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Business Coaching

How to make
$100,000 to $1,000,000
per year by helping small
business owners succeed

Steve Chandler & Sam Beckford

Business Coaching. Copyright 2006 by Steve Chandler and

Sam Beckford. All rights reserved. No part of this eBook may be
reproduced or copied in any form without permission from the
publisher, Maurice Bassett:
ISBN 1-60025-009-2
ISBN (13 digit) 978-1-60025-009-5
Published by Maurice Bassett
Steve Chandler
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To learn how to shift the mind, visit:

MindShift - The Ultimate Success Course

Bonus Materials on Page 211.

Introduction: Is your life not working?
Chapter One: Can you really make a million dollars coaching?
So how did I make $1,074,379?
Chapter Two: Coaching requests will keep coming
Always coach the top people
E-coaching to e-wealth
Chapter Three: Why choose coaching as a career?
Getting clients out of their own way
Chapter Four: Coaching activates your own potential
Chapter Five: Every leader needs a leader
Chapter Six: Show them that you mean it
The fastest way for you to prosper
Then why is my client not succeeding?
Where do these lies come from?
Coaches tell these lies, too?
Chapter Seven: Truth to set coaches free
Coaching Lie #1:
I just need to know how to make this coaching venture successful
Coaching Lie #2:
It takes money to make money
Coaching Lie #3:
I just need to get my name out there!
Coaching Lie #4:
Experience will benefit my business!
Coaching Lie #5:
Lowering fees boosts business!
Coaching Lie #6:
You have to be tight-fisted
Coaching Lie #7:
Clients are hard to locate
Make coaching referrals easy
Then make the hard part easy
Coaching Lie #8:
I dont need any help
Coaching Lie #9:
I am a victim of circumstance
Chapter Eight: Anything we can do you can do better
Always create a psychological end point!
Where else did the $1,074,379 come from?
The fifteen minute coaching session!
The four secrets to coaching wealth
Now the bad news
How do we make it the best?
Secret #1:
You need to have an original magnetic lure that makes high-value clients call you


Secret #2:
You must reveal a radical turn-around concept to your potential clients
Secret #3:
Become affiliated with proven credibility to avoid the guidance
counselor syndrome
Secret #4:
You need to be part of something bigger than you, and sell prospective
clients on being part of something bigger, too
Chapter Nine: Coaching gets your life in gear
Chapter Ten: Get in this for the money
Wake up to making money
Chapter Eleven: Invest in yourself
Chapter Twelve: You are the cause of your success as a coach
Appendix A: Chapters One, Three, and Five from: 9 Lies That Are
Holding Your Business Back... and the Truth That Will Set It Free
Chapter One: I just need to know how to do this
Chapter Three: We just need to get our name out there
Chapter Five: Lowering prices boosts business
Appendix B:
The hands-off manager as coach from: The Hands-Off Manager
Appendix C:
Coaching with incredible, life-changing power A COACHs Excerpts
from: The Hands-Off Manager
Appendix D:
How to double your income as a coach





The old thought that one cannot be rich except at the expense of his
neighbor, must pass away. True prosperity adds to the richness of the
whole world, such as that of the man who makes two trees grow
where only one grew before. The parasitical belief in prosperity as
coming by the sacrifices of others has no place in the mind that thinks
true. My benefit is your benefit, your success is my success, should
be the basis of all our wealth.
Anne Rix Miltz


Is your life not working?

"Either you will make your life work, or your life will not work."
Nathaniel Branden
We get contacted by a lot of people whose lives are not working.
Their businesses are not working. They want coaching.
They want their lives to work again.
But they don't see the problem.
When we ask them to describe what they think is wrong all we
hear about is other people. Other people disappoint them. Or scare
them. Then we hear about circumstance. The competition. The
economy. Their location.
We know right away why their life is not working. A life of
expectation is a life of disappointment. A life of trying to win the
approval of others is a life of fear.
Our job as coaches is to restore the creative life. Because a
creative life is a life of action and huge energy for achieving large and
small goals; it's a life of happy flow. It's never your life that's not
working. It's always just you. But that's the best news there could ever
A coachs job is to get the client to see that and act on it.

Chapter One

Can you really make a million

dollars coaching?
All the breaks you need in life wait within your imagination.
Imagination is the workshop of your mind, capable of turning mind
energy into accomplishment and wealth.
Napoleon Hill
This chapter is a personal message from me, Sam Beckford. In it I
speak directly to you about the underlying factors in my own success
as a coach:
In this books subtitle we say this book is about how to make
$100,000 to a million dollars per year as a business coach. A lot of
people think a million dollars per year is an outrageous, unrealistic
figure that we just made up to give our book title and seminars some
pop. To play on peoples hopes.
Not true. Were just writing about what we know how to do
because weve done it. Isnt that what you want to know from us?
Rather than some theory? Arent most other business books just
theories by authors who have never really done what they write
Im 36 years old. I live in Vancouver, Canada. My wife Val and I
have two kids, Isabella & Benjamin. In 2003 I started coaching small
businesses and made over $250,000 at that by working part time
from my home office. In 2004 and 2005 I was able to double my
coaching practice by doing group seminars and my gross revenues for
2005, as Ive said, were over a million dollars.

I myself do mainly telephone coaching rather than in-person

coaching so Im able to get clients from all over North America that
just call me toll-free on an 800 number.
My partner Steve Chandler has been coaching longer than I have.
Steve is an internationally-known bestselling author (100 Ways to
Motivate Yourself, The Story of You, Reinventing Yourself) and he
commands big time coaching fees. Steve has been paid up to $20,000
a day to coach and train Fortune 500 companies top people. Steve
does a lot of face to face coaching as well as telephone and email
coaching of clients. Steve will routinely get an up-front fee of $20,000
to meet a client face to face for one half-day and then do follow up
phone coaching for nine months.
Steve and I are very different people and we have very different
business models. Steve is 61 and lives in Phoenix, Arizona. Steve has
more high level clients that pay big chunks of money up front for his
coaching. My clients are smaller, independent business owners that
pay smaller monthly ongoing fees that I bill to their credit card
automatically each month. Despite the differences we have in
delivery, the principles we use for success are the same.
Thats the beauty of coaching: once you understand the core
principles for success, you can do it any way that suits you.
Steve also does a fair amount of coaching with small companies
and individuals to supplement the work he does with bigger coaching
and training assignments with Fortune 500 companies.
Even though our business approaches are different the thing we
have in common is that we have each generated millions of dollars
from business coaching. Steves books have been used by other
coaches worldwide as lead-generators and coaching textbooks for
the last 10 years.
Both Steve and I have been featured on national TV as guest
coaching experts and have been interviewed countless times on radio
stations across North America to discuss our business coaching
secrets. Together, weve spoken to many hundreds of business owners
in Phoenix, Vancouver and San Francisco. Weve thoroughly enjoyed

our partnership delivering live seminars together and also recording

CDs together and doing teleseminars together. Many times people
write to both of us simultaneously about the results they get from
following the business principles and motivational strategies we
Weve both experienced coaching success, although the routes are
completely different. Thats good news for you. Because it proves
theres no one right way. There are a multitude of ways and you can
choose the way that fits your own style best. The point is to truly
enjoy yourself every step of the way. (As the great quarterback Fran
Tarkenton used to say, If its not fun, youre not doing it right.)
We also know (with certainty) that if you will learn the core
principles we are teaching you here, you will succeed. Every coach we
have coached has done so thus far.
Since weve made millions doing this, we would like to show you
how to do the same thing.
In 2005 I did $1,074,379 in revenue from my business
coaching practice.

So how did I make $1,074,379?

To begin with, I did it working mainly from home. There was a
little bit of traveling, but not much (two times a year). Did I have a
large staff? Not really. I had two part-time employees and neither of
those two employees were coaches. One was an administrative
assistant and one was a technical assistant that did tasks like website
programming and helping me make CDs and record and create
information products for the clients I coached.
My work isnt something thats been leveraged and franchised and
syndicated. It was just me. I was just being who you or anyone else
could be. It wasnt pie in the sky. It was very simple. It wasnt

something that couldnt happen for youit was something that

almost anyone who enjoys coaching could do.
So how did I get my coaching practice up to the million dollar
mark? It didnt take a long time. The first year I seriously started
coaching was in 2003! It took two and a half years!
Before coaching, I was running a regular, ordinary small business, a
music and dance teaching studio. (They are not known for being great
money-makers. The old clich about the starving teacher and the
starving artist are often applied to music and dance studios.) But I
decided to start learning every thing I could about business and
motivation. I knew I had to, because the previous five businesses I
was in had failed and I was at the end of my rope!
I knew the formula to succeed in business was out there, and I was
determined to find it and learn it once and for all. So I read a lot of
books, and took a lot of courses and listened to a lot of audio
products. I devoured everything I could find on business success, and
applied it to my little studio.
And the more of it I applied, the faster my business improved.
It was funny because sometimes I would talk to business owners
that said they had read some of the same books that I had read, but
they werent becoming as successful as I was. My business just kept
on improving! We would do better every month and soon I realized it
wasnt just a matter of knowing the information. It was a matter of
applying the information.
So a key success principle arose: it wasnt good enough to just
have the business information on how to succeed. I had to increase
my self-motivational skills and want to succeed. I had to want to do
the application every day. I had to embrace ongoing daily
And I had to value execution. I had to consciously execute the good
ideas I was learning.


Many people go to seminars and read books and get excited

about the ideas they learn but fail to execute. Thats their fatal
mistake. So, when you see something in this book you like, highlight
it, and copy it into a separate notebook you label, EXECUTION.
Dont make the same mistake. Dont leave good ideas in your mind.
Put them into execution. In your mind, they will rot away and be
replaced by guilt and regret. But when you put them into action they
will give you results. Its a cause-and-effect universe, but you must be
the cause. Decide today that you will be the cause of your huge
success. Thats half the battle right there. That one decision you make.
Put this up where you see it every day: BE cause.
In 2003 I started coaching other businesses in my same
industry. I sent out a mailing piece that said that Id done really well
in this business and that Id taken it from scratch to these big
numbers and if you want to learn how I did it, I will show you how.
From that one mailing piece on, I started coaching. As we go
along Ill reveal more about how and what I did. By the end of the
book, Ill have shared everything important. Not one thing I share will
be superhuman, or beyond what you can do.


Chapter Two

Coaching requests will

keep coming
Why wait? Life is not a dress rehearsal.
Quit practicing what youre going to do, and just do it.
In one bold stroke you can transform today.
Marilyn Grey

This chapter is written in the first person by Steve Chandler. His

route to coaching success is completely different than Sam Beckfords,
which dramatizes how many ways are available to you to succeed:
I did not intend to be a coach. My work was in the field of
corporate training and public speaking and writing personal growth
and business books. My own coaching career grew almost
accidentally. About 15 years ago I was conducting motivational, sales
and leadership training with large companies like Motorola, Intel and
Texas Instruments.
Soon the training and keynote speaking led to requests for one-onone coaching sessions with the same clients I was giving seminars and
speeches to. Some days I would speak in the morning and then do
five or six one-hour sessions that afternoon.
Building coaching hours into a speaking contract was originally an
unexpected way to add value. If a client questioned the large
speakers fee I would often add some coaching in as a way to increase
the value of my visit.
Quite by accident I found that my coaching was doing the client at
least as much good as the seminars and speaking. Working with
people one-on-one was freeing them up to really change their


thinking. It was allowing them to share their fears and limitations,

and it was amazing to them how untrue all their limiting beliefs
turned out to be.
Soon I was booking full coaching-only days for clients Id begun as
a trainer to.
So this is yet another option for you on your road to business
coaching wealth. Train first, coach later. Speak first, coach later. And
I have coaches on my coaching client list who do the same thingthey
enter into a speaking or seminar relationship with a large company
and then coach a large number of people inside that company.
Now some of my larger companies book me in advance for a day of
coaching. They set aside a small conference room and bring people in
to meet with me for 45 minutes each, with 15 minute breaks for me
between sessions.
This is a good example of what Sam Beckford always tells his
clients about the inverse proportion of time and value: less time,
more value! When I first started doing my full days of coaching at a
company location I would charge by the day and then want to give
them as much as I could for their fee. Whether it was $3,000,
$10,000 or $40,000 (if a large keynote audience was part of the
package) I did full hour sessions and ran them all day back-to-back
without a let-up.
Later I was startled to see that clients were even happier when I
told them sessions were 45 minutes, not an hour. That meant less
time lost per employee meeting with meand when I started taking it
down to 30 minutes they were even happier.

Always coach the top people

When you coach companies like this, make sure you coach as high
into the food chain as you can. That will deepen the value of your
sessions and the higher up you go the more impact you can have on

the companys success and evolving culture. This took me a long time
to learn to do because years ago I was intimidated by top executives.
But now its easy. It will be easy for you, too. And if the top leaders
are shy about getting coaching, you can approach it this way: I want
to make certain that you and I get one of those 45-minute sessions
while Im thereor at least a working lunchso I can brief you on
coaching progress with your peopleand so you can brief me on who
youd like to see receive the coaching on my next visit, and where
youre taking the company.
They always love that, and will readily agree. You will be surprised
to see, once youre in a briefing session with a top officer, how badly
they want and need coaching! So you accomplish two wonderful
things: 1) you get their buy-in to the work youre doing with their
other people; and 2) you get them personally hooked on the coaching
process for themselves.
Quite often the higher up a person is in a company, the less
feedback he or she receives on their performance. And the feedback
they do receive is often suspect. People in their company all come to
them with an agenda, and they know it. As a coach, you have no
agenda, so you can tell them the truth and they love hearing straight
talk. Its a refreshing change for them.
If a CEO or VP of sales mentions a monthly or weekly meeting she
or he is having with their people, you can offer to monitor and
evaluate that meeting as a coach to that company. Ive done a
number of things like that to expand my value to a company Im
Once you are inside a company and trusted, you can keep your
relationship fresh and vital by adding new people to the mix. With a
major utility I offered to meet with all new employees to coach them
on the owner-victim distinction. So every time they had accumulated
30 new employees Id meet with them for an hour and give them a
core Ownership Culture session. It became a regular part of their
orientation process. (The owner-victim distinction from Reinventing
Yourself is a session I teach coaches how to deliver in our business
coaching wealth seminar.)


As you coach various people inside a company you can also spot
trends and opportunities for the leaders to act upon. So then when
youre coaching the leader you can move decisive breakthroughs
forward from your unique vantage point as an outside coach looking
The prestigious magazine The Economist reported that back in
2003 executive and business coaching was already a one billion dollar
market, and Harvard Business School reported that it had doubled
that figure in 2005. By the time you read this, you will no longer need
to convince larger companies that coaching has value, they are
already investing heavily in it based on the results it gets.
A recent study conducted in the UK, and cited by Sean Weafer in
The Business Coaching Revolution, showed that training improved
effectiveness by 28 per cent whereas training plus coaching improved
effectiveness by up to 88 per cent.
When you introduce yourself into a company as their coach you
have a great opportunity to give them a crystal clear understanding of
what coaching is, versus managing. There is a place for both. But
companies have come to realize that managing a project is not
enough. There are people in that project not playing up to their
potential, and coaching is required to shift their behavior.
The old-style models of management-by-intimidation are not
effective in the modern workplace. The military hierarchical
paradigms that lead to bossing people only produce push-back in
today's world of sensitive and creative information workers.
But without a clear understanding of what coaching is, and how to
do it effectively, the mere word "coaching" is used to mean everything
from delivering unsolicited advice to threatening an employee's job
You are now there to demystify the entire process and build the
employees confidence in their ability to coach and be coached.
The greatest impediment to coaching success occurs when the
coachee clings to a "victim" position, and will not open to


responsibility and ownership. This fundamental behavioral issue is

usually ignored in companies but is addressed head-on by coaches
who learn to coach the Owner-Victim Choice, which we outline in the
9 Lies book.

E-coaching to e-wealth
Another wealth-producing activity for coaches can be done with
email. Especially if you enjoy email, as I do. (Some coaches are not
comfortable writing emails. Thats fine. Work to your own strengths
thats always where the money is anyway.)
For example, when I take on a coaching client I will add an email
option. They will then receive my weekly Steve Chandler Message.
(Some companies pay thousands of dollars per year to receive these
messages.) The messages are from one to three paragraphs long and
they contain an upbeat informative and inspirational lesson for
recipients. Selected clients who have an additional e-coaching option
can email me with questions any time during the programs duration.
It is pleasantly surprising how respectful people are of their coachs
time. Their questions are very pointed and poignant and lead to
many useful exchanges. But they are brief enough for me to handle
easily every day at the end of my workday. I look forward to them.
The e-coaching option is yet another way to dimensionalize your
coaching program so that you are not billing by the hour like a
masseuse. You are now billing by the program or by the overall
contract. Your contract can include many things and e-coaching is a
valuable aspect. Many clients love having that 24/7 connection to
their coach and know that that kind of committed relationship is a
deeper form of professional retainer than a mere hourly fee can
It is your committed relationship to each other that provides the
most value in a coaching relationship. Its what your client is really


paying for. The commitment that flows both ways. What do you
charge for that? (Not enough.) What is it really worth? (Its priceless.)

We are all of us failures - at least,
the best of us are.
James Barrie

James Barrie, who wrote the Peter Pan stories, has hit on
something here. He has linked failure to being the best kind of person
there is. And what he uncovers is that people who are not failures are
people who have never gone too far. Who have always kept things
safe. Who have figured out how to succeed within the narrow confines
of their goals and then just stayed there, like riding the luge through a
narrow turn. Where else can you go but through that turn?
Sam Beckford talks openly about his five failures in business before
learning the true principles of success and applying them. My own
books talk about the profound failures I suffered in life before finding
my way. Dont think for a minute that anything you have failed at
disqualifies you for coaching others. On the contrary!
Failure suggests that you flew into something unknown to you and
got rudely rejected. Like Elvis was rejected by the Grand Ole Opry
who, at first, told him to give up this singing career because he was
just too weird for country. Elvis also failed early in his career to make
an impact in Las Vegas. Vegas was used to the glitzy rat pack crowd,
and when he first went there Elvis was down and dirty rhythm and
blues and rockabilly. He failed.
One of the wonderful things about failing is that you can re-gather
yourself, pick yourself up, dust yourself off and proceed. Now you
know more. Now youre wiser and stronger. And now you are losing
your fear of failure because you know you can take it.


James Barrie identifies a deeply profound mind shift when he

says, We are all of us failures - at least, the best of us are. Its a
tectonic shift to think that the best of us fail and the worst of us have
never failed at anything. It introduces the concept known in the
Olympics as, Degree of difficulty.
Your failures will help you and the people you coach.


Chapter Three

Why choose coaching as a career?

Wealth is not a matter of intelligence. It's a matter of inspiration.
Jim Rohn

Coaching has now become a multi-billion dollar industry,

surpassing consulting as the preferred catalyst to small and large
businesses. There are many reasons for this. But it is undeniable that
business coaching is the hottest new career for intelligent people to
get into.
This may be the best reason we know of to choose this career: In
business coaching, you have a continually replenishing market of
prospective clients.
At this writing, there are more than 20,000,000 prospective
clients for you in North America alone! Thats how many small
businesses there are. And the number is rapidly multiplying. You
wont be able to keep up with it. Finding potential clients should
never be your problem.
Especially once you learn our principles for bringing them into
your practice.
This book teaches you our principles. These principles have
worked for us and every coach we have taught them to. They will also
work for you.
You can buy books about business coaching that are virtual
encyclopedias. They are like textbooks. Weve read those. But weve
found that they are encyclopedias of the obvious. You already knew
what they had to say. No big secrets are revealed.


This book is not designed to be one of those. This book is designed

to be unusual. Very unusual and surprising every step of the way. We
have no interest in being the encyclopedia of coaching. We are only
interested in telling you exactly how we ourselves have succeeded at
this profession, and why our methods work when we give them to
other coaches.
Heres the primary principle behind coaching success: You get
what you give. Thats the key to your wealth. In any endeavor. You
receive back exactly the value you deliver outward.
Most coaches do not spend a very high percentage of their day
delivering value outward. They spend their day spinning their wheels
doing all kinds of things that do not result in client acquisition.
Because no value is being delivered.
If you spend a day or two making a brochure are you giving any
value to anyone? If you spend days cold-calling is that the delivery of
value? Or are you repulsing people with an overt attempt to GET
value for yourself without giving any?
If you want money, give it. If you want love, give it. If you want
companionship. Give it. If you want more energy, expend more
energy. Whatever you give to the universe you get back.
If you can give your client the kind of turn-around that brings him
a financial breakthrough, your own life will receive a financial
breakthrough as a result.
Most coaches do not do that. They dont give financial turnarounds. They dont know how. They give advice. They give their
time. They give hand-holding. They give emotional support. But they
dont deliver a true turn-around to the small business they are
Even though that is their fastest route to success!
Can you see how valuable it is to know how to do this?
Even life coaches would boost their earnings if they would take
the time to learn to do small business transformations. Life coaches


coach people who have businesses, too. What do they do when the
person they are life-coaching is having a bad life because of a failing
business? Can they help their client in that most important area too?
Not really. Not usually.
So what is the value of life coaching if the clients business is
Thats why most coaches are still frustrated financially.
If you are a success coach, it is unacceptable for you to be
unsuccessful in business matters. It is not okay for you to be clueless
about how to turn a business around. When you use our system, all
that will change. You will know how to deliver prosperity and receive
prosperity as a result of that.
To dramatize this kind of coaching turn-around in the simplest,
most dramatic way we could we wrote The Small Business
Millionaire. (We are not saying this to sell you the book. But we
would like you to read it if you havent, so go to our website and tell us
if you would like a complimentary copy.) That little novel we wrote
was based on what the two of us have been doing for many years:
coming into troubled businesses and turning them around. We
should have put this on the cover: Based on a hundred true stories.
(As a side note, since that book has been released we get many
emails like the one from a business owner we will call Susan. Susan
wrote, I read your book and halfway through I realized that my
business needs a Jonathan (the books main character). Can either of
you come do that for my business?)
Well, of course. Thats the whole point.
Is there really a reliable, repeatable way to do what our coaching
character Jonathan did in that business novel? Can you, as a coach,
actually turn someones business around? And can you become
wealthy doing it?
Yes, yes, and yes.


Weve proven it. Jonathan is made up of true case histories. We

have the evidence. Give wealth: get wealth. What our work in
coaching has taught us is that there are nine potential energy
blockages that stand between a business and prosperity. Free those
blockages, and a business succeeds. Try it, and you will see the truth
of this.
When we first talk to a small business owner, our job is to listen
for, probe for and let them reveal to us those blockages. So we and our
clients can get the blocks out on the table. We have called those
blocks the nine lies.
"I never cease to be amazed at the power of the coaching process to
draw out the skills or talent that was previously hidden within an
individual, and which invariably finds a way to solve a problem
previously thought unsolvable."
John Russell
Managing Director
Harley-Davidson Europe Ltd.

