14 ways to know if a business coaching service is a scam

Why get a business coach?

When looking to start or grow a business, business owners and entrepreneurs sometimes turn to business coaches. Since you are reading this article you are most likely considering getting a business coach. Or you have found one and are scared to make the commitment.

Early in my career, I worked as a Director of Operations at a retail company. I was promoted to the Managing Director and grew the business. But it didn’t take long before I felt I had hit an invisible ceiling. No matter what I did I couldn’t seem to grow the business further.

Eventually, I left to start my own business. And one of the first things I did was hire a business coach. It was one of the best investments I had ever made in my professional career. It opened me up to things I never knew existed in business. And I was able to grow into a better business leader because of it.

Is Business Coaching a Scam?

Some people will tell you that it is a scam. But as you will see later there is a difference to what we see as coaching and what others say is coaching. Ultimately, you get to decide if a business coaching program or service is right for you.

As with anything in business, it always pays to do your due diligence. The cost of business coaching can be very expensive. And to make things worse there are so many coaching scams out there. There have been so many entrepreneurs and business owners who have falling to on business coaching scam or the other.

Falling for a business coaching scam will not only cost you money. But it will cost you lost time, could ruin your business, and turn you into a coaching sceptic.

How to Tell if a Business Coaching is a Scam or not

So, what can you do to avoid falling for a business coaching scam? Here are 14 tips you can take to protect yourself and your business.

1. They say they are a business coach when they are not.
2. All they do is tell you what to do.
3. All they do is motivate you.
4. You can’t see a clear direction.
5. They charge for free information.
6. They don’t have any previous experience.
7. They found you not you found them.
8. They aren’t reliable.
9. They make you pay for everything upfront.
10. All they do is talk.
11. There is no framework.
12. They don’t know how to diagnose your needs.
13. It just doesn’t feel right to you.

1. They say they are a business coaching service when they are not.

So, what does a business coach do? A business coach asks and listens more to you than tell you what to do. They hold you accountable to your word i.e you have someone who will call you out even when you are the boss.

Most of what is found out there isn’t coaching. It’s either consulting or mentorship. In consulting everything is done for you by someone else. While mentoring is someone has done it before and tells you what to do. But coaching is about helping you gain clarity of thought, and pointing you in the right direction so you can solve your problems.

A company selling you a ‘surefire’ way to make 6 figures using Facebook Ads isn’t coaching.

2. All they do is tell you what to do.

As stated earlier a business coaches job isn’t to tell you what to do. The fact is every business is different because every entrepreneur or business owner is. Just because you are running a food business doesn’t mean you should do exactly what someone else did to be successful. There is something unique about your business and your processes might not be the same.

There is no formula for success, 100 successful people will probably give you 100 different ways they achieved success. The excuse these programs will give when their formula doesn’t work for you is: You didn’t implement it right. That’s the opportunity to upsell you on another program that will solve that problem.

For example, at MakeCustomerSuccess, we believe that every business owner has their business inside of them. The business started with them, so they know what they want and where they want to go. So, we only provide a guide to help entrepreneurs and business owners have the confidence and clarity to make the right choice.

3. All they do is motivate you.

We live in a time where we are told it’s all about your mindset. Mindset plays a huge role in business success. But having a positive mindset doesn’t guarantee success. Part of being successful is showing up even when you don’t want to.

If all your business coach will do for you is massage your ego, and tell you how you can do it, then beware. We believe that one of the most important jobs a business coach does is to call you out. Most times, we find what hold a business back is the leaders. And if you don’t have clarity on how you are doing so, and need to change, then you will never change.

4. You Can’t See a Clear Direction.

Some services just string you along, so they can milk you for as long as possible. From day 1, you should know where you are headed with your business coach. When is the journey going to be over, or what are the metrics for success with this service.

You should be able to evaluate that you are heading in the right direction. Know when the journey with the business coaching service is over. And decide if you want to continue or not. Some people choose to continue because of the value and accountability that the program brings.

