In this solo episode, Sarah dismantles the dangerous and pervasive belief that a sustainable coaching business can be built solely on referrals. She explores why "doing good work" is rarely enough to generate a consistent client flow, especially for coaches starting without a high-level corporate network.
Sarah introduces the concept of "Monetisable Credibility" and explains why copying the business models of coaches with established networks often leads to failure for those starting from scratch.
Key Takeaways
1. The Stubborn Myth of Referrals
There is a widespread belief among coaches that you only need to land your first one or two clients, and word of mouth will handle the rest.
For the majority of coaches, this is not true; while referrals do come eventually, the timeline is typically years, not months
2. Understanding "Monetizable Credibility"
"Starting from scratch" refers to coaches who lack existing networks of senior decision-makers who can approve budgets or afford premium rates based on pre-existing trust.
Coaches without this credibility cannot leverage established relationships; they must build trust entirely through marketing efforts.
Those with high-level networks often fail to recognise their own privilege, mistaking their structural advantage for the success of the "conversation".
3. The Structural Limitations of Coaching Referrals
Coaching referrals face unique hurdles compared to other professions like accounting or law.
Because coaching is often confidential, clients may not want others to know they are receiving support, meaning they will never refer you, regardless of their results.
Referrals are often shared behind closed doors rather than as open professional recommendations, making the process much slower.
4. The Danger of Improvisation
Many coaches try to "improvise" their business development without learning the fundamentals of marketing.
Sarah compares this to "trying to improvise surgery without medical training".
When these improvised methods fail, coaches often internalise the failure and blame themselves, rather than recognising they simply lack the necessary skills.
5. Moving to Systematic Client Acquisition
Coaches who succeed are those who accept that building a business requires different skills than delivering coaching.
Effective marketing requires specificity in targeting and language, rather than the "broad appeal" approach encouraged by the referral myth.
Referrals should be viewed as a bonus, not a business strategy.
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