Getting clients out of their own way

And this is what our work has taught us: if our client can free
himself from these nine lies he will prosper. But he has to get on
friendly terms with the truth. He will win at business once he grasps
that truth and reality are on his side. The free enterprise market is
pre-set to propel a small business to success. The game of capitalism
was designed to enrich each participant. No other outcome is possible


once you get past the disabling and dispiriting lies that prevent
So, why, then, do four out of five small businesses fail? The failure
rate is actually even higher than thatits closer to 85%. Why is that?
If the market is set up for success, why do so many people fail?
The answer is similar to one your chiropractor might give you: a
failing business is out of alignment. It is in dire need of an
adjustment. It needs to operate on more friendly terms with reality,
not on the twisted, false terms most people operate from believing lies
to be true.
Businesses fail because their internal system is flawed. They do
not fail because of external circumstances. All that is needed is for the
inner workings of a business to be realigned with external
circumstance so that there is harmony.
Yet most businesses, eight out of 10, do not see that. They, instead,
keep focusing on external circumstances as the source of their
problems: finding good employees, the cost of advertising, the
competition, the mystery of customer behavior, bad location,
economic climate, etc. etc.
Once you learn the system we use, youll be amazed at how quickly
you can help a client get on track to success. Sometimes the biggest
breakthroughs occur in the first sessions you have. (Which is why you
must learn to charge by the result and not by the hour.)
And sometimes the turn-around takes a longer time, but your
client can feel the new direction from the beginning.
Typically not all nine lies are being swallowed at once by your
struggling client at the same time. When we wrote The Small
Business Millionaire, which was a composite story drawn from many
success stories wed gathered over the years, we had our fictional
business owner suffering from five of the nine lies. And that was more
than enough to put him in danger of going out of business.
Sometimes the belief in just one of these lies is enough to put you out
of business.


(If you believe that something not true is true, you are
immediately crippled. Your ability to get from point A to point B is
gone! If you believe, for example, that a car engine runs on water, and
you put water in your gas tank, that belief will keep you from getting
to grandmothers house for dinner. The truth is a necessary
prerequisite to success. If a coach can come show you that its not true
that cars run on water, and that it is true that cars run on gasoline,
then you can now get from point A to point B. The truth will set you
free. Always.)
The ultimate secret of business coaching success is that you grow
your business by growing your clients businesses. Once you learn a
reliable method to grow your clients businesses, your own worries
will be over. Youll have a base coaching practice that is bringing in an
easy six figure income, and your only pressing question will be how
soon do you want to escalate that income.
Steve Chandlers coach is Steve Hardison. Steve has written about
how Hardisons coaching has turned his life around. He wrote about
it in many of his books. Steve Hardison makes an easy seven figure
yearly coaching income, and charges clients five and six figures up
front to coach with him. Despite his large fees, clients all say, I made
that back many, many times over while working with him. He showed
me opportunities I never knew were there.
Once youve mastered confidence in your ability to get results,
there is very little limit to the fees your clients will be happy to pay


Chapter Four

Coaching activates
your own potential
If we did all the things we were capable of doing
we would literally astonish ourselves.
Thomas Edison
When people tell you that they hope you reach your potential, they
are usually talking about the future.
Maybe youre new to coaching, and your friends and former
business associates are telling you that they think you will do very
well in that field. You are so good at solving peoples problems, youre
such a generous listener and you are so committed to action. You
have great potential!
But havent you always heard that? Havent you always had great
potential? Arent you a little tired of having nothing but potential?
Its time that you learned that best use of your potential is not in
the future.
Its now.
Because your potential is just another word for your talent. And
the best use of your talent is right here, right now
This whole potential syndrome has a lot of people annoyed and
depressed. Picture them on their death beds without ever having
reached that potential that so many people saw. It was always like a
distant star, or a brass ring on the futures carousel. (Its like super
coach Byron Katie says, If you want to be miserable, get yourself a


Your potential is not serving you if its always thought of as being

associated with your future. Bring it home. Recognize its true nature:
its in you now. When people see your potential, they are seeing
something thats already in you. Otherwise they couldnt see it. People
cant see into the future. But they can see something in you.
Your true potential is not on some faraway star in a distant galaxy
out there in the future. Its right here. Right now. You can use it
today. You can read this book and get your coaching practice elevated
to a new prosperity today. As fast as you can coach someone else to
turn it around, you can coach yourself to do the same thing.

"Coaches motivate people to action.
They help them prioritize their projects and goals.
They help them plan their work
and work their plan!
Janet Switzer
The Success Principles


Chapter Five

Every leader needs a leader

"Between 25 percent and 40 percent of Fortune 500
companies use executive coaches."
Recent survey by The Hay Group, International
Every owner of every company is flying blind without a coach.
With no accountability and no one to answer to, the boss is at sea
without a paddle. Every boss needs a boss. Every mentor needs a
mentor. (Even one-person, home-based companies need someone to
lead the leader.)
Without a coach, the boss soon allows his own (or her own)
emotions to run the show. Fear and euphoria whipsaw the bosss
mental state throughout the day.
Finally, thanks to widespread acceptance of coaching, that
problem is being solved. With the surging enthusiasm for coaching as
the only truly responsible way for a boss to know shes optimizing her
own potential, small businesses are becoming even more of a force
than they were ten years ago when they began to take over the world
Even larger businesses, like Home Depot, are realizing the power
(and necessity!) of coaching. Home Depots CEO Bob Nardelli
recently said, I believe that without a coach, people will never reach
their maximum capabilities".
Do you like that quote? Become a collector of quotes like that.
Keep a scrapbook. Have them handy. Deliver quotes and studies
about coaching at the right time to interested parties. Know more
about the effectiveness of coaching than anyone else on the planet.
Make it your passion and mission to be expert in what coaching has
done and can do.

If you are playing to win, you will have a coach because the coach
is there to help you win. This is one of the problems we have in our
culture. Its a beautiful thing, but its also a challenge. The beautiful
thing is were self-motivated, can-do, we say, Yes, I can do it and I
can do it myself. But the way the world is today, you cant do it alone.
You have a big vision, you have a desire to do something with your life
that is very meaningful and you cant do it alone.
Dave Buck
CEO, CoachVille


Chapter Six

Show them that you mean it

Formal education will make you a living.
Self-education will make you a fortune.
Jim Rohn
Rule number one in successful business coaching is to get yourself
a coach. There are three good reasons you will want to do this:
First Good Reason Your coach will help your coaching business
expand, multiply and prosper. He (or she) will be able to show you
perspectives and opportunities you cant see yourself because youre
too close to the action. Tiger Woods has a coach. So does anyone who
is passionate about great performance.
Second Good Reason Your clients will be reassured that
coaching is really the way to go. Knowing that you yourself have a
coach and use a coach will be the ultimate sales closer for you on
the value of coaching.
Third Good Reason By experiencing coaching first-hand on a
regular basis your own coaching will get better. You will have a role
model. You will be a continuous apprentice, always learning and
growing (and charging growing fees to your clients accordingly). You
will be doing your own continuous improvement. You will be
learning at the feet of a master.

One of the reasons we entered the process of coaching coaches was

to provide this role of constant mentoring to coaches. Coaches
prosper from coaching.


The fastest way for you to prosper

Abundance is not something we acquire.
It is something we tune into.
Wayne Dyer
The fastest way to reach prosperity as a coach is to keep learning
how to make your client prosper. We have no interest in the kind of
life-coaching that features a lot of handholding and ultimately
becoming therapy lite. Our passion is teaching clients to succeed in
measurable ways. We like to move numbers with our work.
The more confident you get that you can actually help small
businesses turn their fortunes around and succeed, the easier it is to
elevate your fees and prosper yourself.
Our own system for success in helping clients succeed is to walk
them through the nine lies and lead them to the truth about the
power of business.
The truth is, anyone can succeed in business. Anyone can turn a
failing small business around. But your job as a coach is not to just
show them how to do that. Your job is to also show them that they
already know how they can do that. Your job is help your client find
the truth for themselves so they own each and every breakthrough.
Anything your client realizes for himself is going to be a lasting
adjustment toward success. So you, as a skillful coach, are there to
lead them to self-realization: they do have the power to succeed.

Then why is my client not succeeding?

Thats where the nine lies come in. If your client is not working
with reality, he cant win. If he thinks New York is south of Orlando,
he cant get to New York. By walking your client through each lie like


that and allowing the underlying small business truth to emerge, the
client, with your guidance, finds his own way out of the struggle and
into the light.
Peter Lynch ran Fidelity's Magellan Fund for thirteen years, from
1977 to 1990. In that period, Magellan was up over 2700%. He retired
in 1990 at the age of 46. People marveled at Lynchs success and
when they asked him about how he did it, he explained his process
when he said, The person that turns over the most rocks wins the
game. And that's always been my philosophy.
The nine lies exercise is a surefire way of turning over the rocks.
Does it always work? Well, check it out for yourself. We will start by
applying the lies to your own coaching practice, so you can turn the
rocks over for yourself and see the truth under each one. Remember
that the person who turns over the most rocks wins.

Hope is not a strategy.
Rick Page

Where do these lies come from?

We have been coaching businesses and individuals for many years.
Weve not only coached businesses but weve also coached individual
professionals writers, other coaches, golf pros, public speakers,
therapists, seminar leaders, actors, CEOs, major account sales reps
and many more varied careers where prosperity was the objective.
Where each person was a personal, individual version of a small

In our coaching practices we have found that people are always

(and every single time) their own worst enemies. They hold
themselves back with limiting beliefs about money, marketing,
relationships, success and business. Weve called the most common
and fatal of those limiting beliefs the nine lies, and we wrote a book
called 9 Lies That Are Holding Your Business Back and The Truth
That Will Set It Free as a tool for people to use to save their
When prospective clients read that book it wakes them up. Many
times the book itself is enough to drive a turn-around. If you go on
Amazon and read the customer reviews of the book, youll see that
people are already doing that. Also true with the customer reviews for
the fictional version, The Small Business Millionaire. (Take a minute
to read these reviews.)
But most of the time the book is just a start. Clients still need a
living version of the book. (They need you.)
We live in a society where money triggers deep emotions. Ever
since the Great Depression, our grandparents and parents have
passed along deep fears to us about money and wealth. These fears
are irrational, and they lead to the dark and destructive mythology
reflected in many of these nine lies.
If your client knew the truth and operated from that power, your
client would succeed at business. Why? Because business is a logical
process. Its as logical a process as learning how to get from Orlando
to New York. You make a reservation, buy a ticket, pack your bags,
set your alarm, drive to the airport and you arrive in New York. You
succeed in free enterprise in just the same logical way, if you dont fall
for the lies along the way that cripple your car or hijack your plane
and throw you off course.
One of the side benefits of coaching your clients to success is how
quickly you also learn to eliminate these lies in your own business.

Coaches tell these lies, too?


Oh, yes! When we coach coaches we see as many of the nine lies
pop up as when we coach business owners in other categories. And
thats when our fun begins. Its really fun to expose these lies and
realign coaches with the truth. The truth is, wealth is unlimited for
coaches and if youre a good coach you will tune in to great wealth
once you see the truth.
So, to get you familiar with the lies before you start using them to
turn around your clients, lets try them out on you.


Chapter Seven

Truth to set coaches free

It was character that got us out of bed, commitment that moved us
into action, and discipline that enabled us to follow through.
Zig Ziglar

Coaching Lie #1 I just need to know

how to make this coaching venture
All you need to know is how to do this, right? No. Knowing how
to succeed is not all you need to know. Much more important than
knowing how to succeed as a coach is wanting to succeed as a coach.
So many times we see our coaching clients chasing one marketing
method after another to build their practice without tuning-up their
basic instrument: their inner desire.
Your desire to succeed is the most important factor of all. Without
that, no method will work. And once that desire is strong enough, any
method will work!
So without a way to keep yourself motivated and to feed the fire
inside daily, you will eventually fall victim to the other eight lies. And
you will struggle.
Knowing that your level of desire is your most valuable asset will
allow you not to just hope for success, but rather to make it your
conscious purpose.


There are many ways to refresh and rejuvenate your desire. One
of them is to receive coaching yourself. If you have a great coach that
you have regular sessions with, he or she will gently lead you back to
your wholehearted desire in each session.
Another way is spiritual. By honoring your spiritual practices you
keep returning to the big picture and preventing yourself from being
trapped in petty worldly fears and manipulations. Soon you are
making your own practice a part of your sacred mission.
However you do it, finding a reliable, enjoyable system to stay
motivated is the most important part of coaching. When Sam found
Steves 100 Ways to Motivate Yourself in a grocery store in Canada
four years ago he knew hed found the missing link. He now knew
how to link the how to with the want to for himself and his clients.
Now when we coach coaches we use that same self-motivation over
and over to keep our clients core energy alive as well as our own.

Desire is the starting point of all achievement,
not a hope, not a wish, but a keen pulsating desire
which transcends everything.
Napoleon Hill

Coaching Lie #2 It takes money to

make money.
Never was this lie so not true as in the profession of coaching.
It takes no money to make money in coaching!


Never did a profession that had the ability to propel you to a six
figure income virtually overnight require less money up front to get
Yet. Yet! We have worked with coaches that have suffered dearly
by throwing money at their start-up problems. If the practice stalled,
they would create new marketing pieces. Brochures even. (Have you
ever entered into an important, life-changing relationship because of
a brochure?)
People choose and value their coaches based on the difference
their coach can make. Not on the money he spends on marketing.
Spending money is not the answer. Making money is the answer.

Many of lifes failures are people who did not realize
how close they were to success when they gave up.
Thomas Edison
You want to succeed through communication, not money. If you
are thinking about going into the coaching business, or expanding
your business, money is not the answer. In fact, money will forestall
your success. Because you always have to pay it back.
Many of our coaching clients began their coaching part-time while
they held other good jobs. Soon the power and expertise they
developed as coaches allowed them to take the full-time coaching
plunge. But it was not money that did that. It was power and
expertise. Any time you catch yourself trying to use money to make
money, stop.
Some people have challenged us on this and said, Wait a minute,
what about your coaching? What about your seminars for coaches?
Arent you saying to a coach, spend money with us to make money.?
Thats a good question, but we reject it. Many coaching affiliations
will ask you for $75,000 to join a franchised operation. We dont do

that. We never ask for anything our teachings wont make back for
you the first day after our seminar. (In fact, weve had people get on
their cell phones during the lunch break at a seminar and use our
ideas to make back their seminar fee with one call. Often.)

Coaching Lie #3 I just need to get

my name out there!
Getting your name out there is not valuable. Getting your name
in there is valuable.
Put your name back in to the network of clients and associates and
professional relationships you already have. Do not always think in
terms of new people and winning over strangers and cold calling and
getting your name out there.
Go inside.
Sell to your own inner circle.
Let the circle expand by working it from the inside out, not the
outside in.
Do you have an accountant? He is part of your inner circle. Meet
with him and talk to him about his own clients. His clients would
benefit greatly from coaching. He sees their numbers. He knows they
could be doing better. He can refer you. He can get them in with you.
In. In. In.
Get your name in there, not out there.
Sam created a niche for himself in the category of music and dance
studios. That became an immediate in-crowd, so when he
communicated through mail or the Internet, he had already defined
an inner circle of specialized expertise and information. He was


already a credible insider. So even though he put mail pieces out

there about his programs and seminars and ongoing coaching, he
had already created an inner circle.
Expand the circle you already have. Dont keep starting your life
all over. Youve done the work already. Now cash in. Thats where
your power is. You already have credibility in that circle. Your
accountant? Hes already read your book or listened to your CDs
about how people and businesses reinvent themselves to prosperity.
When you talk to him you tell him what you do and why it works. Hes
already sold. Use the relationships you have already invested time in.
All human beings are interconnected, one with all other
elements in creation.
Henry Reed

All human beings are interconnected! The people you talk to today
know people who know people who know the people you would most
love to know.
Dont forget how you talk to your existing clients. They already
love your work. Let them do your marketing. You should not have to
do all your own marketing. You should not have to get the word out
about who you are and what you do. So many coaches frustrate
themselves doing that. They break their own hearts in labor that is
not necessary, and often counterproductive. They could be getting
endless referrals, but they choose to break their hearts by being
rejected by strangers instead. Remember what your mother told you:
Dont talk to strangers.


Coaching Lie #4 Experience will

benefit my business!
Experience benefits me? Not necessarily. If your mechanics are
bad, you dont get better just by adding and increasing experience.
Look at Shaquille ONeal. One of the worst free throw shooters who
ever lived. And you can see how bad his mechanics are. So the fact
that he adds a year of experience every year does not benefit him at
all! In fact, it deepens his bad shooting habits.
A coach who works his or her practice dysfunctionally will not
benefit by just letting a couple more years go by. We know this from
experience. We know coaches who contacted us two or three years
ago about being coached and decided not to be coached and have not
improved their income at all in the time that has passed. In fact
theyve lost ground. They dont know why. But their shooting
mechanics are off! They are still missing their free throws. They keep
telling themselves, and their family members, Just give me some
more time. In a year or so Ill have this down. My coaching practice
will have to get better. Ill be more experienced, wont I?
Experience wont help at all! Not if you dont have a system you
can rely on for growing your business. Without a system that you
know works, success itself drops into the world of the unconscious.
You feel you have lost control. You keep hoping that time will heal the
financial wounds, but time doesnt. (If you owe a lot of money, does
time heal that wound? No! It makes it worse!)
Soon you begin to discover that problems dont age well. You
wonder why you can coach a client to total reinvention while you
yourself still struggle. You begin to think, How come I can teach it
but cant do it? Soon you think theres something wrong with you.
But theres nothing wrong with you. Theres something wrong with
your thinking. You are believing thoughts that are leading you astray.
And those thoughts are not true.
And you are relying on experience alone to pull you through, and
its a lie that it will.


The definition of insanity is doing the same thing over and over
again and expecting a different result.
Albert Einstein

Coaching Lie #5 Lowering fees

boosts business!
People get what they pay for. They know that. They go around
thinking, You get what you pay for. The more they pay you, the
more they get from you. They know thats true.
Lets look at this truth in a simple way. Lets say you lower your fee
for someone. Instead of $250 for an hour of coaching you are only
going to charge $50. (We dont recommend hourly billing, but well
get to that later. This is just a simplified example.) In your clients
mind you have just become a $50 coach, giving $50 worth of advice.
Your ability to make a difference has been diminished. But even if
your client likes the results hes getting, you still lose because hes
now telling three other people that he has this great coach who has
turned his business around and hes really reasonable! Fifty
dollars!. Soon youve got more and more $50 clients, based on that
one decision to lower your fee to boost business. Lowering your fee
wont boost your business. It will starve it. And it will kill it with
ineffective activity.
Heres yet another way this lie harms your prosperity curve. When
you charge a low fee, your own energy dips. You dont bring as much
to the table. Youre only human. You realize you gave this client a

great deal so you only half-coach him. Its not intentional. Its
subconscious. But the lack of effort is still there.
Whereas the more you charge, the more you put into transforming
the clients business. You bring a different you to the coaching
session. So you get a different and better result. Soon your clients are
saying the words to other people that are music to your ears: Hes
expensive but hes worth it.

Coaching Lie #6 You have to be

Sam gives cars away as incentives to clients. Steve sends books
and CDs out to people whove contacted him. This Open Hand
approach always pays off and comes back to prosper the giver. So
dont be stingy. Dont cut corners. Dont be tight-fisted. Dont hassle
your clients with all kinds of nit picky add-ons to your billings. Dont
send extra complicated bills for travel. Dont get petty. Build all that
into your original strong fee. Think big. Dont be tight. You will grow
your practice faster that way.
The person who will use his skill and constructive imagination to see
how much he can give for a dollar instead of how little he can get for a
dollar is bound to succeed.
Henry Ford


Coaching Lie #7 Clients are hard to

This is the coaching version of the small business lie number seven
that says customers are hard to figure out. Coaches believe the
quest for clients is the universal coachs struggle, so they always make
it hard.
If I want my coaching practice to really flourish I have to embrace
reality and accept this truth: I can make it hard or I can make it easy.
Its my choice. We recommend making finding clients easy.
First of all, start your day in this realization: people are already
seeking you. What you are seeking is seeking you. People are
yearning and longing for what you offer. They just dont know you yet.
What you are seeking is seeking you!
Aldous Huxley said, Its not very difficult to persuade people to
do what theyre already longing to do.
So the challenge is one of communication and revelation. You
must reveal to the right people who you are and what you do, and to
do this well it must be done in ways that dont suggest any neediness
on your part. Neediness repels clients. The universe hates it. Its a
form of stalking, among the creepiest of crimes.
One very easy way to attract clients to your practice is to use a
book instead of a business card. If you give someone your business
card you are now like any other needy, greedy schmoozer networking
for business and inviting sales resistance in return. Look at the
difference in your prospective clients expression when you hand her
a book instead of a card.
Ideally, this is a book written by you! But it doesnt have to be. It
can be a book written by your friends or mentors. Or it can be a book
written by Tom Peters or Tracy Goss or Michael Gerber. Have it be a
book that you know about and believe in, and that relates to how you
coach people.


You will find that people love to grow. People want to get better
and more successful. Coaching is a relatively inexpensive way to do
that. Given what it offers - personal transformation and success in the
business world - coaching, no matter what you charge, is alarmingly
inexpensive for your client. We have coached literally hundreds of
people from stagnation to success in their businesses. What was that
worth? People know up front what the potential of coaching really is,
and if they dont, that book you give them will open it up for them. It
will show them the possibility for growth.
We have initiated many a coaching relationship by simply sending
someone the 9 Lies book or The Small Business Millionaire and
allowing them to already begin the revolution in thinking that will
turn their business around.
In fact, we wrote those books for precisely that purpose. We took
all the coaching we had done over the past few years - coaching that
worked - and we simplified it and compressed it into readable lessons
in the books. People will read a book, start having breakthroughs, and
want more.
You can also make a CD. Some people today simply dont read
books theyre too impatient. But they do get into their vehicles, so
they are glad to pop your CD in and listen. Or they go to the health
club and put their head phones on. Any coach can make a great CD.
You can, too! Make sure its not too scripted. Make sure youre not
just reading. Have a few bullet points and ad lib and get loose and get
excited about what youre saying. What are you going to put on your
CD? Anything that excites you about coaching. Ideally, youll tell
some stories about yourself and about people youve helped and how.
Dont make it too sales-oriented. Just share with the listener so that
they want more of you.
Clients are as easy to find as you choose to make it. Why make it
Most coaches already have a debilitating belief system in place
that says: This is the hard part of the business. But look at this email
we just received from a coach we are now coaching. She had decided
that she wanted to get her coaching income up to $15,000 per month.


