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The Truth about Life Coaching (is it ethical?)

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Is life coaching a scam? And what does a life coach actually do?

Life coaching has a bad reputation…for a reason. And today, we’ll uncover the truth about life coaching.

I’m not a huge fan of life coaching. By the end of this article, you probably won’t be either. (But you WILL know what works instead.)

Want to learn more? Let’s dive in.

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Key takeaways:

  • Life coaching is too vague to deliver real results to your clients
  • Clients come to you for specific results, and you need to niche down to deliver those
  • The coach-sulting approach, which combines coaching and consulting, is another great way to offer transformative outcomes

What is life coaching?

Before we uncover the truth about life coaching, let’s first clear up what life coaching is.

Life coaching is one of the fastest-growing careers in the US. A life coach helps their clients achieve life goals, like:

  • Understanding their life purpose
  • Landing a better job
  • Finding love
  • Getting healthier

Sounds great, right?

But here’s the catch — it’s pretty vague. And that vagueness? It’s exactly where the problem begins…but we’ll get to that shortly.

The thing is, There’s a BIG demand for great coaching.

It’s exactly why the life coaching industry is so huge! According to the International Coaching Federation (ICF), it’s worth $4.56 billion and has grown by over 50% in just a few years.

Graph that shows coaching revenue

That kind of fast growth is amazing, but keep in mind not all coaching is equal.

Let’s dig a little deeper, shall we?

What does a life coach really do?

Wonder what a life coach does every day?

Here are some common responsibilities:

  • Help clients figure out what they want out of life
  • Develop strategies for personal growth
  • Keep clients accountable
  • Offer support and guidance

Now, these tasks aren’t bad. In fact, it’s what all good coaches do.

But like I said, the scope of life coaching can be so broad it becomes unclear what you’re trying to achieve.

This makes it hard to deliver specific, measurable outcomes to your clients. And THAT’S the whole point of coaching!

Your clients come to you because they want to see results.

But life coaching doesn’t do that…And that’s exactly why I tell my students to niche down ASAP. 

In other words: Don’t become just a life coach. Instead, pick a niche and help your clients achieve specific results.

Quote by Luisa Zhou

For instance, my focus? Business coaching.

I help entrepreneurs escape their 9-5 grind by coaching them to build profitable businesses.

This approach is super specific. And guess what? It works. By being so targeted, I get my clients amazing results like these:

Multiple ETE testimonials

For more advice on finding a profitable coaching niche, check out this video:

Now that we’ve looked at what life coaches do, let’s dive deeper into the truth about it.

The myths and truths about life coaching

The best way to uncover the truth about life coaching? By exploring the myths that surround it.

To help, I’ve collected five big myths that keep popping up. Let’s see how much truth they really hold…

Overview of the five big myths about life coaching

1. You need a coaching certification to become a good life coach

Truth: You don’t need a coaching certification most of the time 

One huge misconception is that you need to be certified to coach. This isn’t the case most of the time, unless you are in specific health or mental health-related niches. 

Early in my career, I also believed this.

But the reality is quite different!

You see, what matters most is your ability to make a difference in your client’s life.

So, have you ever helped someone reach a goal or overcome a challenge that’s relevant to your coaching niche? Then you’ll likely deliver real results to your clients too.

Take my student Anna Cosic, for example. She’s a successful career and executive coach who skipped the certification route. 

Instead, she used her previous job experience to jumpstart her coaching business. In just a few months, she was making over five figures. Now, she’s a full-time coach helping others succeed in their careers.

Screenshot of TilesCollab website
My student Anna Cosic runs a thriving career coaching business

In my case, my first online business was in digital advertising.

Why this niche?

Well, I was already working a 9-5 in digital advertising. So, I started giving free advice online, sharing my expertise.

These are the kinds of questions I’d answer.

Seeing the value I could provide, some people started reaching out to me.

This snowballed into a digital advertising consulting business — all without a certificate.

Again, what set me apart was leading by value and having the needed experience to deliver results.

And those results are what your ideal clients truly care about.

👉 Conclusion: Myth debunked

Curious about what else people get wrong about life coaching? Let’s find out.

Get the Ultimate Guide

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6-Figure Coaching Business so you can achieve more freedom!

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2. Life coaching is one big niche

Truth: Life coaching consists of many different niches 

Many think life coaching is one big niche.

But the reality is that it’s simply a broad term,  not a niche.

There are lots of different types of coaches and life coaching niches.

For example:

To give you more specific examples, here’s what some of my students are currently doing:

  • Career coach Emily Liou shows people how to build a career they love
  • Relationship coach Ruby Lee helps introverted men find love
  • Real estate coach Ryan Chaw teaches people how to invest in real estate.

By now you know: Specialization is the secret sauce.

Focus on one area to avoid the trap of being too vague.

That’s how you deliver life-changing results.

