The other day one of my students emailed me to let me know she might be leaving my coach training. They would get their money back and be out of the training.

They went on to say that although (for the first time ever) she had actually gotten paying clients, she still wasn’t making enough money to pay for my training’s tuition. To her, that was a deal-breaker. This ‘money back assurance’ was the reason she had allowed herself to sign up for the program in the first place (no real risk), but now she was torn.

Does she stay or does she go?

She didn’t want to quit. She didn’t want to leave her mastermind group. She didn’t want to sell out on her coaches.

Although she really didn’t ask for it, I decided to give her a piece of my mind (ahem… I mean ‘coaching’!).

Why do I Offer a Refund?

Before I tell you what I told her, let me start by saying…

I don’t like refunds… it makes me feel that I’m going to attract someone who is less than committed into my program. But the reality is that many students won’t even get started without a sense that there’s really no financial risk on their part. So, for some of my more ‘entry level’ programs, I offer a 30 day money back guarantee.

Does this money-back guarantee provide an easy out for buyers by giving them an excuse to be less committed? YES. I can hear some coaches saying, “Oh well, if it doesn’t work out, I can always get my money back!”

The Problem? Students Translate ‘Money Back Guarnatee’ Into ‘No Commitment Needed’

I recently saw ad online ad for a money-making program that used a dash of sales hype: Make money fast, No Commitment. Besides the fact that everyone should be reticent about any money making program promising quick riches, the fact that it specifically hypes this program as being free of commitment should be another serious red flag. Perhaps “no commitment” refers to a money-back guarantee (no commitment of capital), or perhaps the advertisers are trying to sell people the illusion that making money is possible without commitment. Sadly, unless you win the lottery, this is not the case.

Money and commitment – two items most people wish they had, but often lack.

I needed to convey this to my student. So I tried to lay the logic down step by step…

Worried About Making Money as a Life Coach? You Probably Have Commitment Problems…

I told her,

“Sometimes it looks like money is the preventing factor in an endeavor like this, because there doesn’t seem to be enough for what you need to pay for, you’re not making enough, etc.

The reason that happens is because money is a part of the commitment process, and when someone hasn’t yet realized their commitments in action and results, money tends to be very scarce (so it ends up seeming like the ONLY important thing… thus obscuring the fact that commitment is a so much more important issue).

That said, money is only a SMALL part of the commitment process, but it IS a part of that process. If you’re committed, you just WORK OUT the money rather than BLAME the money as the ‘culprit’ and the ‘reason why it didn’t work out’.

When someone is committed, the money ALWAYS gets worked out when the chips are down.

When someone ISN’T committed, the money NEVER gets worked out (even when there seems to be plenty of money!).

The secret? Money was NEVER the issue… It was just a way to hide the underlying LINCHPIN… commitment.

COMMITMENT is more important than MONEY. If you’re COMMITTED, you’ll see the money show up.

I see coaches that have a lot of money (and spend a lot of money) get no clients and fail in their coaching business ALL THE TIME. Why? Because they were substituting MONEY for COMMITMENT…

They weren’t committed, and they thought that money could make up for that. It didn’t (and it doesn’t).”

Make sense so far? I was hoping it would make sense to her! After that, I though I’d better lay out her options…

“You’ve shown you’re committed to this, so the question of whether or not you can or will do this business successfully shouldn’t be in question anymore (especially after putting in the time you have during the first weeks of the program). I’ve got to assume that if the program isn’t ‘the problem’, and your commitment isn’t the problem, then the only issue is money.

Rather than walking away from the environment that you’ve already built, committed to, and used to accomplish so much, perhaps the better solution is to just work out the money part.

Yes, getting a refund is one option to eliminate the ‘immediate money problem’, but it’s not ideal, and it doesn’t solve the money issue in the long term (money follows commitment, and getting a refund is (I’m guessing) in conflict with many things that you’re committed to).

If we were to lay out the options in terms of money and commitment, they might look like this:

OPTION ONE: refund

1. Get money back
2. Break commitments (and lose support on your commitments)

OPTION TWO: stay in the program and work out the money issue

1. Resolve money issue in a way that works for everybody (uncomfortable, but totally doable)
2. Keep all your commitments (and continue to get more support on your commitments in an empowering environment)

My coaching for you on this…

Assuming option two makes any sense, the question remains… HOW do I make that work?

Here’s some strategies to consider:

In #1 – “Resolve money issue”, what are all the things you can do to accomplish that?

1. YOU: Get yourself to ‘budge’ a bit on your money position.
2. YOU: Make promises to yourself that will satisfy you in your money concerns.
3. INCOME: Get more coaching clients to cover your expenses (and help with #2, of course).
4. INCOME: Do other things that will bring in immediate income.
5. INCOME: Sell things you don’t want/need to bring in immediate income.
6. EXPENSES: Lower expenses in some other areas.
7. EXPENSES: Work out a payment plan with me.”

*Notice that someone who’s not committed wouldn’t consider most of the above steps, however committed people make these types of sacrifices and invest this kind of energy (in things they care about) all the time.

In #2 – “Keep all your commitments”, you already know what to do in order to accomplish that… You’ve already started that… All you need to do is continue your commitments. Commitments only work for you if you KEEP THEM.”

The point of my coaching should be clear… commitment will lead you to all the resources (including money) that you need.

When purchasing a product advertised to help in some way, it undoubtedly requires money, but what the fine print doesn’t tell you, is that it also requires commitment. While watching television, especially in the afternoon or late at night, you can be bombarded with advertisements for weight loss or workout programs. At one time or another, most people have purchased one of these “as seen on TV” products. Whether a weight loss product, a home business plan, or some over-hyped home workout device, it took money to buy, and will take commitment to derive some benefit and change your looks, health, or finances. Though many people get discouraged when the product fails to work, the problem most likely beings with your commitment.

Which Comes First – Money or Commitment?

In a chicken or the egg scenario, what comes first, money or commitment? Using two examples, one easily affordable by most people, and one that strains the finances a little bit more, we can explore the relationship and connection between money and commitment.

Though money-back guarantees should ensure that your trainer is selling a legitimate program, they should not be used to guarantee a your success. There is only one person who can guarantee your success, whether its is toning your waistline or building a successful coaching practice, and that person is YOU! Though it often takes money to buy useful information, and that is what the workout guru and the master coach are selling, the money you spend will never guarantee success. Money is often part of the commitment process, but it is not the essential part. Whether the program costs $100 or $1000, whether there is a no questions-asked money-back guarantee or not, commitment is the key, not money.

Unlike the chicken and the egg quandary, there is an answer to which comes first, the money or the commitment? The answer is simple, commitment is more important than money and must be present before paying out money for any product designed to help you lose weight, get in better shape, or start a coaching practice.

If you fail at something, the first place to look for answers is not your bank account, it is in your heart. Were you truly committed, or did you mistake action (paying the money) for commitment?

Money or commitment – it’s a no-brainer! Money follows commitment, and if you keep your commitments, the money will be sure to follow.

Work out the money. Keep your commitment. Create your destiny.