It had been close to that once before, but after she took a lot of time
off to travel the world she had let the business drop a little:

Hi Steve,
Thanks for your follow up $15,000 is a very realistic number and
I am on track for hitting it very soon. I will be happy to send you
the number every week for accountability. Raymond, my assistant,
and I have a referral prospect tracking sheet that we use each
week. I am on top of this Project 15 totally, and with tremendous
grace and ease. NO promotion, simply asking a few people and it
is showing up. VERY grateful for how this works for me.
My current monthly number is now up to $11,750, and I should be
up to at least 14K by the end of the month. I have another client
from Google, and two others that should be getting on board in the
next two weeks. Well see.
I have taken on 3 new clients in the past week. I also have couple
prospects who will be starting in July and August. Things are
looking good. Again, thanks for your support.
I really think it is very realistic that I will be at 15K by the middle of
July at the latest. Then well work on something even more
Ill update you again next week.
Have a great rest of your week, and weekend.

This client was communicating through her existing inner circle of

clients and friends.
Another easy way to acquire coaching clients is to stage an event if
speaking is what you like to do. Sam has acquired hundreds of
coaching clients through the two-day seminars he puts on in his niche
for music and dance studios. If you have a niche or a specialty, staging
an event can be a very easy way to upgrade a good percentage of your
attendees into more ongoing coaching relationships.
Whenever youre asked to give a talk, pepper the speech with
coaching stories that emphasize what you do for a living and the

breakthroughs you create for people. Youll be amazed at how many

people afterward ask you to coach them.
Some of the coaches we coach never thought to do this. They
would give a keynote speech that made no reference to coaching.
Then they would hand out flyers that said to the people in the
audience, I also do coaching! Its like saying, I also give piano
lessons and repair bicycles on the side so call me.
In our seminars we demonstrate for people how to weave coaching
into a keynote in seamless ways that dont look like selling at all and
that create a craving for coaching after the talk.

The reason most major goals are not achieved
is that we spend our time doing second things first.
Robert J. McKain

Make coaching referrals easy

Attempt easy tasks as if they were difficult,
and difficult as if they were easy.
Baltasar Gracian
When we take on the easy task as if it were difficult, we slow down
and look at the task differently. We bring more consciousness to it.
We see more opportunity in it. We look for hidden potential in the
task. We dance with it a little more slowly and have more fun. Most
people rush through their easy tasks just getting through them
without getting anything from them.


Answering a non-clients email question can be easy. But you

might want to take your time (as if it were difficult.) You might want
to pause and ask yourself, What can I communicate here to this
person that will inspire an urban legend about me and my coaching
and my love for my work and my excitement about turning lives and
businesses around?
We have opportunities for growing our coaching business every
day that we let slip through our fingers. Phone calls to return. Emails
to answer. Each one of those communications can move our coaching
business forward if we take that extra moment to create. Create rather
than react. Create your story. For everyone who communicates with
you. The inward flow of business to your coaching practice will amaze

Then make the hard part easy

Now, lets make the hard things easy. When we take on the
difficult tasks as if they were easy, it makes them more fun to get
started on. With an easygoing mindset, we can just waltz right in. The
hardest part of a difficult task is starting it, because our thoughts have
clustered into a negative, resistant story. Now what stands between
the task and us is our story about the task, dark and dreary. Thats
why Baltasar Gracian is brilliant in his formulation above. Difficult
tasks are only difficult because of what we think about them.
Therefore, if we can treat the task ahead as easy, and enter the task in
an easy way, weve bypassed the thinking that was in the way and can
get some early relaxed momentum going.
Some people tell us that coaching referrals are hard to ask for, but
are they really? Only if we think so. Referrals can be the easiest thing
in the world. The more you do it, the easier it gets. Like a piano piece
thats hard to play at first. Each time you play it, it gets easier. Soon it


just flows. Soon you can play it without even thinking. You can play it
drunk, even. (A valuable skill at social events.)
Referrals are the same way.
The first thing you want to do is truly and deeply get (and we
mean to really get this at the level of your deepest soul) that referrals
benefit the person referring and the person being referred more than
they benefit you.
Most people dont get that. Most people dont like to ask for
referrals because they have slipped back into that old mindset that
says I shouldnt ask for something that leads to me getting money.
Its rude. It might look greedy. And that mindset will do more to
forestall your coaching wealth than any other single factor!
Before asking for the referral get your head on straight! Remind
yourself (and the person you are asking) of the great breakthroughs
that coaching produces. Realize that you are about to help another
human being get their life together. You are offering to save someone
who has lost his way. You are agreeing to assist someone in becoming
happy and prosperous. Why be shy about that?
Also remember to acknowledge, in a humble way, your own
limited and very precious time. You have a few openings left for the
coming months, and would be willing to help a family member,
business associate or friend of your client if they have anyone they
know of who can benefit from the work. Believe us, they know of
people! They already know of many people who would benefit from
your work!
You just have to learn, through practice, to get comfortable with
this subject and stop making it hard for yourself to do.
Another aspect - widely neglected - of referral-gathering is how
you treat the person who refers someone to you after the referral. This
is a major secret key to business coaching wealth so pay attention:
If Mary refers John to you as a coaching client, and now you are
coaching John, a very important catalyst to more referrals is how
Mary comes to feel about having referred John. You can give her good


feelings about it or no feelings about it. Its up to you. So how you

thank her is important. And how often you thank her is important.
Your thank-you communication might include a very, very strong
declaration of commitment by you to treat John like absolute gold.
Mary ought to hear a very sincere and passionate commitment from
you. This makes Mary feel very good that she referred John. When
John thanks you for a session, and when John experiences the
breakthroughs that you deliver, make sure you talk to him about
Mary and how she played a big part in getting you together and how
Marys commitment to John is what led to this. At your prompting,
John then thanks Mary again for putting the two of you together.
When John is happy about all of this, you have an easy opening to
discuss referrals and how you have grown your practice that way.
John listens carefully and before you can even finish he says, Ive got
somebody for you. Ive got someone who could really use this work.
You write that name down and promise John that that person will be
treated like gold. When you get home theres a phone message from
Mary. Mary has another client for you.
If you will stay with this, and keep the referral conversations
relaxed and alive, you will be amazed at how fast your practice fills
One of the reasons we decided to coach coaches and teach coaches
everything we know about coaching is because we can no longer serve
all the requests we get for coaching. By doing things as simple
(although unusual) as the John and Mary scenario cited above, we
quickly over-filled our practices. And because our books about small
business coaching have become bestsellers, and because our business
associates love referring to us, (we make it easy), we are now
overwhelmed with prospective clients.
We could always just say no! to them and hope that they found
someone good. Or we can teach and train other coaches our methods
and know theyll find someone good! So thats why we got into


Coaching Lie #8 I dont need any

Its the ultimate irony to hear a coach talk about his or her solitary,
isolated struggle in the world of coaching. How tough it is to wake up
every morning all alone in the unforgiving universe trying to venture
forth to make a living as a coach without any support or partners.
Coaches have told us that sometimes they long for the good old
days when they worked in a big, bustling, backbiting office. At least
then they had people there to cheer them on and gossip with them
about their profession.
Why do people do this to themselves? Why do people try to go it
alone? What is their aversion to getting help? Can you see the irony? I
am a coach, but I dont need coaching. Its like saying, Im a doctor
but I would never go to one.
There are many ways to connect to other coaches. To be a truly
great coach, always growing in your skill you must get coaching. At
the very least, get yourself a coach. Find a coach who is coaching
successfully and let him or her coach you.
Some people think thats a sign of weakness. But its the opposite!
Its a sign of strength, because you are putting excellence ahead of
ego. You care more about feeding your family than feeding your ego.
You care more about being good than looking good.
Theres also a surprise in store. Your clients will love it that you
yourself get coaching from other successful coaches. It reassures your
client that they are connected to something bigger than just you. And
they see that you believe deeply in the transformative power of
coaching. You yourself pay good money for it.


"What's really driving the boom in coaching, is this: as we move from
30 miles an hour to 70 to 120 to 180... as we go from driving straight
down the road to making right turns and left turns to abandoning
cars and getting motorcycles... the whole game changes, and a lot of
people are trying to keep up, learn how not to fall."
John Kotter
Professor of Leadership
Harvard Business School


Coaching Lie #9 I am a victim of

When you tell yourself that you are a victim you have just pulled
the plug on the whole deal. Youve disconnected from your power
One of the many beauties of the coaching profession is how basic
the profession is. How simple. How powerful. How much leverage
you have in every moment to shape your outcomes and create your
financial future.
Think about it. You dont have a product that might go out of style.
You dont have competition moving in across the street to funnel off
half of your business. (Its actually the opposite: if the person across
the street decides to become a coach, that will increase the likelihood
of business for you because it will raise the awareness of coaching and
its benefits. If hes better than you, hell give coaching a good name
and youll benefit. If hes worse than you, you will benefit by
comparison. You cant lose.)


You are the captain of your ship, the master of your destiny. The
future is yours.
Yet, the victim thinking still creeps into a coachs mind. It enters
like a virus, and it can consume the whole brain.
My spouse doesnt support me in this. At least not in a way that
really feels right. And the economy around here is stagnant. People
dont have money to spend on coaching. And Ive been dealt a bad
hand. By my childhood. To begin with. There are things Im not good
at that other coaches are. I dont have time to market myself. And I
have too many debts to do this right. My personal life isnt so great
these days, and that pulls me from my business. Im not getting any
younger, either. (A variation on this is: Im too young to get
credibility.) I dont have the credentials. I dont have the education. I
dont have this or that. Im a victim of circumstances. Circumstances
are powerful. I am not.
When you coach your own clients one of the first things you do is
re-direct them out of this tempting victim mindset and re-connect
them to the power they have to succeed. But do you do this with
yourself, too?

When you blame others, you give up your power to change.
Douglas Noel Adams


Chapter Eight

Anything we can do
you can do better
Shallow people believe in luck.
Wise and strong people believe in cause and effect.
This chapter is a direct message in the first person from Sam
Beckford who continues revealing the details of his success as a
I originally started from the lower end of the scale where I just
charged $150 a month for very basic coaching. Clients would talk to
me once a month and I would do some group seminars. I gradually
increased the fees and now my range on my low end is about
$300/month and on the higher end it is $800/month. Sometimes I
also take on private coaching clients at $3,000 a month as well. And
although I began coaching within my specialized niche - music and
dance studios - I now coach people in all kinds of professions. The
nine lies are everywhere. What works for a music studio works for any
business. Business is business. Truth is truth.
My total coaching income is on target for a million and a half
dollars in 2006, pushing into the $2 million mark in 2007. I dont tell
you this to boast or be indiscreet. I share this personal information
for one reason only: to inspire you to do the same.
You can see that making a large yearly income is definitely
possible. I can testify that its also enjoyable work. You can leverage
the success of your clients into getting more clients! And you can use
the success stories of your clients to create more interest in your
coaching. And thats one thing Ive done a lot of.


In fact, thats a principle you can use from this moment on. It will
improve your client-attraction rate tremendously: become good at
telling your clients success stories. Those stories will sell your
coaching faster than any other communication you can think of.
Most coaches, when they have an opportunity to communicate,
talk about the benefits of coaching and roll out their own biographies.
Those approaches are very weak, and often even off-putting.
Especially when you compare them to the absolutely mesmerizing
power of a client success story.

Always create a psychological end point!

I really believe in the usefulness of something I call the
psychological end point. Most coaches weve worked with dont
even begin to understand this concept.
But all people in life operate with psychological end points. They
move from one end point to another, subconsciously respecting them
deeply, and basing a lot of decisions on them. For example, the reason
most relationships end in December and the reason that most people
fire people or lay people off in December is because December is a
psychological end point in our society. The end of the year is when
something finishes.
In school, the psychological end point is June. Kids start slacking
off and getting out of the mindset around May because they know that
school is almost done Were in the clear now!
A lot of coaches never establish a psychological end point with
their clients. Im not talking about setting goals with clients Im
talking about an actual time line. You have to put your client on a
psychological end point level where they are progressing toward a
certain sense of completion. They dont feel finished until they get to x
number point.


Thats why its never powerful to be imprecise with your client. It

weakens your possibility for transformation when you say, Well just
keep this coaching thing going until you dont want to do it anymore.
Well just keep it going. Is it still useful to you? Thats a very weak
You have much more power to transform your client when she
knows an end point is near and shed better get in gear if she wants to
maximize this disappearing opportunity to work with you. (I realized
that the car giveaway was just one of an infinite number of ways to do
this.) Even if you are coaching a person one-on-one, youll want to
learn and implement this now! You will want to generate your own
psychological end point so that the person knows that when your
coaching program approaches its end, there are a lot of things that
you are going to see her accomplish by then. Watch, near the end your
client will start using the sessions more seriously.
The other added benefit of the psychological end point is that it
makes renewal more attractive and precise. Once they face the
coaching being over, clients will think I just cant face the fact that
this is ending, and I know the next session is our last so Ive gone to
the bank and Ive got a little extra that I found and I want to renew for
a year.
In 2003, I decided I would stand out from all other business
coaching by offering my clients the chance to win a car! Why not?
(Never be afraid to innovate and be unusual. Your clients love that.
They want you to lead the way in unorthodox, out of the box
thinking.) So one of my clients was going to win a car by improving
their business with the ideas I had given. I decided to give away a
Volkswagen bug convertible over an 18 month period to the business
I coached that had made the most improvement over that time. The
final decision was done by a vote, all by clients, who voted on who was
most improved. The final candidates stood up in front of the crowd of
people and told their before-and-after story covering the 18 month
period. The votes were then calculated and the car was given away.
And that giveaway did a few beneficial things. First of all, it
motivated people to implement the ideas I was teaching for business
success (there are certain basic ideas that - when implemented - will
almost guarantee business success in the world of small business).

People can have internal motivation from just wanting their business
to succeed, but having that extrinsic motivation of winning a car
provided a real extra boost. I really believe people are hooked on
reality TV and they want to win things and they want to compete and
want their lives to be exciting. Thats one of the elements most
missing in a small business: the game element and the excitement
that goes along with it.
So the car giveaway gave them that motivation but it also kept
people focused on the contest and focused on the objective for a
whole 18 months, which is nice because a lot of people in coaching
have clients who start strong, but over a three, four, or five month
period start fizzling out. The coach doesnt seem as exciting and allknowing to them after that time. That car giveaway is an unusual
example, and most coaches wont use anything like it. However! Dont
miss the point! Because you must do something to eliminate that
fizzle-out factor that hits all coaching relationships. Im about to give
you the key insight to avoiding that factor:
When I was first doing my 18 month thing, I thought Oh, oh,
whats going to happen? Ill keep these guys in for 18 months with the
psychological end point but after that whats going to happen? But
over a three year period I have 70% of my original clients with me!
Thats a really high figure (when you have hundreds of coaching
clients as I do). After six months to a year into the process, people
realized that the extrinsic motivator of the car wasnt all that
important. It wasnt about the car. It was about something much
bigger than that. It was about them. It was about their improvement.
It was about their lives! I had so many people say, You know I
started competing for the car and after a while I realized, hey wait a
second what I got is so much important than a car because I saw that
I can actually be successful in my business and I have control over my
life and I actually feel good about things for the first time in a long
time, so Im approaching my business with the same excitement that I
had when I started! It feels like Im starting a new company and I
think thats something thats terrific.
So the car giveaway created the power of the psychological end
point for me. By saying this is an 18 month process, people knew this
transformational thing was going to take 18 months, they couldnt
quit on it sooner.

With colleges and universities the psychological end point is

usually four years. So you have to keep your learning going for the
whole four years until you get a complete education. Psychological
end points give structure to the coaching experience. They create a
higher level of conscious participation from your client.

Where else did the $1,074,379 come from?

There are different levels of coaching I do. I have one level of
coaching which is just a group program. Thats done using
teleconferences where I can get up to 500 people on a phone line at
one time. I usually give them either a monologue or a mini-seminar
on a certain topic. Those topics will be generated from the questions,
the information and the stories that I get from my private one-on-one
coaching clients.
How I create my teleseminars is how you can create
yours: I sit there with a book (just a binder) and when I am coaching
people one on one, theyll ask me questions and Ill give them
answers. And I quickly jot down things and say to myself, OK, if one
person is asking about this, 100 more people will also want to know
the answer, so Ill make it generic.
So the teleseminar is just me going through the Q & A and
expanding on the questions that people ask me in private sessions.
And the great thing about the group coaching is that I encourage a lot
of interaction not just a cold, non-reactionary lecture that goes out
to people. I encourage people to join in. If my private consulting
clients have a really good success story I tell them to be on my group
call and I make sure they are on there. Ill then do a mini-interview
with them and say, Well, tell me what happened tell me about the
breaks you created and Ill recap some of the things they told me and
get them to expand on them. Its a great system for teleseminars. It
gives me endless content, for one thing. For another, it motivates the


other people in the group to think that because other people are
getting results, they can, too!
The teleseminar also serves as a testimonial for the coaching I give
at the personal level while reminding people that the 9 Lies system
really works. If theyre having a bad day or having a hard time and
tune in to the call they immediately hear that someone is getting
results! Most of the people you and I end up coaching have been
functioning in isolation. They have a small business opportunity and
they try and they try and theyre trying to battle all these business lies,
which doesnt work, and finally they think This business doesnt
work and its useless! When they say that to themselves, theres no
one there to say anything different. Unless they have a coach.
Thats the beauty of coaching. You are there to say something
different, and steer them back to the opportunity that was always
there for them.

The fifteen minute coaching session!

A lot of coaches coach every client for an hour or more at a time.
Then they start thinking, there are only so many hours in a day and
if I get too successful Ill hit a ceiling. So they stop being optimistic
about building their coaching wealth.
Business coaching wealth cannot be built with ceilings and limits
and strains and strictures binding you up in limitation and projected
scarcity. Building your coaching wealth is all about imagination,
creativity, and leveraging results for your clients. Its not about
billable hours.
Keep finding creative ways to introduce more high-paying people
into your coaching process. Stop brooding on the limitation of billable


One way I gave a boost to my own coaching practice was to create

the art of the 15 minute session. A lot of coaches will immediately
think 15 minutes is not long enough. They think you need a lot more
time. But Ive been doing 15 minute sessions for the last three years
and getting very good results.
In some respects, they work even better! First of all, you have to be
organized. And your client has to be organized and prepared. Youre
not going to be dealing with every question under the sun. But my
belief is that you dont want to take that much time talking anyway. I
mean, you want to get at least two or three specific problems solved
and you want to give them action steps they can take on those
problems. If you have too long a session, my belief is that the
information gets diluted. Im not saying dont do long sessions, but I
think the information can get diluted and the session can wander
around into places that lead the client away from the breakthrough he
had in his first 15 minutes. On the other hand, if you give them two
action items to do in a 15 minute session, they are going to remember
those and they are going to do those because those are simple
Fifteen minute coaching (and Im not saying you have to do it, Im
just offering it as one of an almost infinite list of options open to you
to increase your business coaching wealth) is just like a four minute
mile. Before Roger Bannister ran the four minute mile, no one
thought that you could run a mile in less than four minutes it was
physically impossible, (thats what the doctors said). But once Roger
Bannister did it, people started doing it more and more and now it is
commonplace to get under four minutes.
The reason most coaches are afraid of 15 minute sessions, is
because the only way they know to bill is by the hour. They cant with
a straight face get over the internal dialogue of worry: Oh, I have to
give an hour coaching session because how can I possibly charge
someone enough if they dont feel they are getting enough time out of
it. They think of coaching in the same terms of a massage or some
kind of session that is based by the hour.
However, your wealth increases once you realize that successful
people, or potentially-successful people, actually like it when you save
them time. Start training yourself to realize that there are a lot of

people out there who actually love the thought that you might be able
to get this done for them in less time.
Coaches who want more money just automatically talk about
increasing their time. So they offer a more expensive, more-hours
option. But the client is not liking that. The client is soon thinking,
Am I going to talk to this guy five hours a month? I dont even talk
to my own family members that much! and it just becomes
oppressive to them. Realize that most successful, enthusiastic people
are real go-go! You dont want to get them excited and energized
about transforming their lives and businesses and then bog them
down in coaching for excessive hours just because you could only
think to bill in terms of hours.
Steve has a coaching client, who is an excellent coach, who delivers
five-minute base-touching coaching sessions with clients! His clients
love it! They get a certain amount of those per contract. You just call
me and we talk for five minutes about whatevers primary for you and
then we are gone. Check in with me, account for yourself, and were
finished until our next regular 45 minute session. And he says that
his clients love those because they think Wow, how efficient is that
guy that he can nail something for me in five minutes!
Much of the value of coaching is the accountability. The knowing
that you have a spotter, making sure you lift the weights that are in
your workout plan. Its like the personal trainer story we tell in our 9
Lies book. The trainer says to her client, Ill work out with you at the
gym. You meet me there. Its going to be Monday, Wednesday and
Friday and Ill be there in person one of those days but I wont tell you
ahead of time which one.
If you had a car that was broken down and it was towed into the
shop and the mechanic said, We can fix it in three hours or we can
fix it in half an hour, which would you prefer? You would want the
car back! You would want to get on the road.
Remember that time is the new money. But coaches think that
thought backwards! They think time is the new money and its all I
can bill. I make money by selling my time so I should try and sell as
much time as possible! But that is actually a flaw in thinking thats
going to hold the coach back. You cant sell just time to a person, you

have to sell the result. You have to be willing to be an unusual coach

and not just bill by the hour. Your key statement is, I can get the
transformation done in half the amount of time or a third the amount
of time! Clients will know the value they are going to get from you.
So you will retain clients longer if you are on a less time-intensive
If you are meeting for four hours a month, after a while it can
become wearying, rather than inspiring, to meet with you. Soon your
client is saying, Oh, Ive done so much with this person. Soon clients
start missing their sessions because they cant imagine pulling a full
hour out of their day.
Whereas with 15 minute sessions, or even the five minute
accountability sessions, any client has time for that. They cant be too
busy for that. They can be in their car driving home on their cell
phone. Heres your client: I did my check in! Im feeling great!
Most coaches will never do this. And thats a real problem for
them. They bill by the hour and they see the immediate limit to their
income! After they get busy in their coaching practice they think, Boy
do I really want two more clients? When I think of all the time that
takes? And they cant get it into their heads that youre better off
billing by the transformation - billing by the result.