5. They Charge for Free Information.

There is nothing new under the Sun. You’ve probably heard that saying before, and it’s true. Once in awhile someone might come up with something ‘genius.’ But for the most part, everything you need to know to be successful is on the internet.

So, before you sign up, do your research and try to see if you can find what they are selling for free. Even if you can, is the way they present it unique? What other value are they providing? Sometimes, the way the information is put together is what brings value.

For example, at Copyblogger, they provide everything for free to customers. What they get customers to pay for is how they put that information together so they can achieve a goal. There is so much information on their website alone, not to talk of the internet.

Imagine having to spend hours on various websites with conflicting information. It can be overwhelming. Having someone put it together for you in a meaningful way can be helpful. Coupled with someone to hold you accountable, and push you, might be valuable.

6. They don’t have any previous experience.

Just because someone has written a book, or has a large social media following doesn’t mean they have experience. It’s very common today to see people who have become influential on social media sell you on how they did it.

Business coaches don’t necessarily have to have business experience. But they can have experience coaching other successful people. If you are looking for someone with experience in your industry, then what you want is either a mentor or a consultant.

Still need to work on here

7. They found you not you found them.

You should decide when and why you need a business coach, not anyone else. If the business coaching service found you through unsolicited means then there’s a red flag there. It always pays to do your own research. Search online, see what the program has to offer. Speak to friends, family, and any other source you deem fit. But don’t get forced or coerced into anything.

8. They aren’t reliable.

If they say they will provide anything then it should be that way. Someone who isn’t keeping to their word shows that they are not committed to you. They just want your money. Imagine a coach who is never there mentally, doesn’t keep up with appointments, or send you information on time as promised. There are a host of other things they might do. But if they aren’t reliable, how can you rely on them to help your business?

9. They make you pay for everything upfront.

If they make you pay for everything up front, there might be a problem. Not to say that every program that does so is a scam. But when they do this without clarity then there’s an issue. They might not be clear on their refund policy. Or if they have a money-back guarantee. It might be a scam.

This is done so that they have your money and there’s nothing you can do about it. At MakeCustomerSucess, you pay monthly. And there’s a 30-day money-back guarantee no questions asked when you sign up. We believe in what we do, and we know you will want to say. So we are confident in offering you such a guarantee.

10. All they do is talk.

A business coach should do more listening and ask more questions. You are the owner of the business, and you know your business. If all your business coach does is talk, then you have a problem.

Part of what a coach does is help you gain clarity. That comes when they ask you questions to get your thoughts going. As you talk you gain clarity because you straighten out your thoughts. And the only way a coach asks you the right questions is if they actively listen.

11. There is no framework

All reputable world-class coaching programs offer a framework to their clients. This framework ensures that when the customers follow the process they get results. How you wish to implement the framework is up to your creativity. A business coach isn’t there to just motivate and hold you accountable. They are there to get you results.

12. They don’t know how to diagnose your needs.

Every business is different, some are just starting out, some are struggling to find their feet, while others are stuck and looking to grow. A good business coach should be able to diagnose your needs within one week. If they have never done this and are just telling you what to do, then you should reconsider.

13. It just doesn’t feel right to you.

Trust your gut. If something feels off, then it probably is. It could be all or a combination of the reasons given above. You notice their attitude towards you. Maybe they are more concerned about themselves then they are you. Or they are not as straightforward as to what will be accomplished with them. Whatever it is, trust yourself.

Over to you…

Finding the right coach can be transformational for your business. But the wrong one can leave you in a world of hurt. By making sure you follow these 14 steps you can avoid the pitfall of bad coaching service.

If you are looking for a coach or already have one, go through these 14 steps. Should you find too many red flags, do yourself a favour and tell them goodbye.

Had a bad experience with a business coach or service? Leave a comment below. We’d love to hear it.