able to scale with this business model?

I love questions about scaling and I think there’s lots to unpack here.

So firstly, let’s define scaling in the context of the online small business space. Scaling is increasing your revenue without a correlating increase in cost. This cost can be financial, or the cost of your time.

Thanks to many of the celebrity entrepreneurs, we’ve been conditioned to believe that the only way to scale and make more money in our business is to create multiple offers – specifically self-paced courses.

Now there is nothing wrong with the Accession model – that’s what it’s called BTW when you have an offer suite and as your dream clients move through those offers, they pay more money to have greater access to you.

I’ve had this business model myself and I support my clients to run their business this way too if it feels aligned for them. However, creating courses isn’t the only way to work with more people and increase your monthly income.

To truly scale your business you need to also create systems and processes that support growth, work with consultants or team members who specialize in different areas so that you can stay in your zone of genius, and map out your customer journey so you can attract, serve and sell to your dream clients every single day. 

This is where many of my clients struggle because it’s so much harder to scale when you don’t have your business foundations sorted first. I know for a fact that I’ve only been able to switch my business model and start serving my 1:1 clients in a few short weeks because I’ve already done this work.

And to specifically answer this question in relation to this new business model, it’s definitely scaleable. Over the last two weeks I have been able to double my original coaching spots because of my systems and processes at no extra cost to my business. 

Thanks to the support of my team, I’m able to focus on holding the vision for my business while they focus on the implementation of my strategy. Again, this is at no extra cost to my business leaving me to show up where I am actually needed – specifically supporting my 1:1 clients daily. 

I’ve been working around 15-17 hours a week since I switched my business model which is around about the same if not a little less than when I was offering multiple courses and programs.

I’ve been getting asked a lot of questions about my income too and I’m happy to address this here because I believe it is valuable to share income and financial information within context and I know many of you (I was the same) believe that offering a 1:1 or done-for-you service model isn’t financially viable and this is influencing the decisions you’re making in your business. 

So I’m here to tell you that it is financially viable. I’m on track to make over $300k australian dollars in revenue in the next 12 months and have plans to add additional revenue streams in the coming months too. I’m happy to talk about this more at a later date if you find these conversations supportive.

So if you’re feeling pressured to move away from a 1:1 or done-for-you business model so you can increase your income and work less hours, know that you get these results with your current business model. 

Question #2 Do you think you were able to have such a huge success with your high-ticket 1:1 coaching offer because you had already created trust and credibility with your offer suite? 

The short answer is yes. But let’s look at why.

I’ve spent the last three years working with and hanging out with my dream clients. I believe I know them really well and I always consult them before making big decisions in my business like this one. 

Over the last 9 months especially, I’ve really listened to them and spent a lot of time asking them what support they wanted. This meant, when I presented the program it was appealing because it addressed their wants and needs. 

I’ve worked with roughly 25% of my current clients before in my other programs and courses so yes they already trusted that I would deliver on this new program’s promise and they knew that I was able to get them results thanks to my expertise. 

However, what is really interesting is that I haven’t worked with 75% of my current clients. And this tells me three important things: 

  1. That my content marketing strategy is working because it’s attracting my dream clients and is building the know, like and trust factor so well that my clients are comfortable investing in a high-ticket 3-month program with me.
  2. My sales process is supporting my clients to make the decisions that feel right for them. I don’t have a sales page or complicated funnel. I’m simply asking people to DM me or book a call in my calendar to chat. I’m being upfront with the cost of the program and providing them with choices like where they want to have their questions answered so that I can meet them where they are most comfortable.
  3. The results I support my clients to achieve speak for themselves. And I’m so grateful to my clients for recommending me to their community. Many of my current clients were referred to me by my past clients and peers. Referrals often get forgotten in the online business community due to the hustle and scale culture.

So while I know that my past offer suite has supported the success of my new offer, I believe it would still have been successful if this was the first offer I had created because of the points I listed above. And I know this to be true from when I first launched TCFM and CCWC which sold out for both launches. Trust and credibility should underpin everything you do in business.

Question #3 Which should I offer first? A 1:1 program or a course? Which one will provide me a sustainable income?

Another great question and I could talk to this for hours so today I will focus on my offer creation approach that I’ve always taught in my courses and programs.

I believe you should always create your high-ticket, most expensive, biggest transformation service or program first. Here’s why:

  1. The best way to create a sustainable and predictable income is to create a signature service that your clients can book months in advance. Knowing your income is sorted frees space to work on your marketing and sales, create systems and processes and upskill in your area of expertise.
  2. You can focus on building relationships with your clients. Relationship marketing is also low-cost so you’re not having to invest money into apps, website designers and Facebook Ads. And as a result your profit margin will be higher and in most cases your conversion rate will be too. Conversion rates for courses can be as low as 1% and 1:1 or done-for-you services as high as 70%.

Most of my clients launch products, programs and courses too early without having the audience to make them profitable. Because when you scale with courses it’s a numbers game and you need to have all your business and sales foundations in place to attract and convert your followers into customers and clients. Also, if you’re not comfortable or experienced with launching, being visible on podcasts and creating learning outcomes for your customers then it will be a huge learning curve.

I’m not saying you shouldn’t launch your digital offer suite or that it can’t be profitable, only that it will take longer than you may expect to replace your income if you were offering done-for-you services or hit a certain income goal. 

And your business day-to-day will look very different than it does now. So if you are booked out and are in high demand, then adding courses may make sense but I’d encourage you to do the BTS work before investing time in something that may not serve you the way you want it to.

I originally started offering 1:1 coaching and after 1.5 years I started creating other services before launching TCFM, CCWC and FTS Mastermind. Now I’ve gone full circle but as I mentioned before, I’m starting again with my biggest service before adding digital products and workshops.

Following this method has really served me and my clients so now you know I hope it can serve you too.

Thanks so much for submitting your questions. I hope my answers have been helpful and that you have lots of takeaways from this episode that you can implement in your own business.

Creating sustainable and profitable offers is one of the reasons why my clients choose to work with me. If you want support to create your signature offer, then I’d love to speak with you. 

I have a few 1:1 coaching spots left in 2021. Use this link to book a discovery call so we can chat through the ways I can support you to build a sustainable and profitable business too.

Thanks so much for tuning into today’s episode.

If you’ve found what I’ve shared valuable please leave a review and hit the subscribe button so you don’t miss when a new episode drops every Wednesday.

Hi, I’m Rachel

I support multi-talented business owners to get clear on what makes them tick and desperately needed in their industry so they can make more money.

Should you start a podcast?

Should you start a podcast?

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Should you start a podcast?

Should you start a podcast?

Do you genuinely want to start a podcast? Or do you think it’s the only way to grow your audience, share your expertise and produce evergreen content?