The four secrets to coaching wealth:

Now I am going to tell you our four secrets to making a very large
income as a business coach. First, Im going to fill in a few more
details about my business and personal life and about Steves
business life and personal life, not to brag but to tell you how good
being a business coach can be if you know some key pieces of


I dont know you yet, and I dont what your goals for your business
and life are. But I do know that reading this book will make you think
about the future of your business and personal life.
You may already be a very successful coach making a high income
who is just reading this to get an extra edge and take your practice to
the next level.
Or, you may be like thousands of coaches who make an okay living
but are not building any real wealth and equity.
Maybe youre new to coaching and are looking for a way to make a
solid, predictable full-time income instead of making a part-time
income and taking clients and jobs you know you shouldnt take.
Before I tell you the four secrets we have learned that have given
us our success in the coaching business I have good news and bad
First the good news.
Being a business coach can be the absolute best profession to be in
if you know how to do it effectively. If youve been in the coaching
business for a while and it hasnt been as successful as you have
wanted, I want to reinforce a couple of points just in case youre
losing faith.
The demand for business coaching is growing at an astonishing
The small business market itself is exploding! There are 20 million
small businesses in North America and millions of people start new
businesses each year.
The self-improvement movement is also growing at an
unstoppable rate. People are becoming more aware of their need and
ability to set big life goals and get expert advice on how to reach them.
The age of the brainless worker is over. Humans are becoming
businesses unto themselves, whether they want to or not! Large
corporations are falling apart and small businesses are blossoming all
over the world. Thats why there is such a growing need for coaching.


And its going to increase with each passing year. Two heads are
better than one. If someone in a small business has a coach she has a
huge, synergistic advantage over her competitor who doesnt. That
gets proven every day.
Baby boomers retiring form the workforce are starting businesses
in droves. They are anxious, willing and able to pay top fees to
advisors who can help their businesses succeed.
As far as the day-to-day business of coaching you already know the
You can set your own hours.
You can work from a home office if you choose with very low
Theres no inventory or stock to carry.
You can get paid up front before you do the work and not have to
deal with collections.
You have the potential to make a lot of income per hour of work.
You will be well-respected as a professional in your community.
You can make a genuine difference in peoples businesses and in
their lives.
You can decide who you will work with and who you will turn
You can set your own rates and give yourself a raise any time you
The coaching business is a great business if you know how to do it


Now the bad news

The coaching business can be the absolute worst business to be in
if you dont know how to do it effectively.
You can make very little money, even though youre helping your
clients to do the opposite.
Sadly, according to the latest statistics the average coach makes
less than $20,000 and coaches only part time. Most coaches are only
part time not because they dont want to work more, but because they
havent figured out how to get enough clients to make a decent full
time income. Coaching is such a new profession that they dont know
where to turn to get advice on how to be effective and prosperous.
The average new coach can be wasting all their energy chasing
clients and worrying about losing clients. Worry takes away more of
your precious energy than any other mental activity.
A lot of coaches live in this stress zone, because they dont know
how many clients they will have six months from now and they are
terrified of pushing clients too hard for results for fear of losing them
if they rub them the wrong way.
Your income can fluctuate wildly from month to month.
You can feel forced to work for free just to prove you can get
I dont know about you but working is not one of the things I like
doing for free. If I work I want to get paid well. Even fast food workers
get paid for each hour they work. Unfortunately a lot of coaches feel
like they have to give away their time just to get a client on board by
proving their worth.
So those are some of the reasons coaching can be the best business
or the worst business to be in.


How do we make it the best?

So how do you make it the best business in the world? To Steve
and me being the best is defined by making a consistently high
income, having more clients than you can handle, and being able to
pick who you work with. It means being able to say no to bad
business and being able to raise fees and quote higher fees without
worry of rejection.
There are many factors to being successful in business coaching
but here are the top four secrets to our success:

Secret #1 You need to have an

original magnetic lure that makes highvalue clients call you.
Heres a fact: most people are not actively looking for a business
coach. They may need a coach, but they are not actively looking for
But, BUT! People are looking for a solution. That you can be sure
of. The vast majority of business owners out there are confused. They
are struggling along looking for a solution to their struggling. They
dont realize yet that you are the help they need. They dont know it.
And you have to accept the fact that you cant help people that arent
aware that they need your help. As you may have experienced by
trying to cold call or just running small ads that say business
coaching. It does not work at all! Who knows they need it?
When you use our systems youll never, ever cold-call again.
So the enlightenment is this: You need to give people a
unique reason to call you: a hook that gets them interested.

The best hook we know of is a book or audio product that by itself

begins to solve their business problems. Once they see solutions
happening, they are hooked.
Remember this: people are always looking for a solution.
Several business coaches offer free copies of books like: Think and
Grow Rich, The E-Myth, Reinventing Yourself, Good to Great and
other books that address specific business and personal success
problems. When the prospects read these books, they become hooked
on the idea of further growth.
If you are lucky enough to actually write a book like that, then the
process becomes even easier. Steve Chandlers 11 books have provided
him with a steady supply of coaching clients, most of which he now
has to turn away (more on that later). The books Steve and I have coauthored, 9 Lies and The Small Business Millionaire have also
generated a substantial amount of coaching clients that Steve and I
cannot personally coach them all any more.
Lets just say we practice what we preach. We advise that coaches
open their prospective client relations by giving away a book and
allowing the client to connect and get started working the process.
There are a lot of ivory tower types in the world of business who write
books about things they dont do or cant do. Theyll tell you why
people fail at business, but they themselves have not failed at
business. (I have failed at five of them!) Most of the business authors
who write business books havent run businesses! They especially
havent made any real money running businesses. So they take a safe
academic textbook approach. We dont take that approach. We just
share with you what has worked for us. Take it or leave it.
Steve and I have been interviewed on hundreds of business shows
- TV and radio - by business experts and business authorities who
spend all their time interviewing people - they dont actually transact
So were going to show you exactly what we do and have done to
succeed at business and at coaching. Were going to show you the


processes that we do and were going to do it, so you can see it from
the inside and the outside proof that this system works.
The biggest problem that most business coaches have is not that
they lack knowledge and not that they dont have the skills and
abilities to actually help people, its that they cant convert people.
Even people with a huge need for coaching. They cant convert
someone with a need into a paying client.
Were going to show you how we can take you - someone with a
need, or at least an interest in this - and convert you into someone
who is interested in both our seminars and books (assuming we do!)
not based on our greed, but based on your need. So you can either be
skeptical, or you can learn all the secrets from the inside out.
Books are great client magnets, and audio products like CDs
(which you yourself can easily and inexpensively make) and
teleseminars are also extremely powerful ways of attracting clients if
you know how to use them powerfully. In my distance coaching
practice, all of my clients (clients that have generated for me over
$75,000 per month in predictable, automatic credit card billings)
were brought into my coaching practice by my sending a free CD and
directing people to a live pre-scripted coaching telephone seminar
which I deliver about six times per year.
You are probably familiar with teleseminars, but in case you arent
they are basically a large group conference call that you get
prospective clients to dial into. You can have 10 people or potentially
a couple of thousand people on the line at the same time. You can
mute out all of the listeners phones so you can deliver a coaching
session without interruption and then open the lines for Q & A.
I personally like to use teleseminars as the unique hook to attract
potential clients. Books and CDs can be as effective but I believe that
a live Teleseminar has a few distinct advantages that even books and
CDs dont have:
1. The Teleseminar is at a specific, predictable time so it speeds up
the selling cycle. It is impossible to skim a live teleseminar. If
someone is on the line they will hear it from start to finish.


2. The Teleseminar gives prospects a taste of what coaching will

actually be like. I like teleseminars because they give people an
experience of what coaching can be for them. It is hard to sell a
live spoken experience with a written letter. The warmth and
emotion can come through in a spoken event.
3. The teleseminar can be tailored to capitalize on specific timely
For the last two years Steve and I have delivered our New Years
Business Resolutions call. The calls were scheduled in early January
and the listeners were all interested in getting the most out of the
upcoming year. Theres a reason people flock to the malls in
December and to the health clubs in January. All of us are driven by
events. A properly planned teleseminar can bring in new clients who
are already motivated to act by an event.
The next unique hook Steve and I are testing in the future is the
webinar. A webinar is essentially a teleseminar over the internet
delivered live by you. It has the advantage of being able to show
powerpoint slides and samples on screen live while you are talking. In
three years I believe this technology will change the way coaching is
done worldwide.
If used properly, the teleseminar can be one of the most powerful
and easiest ways to attract new pre-qualified clients.
Books, CDs and teleseminars are all ways that we have perfected
to optimize secret number one: creating a magnetic lure - a hook that gives your prospects an experience that they have a deep desire
to repeat and continue.


Secret #2 You must reveal a radical

turn-around concept to your potential
Well-known books like Good to Great, the E-Myth, and 7 Habits
of Highly Effective People have built huge coaching and consulting
businesses around them because they have delivered a turn-around
for their readers.
For example, the E-Myth taught people to work on their business,
not just in it.
One of Steve Chandlers key turn-around concepts has been the
Owner/Victim distinction from Reinventing Yourself which he has
taught world-wide to more than 20 Fortune 500 companies and over
200 smaller businesses.
When you read the 9 Lies book, you will see our own turn-around
concepts which have attracted huge numbers of clients to our
coaching practices. Some of our key concepts like: the open hand,
combining how to and want to, and time is the new money are all
principles that are radically different from what traditional books are
saying. We found that the primary reasons why four out of five
businesses fail can be turned around and corrected by eliminating the
nine lies from a business owners thinking and replacing them with
the truths that bring him profit.
When you are the coach that reveals a turn-around concept to a
business owner, you automatically win their attention and desire to
do business with you. Your concepts must be radical and eye-opening.
You cant just cruise in with Its just common sense and hope to
impress your prospects. Successful coaching is a process of turning
around a clients belief system. You are there to reveal surprising
truths that can be used as tools for turn-around.
The most important factor in this secret is the turn-around itself.
Do you - right now - know how to turn your clients business around?


Do you have a proven, systematic way to do that? Or are you just a

good listener? An intuitive coach who may try this and that?
There is no more powerful way to grow your business than to learn
a specific transformative process. In the book 9 Lies, you will learn
our own process. You will see exactly the nine steps we take clients
through to transform their businesses. (You can check out the
effectiveness of this process by applying it to your own coaching
business! Many coaches have!)
Your clients success is what ultimately guarantees yours. And
there is nothing that serves a coach more than a fundamental
philosophy and process for turning a business around.
This letter was just posted in the Henry-Griffits newsletter. HenryGriffits is the premier golf club fitter in the world, and one of their
partners, Andrew Machray, wrote from Australia:
My biggest issue when starting to club-fit and retail HenryGriffitts was overcoming the price tag that I was accustomed to
seeing on the equipment in the Pro Shop that I had been teaching
at. One thing did strike me about the equipment where I was, and
that was that the equipment, the color and the price tag were a
direct reflection on the manager of the store, and the more he filled
the shop with the same low price points, the less he sold. He
stocked the shelves with what he thought he would buy if he was
going to purchase some golf gear. He should have stepped out from
behind the counter, as I did, and seen what these Public golfers
were carrying in their bags. The golfers might have been
complaining about the price of the coffee but they wanted to play
better golf and their bags were full of equipment well above the
price points the Pro Shop was offering and not getting.
After reading the book recommended to me by Barry Miles
called 9 Lies That Are Holding Your Business Back And The
Truth That Will Set It Free by Steve Chandler and Sam Beckford, I
started to see the price point from a different angle, and since I am
now in the service of selling golf equipment with no equal, as far as
fitting and assembly, it makes a lot of sense to be adding value and
raising prices and attracting the customer that will be of repeat
business, and a customer not worried about the price tag as long as
the value is there. And that is exactly what the whole HenryGriffitts philosophy and experience is all about. We Deliver
Confidence (we add value). A 100-day fitting warranty (we add


value) and a lifetime lie angle warranty (we add value) and at least
1 back-up fitting (we add value) not to mention the teachers own
input into the students enjoyment (we add value). I have never
sold high-end equipment and had the customer thank me for the
experience as much as I do with Henry-Griffitts. I still marvel at
that. If this sounds like an ad for HG, well it probably is, by word
of mouth.

Focus on what the customer wants, then focus on what you
can do to add to that, to address a further and deeper want. That will
keep your prices climbing right along with your value to the customer.
And the good news is once you convert from a low price focus to a
strong price focus your business will thrive.
From 9 Lies That Are Holding Your Business
Back And The Truth That Will Set It Free
by Steve Chandler and Sam Beckford


Secret #3 Become affiliated with

proven credibility to avoid the guidance
counselor syndrome.
Ive been to networking meetings as guest speaker and have talked
to business coaches who were networking to get clients. The coaches
were nice people, but it wasnt difficult to see why they were short on
clients. They looked and sounded very needy as they handed out their
business cards. It was hard for them to convince people that they
were really success coaches if their own coaching businesses were
not that successful! Can you picture a top brain surgeon handing out
cards at a chamber of commerce meeting trying to get more business?

A lot of the coaches I met at these networking meetings were

actually very good coaches with solid training and techniques, but
none of that mattered because their credibility was suspect. The very
fact that they were there to schmooze and network and build their
Rolodex told you that they were hurting. Who does that who is not
hurting? (Maybe Harvey Mackay, but who else?)
If you cant get clients to trust that you yourself really know how to
succeed, its not going to work. Its always going to be an uphill battle
getting clients.
The problem a lot of business coaches face is what I call the
guidance counselor syndrome.
When I was a teenager I remember sitting across the desk from
the high school guidance counselor thinking: why should I take
career advice form this guy? Hes a low paid guidance counselor that
has to deal with bad-attitude teenagers like me 40 hours a week.
What does he know about finding a good profession? I thought I
would have been better off getting career advice from a doctor or CEO
or at least the school principal.
If you havent written a bestselling book or arent a wealthy
business owner its hard to get taken seriously by business owners
who are potential coaching clients. It can be tough to convince a
business owner that you can help them increase their personal
income from $100,000 to $200,000 or much higher if you havent
taken your own income into that territory.
The easiest way to avoid the guidance counselor syndrome is to be
a well-known success yourself! And the next easiest way is to be
affiliated and partnered with that kind of success.
There are a couple of ways to do this. One way, of course, is to be
an employee of an established training and coaching company.
But, if youre reading this right now thats obviously not the route
you want to take. You want to be a sole practitioner, calling all your
own shots.


And Im with you all the way. I believe that the advantages of
being an independent coach greatly outweigh the drawbacks.
The other way is to become a licensee or franchise of a coaching
organization. Ive seen coaching franchises that charge $75,000 to
coaches to use their system. The system may work well, but I think
that the restrictions and costs of a franchise make it an impractical
choice for a lot of independent coaches.
The best way, in our opinion, is to become affiliated with a
credible source without giving up your independence. To have an
affiliation that provides the credibility of an established coach or
author, but lets you operate and bill the way you want.
What you want is an affiliation that lets you have the upside of
transferred credibility and recognition without the downside of high
costs and restrictive operation requirements.
When Steve began his coaching and training career he became
affiliated with well-known corporate motivator Dennis Deaton and
Quma Learning Systems and immediately inherited clients like Texas
Instruments, Motorola, Intel, Bank of America and American
Express. As an associate of Dr. Deatons, Chandler had instant
credibility and power to teach. It is this kind of affiliation we are both
recommending and offering. You can get it with us or with someone
else, but whomever you affiliate with will put you on a faster track to

Secret #4 You need to be part of

something bigger than you, and sell
prospective clients on being part of
something bigger, too.


One of the key breakthroughs I made in my coaching practice was

when I decided to sell more than just me. When I gave my coaching
clients access to the ideas of other top experts and consultants in
addition to myself I was able to attract more clients. And more
importantly, I began to differentiate myself from other small-time
coaches and thereby charge more!
I used people like Dan Kennedy, Julie Morgenstern, Michael
Gerber, Steve Chandler and many more well-known success experts
who had national bestsellers and were already widely admired by my
coaching clients. (In fact, thats how I met Steve I brought him to
my clients as a guest expert in self-motivation.)
One of my favorite sayings is No one of us in smarter than all of
us. These days because of technology it is easy to be connected to a
group of colleagues and associates in your field and tap into that
What if you could sit down with a potential client and not just
offer them your advice, but, through you and only you, you could give
them the advice of other top authors and coaches as well? In the past
that would have been impossible, but with todays advances in
communications and the Internet it is easy.
Business is full of universal problems. Fortunately, it is also full of
universal solutions. The limit to being an independent coach is that
none of us will live long enough to experience every possible situation
and solution.
As a coach it is important to be connected to other coaches for
your own ideas and for ideas for your clients.
If you were a personal fitness trainer wouldnt it be easier to sell
your training if clients got access to a full gym membership as a bonus
when they hired you?
Thats the type of perceived value you want to create in your
coaching practice.


Theres another huge advantage in being part of something bigger

than yourself and connecting your clients to something bigger than
One limitation of coaching is that you are basically trading hours
for dollars. If the only service you offer as a coach is your hourly
service, then you are automatically and immediately capped at the
amount of income you can generate.
You dont want that. You want your potential income to be
When I figured out the principle of connecting my clients to a
program bigger than just myself I was able to accommodate 400
clients that pay $187 per month! That was my base level program that
gives clients 15 minutes of private consulting time with me each
month and other benefits of a group program. If I was just selling
personal time with me, there is no way I could have broken out of the
trading hours for dollars cap.
I also have a high level program with 24 spaces where clients pay
$10,000 per year to be a part of a higher level networking group and
get face to face time with me.
Building a coaching practice that is bigger than just your personal
input is a key that can even out your income, help you retain clients
longer and help your coaching business prosper.
In a nutshell, those are our four secrets to making a large income
from your coaching practice while still having a life.


Chapter Nine

Coaching gets your life in gear

"Coaches are not for the meek. They're for people who value
unambiguous feedback. All coaches have one thing in common,
it's that they are ruthlessly results-oriented."
Many people think theres no security in coaching. As if security
was the only good thing in the world. But the kind of security they are
talking about is really stagnation. Its a kind of dependable, slow
decay. A predictable wasting away! If thats security, you dont want
When you have the security of a TV series like Remington Steele or
a franchise like Bond, you can become complacent. To have the
hunger and bite again and to have that desire and need to give a
performance, thats a good feeling to have.
Actor Pierce Brosnan on life after James Bond,
on VNU Entertainment News Wire
Pierce Brosnan could have played the victim. He could have gone
around complaining (as so many actors do) about being typecast by
previous roles, or he could have groused about how older actors get
dumped from great roles like James Bond. But he shifted up to the
level that gave him the most energy and adventure instead.
The shift that takes you up to higher energy and adventure is just
like shifting gears in your sports car. Youre not putting in a whole
new gearbox, youre just shifting gears.


Yesterday our friend Robert was at his computer dealing with

unpredictable coaching prospects and getting more and more down
on his work. He knew he needed a shift in perspective, so he got up
and took a walk outside. While he was on his walk, he looked up into
a tree at a birds nest he had noticed when he came into work and he
saw a little bird peek its beak and eyes out of the nest. Robert
laughed and walked back inside and took a seat at his computer. He
felt better. Much better. When he started answering emails, he did it
with a lighter touch, giving out more thoughtful and compassionate
replies than earlier in the day.
What had just happened for Robert? Its important to see that
Robert shifted his mind; that he did something deliberately to move
his perspective on up to a slightly higher level. Every step up from
victim thinking feeds you with energy. The physical element is
important here. The mind and the body are part of the same organic
whole. So if you lift your body up and walk it outside you are moving
the interior of your mind at the same time.
A body shift will facilitate a mind shift.
Even closing your eyes and taking a deep breath can shift your
mind. Closing your eyes will more than likely take your brain waves
from excitable Beta into a more orderly relaxed Alpha state
especially if you can close your eyes for 20 seconds and picture a
peaceful scene. Alpha.
The point here is to know you are in control of your physical sports
car. Some people live their whole lives stuck in low gear, not even
realizing they could shift up and out and watch their vehicle glide.
If we extend the metaphor we realize that most coaches who are
just beginning dont even want to learn to drive a stick shift. They
want to stay with their automatic transmission. The car that shifts for
So their minds version of that is to simply buy into permanent
lists of what is bad news and what is good news and then just let the
shifting be automatic.


Therefore, if you find out youre not getting a client you really
wanted, thats bad news and your automatic transmission just
downshifts for you. You didnt even have to think about it. You hear
bad news and go into a bad mood.
If Pierce Brosnan had been on automatic like that he would have
been in a bad mood the moment he found out that the studio was
going to go with a younger James Bond - or the moment his TV series
Remington Steele was canceled. Automatic downshift.
But thats not what he did. He shifted up instead of down and now
hes gliding into all kids of interesting movie roles.
This is something you can do, too, anytime you choose to. Just be
like Robert and walk outside to look at the bird in the tree. Just
getting up from the chair, stretching and walking and then going
outdoors and breathing the fresher air so much more deeply and
looking up, up into the tree and making that connection with the bird,
that eye contact with another living being on the planet, that is
The body leads the mind. We think its always the other way
around. That the mind leads the body around like an old hound dog.
That the mind has to talk the body out of bed every morning. Well, all
thats true but one of the secrets to mindshifting is that you can do it
the other way. The body can move the mind into a higher gear. Like
Roberts did.
Like yours will today when you go for a long swim or a long walk
or play that fast-paced game of racquetball with your friend. Your
mind will not (and can not) stay in the same gear after that.
You hold the key. You are in charge. You can choose any response
to life you want. You are not a victim of anything.


Chapter Ten

Get in this for the money

You never suffer from a money problem,
you always suffer from an idea problem.
Robert H. Schuller
Dont get confused about why you are in coaching. If you are a
business coach, or a success coach of any kind, its perfectly all right
to focus on your own success.
By which we mean the money you make.
Almost every coach we coach who is faltering has an insufficient
focus on making money.
Lets look at the example of Barry, a coach who signed up with us
for coaching so that he might increase his coaching business.
I love this profession, Barry said, Its just that Im having a
hard time really growing my business.
Then why do you love the profession?
Oh I love helping people, Barry said. I love people, and I love
helping them solve their business and personal problems and break
through to greater achievement.
You need to change your focus. You need to change what it is
that you love focusing on.
To what?
I help them make money already.


Not their money, your money.

Without that focus, youll fail. And you wont end up helping
anyone. Youll become less effective because of your own lack of
money. You have to turn that around. Because the more money you
make, the more power you have to help others.