👉 Conclusion: Myth debunked

This myth was easy to debunk, but the next one isn’t as clear cut…

3. Anyone can become a life coach

Truth: Coaches with integrity have experience and expertise 

The barrier of entry to becoming a coach is low. Because of this, some people discredit all coaching.

But while it’s true that technically anyone can become a coach. That doesn’t mean everyone will be successful.

You see, the best coaches have a secret weapon: EXPERIENCE. They’ve walked the walk, so they know what works and what doesn’t.

Quote by Luisa Zhou

For instance, I didn’t start my coaching business until I had proven success in my businesses first. That’s what lets me give advice that actually works.

So, is it easy to start a life coaching business? Yes.

But is it also easy to succeed? Only with the right experience, methodology, and skills.

👉 Conclusion: Myth partially debunked

Speaking of coaching methodology, let’s dive into the next myth!

4. Coaches should not consult or mentor

Truth: Coaching today is about helping clients find the answers they want, while helping them get results through consulting and mentoring 

Traditional coaching says coaches shouldn’t consult or mentor but only ask questions.

But in my experience, this really isn’t the most effective way to coach. The best coaches today do more — they give advice and share their experiences.

I call this method coach-sulting,and it’s what I use in my coaching business.

Visual explanation of coach-sulting, Luisa Zhou’s recommended coaching form

With coach-sulting, I still ask my clients powerful questions. But I go beyond that by also offering practical solutions and strategies.

Because my clients no longer have to figure it all out on their own, they move forward much faster.

The result?

Their coaching experience becomes genuinely transformative.

👉 Conclusion: Myth partially debunked

This brings us to our fifth myth: Are life coaches useless?

Let’s find out!

5. Life coaches are useless

Truth: General life coaching (without a clear goal) doesn’t offer a lot of value 

Is life coaching useless?

My short answer? Yes. Let’s face it, general life coaching isn’t results-focused, which makes it pretty useless.

But that doesn’t mean all coaching is bad. In fact, great coaches can make a HUGE difference in your life.

Take my coaching business as an example. I’ve helped so many clients achieve their goals and change their lives for the better.

So, I know first-hand how useful coaching can be.

The thing is, you need to be able to spot a great coach.

Here’s how:

To me, a high-quality coach embodies what I call the “ABCs of coaching.” They:

  • Give you clear Actionable advice and a plan to follow
  • Believe in you and your potential
  • Offer the Candor and tough love you need to stay on track

I talk more about the ABCs of coaching in this video:

👉 Conclusion: Not debunked

6. Life coaches compete with therapists

Truth: Life coaches aren’t the same thing as therapists 

How is life coaching different from therapists? 

The truth is that they don’t serve the same purpose. Yes, both of them help their clients work on themselves and live happier lives. 

But that’s where the similarities end. 

Life coaches help people achieve their goals. Therapists, on the other hand, are qualified to diagnose and treat mental health problems.  

Coaching can be a long-term commitment, but often it is focused on a specific goal. Therapy usually takes years.   

👉 Conclusion: Myth debunked

With these myths now addressed, let’s turn to some of the most common questions about life coaching.

FAQs about life coaching

Is life coaching ethical?

Is life coaching ethical? It depends on the coach and their exact strategy. The life coaching industry isn’t very regulated, but ethical coaches do exist. They’re the ones who focus on genuine results rather than empty promises. The International Coaching Federation is the closest to a governing body in the coaching industry. It has its own ethical standards for life coaches. Ethical coaches stick to these standards. But you can also spot a great coach by their track record, testimonials, and reviews.

Does life coaching actually work?

Plain and simple: Life coaching doesn’t work. But coaching does. For example, niche coaching like career or relationship coaching can really make a difference. That’s because they’re focused on delivering specific results. What a life coach can help with varies based on the coach’s niche and the client’s needs.

But generally, clients see big improvements in several key areas and they experience more confidence, better work performance, and improved interpersonal skills. Overall, while general life coaching is too vague, niche coaching can offer life-changing outcomes.

What is the success rate of life coaching?

According to the International Coaching Federation (ICF), 68% of people who have hired a life coach were able to make back their investment with a 3.44X ROI. According to a report by PWC and Association Resource Center, coaching has a 7X ROI.

Get the Ultimate Guide

for building a
6-Figure Coaching Business so you can achieve more freedom!

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Next steps

And now you know the truth about life coaching!

To deliver amazing results, niching down is key. But of course, more goes into building a thriving coaching business.

I’ve helped thousands of coaches build fulfilling six-figure businesses. Curious about their secrets to success?

Then you should check out my guide on creating a profitable online business.

It shows you the exact steps to build the kind of business that lets you leave your 9-5 for good!

Read more:

Key Life Coaching Skills of the Most Successful Coaches

The Fastest Ways to Get Coaching Clients

About Luisa Zhou

Luisa Zhou has helped thousands of students build and scale their own profitable online Freedom Business. Fun Fact: She used to work as an engineer for the Space Station and holds a B.S.E. from Princeton. Click here to learn more about Luisa.

Hope you enjoy this blog post.

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