Structuring Profitable Coaching Fees & Agreements

Key Points:

1. Contingency & Success Fees Explained (03:05) – Discussion on structuring deals with contingency fees and how to calculate success fees based on revenue or profit.
2. Profit vs. Revenue: What to Measure (04:18) – Why profit (especially EBITDA) is a more reliable metric than revenue for coach compensation.
3. Trust, Verification, and Agreements (05:12, 34:25, 51:45) – The necessity of trust, but also the importance of written agreements and clear definitions for profit calculations.
4. Handling Manipulation & Adjustments (07:10, 09:44, 10:05) – How to deal with owners manipulating numbers, ad-backs, and the role of accountants in verification.
5. Performance-Based & Hybrid Models (16:25, 18:05) – Using performance incentives tied to deliverables, and hybrid models combining retainers with success fees.
6. Equity & Startup Payment Structures (38:08, 39:17, 40:04) – Strategies for working with startups, including equity, payment plans, and “skin in the game” approaches.
7. Cash Flow vs. Profit (30:30, 31:33) – Why cash flow must be monitored alongside profit, and how to address common cash flow issues.
8. Protecting Your Interests (34:25, 35:48, 52:26) – Tactics for ensuring your impact is recognized and compensated, and knowing when to walk away from untrustworthy clients.
9. Group Coaching as a Lead Magnet (55:08) – How to use done-for-you group coaching programs to engage, qualify, and upsell clients.
10. Legal & Tax Considerations (43:39, 45:03) – The importance of consulting CPAs and understanding the tax implications of equity vs. loan arrangements.

Key Takeaways:

• Always define profit calculations (e.g., EBITDA) in writing.

• Use hybrid fee models (retainer + success fee) to balance risk and reward.

• Trust is essential, but always verify with clear agreements and accountant oversight.

• For startups, offer payment plans or equity—but structure them to protect your interests.

• Leverage group coaching programs as a scalable client acquisition tool.

Notable Quotes:

• “If you can’t trust them, you shouldn’t be working with them.”

• “We sell profitability, not sales.”

• “Trust, but verify—and always get it in writing.”

• “The poor pays more. If you do a payment plan, you’re lending your own money.”

Action Steps from the Call:

1. Draft or update your client agreements to define profit calculations (e.g., EBITDA) and verification processes.
2. Implement a hybrid fee model (retainer plus success fee) for new clients.
3. For startup clients, offer a payment plan or equity structure—ensure all terms are documented.
4. Consult your CPA before finalizing any equity or loan-based compensation deals.
5. Explore the done-for-you group coaching program as a lead magnet and upsell path for your practice.

Resources & Tools Mentioned:

• Profit Acceleration Software (PAS): Used for modeling profit increases and supporting profit-based fee discussions.

• Jumpstart 12: Group coaching curriculum referenced as a scalable program for client engagement.

• Done-For-You Group Coaching Program: A turnkey solution for coaches to offer group sessions and generate leads.

• Go High Level: CRM platform underlying Focused.com’s systems, useful for tracking client signups and reporting.

• CPA Consultation: Strongly recommended for structuring equity, loans, and tax-advantaged agreements.