I dont want to do business with those who dont make a profit,
because they cant give the best service.
Lee Bristol

Wake up to making money

The trouble with being poor is that it takes up all your time.
Willem De Kooning
When we seek to help you create more wealth through coaching
were not trying to make you more self-important or encourage you to
seek ego-gratification by the accumulation of material objects.
Our intention is to give you a rare and strange freedom - the
freedom to move freely in life, go where you want to go and do what
you want to do. The wealth we are referring to is freedom itself.
As Ivan Illich said, Man must choose whether to be rich in things
or the freedom to use them.
We seek to help you find the freedom to help your loved ones, and
to help the people you want to help. Many people shake their heads


when they hear about conditions in Africa, but cant do anything but
complain about it. Then they curse people who have the power to
help, but dont. Why not have that power yourself? Why not be one of
the people who has the freedom to send money and dig a well in
We are talking in this book about earned wealth: the kind of
wealth that comes from serving the greatest number of people in the
most preferred ways.
Creating wealth is therefore a different concept than discovering
a way to get rich quick, or a finding way to take advantage of some
hot or opportune external circumstance.
Were talking about creating wealth from within yourself.
When Napoleon Hill wrote Think and Grow Rich his books point
was that all the rich people he studied got that way through their
thinking, not through external circumstance. They learned to direct
the power of their thoughts and point those thoughts in the direction
of great riches. Hill was correct that wealth starts in the mind, but he
only took us halfway there.
Sam Beckford takes it a step further when he describes becoming
wealthy as a logical process that works when followed but comes
undone when emotions worm their way into the equation. Becoming
wealthy is a logical step-by-step process! The blueprints and
instructions for becoming wealthy in the free enterprise system have
been given many, many times. They are sitting in every library, and
they are at your fingertips on the Internet. You can follow them for
yourself and you can coach your clients in the same direction.
Those logical steps are, in fact, right here in this book. The
problem is, emotions get inside the logical plan, and infect it like a
virus, finally kill the organism. Four out of five small businesses fail.
And it was always an emotion that did it.
Fear is the most dangerous emotion on the way to wealth because
it builds up and then mutates into resentment and anger and affects
all business relationships negatively.


Weve heard employees at a small restaurant complain that theyve

had a bad day at work because for some reason they were slammed
all afternoon.
What do you mean by slammed?
People. Just slammed us. Wouldnt stop coming. We thought
wed catch a break in the afternoon, but we didnt.
Notice that these workers were actually emotionally working
against wealth.
Most people in business work against wealth. Just as most
employees in companies work against promotion. They fear and
resent their employers and therefore they do not advance. Or if they
do, its painful and with a lot of reservations.
If they were able to take all that negative emotion out of their work
and just work on in good, neutral spirits, they would win big.
But emotion creeps in.
When the great novelist Jonathan Swift said, A wise man should
have money in his head, not in his heart, he was on to something.
Once you have making money as your primary thinking objective,
your clients will benefit and your practice will take off. Why? Because
you are finally living the truth! You are finally in alignment with
reality. You know where to focus when you wake up.
Most coaches dont know where to focus when they wake up. They
dont allow themselves to wake up into thoughts of money. So they
wake up into thinking obsessively about the days challenges and their
clients problems. Therefore they wake up into confusion about what
their priorities ought to be.
There can be no confusion in coaching success!
Your priority today is to make money coaching.
Its time to wake up.


Once you start waking up to that, you adjust your day accordingly
and soon your long-neglected prospecting and referral programs are
sailing along beautifully and you are adding business every week.


Chapter Eleven

Invest in yourself
"Learning is not compulsory... neither is survival."
Dr. W. Edwards Deming
People are fond of reminding you that Money isnt everything,
but heres the point: money is everything if you dont have enough of
And most beginning coaches dont.
And if you dont have enough of it, money influences every choice
you make. It holds you back everywhere. It keeps you limited and
worried, when you want to be free and powerful. Free and powerful
works better for your clients, too. They like knowing you are
successful at what you do. If you cant take a coaching call from them
for two weeks because you are vacationing in Tuscany, your clients
smile to themselves knowing they have the right coach.
Money is worth focusing on. Even as much as your health, because
it becomes your access to all the expanded choices that determine
what level of health you can achieve! It becomes the main factor in
choosing where youre going to live. It becomes the key to whether
your kids are going to have access to a better education or not.
Its not that important to you, you say?
Pretending that moneys not important to you will harm your
coaching practice and your life.
Money even influences whether youre going to get to see family
members or not. It also determines whether you can help people who
are in trouble, or just kind of uselessly watch things happen.


So money - if you dont have enough of it - soon becomes

Creating wealth through coaching others will positively affect
every area of your life. It will continuously widen your choices. The
kind of choices that only financial power will bring to you.
Therefore it makes the most sense to invest in the resources that
will allow you to learn how to earn more money.
Go back 100 years and picture that youre living on your farm and
theres a well where you get all your water. It would make a lot of
sense for you to take the time to make sure that the well is working, to
make sure its clean, to make sure that the pump is functioning every
day. Because if you dont have water for a couple of days, youre dead.
So it is in our powerful global economy with wealth. Its the same
Its very difficult to actually exist with no money
whatsoever. So you can think of it as your water.
So lets take care of the well. Lets invest in the well. Lets invest in
the well known as knowledge. Knowledge is your ultimate power. It is
your well and your water.
There is a teachable, learnable knowledge about becoming a
wealthy coach. People have gone before you on this journey and kept
a record.
So your investment will be in the education of how to make money
as a coach and keep it.
You can begin by investing in getting your skill set up higher.
Continuously learning to be a more powerful coach for your clients.
Some business coaches are so good they can infuse success into a
failed part of someones business in a fifteen minute session on the
phone! You can learn to do that.
Continue to invest in professional strength. Its a better
investment than any stock or bond you can find. It pays more back to
you. And it pays off immediately. You can go to one good seminar (we
recommend our own, but there are many others! - even the lesser


ones will help you grow) and learn tools that you can start using the
very next week! Not only to grow your business, but to grow your
The reason why most people are so pathetic is that they will not
take the time to develop and refine their skill, writes Stuart Wilde in
his excellent book, The Trick to Money Is Having Some. There is
such a headlong rush to make it in life, to acquire the accoutrements
of a fancy lifestyle, that people tumble out and try to merchandise
themselves before they have any real experience and while they know
little about their chosen field.
Contrary to the movies and the media, wealth is not all about luck.
Its about what you can provide for the people you coach. Wealth is
about what you know about. If you are willing to go to a seminar in
how to make a small business successful, for example, a seminar like
Michael Gerbers E-Myth seminar, thats an investment in you and
your ability to turn your clients businesses around and make money
for yourself.
Sam shakes his head when thinking about how few people access
the information highway to riches: Ive had conversations with sales
people who are in my office selling me something, he says, and Id
mention a couple of sales books Ive read, and Id say, Have you read
this book or this book or this book? - books by really well-known
sales trainers, who anyone - or everyone - in sales should know and
theyll say, Oh, no, Ive never heard of them. These are people who
spend the majority of their waking hours selling and theyve taken no
time and no effort to learn from the masters - people whove become
millionaires and are sharing their systems - they could have gone to
the library and picked up some of these sales classics and at least have
been aware of them. But theres no commitment to investing in
Thats because they dont see themselves as the primary source of
wealth. They see wealth as something that exists outside of
themselves - something that has to be coaxed in. Wealthaccumulation to outside-in thinkers always becomes a painful
process. Maybe they even flash back to when they were children and
had to ask Dad for money. How frightening that could be. They never


got over it. So even now, if theyre in coaching, they see wealth as
being the possession of their clients! Its always out there.
But we want you to get that its not out there.
Its in you!
Sam continues being surprised when he says, Its the same way
with business owners. It always amazes me when I talk to people in
the restaurant business and I ask them if theyve read the book by the
McDonalds founder, or the guy that started Dominos Pizza, or - and
this one just kills me - when Im talking to someone who owns a
coffee shop, and I ask them if theyve read the book by Howard
Schultz, who owns Starbucks. And they say, No. What excuse do
they have? I mean, theyre not investing in themselves at all! And
now theyll blame the fact that their coffee shops not working on the
economy, or on competition. When the blame lies with them. Theyve
made no investment in their own skill at succeeding.
Howard Schultz, Chairman of Starbucks, said in Fortune
Magazine, Im always stopping in our stores - at least 25 a week. Im
also in other places: Home Depot, Whole Foods, Crate & Barrel. I was
just in a great home improvement store, Tokyo Hands, in Tokyo; its
fun and it grabs you. I try to be a sponge to pick up as much as I can.
The airplane is my time to read, which I do voraciously.
So, too, as a coach youll want to be willing to invest in your own
knowledge. People that have the most wealth have also spent the
most time learning about how to create it and how to keep it.
Steve recalls, Many years ago, I made my living solely by public
speaking, and I took time and money aside to invest in an acting class
so Id be better in front of a room. And at the time, it didnt look very
smart. Some might have said, Youre not making enough money to
actually spend it to take an acting class why not pay off all your
debts first? But it was one of the best things I did, long-term, for my
career, because it added dimensions to what I was able to do as a
speaker that I didnt have before. And the new dimensions were
immediate. I had the confidence and power in front of a room to
double and then triple my fees! The common sense wisdom would be,
Take that money and put it in a savings account, and wait until you

can afford the luxury of an acting class. But, really, the class was a
better investment because I made it back hundreds of times over in
increased speaking skills and fees.
Thats a great example of investing in something that you will use
every single day to generate more wealth. People that are in
beginning coaching careers, or maybe just doing a little coaching on
the side until they can afford to leave their day jobs, think theyre
stuck. But there are always ways they can immediately train,
upgrade, and improve.
Once you start investing in you it really settles it that this whole
thing is up to you. It establishes the connection between what you do
and whether you succeed or not. Instead of trying to figure out if you
have picked the right business for this time and this economy, you
take power away from circumstance and put it back inside your own
biocomputer. Your brain. Continuously upgrading what it can do. You
can be in charge of getting new software for your biocomputer
Most beginning coaches still want to have wealth-accumulation be
about some external brass ring theyve grabbed or not grabbed. Was
this the right profession to get into?
But if you take on the principle of Invest in You, it emphasizes
the fact that this is going to be about you, this is going to be about
your skill level as a successful coach. Youre going to be the one who
makes this happen, or not, so you might as well invest in you. It
changes the whole mindset away from I hope I picked a good
profession, I hope I was right to do this.
Sam says, I still remember, with myself, when I had the five
businesses that didnt work out, I read a total of four books. And then
business number six, which worked out very, very well? I read seven
hundred books. So Im guessing that it was probably something in
some of the books that made the difference.
Coaching is no different than any other route to great wealth.
Youre not different than a world class surgeon, or a world class
athlete. The ones that are at the top of the game have also dedicated
the most time and money towards developing their skills.

Dont be miserly with your strengths, with your intelligence,
and with your creativity. Look for outlets. Look for challenges.
Find out what makes you feel most alive and figure out
some way to earn your living doing it.
Nathaniel Branden


Chapter Twelve

You are the cause

of your success as a coach
Let your plans be dark and as impenetrable as night,
and when you move, fall like a thunderbolt.
Sun Tzu
This chapter is in the first person from Steve Chandler:
There is a valuable shift that coaches can make in their minds
when they want to do better selling themselves in any free market
encounter. Whether they are selling coaching on the Internet, group
coaching, phone coaching or one-on-one coaching, they do better
when they shift their attention from themselves to the recipient of the
coaching. When they become solvers of other peoples problems.
Success comes from shifting your attention to the fun and exciting
problem to be solved.
I was talking to Allen the other day about his move out of
investment banking into personal coaching. He was very worried
about his brochures, his business cards, whether he should acquire
certification as a life coach, and a host of other things that featured
Allen focused on Allen. As long as Allen was focused on Allen,
nothing exciting would ever happen. He needed to shift his mind to
the client. I tried to alter his mindset. To show him how to shift. He
asked what he should call himself, a life coach or an executive coach
or a career consultant. He wondered how much certification he would
I asked him, Who do you want to help?
What do you mean?


You will bypass a lot of these branding and marketing steps in

your equation by asking yourself, Who do I want to help? And then,
Where are they now?
Oh my goodness. Im just thinking of how Im coming across.
Wrong focus.
George Hamilton III had a song back in the 50s I always liked
called Break My Mind. It was also sung by Linda Ronstadt and more
than 20 other recording artists. I love it because it captures the image
of how we freeze frame ourselves in a belief system. Those beliefs
crystallize and the mind becomes a sheet of ice. I remember growing
up in Michigan and after a freezing rain you could lift sheets of ice,
about the size of record album covers, up from the sidewalk. And they
were transparent and crystalline. You would hold them in wonder,
then fling them against a maple tree and shatter them, or break them
over the bucket on the tree that is capturing the syrup. Thats how our
minds get! Our minds are like ice when we cant shift. Like a picture
frame full of ice. Thats when we need to break our minds.
Allens mind was frozen in the belief that he himself had to be
impressive and credible and worthy. That all focus would be on the
approval he would be winning at any given time. Coaches make that
mistake because they believe they have to win approval to succeed.
Theres a better, faster way, and that is to compassionately engage
yourself in solving someones problem for them. That works better
and faster, but you have to shatter that old belief like ice. Most of this
book is about shattering old beliefs and getting into pure, direct
action. Knowing youre good, and going for it.
Knowing youre good is vital. Most dont go for that. They go for
making other people believe theyre good. Just know youre good and
jump on that problem and solve it.
Wendall was a company president who was struggling with his
company and his clients as well. He was struggling because he was
into struggling. His belief was that life was a struggle, so he struggled


all day, and like a professional wrestler, he found opponents and

wrestled with them. Sometimes he got payoffs for this. His
insecurities about not being a good president or running the company
well caused him to start each day in a defensive stance, almost like a
wrestler or boxer would. Crouched down with his hands splayed out,
ready to grapple. I often thought his company might better be named
Grapple Inc.
Someone would suggest something and Wendall would find a way
to counter it. Someone would suggest a price or a fee, and he would
counter the price. A wrestling move and his counter move! He would
struggle with that person until he got a better price, then he would
feel like he won. Not only that, he would later trash the person he
struggled with for not offering that low price to begin with.
To battlers like Wendall, the world is full of opponents. Who can
you trust? You have to fight for every inch of ground you can get.
I told Wendall I would not coach him because he had twice come
back to me with lower fees he wanted me to charge him for the work.
Move/counter move!
He wanted his relationship with me to be a victory for him rather
than a partnership. He wanted the struggle. I walked away because I
did not want to feed his struggle. I didnt want to feed his habit.
He was offended when I walked away.
Actually I might better have written that he felt offended rather
than to say that he was offended. Because you cant really be
offended by anyone, just as you cant really be rejected. Those are
feelings, not realities. You can feel offended and feel rejected, but
those feelings are caused by your own thoughts. Your thoughts are the
only things that can reject and offend you. No one else can.
Knowing that as you venture forth to offer your services as a coach
is very valuable. It clears the mechanism and keeps you focused on
creative action at all times.
Heres an example of how that mindset works for you. Lets say
you are in a foreign land and you are taught that the people there, if


they like you and are attracted to you, will always refuse your first
offer. Thats their way. Thats their playful sign that they like you. So
you learn this custom from your guide and you ask a young lady to tea
and she says, No, thank you. Id rather not. Inside, you are feeling
very good because this is a sign she likes you!
So you go back to your hotel on cloud nine, ready to talk with her
again tomorrow.
Were you offended? Were you rejected? No! It felt good!
But what if your guide later laughed and said he was having you
on. That there was no such custom, and the lady really meant what
she said.
What would you feel now? Anger at the guide? Rejection?
You only feel what your latest thoughts tell you to feel. No one can
offend you. No one can reject you. Because those feelings are
generated inside yourself by your own thoughts. Stop believing those
Do not believe any thought that brings you down and discourages
you from becoming a great and prosperous coach.
All you need to do to get your coaching business going is to engage
in a few conversations. Talk to people who have small businesses and
ask them questions. Ask them what they are achieving now versus
what they would like to achieve. Ask them whats in the way. Talk to
them. Get them to see that their limiting beliefs are usually whats in
the way, and as their coach, you will free that up for them.
Michael Gerber revolutionized the way small business owners
approach their jobs and we recommend his books highly. Sam has
brought Gerber in to speak to various client groups, always with
great, transformative results.
Gerbers work dramatizes the fact that the biggest mistake made
by people who start their own small businesses is that they end up
working IN that business instead of working ON the business. These
people have become victims of their own creation. (Like the madman


in the insane asylum who is given crayons in the morning to express

himself with, draws a horrific monster on his pad, then looks at the
monster, screams, jumps up from the table and runs out of the room.
Is your prospects business like this?)
When you use a book like 9 Lies to help a business owner
transform their business you will help them see how they have been
victimizing themselves. Your job as a coach will be to return them to
true owner status. When your client is a true owner, his business is
like a racehorse. An owner buys a racehorse, and trains and cares for
the racehorse, and then derives great pleasure from seeing the
racehorse race and win.
Your work is to transform victims into owners. Victims are victims
of almost everything, most especially their self-victimizing thinking.
The victim has also bought a horse, but the victim straps himself
to the underside of the horse (his business) and then is taken for a
terrifying ride.
The owner uses his business to obtain wealth. The victim is used
by his business, in fact used up by his business, leaving it at the end of
the day worn out and wondering What was I thinking getting into
this business? Its such a drain.
The owner takes full responsibility for his businesss success. Full
responsibility! The victim blames circumstance for the businesss
The owner lives from the inside out, going deep inside to connect
with his or her goals and dreams each day. The victim lives from the
outside in, going to work and fighting off fires and solving outside
problems pressing in on him, as if the business employed him instead
of the other way around.
Owners take ownership of their energy and creativity as it is
applied to their business. Owners own their businesses! Owners own
their business numbers, while victims often dont even want to see


Most people who will be your clients have no real objectivity in

their lives. No one to bounce ideas off of. Oh, yes, there are people all
around them, but those people all have an agenda. Those people all
have some emotional ties to that business owner. You do not. You are
pure reason. You represent the truth. That alone makes your fee
Then you add in a second factor: you can see the owners strengths
and draw them out. You can get the owner to stop focusing on
problems and start focusing on the customer. Your fee is earned 10
times over every time you get your client to shift his attention from
what he doesnt want to what he really wants. You are in charge of his
It will become amazing to you as a coach that your client can
increase whatever she wants in her life if she only remembers to pay
attention. She "pays" attention because she "invests" it.
My friend Jim Blasingame hosts a popular nation-wide radio show
called The Small Business Advocate. He recently told me that the
first year he was on the air with his show he directed all of his
attention to the worries and problems of the show.... and the show
really struggled. Then over next three years he began to pay more
and more attention to the audience.... and the audience grew!
Whatever he put his attention on would grow.
Anything you pay attention to expands. It grows. Pay attention to
your house plants and they grow. Pay attention to your favorite sport,
and your passion for that sport grows. Attention is like that.
Anywhere you point it, the object of that attention grows.
When you have your initial conversations with your client or
prospect, you will notice that their attention is fastened on problems
and obstacles. Your work will be easy. Shift that attention to the goal.
Shift it to the customer.
As we say in the 9 Lies book, your prospect can stop being a victim
and take ownership at any moment. It is a miracle when it happens (a
miracle we observe every day), but it is not all that difficult. It does
not require new traits and characteristics on the part of the owner,
because it is a choice. The owner-victim distinction lives at the level of

choice. Make the choice and you can choose ownership. Refuse to
choose and youll be a victim by default.
Victims no longer can see that their businesses are a creation of
theirs! They can no longer experience the business as a personallycrafted ongoing work in progress. Instead they see it as a fixed entity
that they have to go be a slave to. The creator has become a creature!
Victims feel beat up. They feel beat up by their customers and
frightened by their competition. They feel betrayed by their
employees. Victims soon feel misunderstood and under-appreciated
by their spouses. If she only realized what I go through every day to
keep this thing afloat!
Victims live a life based on fear. (What do I dread today?)
Owners live a life based on love. (What would I love to make
Victims wake up and ask themselves, What do I hope doesnt
happen today? An owner starts the day consulting her goal sheet.
What would I love to produce today?
Anyone can live like a victim, and anyone can live like an owner,
its just a matter of the questions you ask. We all live inside one
inquiry or another. Is your inquiry there by choice? Or has it chosen
you? What questions do you want to be asking yourself? Those
questions will determine whether you are working in your business or
on it. The inquiry you live inside is what determines your behavior.
An owner asks these questions: What can I do? How can I use
this circumstance to my advantage? How can I differentiate myself in
the customers eyes? Whats something creative and exciting I can do
this week to get my people and my customers talking? What value can
I add that would allow a price increase and that the customer would
really appreciate? What steps can I take to really grow this thing?
What outcome would I like to produce this month? What would be a
creative and exciting way to get that result? How can I help my
people? How can I help my customer more?


A victim asks these questions, When will I ever get caught up so I

can get out of here? How much will this new competitor hurt me?
Why do I feel like I have to be a babysitter to my own people? Why
cant you get good employees these days? How long does it take for a
business to start turning a profit? Why is it that the harder I work the
deeper in debt we go? Why cant I trust these customers? Why is it
that all these expensive ads I run do nothing for me? When do I start
liking this work? What was I thinking when I started this business?
Why doesnt anyone ever tell you how hard it is? Why didnt I wait
until I had more capital to start this business?
When your prospect started his business he was living a dream. If
you coach him to remember to remain an owner, you will honor that
dream every day. He will see his business growth as a form of lucid
dreaming. Each day he will use his and your imagination to craft
more progress.
Owners dream all day long and turn each dream into an action
Victims only dream at night.
Those who dream at night in the dusty recesses of their minds
wake in the day to find that all was vanity, said T.E. Lawrence
(Lawrence of Arabia), But the dreamers of the day are dangerous
people, for they may act their dream with open eyes, and make it
Even victims can remember way back when they had their daytime
dream going on. They set up their business, they remember, to get
certain things out of it. But when the first wave of fear hit, and they
became victims, the dream vanished and the nightmare began. It
turned into more work than they thought and less money than they
hoped for. It had them accepting the E-Myth that Youll never turn a
profit until youve been in it for four years.
Once the victim position is taken, all of these nine lies become
easy to believe and repeat. They are what explains the victim position.
They are the rationale.


Victims put all the good things they used to imagine into the vague
and unreal future, or the distant past.
Owners seize the moment.
Victims think of a lot of things they should be doing to improve
their business, but they are just too busy to do them now. (Theyll do
that price increase in the future. Theyll recruit that great new person
when they get un-swamped. Theyll work up that fun special event to
appreciate customers when they can get some room to think. Theyll
fix up the location and paint some areas when they get a break from
the grind of survival.)
Victims are focused on survival, while owners are focused on the
next quantum leaps of success. (In small business life, what you focus
on grows.)
The owner does all these good things NOW. Now is when it all
happens. And if it cant literally happen now, an owner sets precise
deadlines. Sets the deadlines NOW. He or she sets the deadlines
NOW, so that they are still in the NOW. Deadlines soon become the
owners best friend. Victims are victims of their own cynicism. They
bring a negative, fatalistic What are you gonna do? approach to
work every day and it becomes fatal to their business.

Here are some points to keep in mind while coaching:

* People can take ownership of their own spirit and morale, or
they can choose to think they are victims, the choice is an internal
* Studies show that optimistic, ownership thoughts and
communication lead to higher levels of creativity and productivity.


* Studies show that increases in ownership and optimistic

thoughts and communication lead to higher levels of physical and
mental energy.
* Studies show that habitual victimized thoughts and language
lead to low moods, decreased physical and mental energy, and lower
levels of creativity and productivity.
* Choosing to take ownership of how we respond to a situation or
another person is the fundamental internal choice of all people with
free will.
* We are free to think anything we want about anything. It is our
fundamental freedom. We are free to think victim thoughts or the
thoughts of ownership. The choice is always ours.
The joy of coaching comes when you restore your client to
ownership and phase out all the victim thinking.
Listen for language in those first conversations:



You can count on it

I will try

Ill take the first small action

This is so big

What can I do?

Who can I blame?



How can I use this?

Why does this always happen?

I want to (intend to)

I should

I use life

Life uses me (life is unfair)


Get from

Get through


Commitment=feeling (comes and goes)

I dont need a reason to be happy

People, places & things make me happy

If theres a problem, Im the problem

There shouldnt be problems

Who do I need to be right now?

Why am I the way I am?

Im focused

I am swamped

Take the test... who are you?

Owner: If its to be, its up to me.
Victim: Well see what happens.

Owner: How may I serve?

Victim: What would I get back?

Owner: Im committed to making a difference.

Victim: What difference would it make?

Heres why coaching is such a lucrative profession. It was

summed up years ago by the great sales trainer Zig Ziglar, You can
have anything you want in life if you help enough other people get
what they want.


Appendix A: Chapters One, Three,

and Five from: 9 Lies That Are
Holding Your Business Back...
and the Truth That Will Set It Free

Lie # 1

I Just Need to Know

How to Do This
We are about to tell you precisely you how to succeed in business. But there
is something that must be handled before that. Something so important that
to skip it would be a crime.
Most people do skip it. Most people jump right in, trying to figure out
how to succeed in their business, as if that was all they really needed to
know. But its not true. Theres something else that they need, even more
important than the how toand thats the want to.
Dont proceed in your business without a want to succeed. Dont even go
to work if you dont have it. Youre better off closing the place down for a
day and taking a long, long walk to ask yourself, Why do I want this to
Then answer that question by listing lots of benefits that will accrue to
you and your family by your succeeding at this businessnot just getting by,
but succeeding. Talk to yourself about this. Have this conversation with
yourself and later write down the answers where you can look at them each


This is a conversation a lovely young woman by the name of Francine

never had with herself. Of course, we dont know that for sure, but the signs
were all there that she never got clear about the depth of her intention.
Francine opened a franchise coffee shop five minutes away from one of the
locations of Sams business. He was in her shop getting coffee one day after she
opened and he struck up a conversation with her.
I run the business down the street, said Sam. How are things going
Things are going well, said Francine, and for someone who was starting
a new business, she looked pretty successful already. She was well-dressed,
not in the regular franchise uniform, and the $40,000 car in the parking lot
was hers. Sam had seen her getting out of it before.
On a later visit, Sam learned that she co-owned the business with her
father, who had put up all the investment to get things going. (So the car
and the clothes started making more sense.) Sam himself had just finished
a record year in his small business down the street and was in the process of
expanding. In the following months, he stopped in the coffee shop often but
Francine wasnt around as much, and when she was there she was always in
the back doing computer work. She was no longer out front talking with
customers. Sam caught her eye one day as she peeked out from the back
room and he asked again how business was.
Things are slow, said Francine. But I think its the economy. The
economy is slow, so what can you do?
Sam didnt know how to answer her because hed just finished a record
year! He was in the same neighborhood, working inside the same economy.
But was it slow? The area they were in had new construction happening all
around! And there were local area statistics just out that revealed the large
number of new residents moving into the area. Sam was in the middle of
preparing his increased advertising to match the influx. What economy
was Francine talking about?
A few months later Sam noticed that Francines shop had reduced the
serving staff to cut back on payroll expenses. When he went in for coffee, it took a
little longer to get served. Sam saw her getting out of her expensive car one day as
he was leaving the shop.


Things going well? Sam asked.

No, its worse than ever, said Francine. There just isnt a customer
base to draw from. Ive tried. In an economy like this, you dont have a lot to
work with. People dont have a lot of extra money to go out and spend.
Not long after that, Sam parked his car down the street, came by the store and
noticed that the door was padlocked. Francines store was no longer in
And heres an ironic footnote: The store location wasnt shut down for long
before there was another coffee shop franchise operating successfully out of
her same location.
Soon two other good coffee shops opened, each one about five minutes
It was clear that Francine never got grounded in her intention to succeed.
Searching wildly for her how to, she had never strengthened her want to.
Her intention had only gone this far: Ill open this place and see what
happens. Thats an intention, of sorts, but it is not enough. You have to
want to succeed. If you want to badly enough, youll always find the how to.
And once youve got your want to tuned up and ready to operate, outside
forces (such as the economy) wont be an issue.
Whenever a small business owner has a weak want to on the inside, all
power goes to the outside. Thats why the missing want to is never identified as
the problem. Having a weak want to inside will create an exaggerated fear of
the forces outside of you: competition, the economy, location, employee
problems, lack of cash investment, all those outside forces that appear strong
only when the inside is weak.
We humans often make this common mistake: We jump to the how to
way too soon! We buy books on how to lose weight, without really wanting
to lose weight. When we do this we are ignoring something even more
important than the how to, and thats having a strong enough want to.
Most people, once they get their business up and runningwhether its
cleaning gutters, washing windows, or selling rebuilt cars, it doesnt matter
just come to work and stay busy inside that business all day and then go home. If
they notice that things arent getting any traction, they start to look around


outside of themselves for answers. Maybe they bounce around from one
advertising representative to the next, or from one relative to the next, asking,
How do I make this thing work?
But they dont realize that a system is not whats missing. How to make it
work is not whats missing. Whats primarily missing is a strong intention to
succeed. And what that lack of intention gets filled with inside a human being is
an intention to just keep my job and get through the day.
People can turn this whole purpose deficit around if they just check their
intentions as they go to work: Whats my intention today? To just keep this job?
To just keep this small business Ive created for myself and my family and get
through the day without too much damage done? Or is my intention to succeed?
And if my intention is to succeed, grow the business, and indeed maybe even
become a millionaire, then I will think completely differently every step of the
If your small business career is not yet what you want it to be, it may be that
Intention Deficit Disorder (no real clarity about what result you intend
to produce), is the biggest problem you have, and the first problem that needs
to be solved.
Lets look at this another way. If your teenage sons room is chronically
messy it would probably never occur to you to send him to a seminar on how
to clean a room. The reason you wouldnt is based on your knowledge that the
how to is not missing here. The want to is missing. You know that. He
doesnt want to clean his room. The only way you will get him to clean his
room is to create an incentivethrough pain or gainthat makes him want to
clean his room. And you need to do the same for yourself. Your business
requires a strong intention to succeed.

Dont Just Figure Out How to Do It

We have sometimes given small business owners a multitude of fresh
ideas on how to add value to their services and raise prices accordingly.
We know that by using these ideas, they will turn their cash flow around
and begin to prosper. We know this. But when we check back with them
later, we often find theyve tried almost none of the ideas. We then realize
that we went to the how to too soon.


A young man named Reggie recently approached us during a seminar and

said that our ideas sounded fine but that the economy in his town was so bad
that his business was not going to make it. After working with him for a
while, we thought we had succeeded in giving Reggie a number of ways to
actually leverage the slow economy to his advantage with his customers and
have his business come out smelling like a rose.
But we still couldnt get the sadness out of his voice or the victim look out of
his eyes. It was almost as if Reggie had already chosen his fate and chosen his
emotional response to having his own business.
We all of a sudden realized that Reggie didnt want to succeed. Not yet,
anyway. So we would have to address that deficit first.
We believe that one of the reasons our Website programs and
teleseminars are now working at such a dramatic level is we address the how
to and the want to with equal attention and commitment. Sam Beckfords
well-chronicled success as a small business millionaire, and his follow-up
success at teaching all his secrets on how to do exactly what he did, are
synergistically woven together with my personal motivation coaching (the want
to) so that both halves of a successful small business owner can emerge.
A person must have both the how to and the want to to succeed. Both traits
can be taught, and both can be learned.
The want to is often the most important component of your success,
especially if its missing! To succeed at anything, you have to want it. But
most people overlook this simple fact. And when they are confronted about
the fact that their actions suggest that they dont really want to succeed,
they get very depressed. They believe there is something wrong with them.
But there is nothing wrong with them. All they need is for their level of desire
to get a tune-up. Anyone can do it. We keep proving that.
Your level of want to is totally within your control. It doesnt exist by
itself. You are in charge of its intensity. You can turn the flame up or down
any time you want.
But most people dont realize that ones desire to succeed isnt a permanent
thing. Similarly, they think its some character flaw or personality trait in them
when they arent driven to succeed. But its not. Desire and intention are
living, growing, ever-changing energy sources inside you. You can learn to


continuously grow them to any degree you want. You can learn to motivate
yourself to whatever degree of energy and enthusiasm you choose. Outside
events have nothing to do with it. Personal history has nothing to do with
it. It lives at the level of choice. You have the power to choose it.

How to Get What You Really Want

If there is a level of business success that you want but do not have, then the
first place to look for it is in your deepest self. Why do you want this
business to succeed? What good things would it do? Do you think you
deserve it yet? If not, why in the world dont you? (And if your answers
are opening up more and more clarity for your objective, then you are getting
somewhere. If they are not, then you need to step back in space and time and
start out in a more primal way. How do other people motivate themselves? How
can I learn to do that? See our website to get more information about these
Some people leave their job in a big company because they think they have
enough want to to start a small business. They leave the security of a regular
paycheck for the adventure of the entrepreneurial world. But after the first
few difficulties their want to begins to weaken and outside forces seem to
acquire more and more power over them.
Brandon was just such an individual. He was a successful sales manager in
pharmaceuticals in Michigan when he decided to strike out on his own. He
had an excellent business plan for a small technical supply shop, so he moved his
wife and family to Florida to start afresh.
Difficulties hit him early. Brandons business partner turned out to be
unimaginative and not very motivated. The early money invested in the project
began to run out faster than anticipated. Sales were slow, and Brandon began
to long for his former sense of confidence. Things at home werent all that
great now either, especially now that he was bringing his fears home. And
soon it was just a matter of time before the whole thing came down around
him like a house of cards.
Today Brandon (after closing down his failed business) has found a secure
middle-management position with a large company in Florida, and his life is
getting back to normal. When we talk to him now, we can hear that he still
doesnt fully understand what happened to his small business. He still talks


about what he thinks happened outside of him, but he is still clueless about
what happened inside.
If I ever do that kind of thing again, says Brandon, Ill start with more
money up front. I never gave myself a chance to get rolling. We only had a year,
and everyone knows it takes four years before you see a profit in a business.
Brandon is quick to identify the many outside forces that got in his way.
My partner and employees werent what I had hoped, he says today. I
think that was what also doomed the enterprise. I needed someone with a lot
more confidence and energy to work with. And finally, we entered the market
at just the wrong time. Most of our potential clients had already signed
their supply contracts for the year so we just had to bide our time.
During this period of time we had given Brandon numerous ideas
about how to jump-start his business, but he was too uninspired to give
them a real fair try. He had already lost his want to, so, of course, all of our
how to ideas fell on deaf ears.
I made a mistake as a coach. I didnt get Brandon as clear as I could have up
front about his intention. I assumed too much about his level of desire to succeed
and proceeded too quickly to the specifics. Thats a mistake I will not make
again. Without the desire, no systemno matter how brilliantcan work.

Learning to Want to Have a Great Team

Doug and Jan had been doing well enough with their franchised furniture
store in Fresno, California, but one month the bottom fell out when a
number of sales people (designers) quit for various reasons, leaving them
short-handed and cash poor.
We began coaching them in our principles for small business success,
but realized that for the principles to work, a quick shock to the system was
Good people are hard to find, said Doug, and were losing sales every
day now because we dont have good sales people to capitalize on the people
who come into the store.


Good people are hard to find when you need them, I said, in our first
heart-to-heart coaching session. And your problem is that you always wait
until you need them to start looking for them. Thats why you are
How do you find good people? asked Jan, reflecting her husbands
Its not a matter of how to, I said. There is no problem learning how to
find good people. Thats not whats missing here.
We dont follow you, said Doug.
Your business strugglesbecause you hire to fill needs, I asked. You
do whats needed. You dont do whats wanted, you do whats needed. Its a
needs-based activity. Its counter-productive. You get nowhere. All that work
and all that time and you keep sliding back to ground zero. Thats what needsbased activity does.
Well, said Doug. Its true, though. We do need people. If we had a
few more people like our top person Michelle, wed be in the money right
now. Because of the shortage, Jan and I have to be in here ourselves all week
from early morning to night. Even on Saturdays.
I wanted to drive his point home. Until you proactively create the company
you want, you will always have a major struggle on your hands, I said. Also, it
is not true that the owners need to give so much of their precious time to the
business. That is only true if your recruitment is reaction-based instead of a
creation. Most small businesses Sam Beckford and I coach create a way for the
owners to come by once a week. Thats plenty!
That would be heaven, Jan said. She and Doug had just adopted a little
boy and hated the thought that they hardly saw him during the day
For now, during this period, I agree that you must be there full-time, I
said. Talking to customers, saving your business, and so on. It is perfectly
appropriate during this current crisis. However, if the two of you commit to
being great at recruiting and hiring you will have people who want to do
what youre now doing, and who can do it well.


Doug and Jan were not persuaded. I had to confront them about how
much time they had blocked out on their calendars for recruiting and hiring
in the past year, and of course the answer was zero. They scurried around
interviewing people whenever the need presented itself, but never proactively.
In your business, I said, there is no commitment right now whatsoever for
building a great team. Not that there isnt a wish and a hope, theres just no
commitment. There is reaction to crisis, and choosing to have your hiring be in
the reaction mode, rather than the creation mode has caused almost every
problem you have. It has tied everybody up, including yourselves.
Doug and Jan started taking notes.
You must hear this, I said. Simply because all the other franchise
people echo your truth about staffing and labor shortages doesnt make it
true. Your efforts at recruiting have been disorganized and frantic, and if you
had enough staff you would not recruit at all. I bet there are days when you
dont do any recruiting activities at all. Maybe even weeks. But its the most
important thing you could do. Its the best use of your time.
Doug and Jan began to protest about how many problems they had to deal
with prior to recruiting and building a good team. As so many other business
owners are, they were so into the forest and trees of their business they
couldnt see what would give them more profit. They literally couldnt see it!
Doug and Jan had a choice. Their choice was to (1) manage an endless
stream of mediocre people, trying to make this thing work, or (2) build a great
team that earned them a huge profit and only required one day a week from
each of them.
That sounds impossible, said Doug.
But Jan was starting to get it.
Doug, wait a minute, think this through, she said. If we had to do it, we
would. Wouldnt we? If Donald Trump brought his TV cameras into town and
gave us three months to find these people, we would find them. Wouldnt we?
If he said the end prize was a few million dollars?
Well, yeah, said Doug.


Do you know why? I asked. You would be committed! It would be a

completely different ball game than you have right now. Right now theres no
commitment whatsoever, none, to do this. I mean it! I dont mean it as a
criticism, because 90 percent of small businesses do it just like you do! And I
bet that 98 percent of your franchises do it just like you doall activities of
the owners being need-based. Responding to whats needed to keep the
business afloat. Its ironic, but filling the needs of your businesses is not
what will ever make you successful. Thats the ultimate flaw of working in
your business rather than working on it. You need to focus on wants, not
The next week Doug and Jan went on a recruiting blitz. They blocked out an
hour a day to call everyone they knew in town to put the word out that they
were looking, like the Marines, for a few good (wo)men. They ran an ad in
the newspaper and hung doorhangers on the doors in the nice neighborhoods
of Fresno with a big picture of Michelle, their best salesperson/designer.
Michelle had no previous experience... said the ad, and you dont need
it either! Come take our test, and if you show you have an aptitude for design
we will invite you to submit an application for a design/sales position with our
company. Write to us today! Tell us about yourself. Do you watch HGTV? Do
you have a love and passion for interior design and creating artful solutions for
people? Why sit at home, or work in an unfulfilling job when you could work
at this wonderful store! We train you thoroughly. Youll become masterful
at serving our customers!
Doug and Jan had realized that they could no longer afford to have No
one wants to work here as the stores culture. Thats what their culture had
become! Thats what even the best and most optimistic people they had were
thinking and speaking. Their new commitment to recruiting was changing
their stores entire culture.
People listen to committed people, I had said to them. Your
employees listened to the malcontents who quit your store because those
people were committed to being right about how hard it was to work at your
store. Your people dont listen to you, because you have no waiting list of
people who want to work for you. In fact, you yourselves tell them that
there is a staffing crisis and a labor shortage. In your own way you are
telling them no one wants to work here. Im not trying to insult you; I am
trying to wake you up to what you are doing to your people when you dont
recruit. Only you can change it around to everyone wants to work here.

Once you change it, morale, productivity, and everything else will pick up
dramatically. I promise you this is true. Ive worked on this very same
recruitment subject with many, many businesses, and its the most difficult
realization they get. Its the hardest thing to convert to: working on your
business instead of working in your business. If you make the conversion, I
promise you that you will double your profits. Ill help you in this project. I
am committed to showing you the way to design and create the business you
want and eliminate the word crisis from your vocabulary.
Soon Doug and Jan had three new people working in the store, and two
more on their way in. Not only that, there was the beginning of a
waiting list.
I stopped in the store to talk to Jan about the record sales month they
had just experienced.
Wow! I said. Look at how much you have done already! Great work.
Stay on the phone, and network like crazyuntil all of Fresno knows you are
looking for a few good women. Never stop lookingnever stop creating your
team. Your team of people is your most important creation, its your most
important work! Way to go.
Thanks, but may I ask you something delicate? Jan said.
Sure, of course, I said.
Its always been my desire to have a very close group of trusted
employees family, said Jan. And I still have a hard time changing that
mindset. So its hard to picture a constant stream of new people always being
recruited. I want to build something and keep it. I dont like change. I like the
family feeling.
Dont change that mindset, I said. Thats a great mindset! But even
family members move on, and you can have a great family and a waiting list
too. In fact, your waiting list will help you keep more of the family you want
to keep. They will be less likely to leave, not more, if they know there are
people dying to take their place. Have recruiting become your specialty, what
you and Doug are known for. It will build the family you want.


Ben Didnt Have a Sporting Chance

An acquaintance of ours named Ben owns two independent sporting goods
stores. He gives good customer service, and Sam has bought a few things
there over the years. Sam recently asked Ben how business was going and Ben
brought up the sore subject of his main competitor across town.
The competitor was also a small independent sporting goods store with
two locations.
Ben said his competitors were starting to private label their own
brand of sport shirts and track suits by dealing directly with a
manufacturer. He said that they were probably making a better profit by
their new approach. Ben thought they were pretty aggressive and admitted
that some of their private label push was cutting into his business.
Sam then asked Ben if it would be difficult to start a private label
program of his own.
I guess it would be possible, Ben said in a weary voice. Id have to call
a manufacturer and make some designs and test it out. I guess a guy could do
it if he really wanted to.
Sam waited for the obvious, the spark of enthusiasm at this new
opportunity to level the playing field. Sam hoped Ben would say, Ill start
tomorrow. If they can do it, so can I!
But those words never came. Ben eventually just changed the subject
and started talking about the good old days of the business.
The worst failure we see business owners making is the failure that comes
from no longer having the internal flame, from no longer being willing to try
a new strategy. You can give someone all the best new strategies in the
world, but if his or her willingness is not there, it wont matter. Notice
this in yourself. Dont try something new until youve tuned yourself
up for it. Take care of your own internal flame before you halfheartedly
try a new system or idea.
Dont get down there with Ben and the broken spirit his low energy voice
tones conveyed when he said, I guess I could try that idea out if I wanted to,

The lack of want to becomes a lack of oxygen! Youve got to have oxygen to
keep a body alive. The word inspire literally means to breathe in and
businesses need daily inspiration. Thats your primary responsibility. Thats
why we give all of our clients a deep wake-up call on the want to so that the how
to has a chance to be executed. Some of the most effective teaching tools our small
business owners have utilized have been dialogues Sam and I created about how
to use ongoing personal self-motivation for small business success.
If youve ever lacked a fresh infusion of intention, you know what it feels
like. Before your want to was firmly in place, you were probably similar to
most business owners, going around thinking, These customers are a pain,
and I hope nothing bad happens today because I just have to put out fires.
Were just battling against everything! You were going out each morning
knowing you were going to get beat up throughout your business day. Then
when the day was done, you would drag yourself home and just try to forget
about it.
But that is not a creative cycle. Each day the negativity and sense of
overwhelm just starts all over again, and this negative will eventually destroy
your business. Soon everyone associated with your little business is just
working for the weekend! Is it Wednesday yet? Good! Wednesday is hump
day. Were over the hump. But wait a minute! Doesnt that sound a little
familiar to you? Wasnt that why you left that big corporation you were
working for? Whats going on here? How could you be reproducing the same
thing? You started this little business for the freedom it would give you, and
its given you the opposite!

All the Effort Is Wasted on the Start-Up

In most businesses, people set up their business and then believe that all the real
important work has been done in the start-up. They think, Once we start the
business and we get it running, then well just come around and manage this
But successful businesses dont work that way. Businesses are living things,
not fixed constructions. They need to grow, just as a planted garden does. In
business, its grow or go. And by grow we dont necessarily mean grow larger.
You can succeed by just growing better! But grow.


Your business has to be continually reinvented. You have to want to

(want to!) continually reinvent your business so that it is better and better
each day. Each day. The market is changing, the customers are changing, and
every business can be improved each day to better match up, and even be
ahead of, the changes.
So when you want to succeed, the start-up starts again every day. Every day
is a new beginning. You dont ever try to nail it down. You know you cant
just do the same thing. If you see a business that is doing the exact same
thing today as it was five years ago, chances are that business isnt doing very
well. Theres nothing worse than a business thats been around for years
(barely surviving) that looks like its been around for years. So when the
customers walk into the business they say, Wow, this place is looking pretty
rough. The carpets in bad shape. Look at the duct tape on the carpet! Thats
an interesting touch. All this stuff in here is worn out. Hey, somebody tell
these owners, paint is cheap! Im sure there would be a spare weekend to
paint it.
One of the reasons businesses get that weary look to them is that the
owners think of the business as something that is already done. They think,
Okay, this is all the business is and this is all it can be. So they cant see
beyond that thought. They cant even begin to ask the question, How can
this be the dream that I wanted it to be? They miss the gold thats lying
around the next corner. They miss the fact that theres so much freedom and
flexibility in owning your own business that you can make it into anything
you want it to be. But you have to realize that you have that power to
transform the business and be willing (to generate the willingness) to
make it into what you want.

This Is Your Ultimate Investment

Ralph Waldo Emerson said, Nothing great was ever created without
enthusiasm, and so to create a great success with your business you
invest enthusiasm. Its your most important investment. Its the key
element in the mix.
The word enthusiasm comes from the Greek en theos, which means the god
within, which is the level you need to play at to win big. To succeed in business
you need to bring your highest, most spiritual self to work each day. Its that
vital. Your mission is to make this business your greatest piece of work ever.


Your masterpiece! A monument to your energy, to your laughter and tears, to

your heart and soul.
From that level you can fly. From that level, you can be so enthusiastic
about serving your customer that you are continuously finding ways to
astonish him or her. You can be enthusiastic about recruiting and hiring the
best team of people alive. You look at all the wonderful ways you can
acknowledge them and keep them in the game of pleasing your customers.
You can honor their innovation and energy.
And, finally, you are enthusiastic about yourself. You have found your fun.
You have become a success in life.
As journalist Sheila Graham quite wisely said, You can have anything
you want if you want it desperately enough. You must want it with an inner
exuberance that erupts through the skin and joins the energy that created
the world.
Enthusiasm comes from taking ownership of your life energy. You know
how to do that. You did it every day as a small child. Enthusiasm comes from
despising that weak, meek little voice in you that wants to be a victim of
circumstance. It comes from breathing deeply into your dreams and
oxygenating your brain, just as you did as an energetic, unstoppable child.
Reach back and find that joy again and make this business your great


Lie # 3

We Just Need to Get

Our Name Out There
Again and again you hear people tell you that you need to get your name out
there. Advertising reps will tell you that name recognition is vital, and your
ad must get your name out there over and over again.
Not true! Your ad doesnt need to get your name out. Your ad needs to
get your customer in.
Your business needs an ad that works to attract the exact type of
customer that you want to sell to, and keep selling to. The purpose of
advertising is not to build awareness or increase your name ID. The
purpose of your advertising is to create a sale!
So watch out: There is a lot of bad information floating around about
And bad information is just a nice way of putting it. When your
friendly local newspaper ad rep tries to tell you that your small business
needs some name recognition, and that the most important thing you can
do is to get the word out, then you have just been told a lie.
This lie is not unique to newspaper reps. All media reps, billboard reps,
radio ad repsanyone at all pitching awareness is steering you toward
Because there is absolutely no value to your business whatsoever in having
a lot of people simply know your businesss name. That lie has cost more
small businesses more unnecessary wasteful expense than any other we can
think of.
To make advertising really pay off for you, you need to understand what
advertising is! Advertising is salesmanship in print. And that hasnt
changed since the former Canadian policeman (turned advertising genius)
John E. Kennedy changed the face of advertising forever with those three
words in 1905.

So think of your ad as a salesperson. Make it be a salesperson. Would your

salesperson get a sale by contacting your prospective customers and just
saying the company name over and over? Calling them on the phone,
whispering your businesss name, and hanging up?
You expect a lot more than that from a salesperson, and so you should
expect a lot more than that from your advertising as well.

Make Your Ad Attract Someone

Even before you design an ad or a flyer, you may want to ask: Who are we
trying to attract? What type of customer do we really want? (The same kind of
talk you would have with a salesperson before sending him or her out into the
world to make a sale.) Do we want a customer that will be profitable for our
business? Or, do we want cheapskate price shoppers?
One of the most important small business truths we could ever pass on to
you is that the quality of your business is directly related to the quality of your
customer. To make your business successful, you need customers who are
good, solid citizens, customers who will be with you for a long time. And
your advertising is a great place to start building that kind of customer

A Recipe for Business Misery

If you pick up your local newspaper and look at ads for small businesses
you will see a common pattern in how the ads are designed. Look right now in
your paper to see if this isnt the way it is:
1. Business name at the top of the ad.
2. A discount offer, such as 20 percent off a certain product or service,
or an el cheapo price-related offer ($19.95 oil change).
3. The phone number and address at the bottom of the ad.


This common type of advertising is not salesmanship. Its closer to a

bulletin board listing in a dormitory lobby. Its crude and brutally brief. It
has no chance to start the sales process toward a nice high-profit sale for you.
It does little more than get your name out and establish you as a low-price
(and probably low-value) business. If this ad even accomplishes these
limited objectives, it is still not helping you in the long run. Because in the
long run you want to grow a highly profitable business, and that starts with
the first ad you place.
So dont use this bare-bones kind of advertising! Just dont. Because you
are wasting money and attracting the wrong type of customers (that is, if you
are attracting customers at all).
Here are two typical ads we just saw in our own local paper:


Look at your own local paper and youll see ads very similar to these. In
fact, you may even be running one yourself. And if you are running one
yourself, you will be able to verify that it doesnt work. Even though your rep
is now telling you that you need to be patient. Its all about repetition. But
its not. If your ad doesnt work, it doesnt work. It doesnt matter how many
times you repeat it.
If you have the wrong combination to a lock, your chances of opening
the lock do not increase each time you try it. If you are dialing the wrong phone
number, it doesnt help you to dial it many more times in your attempt to
reach someone.
Your ad is there to reach someone. It must reach someone. If it doesnt reach
someone the very first time, it is a waste of money.
Many newspaper reps will tell you that you have to run your ad 10 times to
get frequency. Your rep will insist, If people see it enough, they will
respond. Knowingly or not, your rep is lying.
Time will pass. Youll be getting no response to your ad. And now that you
and your rep both realize that the ad is not working, your rep may then tell
you to make the same ad bigger, so more people will notice it. Dont change
the copy, just make the bad ad bigger! (Thats the same as a waiter saying:
Dont like the pie? Why dont you try a bigger piece!)
Frequency and size sound like logical reasons people respond to
advertising, but they are both false. Frequency in and of itself doesnt make
any difference. Neither does size. Not if the ad is ineffective.
There is a restaurant somewhere in your city that you have driven by at least
twice a day for over a year now. You keep seeing the name, and the restaurant
doesnt look at all unpleasant. Youve probably seen their sign more than 1,000
times! But you have never eaten there. Frequency and knowing about the
restaurant are not enough. A bigger sign on the restaurant wont help either. If
you dont have a reason to go, you dont have a reason to go.

From Broadway to the Right Way

Frank Mastercola and his wife, of Park Ridge, New Jersey, were clients of
ours a while back when their small business was doing okay, but not thriving.


Frank and his wife were former Broadway performers and had acted in shows
such as Cats and Starlight Express. They had worked with Bob Fosse, Michael
Bennett, Cheeta Rivera, Liza Minelli, and other noteworthy professionals in
the industry.
After their success on Broadway, Franks wife, Anita, opened a small studio
business. She started teaching music and dance, and four years later Frank
decided to join her and get more involved in running the studio.
Our student total was in the 400s for about three years, Frank told
us. And our original advertising philosophy was that getting the word out is
the best way to sell your school. But it turns out you cant just rely on that.
And thats why we were just spinning our wheels. So you came along with
your advertising system at the perfect time for us and we thought, Of
By simply switching from the getting your name out there falsehood to
the small business truth that advertising is salesmanship, Frank and Anita
increased their student base to 800! Twice their original business! They are now
looking forward to purchasing a new building for their school.
So lets go deeper into the two ads we cited earlier, to see exactly the kinds of
changes you can make to increase your business the way Frank and Anita did.
Question: What type of customer will the Lube Master ad attract?
Look again:
Lube Master
Winter Special
Oil Change $19.95
Expires December 31
536 Saddle Street
Mon-Sat 9-6
Answer: Someone looking for a cheap oil change, right?
This ad is trying the old loss leader strategy. Get a customer to buy
something cheap to get them in the door. But this ad probably wont attract
much response. Cheap oil changes are everywhere, arent they? Theres


nothing compelling here. Nothing special. Therefore, no sale is being made.

Remember: For an ad to work for you, it must be salesmanship in print.
But even if this ad actually gets a response, you will have attracted a price
shopper. Someone motivated by price. And then you will have the
impossible task of getting them to come back and pay regular price for
future services. Good luck.
Try to upgrade a price shopper into a value buyer and both you and the
customer end up frustrated, angry, and betrayed. Businesses do this all the
time when they attract the wrong customers to begin with and then try to
change them to a good high-value customer.
You must change the belief behind your ad and the belief behind your
business. What you believe about your business is what your customer will
believe about your business. It has to start with you.
People can get their oil changed anywhere. A cheap oil change is
nothing special.
So, you might ask, what is special? What does someone with a car want
more than just a cheap oil change?
There are two answers we know about for sure: (1) time and (2)

Remember this: Time is the new money

According to the latest income surveys, 20 percent of the population
controls 47 percent of the disposable income.
That means one out of five people have so much money to buy things with,
that, relatively speaking, theyre not concerned about the price at all. Does
it make sense to focus your ads message on something that doesnt concern
Because those 20 percent are your ideal customers! Money is not the
main factor in their decision to shop with you. You are. You are the main
factor in their decision, and thats how you want it to be. Your quality, your
service, your commitment to them. Thats where you want it to be, because


thats where you profit margin is, and thats where your data base of lifelong
customers comes from. Not from one-time price shoppers.
So, heres an ad that reinvents the cheap oil change and attracts a totally
different customer:

Who will this ad attract? Someone who is more concerned about time than
money. Someone who loses more money per minute hanging around an oil
change joint than all the attendants earn combined. Someone who sees the
time spent waiting for his or her car as billable hours down the drain.
Someone who wants to golf or play with his or her kids on the weekend,
rather than running errands. Thats your ideal customer!

Always Use the High-Value Customer Ad Formula

Here is the simple advertising formula that helped make Sam
Beckford a millionaire:
STEP 1: Place a headline at the top of the ad that solves a problem or gives a
unique benefit that is more valuable than just the product. Your name should
never be at the top of an ad, because it does nothing to attract customers.
People dont care what your business name is. They care about what your
business can do for them.
STEP 2: Make no reference to price in the ad.
If price is your only selling feature you are in a losing battle. Remember
that one in five consumers dont need to fret about price. We have all bought
things that were expensive but worth it. Price is just a detail, not the deal itself.


STEP 3: Offer a unique service (that only you provide) as the hook, not a
lowball price. People buy for many reasons other than price. Once you believe
this you will attract customers that will continue to prove it to you and verify
your belief. Higher-value customers who like your unique offer are the ones
who stay with you. Remember that the two car brands with the highest repeatpurchase rates are Lexus and Cadillac! Is that because of the price?
(see to reinvent the second ad, the one about the
chainsaw. Here is the original:

First ask yourself, Who will buy a $300 chainsaw as a Christmas gift?
Answer: The wife of a man who likes the outdoors. Try to remember that
gift purchases are not made by the recipient of the gift! (That sounds
obvious, as if we didnt need to tell you that. But during the holiday season,
look at how many ads are thoughtlessly misdirected. Remember: Your ad is
doing a sales job for you. Make it talk to the buyer.)
The majority of wives who will spend $300 on a chainsaw for a gift are not
price-conscious shoppers. If they were, they would be looking at $39 wrench
sets, not $300 chainsaws.
Question number two: Would most wives like to go to a power equipment
store and spend time looking at chainsaws? Probably not. They would be
intimidated at the very thought.
So, taking those observations into account, heres our reinvented ad that
attracts the ideal customer for the chainsaw gift:


How much is the chainsaw? Could it be $50 more than the first ad? Who
cares? Its worth it. We are no longer selling a chainsaw, we are now selling
an event! The log in the backyard to try it out, the hiding the box, not having to
lug it through a store. Not having to worry whether he likes it.
You have (1) spoken to the buyer, (2) painted a picture of a great
Christmas day, and (3) even helped to keep the surprise. You are a hero to
your customer. You have solved her biggest problems with your ad!
Remember: One in five people walking around in your community dont
need to be concerned with price. They will buy something because they feel
like it and they will gladly pay extra to have a great event and experience.
Everyone wants to splurge on events such as weddings, anniversaries, and
But that all sounds like a lot of work!


Isnt it extra work to wrap and deliver a chainsaw? Yes, of course. Most
businesses owners would not do this because of that. That could be your
advantage over them.
Because this little bit of extra work you do up front will save you from the
endless work of keeping a struggling business alive. It will put you on the
path to prosperity, a path that will lead you to lots of vacation time, and
happy profitable years ahead.
And once you get the hang of it youll find out something additionally
rewarding: Working to get paid well by pleasant customers does not feel
like work. It feels like you are finally executing a fine craft. It feels like
mastery. Because it is.
High-profit customers mean a high-profit business. You cant separate
them. If you want, really want, higher profits, then the market is wide open.
One in five people are waiting to have their problems solved in exchange
for money. You can be the solution and reap the reward. Weve trained hundreds
and hundreds of small business owners just like you to learn this approach. It
works for them, and it will work for you. Their stories are on our Website,
so enjoy them and let yourself see the truth of this.
(You can see more unique high-value customer ads for six different
businesses and get free reports on further strong systems of newspaper
advertising at
There is nothing mysterious about advertising. It either works for you
or it doesnt. If your advertising is not working (or cannot be measured), stop
spending money on it. Demand that it delivers a measurable return on your
investment. Hold your advertising as accountable as you would any other
salesperson, because thats what it is.


Lie # 5

Lowering Prices Boosts Business

Low prices do not boost business at all. In fact, low prices can cost you
your business.
Sally started a dry cleaning business near Sams business in Vancouver. She
started optimistically because the plaza was in the middle of a fast-growing,
upscale suburb. Her business began with a small surge, but then her
customers became scarce.
Sam took his dry cleaning to Sally because it was convenient to where his own
business was located, and he would chat a bit with her about business. Soon
Sally began to ask Sam for ideas on what to do to get more business. He
mentioned a couple of things that we teach at our Small Business Truth Website,
such as following up with customers and adding on extra services, and he
suggested maybe a free pick-up and drop-off service for her business if
someone requested more than a certain amount of cleaning. All things
that would allow her to strengthen her pricing structure.
Because she was just sitting around waiting for customers, I figured she
had time to drive around and do those extra services, Sam reasoned.
Sam also suggested Sally approach stores in the local mall that sold highend womens and mens clothing and offer them a free first cleaning with the
purchase of a suit. If people were going to buy an expensive suit or dress,
they probably would want an upper-end cleaner, so why not target that
market? Sam was trying to lead Sally to the truth about successful business:
Success comes from good, repeat customers and strong, profit-producing
But this will not turn out to be a success story.
This story about Sam and Sally has no happy ending, because although Sally
listened to the ideas politely, she never followed up on any of them. Instead, she
made a fateful bad decision that eventually would drive her out of business.


She decided to try to boost business by lowering prices even more than her
already under-market position and offering some two-for-one specials on shirts
and suits. She also invested in a window artist who painted huge, garish
LOWEST PRICES IN TOWN lettering on her windows. About three
disastrous months later she confided to Sam, in a weary voice, You just cant make
any real money in the dry cleaning business; the overhead is too high, the labor is
too expensive, and people only want the cheapest prices.
It was ironic that she felt that way, because in that same year, in the local
papers business section an article came out talking about the unusually high
profits some people were making in the dry cleaning industry! The article
revealed the story behind how this sleeper industry had become a source of
great wealth for some of its owners.
Would things have been different if Sally had realized that the industry
was a sleeper success? Not really. Because Sally could have seen 10 articles
similar to that, and they wouldnt have mattered to her. She was convinced
that in her dry cleaning business it was impossible to make money unless she
offered dramatic price incentives. She was convinced.
Sally was one of many victims of the myth that lowering your prices is a
good way to stimulate business. Some of these victims even believe its their
only option when times are tough. Its too bad people fall for that one,
because it is simply not true that your customer is only responding to
your price.

Your Fear Is Not the Customers Fear

The biggest fear that most of us have when we start our business is that we
might not make it. Because we all hear the statistics that say 80 percent of
businesses fail in the first five years. We also hear all the other things that
people tell us about small business: Its risky; youre going to lose your shirt.
Oh, dont do it, you dont want to go for some unproven thing, why dont you
stay with your secure job?
The minute we start our small business we are vulnerable to these money
fears. Its not hard to slide unconsciously into a scarcity mentality. Soon were
afraid we may never have enough money.


And as we do with all other beliefs we hold, we start projecting this belief
out into our external world. Now were even projecting it on our customers.
Look at them! They have money issues! Theyre scared of spending!
As Sally did, we begin to assume that the only reason the customer is not
buying from us is because our prices arent attractive enough. All these
conclusions are fear-based and false.
The great American philosopher Henry David Thoreau used to say, We dont
see things as they are. We see things as we are.
We were attending a business Internet forum recently and a small business
manager was talking about how his business was struggling, just like the
overall economy. He had convinced himself (erroneously) that his business
was down as a result of the poor economy, and he had then reasoned from
that position: The reason I dont have money in my business is only because
people out there, my customers, dont have money. So the solution to that is
for me to keep prices low, to address their shortage.
That man was heading in the wrong direction. He had quickly bought in to
small business lie number five, and it was leading him to disaster.
Lets not project our own struggle onto the customer! It compounds the
error. The customer is not struggling with paying our price. We just think so.
Somehow we have to learn to get this truth and get it down deep in our soul
that lower prices are not the answer.
When Harry and Sasha started their own successful business running a
little print shop, Sasha couldnt shake her childhood memories of
Sashas father was a miner in a very poor part of Pennsylvania, Harry
told us. And he didnt make any money. When she was a child, her parents
had no money and people around had no money, and now we live in one of the
most affluent areas in the country, in a suburb of Pittsburgh you know, and
theres a lot of people with a lot of money out here. But for years, in our own
business, when we would want to raise prices, a lot of the reasoning for
Sasha not wanting to raise the price would be because what she experienced as a
child. And she would have a real guilt factor attached to raising prices. Oh, but
I cant do that to them. After all, these customers are so loyal to me, how
could I do that to them? They cant really afford it.


But Harry knew better. And he kept pushing their prices higher and
higher to stronger levels for his business. And in the end, their customers
proved that they could afford it. In fact, the customers were glad to pay
solid prices for that one small, but important, printing need in their lives.

Weve all seen the trailer park with expensive pick-up trucks and SUVs
parked there, because people will always spend money on whatever their
priority is. People buy what they want and will pay whatever that costs. The
trick is not to give them something they can afford, its to give them
something they want.
For you, as a business owner, its a matter of changing your focus. Focus on
what your customer wants. Then focus on what you can add to that, to address a
further and deeper want. That will keep your prices climbing right along with
your value to the customer.
And the good news is that once you convert from the low price focus to the
strong price focus, your business will thrive! The truth that people pay for
what they want will be proven to you. And the truth will set you free.

Raise Both Price and Value Together

Sam Beckford has become a small business millionaire by being willing to
raise prices over and over again. We dont do what I call the scaredy-cat
raise, Sam explained. Thats when a price increase is so small that no one
would even notice it anyway.
When Sam raises prices he raises them at least 1115 percent.
But we dont just raise prices, we increase value at the same time,
Sam explained.
Increasing value helps you and your customer make a happy, confident
adjustment to your new price. There are always ways you can raise value, and, in
fact, if your business is to thrive, you must continuously add value to your


customer. So, How can we raise the value of what we deliver? ought to be
a daily inquiry. It can be an exciting, ongoing intellectual challenge for you
and your people.
Dont try to run a business while letting your mind go to sleep on this
issue. Often, if you give in to money fears, your heart overrules your mind.
The louder your heart pounds the harder it is to hear yourself think. But
thinking about adding value is always the answer.
You can keep your creative thinking alive by challenging yourself and
your people to always think of ways to increase value to your customer. Have
it be a weekly contest. Keep a suggestion box. Hold meetings about it.
Because in the end, increasing value makes your price increases logical
and easy to execute.
When youre increasing value, one of the first helpful hints we give clients
is to first spend money on what people can see, not on what they cant. So when
you increase your fees, always try to put some money into some improvement
that people will notice. Your customers should walk away saying, Wow, this
place looks great. You improved this area, you did that upgrade. And its
just like those real estate makeover shows on TV where they take $1,000 and
work two days and the house looks as if a $50,000 interior designer was there!
You can do that in your business!
Additionally, you can improve the look of what you sell, and you can improve
the look of your communication pieces.
You can also do invisible things that enhance value to your customer and
that can justify a price increase. For example, if your employees are
dedicated to innovative, continuous improvement, they are going to be
better at the service they deliver than they were a year ago. Everybody admits
it: I deliver the product better, I have better people, I know what Im doing
more, I provide better service than I used to, simply because Ive been
improving over the past year.
So even if you dont do a great deal overtly, you are still providing more
value than you were a year ago just by the fact that youve learned a lot about
your customers wants. That spells value to the customer.
This, by the way, is different than the experience lie we talked about
earlier that says experience itself is enough to run your business better. Its


not. You must grow in consciousness. You must make your experience be
about raising value. When you stay alert to raising value, youll always get
better at serving the customer. And then charge accordingly. (If you dont, they
wont appreciate the value.)

Everyone Associates Price With Value

The final irony of business lie number five: Raising prices itself will
make you worth more to the customer. Customers know they get what they
pay for. Blind tests show that people enjoy the taste of expensive wines more
even if the testers have put the same wine in both bottles. This is not to
encourage you to fool the customer, or raise your price for no reason, but it
does show that you value something according to what you pay for it.
And theres another reason to raise your prices. Raising your prices raises
the bar. By doing so youll put a new obligation on yourself to make sure
youre now serving the customer better than before. Raising prices wakes you
up. When you stay with the same low prices, you may believe your customers
like it, but you are putting your creativity to sleep in the process. Low prices
put yourself and your customer to sleep. You dont look for ways to
enhance the buying experience because youre resentful at only getting a low
price for the service. Your low price causes you to dismiss and dislike your
customers because you know subconsciously that they arent paying a true
price for their service. Perhaps you were tempted to put that extra touch of
service on a recent job by driving it out and delivering it yourself, but you
stopped when you thought, At this price? No way am I going to go the extra
mile. They are getting much more than they paid for already.
The lower your prices, the more you resent your customer. Soon youre
doing little passive-aggressive things to under serve them. How dare they
call me on the phoneat the prices they are paying me? Im not returning
that call.
Customers are the source of all your wealth. Sinking into an adversarial
relationship with them is fatal. It will kill the golden goose.

Time Is More Important Than Money

Lets look at two butcher shops about 10 minutes away from our business.
Theyre actually across the street from each other, on different corners, in


different plazas. They were getting along well enough until a big grocery
store with a meat department opened in a plaza down the street.
One butcher shop was owned by a woman named Jeanne. (We say was
owned because the butcher shop is closed now. It shut down about two years
ago and theres a Chinese restaurant where it used to be.) We used to go to
Jeannes butcher shop before it shut down. It looked the way youd expect a
butcher shop to look. It had signs crowding the front window saying, Pot
roast on sale this week! and Corned beef is on special! When the big
grocery store opened down the street from Jeannes, her prices got even lower
and soon a sign went up in her window that said, Best prices! Best service!
in an effort to compete with the big grocery store.
Pricing was all that people cared about. Or, at least, thats what Jeanne
thought. And that was the way her clerks in the store began to feel, too. In fact,
her workers all talked that way when you were in there: People want to pay
less. People just price shop. (Funny how a lie repeated often enough
becomes everyones truth.)
Now, Franks butcher store (across the street from Jeannes) was also in
the business of selling meat. And the same big threatening new grocery store
was down the street from Frank, too. But unlike Jeanne, Frank is still in
Even though every weekend, in the Sunday newspaper, there were big grocery
store coupons for meat at the cheapest prices, Frank would not panic and
respond as Jeanne did. Franks store was not caught up in the lie about price.
In fact, Franks store made no mention of having the best prices. Franks
store, instead, became notoriously more expensive than the grocery store and
Jeannes store combined!
But consider Franks store. Stop by any day of the week, and its
The reason for this is that Frank doesnt just sell meat; he sells precut,
marinated steaks, chicken, shish kabobs, and fish fillets, ready to put on the
barbecue or in the oven. If you bought your meat at Jeannes or at the
grocery store, youd save a few dollars, but youd have to marinate your
steak or chicken overnight. And who has time for that?


Franks ready-to-go butcher shop charges premium prices and even has
money left over to give away a free barbecue each year. Franks business is
thriving because he found a way to raise prices and raise value.
Jeanne is out of business because she thought lower prices were what
customers would respond to.
But Jeannes customers werent the cheapskates she thought they were.
Thats why the lure of saving a few dollars didnt attract them after all. She
assumed they were broke, because she was broke. But they were only broke in
terms of time. And the store that was able to give them their time back
(Franks store) solved a problem for them. Thats why the customers were
not patrons of the low-priced supermarket a few minutes away.
Unfortunately for her, Jeanne assumed that whats cheapest? was the
most important thing on her customers mind. But one casual look in the
typical American freezer would have revealed to Jeanne many high-priced TV
dinners and frozen snacks that are bought to save time, not money. That look
in the freezer would have given her the secret truth she needed: Time is the
new money.

If You Can Save People Time,

You Can Charge People Money
This summer Sam Beckford hosted a barbecue at his home for the
employees who work in his company.
I remember it was a busy time in the summer and I was at the business
working late, explained Sam. I still had to get the meat for the barbecue, and
so I stopped by Franks store. As I was walking out of the store, I realized I
had spent a lot of money, but I was happy. Franks prepped meats had
saved me hours of time. All I had to do when I got back to my house was put the
prepared meats directly on the barbecue. I realized that if I had gone to the
grocery store, I might have paid half as much, but theres no way I would
have been ready in time for the important event. And now I go back to
Franks expensive store over and over again, any time we have company or are
too time-strapped to cook. The time is more valuable to us than the


Your own customers are in the same situation, or some version of it. In the
1950s the average American household spent two hours preparing a meal.
Today, the average American household spends less than thirty minutes
preparing a meal! Thats a startling trend that applies across the board to
every type of business, including yours.
For you, time is money. Anything you can do to make things more
convenient for your customer, and to respect your customers time, will allow
you to raise your prices. Time is really very valuable to them. Think in
terms of your customers time instead of their money, and your profits will
start to increase immediately (as long as you also raise your prices
When we started our business, we were actually on the lower end of the
pricing spectrum, recalled Sam. We made the classic mistake that many
business owners make. We thought, Well, were not really that good, we
dont have that much experience, so were going to open our business and
were going to see what everyone else is charging, and were going to charge a
little bit less. Because, you know, we havent paid our dues, we dont have the
experience, we havent been around as long as the others have.
But the problem with that low price positioning is that businesses get
stuck in that cheap format. It becomes a part of their identity and it deepens
their fear of ever being more expensive than someone else. They have come to
believe, really believe, that the only reason someone is choosing them is
because theyre a little less expensive!

Learning to Eliminate the Fear Factor

When we asked our coaching client Melinda to consider raising her
consulting fees (she was a healthcare business consultant, and a very good one)
she said she couldnt.
I established myself in this business, consulting with healthcare
professionals, by offering a lower price for my services, Melinda told us. If I
raise prices now, Ill lose my advantage. Have you ever had the head of a
nursing team mad at you? Its no fun. Nurses are like wolverines when they
turn on you. I have to face facts here. Prices are the main reason these
people are working with me.
Melinda had painted herself into an unnecessary psychological corner.

I explained to her the faulty logic in her approach.

Melinda, you yourself have to shift the focus of the discussion from
price to value, I told her. Even if they ask about price, tell them your price
and shift the conversation back to the value. Create value!
Well, Im just worried, Melinda said. Sometimes I have money issues
and self-worth issues of my own.
Leave those behind, I said. Focus on the outcome of your work. Stand for
it. Stand strong for the outcome. Your consulting gets good results, right?
Yes it does, she agreed.
Then stay focused on that value. You are not a commodity. They can only
get your unique consulting from you. They cant get it anywhere else. You,
however, can get money and clients anywhere. You dont need them, they need
you. They will pay you what you think you are worth. And the more they pay
you, the more they will value your work.
Melinda finally decided to accept our advice and the small business truth that
raising your prices is a good thing to do. She just held her nose, and spoke the
new fees to anyone interested in her services. She also explained to existing
customers that her original fees were purely introductory. If they wanted to do
future work they would have to pay the fees that were standard, and if they
didnt care to do that she was okay with that. She understood, and it didnt
bother her because there were plenty of clients waiting to use her.
Melinda was shocked by the results of her fee increase. Some existing
customers complained, and two even left her (one came back later). But with
every new client she acquired she was surprised to see that her increased prices
didnt seem to matter to them at all. They were just as eager to receive her
services as the earlier clients were. In fact, once they paid the higher fees, they
were more likely to keep their appointments and to do their homework!
Their commitment to the outcome of the consulting was deeper, so the
consulting had taken on more power from the raising of the prices alone. Soon
she was learning to sell value rather than price, and so value was what they
I found that the more I charged, the more they valued my time,
Melinda said. I dont know why I had just assumed that lower prices would


be good for them and appealing to them. Maybe it was because price was
always the first thing they asked about, so I just assumed it was the most
important thing on their mind.
I learned this lesson early in his seminar career. I used to offer an
introductory pilot seminar to Fortune 500 companies interested in
his training.
I had noticed that at the free introductory seminar, people would
wander in late, people would take cell calls during my talk, and the attendance
was low. One day, the president of a major bank asked for one of my
introductory seminars so its managers could preview my work. I said sure,
and quoted him a very large price. The bank president stopped and stared
at me.
Youre going to charge me that much just to preview your program? he
Yes I am, I said.
How do you justify that? he asked.
I want your people to value the time they give me and the time I give
them, I explained. My seminars carry the power to change lives, shift
thinking forever, right on the spot. But they wont do that if theres no
commitment from you or your people. Commitment is a two-way street. When
you are committed you listen differently. I need your people listening as if their
lives hung in the balance. And you will also see that after the seminar my
time was worth that money to you. I am not a freebie. I cannot move your
people from their fixed victim positions if Im a freebie, a human handout.
The bank president wrote me a check that very day.
What happened in that room that day was much different than what used
to happen in my free intro seminars. People showed up early, got good seats,
and took notes. The level of consciousness was different. Money commits


The Basic Math Is Very Simple

The biggest damage unnecessarily low prices can do to your business is
obvious. Its simple math. Low prices mean you simply make less money on
each transaction. You have less to live on, less to spend on effective marketing,
and less to pay to good employees. You also have less to save for a rainy day, less
strength in your business, and less pride in your work.
And theres yet another damaging impact to your business that low
prices cause. (Are you starting to be convinced here?) Its subtler, but just as
toxic: Low prices attract more questionable customers. The customers you
attract who are just shopping price are not the kinds of customers you want
in the long run, anyway!
To build a business that serves you, instead of a business that you are
constantly serving, you want to keep improving the quality of your
customers. You want loyal, long-term customers. You want people who can
afford your services over and over again. You want people who refer others
like them. Low prices dont attract that kind of repeat customer.
Small business truth: Low prices attract disloyal, unfaithful people.
People you cant build a business on.
When we bring people into our seminars we often hear them say, My
customers are cheap and all they care about is price! Well, how did you
produce that situation? It takes a while to get these people to see that they
themselves have actually created that situation by believing the lie that lower
prices boost business.

Your Customers Get What They Pay For

The two companies with the largest repeat car purchases in the United
States are Cadillac and Lexus. And they also happen to be two of the most
expensive cars on the market. The most expensive cars have the most repeat
purchases? Wouldnt you think that repeat purchases would occur wherever
people were getting the best deal on a car?


With Cadillac and Lexus owners, the larger price they pay makes
them more eager to love and care for their vehicles. They then do all the
things necessary to really get their moneys worth out of their buying
experience. They take better care of their cars, and so the cars serve
them longer and better, and retain more value. Its a never-ending positive
cycle! The more people pay, the better they appreciate what they have.
When your customers pay you top price, they will help you make sure it has
been a valuable purchase. Keep that in mind: They will help you justify the
Yes, your customers will do that for you! The more you charge
them, the more their behavior changes for the better. Soon, theyll be
referring others, because they want to feel good about their decision to
commit a real investment into your services. Now they have a stake in
making this buying experience valuable, and they will help you make
your value a reality.
Sam experienced a similar example of this phenomenon.
We had just bought a new building for our business, he recalled.
We had to get about $5,000 worth of signage for it. We sent out the
quotes and began looking at options and prices. In the end, we didnt just
pick the cheapest sign company to do the job, because we eventually had
more respect for the gentleman whose prices were more expensive. He
even explained why his signs were more expensive. And that helped close
the sale! We appreciated the pride he had in his business. We didnt want to
save a couple of hundred dollars going with the cheapest company. If they dont
have much respect for themselves, we didnt think they were going to have as
much respect for the work they would do. You think your low price is
showing respect for your customer. Its not. Its showing a lack of respect for
your customer and for yourself. If you appreciate yourself enough to raise your
prices and say, Im worth it, then people will know you are worth it.
People will value you to the degree that you value yourself. Remember that
every prospective customer of yours believes deep down that you get what
you pay for. He or she has probably even said that phrase out loud


numerous times in his or her life. Have you allowed the customer to apply
his or her insight to your business?

Get on the Magic Carpet of Higher Price

The next time you get an envelope full of coupons (the kind you always get
in the mail) take a look at them. You might have even decided once to use a
discount coupon to clean your carpetthree rooms for $50! But did you
respect that cleaner when they came? Or did you have to hire a security firm
to watch them? At the very least you probably thought, Here are some
cheap people desperate for the business.
We know a carpet cleaner who charges more than any carpet cleaner in
southern California. He cleans the homes of celebrities and CEOs. He says, If
your house isnt worth a half million dollars or more, dont call me, because
Im too expensive for you. If youre in a rental place, or if your house isnt a
very expensive house, you wont want to pay what I charge. You wont be able
to afford it.
And people flock to him! Hes the person everyone wants. People
love knowing that they have risen to the level of being able to use him.
And for a carpet cleanerreally!
People would gladly pay you more if you gave them a reason. The best
reason of all is the belief you have in yourself. People will pay more for that
than anything else.

We Only Fear What We Dont Understand

Understand your fear of raising prices. Dont run away from it. You need to
know going in as you start thinking about money and prices that theres
going to be fear in there. Dont let the fear make decisions for you.
Acknowledge the fear, set it aside, and then make a very creative,
nonemotional decision regarding your prices.
Then, when you talk to your customers, in person and in advertising,
talk value. Tell stories about other happy customers and what they have
experienced. Do not talk price unless you have to. Talk value. Be
enthusiastic. Enthusiasm is contagious. Your customer wants you to believe
in yourself. Drop all the false modesty and sing and soar and come alive


when you have the opportunity to talk about what your business does. Be
an excited, live infomercial. Because customers love that! They want to
buy from someone who is proud and happy about what they do.
And when it comes time to talk price, be even prouder. Be a sunbeam when
you say your price. You love your price. Its bigger and more beautiful than the
competitors price because of how much benefit the customer receives from
you. You love that price. You say it easily, the way a proud parent talks about a
little child. The way a happy grandparent brags about a grandchild. You are in
love with what your business does for people.
When you raise your prices, youll soon have more money, and therefore
you have somethingthe extra cash that you can use to create even more
customers, and even better customers. Youll be able to market, advertise, and
promote in ways you couldnt afford to before.

What Does a Cup of Coffee Cost?

Starbucks is currently a very visible refutation of the low-price lie. They are a
lesson to the world. Go on a business field trip to a Starbucks. Take your
employess. Show them how it works. The next time you are inside Starbucks,
really take in the whole experience and atmosphere and learn from it. Because
you can do a version of Starbucks yourself.
Perhaps more than any company, Starbucks has shown that you can raise
prices on a very basic product (coffee, cookies, and milk!) and if you do it
creatively, people will not only pay more, they will provide you with a loyal,
almost cultlike, following of your business.
Unlike the greasy little coffee shop on the corner, Starbucks is not
projecting poverty or scarcity. When you walk into Starbucks youre
experiencing a classy, tasteful, high-value environment. Theres beauty in the
design and atmosphere. Beauty! (Add beauty to your business when you get
back home from Starbucks. Add beauty to your price, too.)
You go to Starbucks for the whole experience. (The buying experience! Think
in terms of enhancing and improving the buying experience!) You notice that
there are people who love to go there just to hang out in Starbucks. They keep
buying expensive items just to hang out.


Even though your rational mind says, This is just coffee with milk in it. I
could have made my own and brought it to the park bench instead of coming
to Starbucks, you still find yourself plopping down a $10 bill and getting very
little change back for your drink. Not to mention waiting in line to do it!
And we do this because our emotional self says, Yes, I like doing this. It makes
me feel good to come in here.
Sell to your customers emotional side. All purchases are emotional,
anyway, although your customer may put up a good show of talking price
with you. Dont be misled by his desire to look tough-minded on price in front
of his spouse. Dont be misled into thinking people buy based on price.
And please dont have this be your slogan: The best quality, the best
service, the best prices! That slogan will drag your business down into the
pits. We work with hundreds of businesses, and we have never seen that
slogan serve anyone.

Dont Learn From Big Business

It could be that small business owners get tangled up in this low-price lie
because they watch the behavior of corporate giants and think they must be
worth emulating. They watch companies such as Wal-Mart and The Home
Depot go to war on price and think, That must be what business and
marketing is all about.
But small business is different. Its more creative. Your opportunities to
succeed are greater.
The truth is, you can take very few principles away from observing the
corporate giants, because your advantages in your small business are the
opposite of theirs. They have massive volume, distribution, and leveraging
advantages you dont, so dont be misled by their price war behavior. It
doesnt apply to you. Thank goodness!
For example, youll want to resist shoring up the low-price lie by adding
the related falsehood that you will Make It Up In Volume. A lot of people
fall for this fallacy, thinking, Heres my pricing strategy. Im going to
make my prices low and Im going to make it up in volume. Like the guy
who buys a whole chain of money change-making machines. And someone
says, Well, wait a minute, how will you make a profit? People put in a dollar


and you give them four quarters. How can you possibly make any money on
that? And he says, Well Im going to make it up in volume.
We were looking in the paper a couple of days ago and saw a person
advertising his furnace-cleaning business. He had a small ad that said absolutely
nothing compelling about why anyone should give him a call. It was just,
EJS Furnace Cleaning, We Clean Furnaces and Ducts, and heres our
phone number.
What is the reader of the ad going to think? What is going to attract him
or her? Is this a new thing, that someone can clean my furnace?
But what if this cleaner had a properly constructed ad that was a half page
in size and actually had very compelling things that called out to the reader?
You may think the owner couldnt afford a larger ad, but with higher prices he
could have!

Are You Bartering in a Flea Market?

When we ask small business people in a seminar, Who here thinks they can
raise their prices between 15 and 20 percent right now and have absolutely no
problem making more money next year, and not lose customers, and not
worry about that? Who here can do that without worry? You see very few
hands go up, if any. They are scared.
Their fear comes from that whole small business self-esteem factor that
says, Im not worth it. Id feel guilty because my customers already trust me
for this price and Im betraying them by charging them more.
Trust and betrayal? That sounds like daytime soap opera television. This
is not a soap opera about trust and betrayal, this is a business. A business is no
more than fun and games with numbers! Theres no value in taking the game
of pricing this seriously, talking about trust and betrayal and all the
frightening concepts that money and scarcity might be bringing forward. A
price is just a number. No need to make it creepy.
Get yourself back into that state of mind you were in when you first
started your business. That fun-and-games state of mind when you were up all
night with the positive possibilities. Never lose that game element that buoys
every businesss energy and creativity.


Its odd, because one evening, after a grim day at work, you may go home and
look for a way to relax and have fun. Soon you find yourself playing a strategic
board game against friends and relatives and really feeling light-hearted and
great about it. Your mental energy and creativity are carefree and inventive,
even though you had thought you were exhausted. You were tired, but now
youre not because youve got a game going! Let the games begin! Youre in a
higher creative state because you know it doesnt matter if you lose or win, its
just flat-out fun playing the game. So you apply all kinds of fresh, wacky, and
bold strategies in your board game, and you find that your thinking can be
really effective.
But then the next day you go back to your business, and the overriding
feelings are all back. What a hassle! What a grind. No, its worse than a
grind. Its frightening: I mean, this could all go away, I could lose everything!
And theres nothing resembling the game element of the night before, theres
just serious business going on.
Knock it off! Stop it with the heavy stuff!
The heavy, end-of-the-world thinking has to be changed. For you to
succeed, that fear problem of yours has to be solved once and for all. You
must stop being so serious about everything. Its bringing everyone down. You.
Your family. Your customers. Everyone. Instead of playing into your own
fear, why not play the great game of business every day? Why not treat your
challenges as you would a strategic board game? Ask yourself carefree questions
such as, What could I do in my business to raise my prices by 20 percent and
be confident I could keep all my customers and get many more new

Now It Is Time to Sell Your House

It may help you see the truth in this if you think of your business as a house.
Lets say you bought an average kind of house and you bought it in order to sell it
someday down the line. What could you do to that house to make it worth
more money in the eyes of the buyer? You would probably get very creative
about increasing its value, wouldnt you? You would go to the library, or go on
the Internet, where the Realtors tell you the things to do to your house to
increase the perceived value of it the most for the next sale. Youd watch the
popular TV home makeover shows. You would have real fun raising the price
by raising the value. Soon you might go into the kitchens and bathrooms and


lightly renovate those rooms. Then you would plant a few flower beds. In the
end, you know you could get much more for the house than you paid for it if
you set your mind to it. You would see it as a game, because its all a game.
But what about your business? Why arent you willing to do the same
thing? The same principle applies! Exactly the same.
Its free enterprise. Its called free enterprise, because its best done free and
easy. Its not called serious, frightening, heavy enterprise. Its called free
enterprise. With creative pricing, you can free yourself and free your
An episode of Donald Trumps The Apprentice aired a while back when we
were collecting our thoughts about what we would put in this book for you. As
you may know, The Apprentice is a reality show that pits two teams against each
other each week to see which team solves a new business problem more
efficiently. The task on this weeks show was to sell a brand new line of
M&M candy bars on the streets of New York. The team that made the most
money within a given time period would win.
One team (two men and a woman) went out into the streets offering a
nice low price for the big tasty bars, selling them for two dollars each.
And after a discouraging beginning, the team soon began to panic and lower
their prices even further to a dollar a bar. (They had bought in to the lie that
lower prices boost business.)
The other team (two women) came out of the chute with a happy
confident attitude, dressing themselves up as the attractive, fun-loving Candy
Bar Twins (free enterprise), and selling the same candy bars for five dollars
each! They made the buying experience so much fun, and they were so
confident in their product and price, that they sold a ton of candy bars at
five dollars while the other team couldnt sell them for two dollars each.
The exact same market, the exact same product - just a different mindset.
We see this example over and over. Raise the value of the buying experience
and raise your prices and you will not lose customers, you will gain them.


Appendix B:
from The Hands-Off Manager:
The hands-off manager as coach
"Our chief want in life is to find someone who will make us do what we can.
Ralph Waldo Emerson

Hands-off managers become excellent coaches.

They create an atmosphere in which their people receive coaching
gratefully. So the hands-off manager becomes quietly masterful at the
coaching process. Its a perfect replacement for the old school
micromanagers habit of criticism, judgment and correction.
Hands-off managers coach their people so that their peoples
talents are allowed to emerge, and they can do better work in the
workplace, and theyre more harmonious with their own inner
Regis was a client at a high tech company who worked in a cubicle,
working at a computer, working on his job. Regis had a series of really
noticeable dysfunctions in many areas. He had become a human
bottleneck. Regis had time management and priority management
challenges. He was doing unimportant things with equal vigor as
important things and we could see how that was slowing his
productivity down and creating a problem for flow of work.
But Regis was a perfect candidate to enter a coaching conversation.
Regis had a supervisor named Mark who had learned from us how
to coach his people, but hadnt bothered to tell his people what
coaching was. So Mark went up to Regis and said, Lets get together.
I need to coach you a little bit on this. I need to give you some
coaching, here.


But Regis didnt really know what coaching was. He had no

concept of how great it could be. He didnt realize that the person who
would be giving the coaching also receives coaching and values it as
much as he values giving it. So Regis was defensive.
Regis immediately thought to himself, Oh, coaching. Let me see,
translate: criticism. Translate: Im in trouble. Translate: Im not doing
it right and Im getting called out.

Defense is the first act of war.

Byron Katie

So this started Regis heart to race and it created butterflies in his

stomach. Regis mentally began to create a defense. He was already
creating what his defense was for behaving the way he does. And of
course Regis became more invested in creating a really eloquent
defense than he was in finding the solution to his problems.
Regis had no way of seeing that the system of two knowledgeable
people giving and receiving coaching will always move things towards
a solution. Because if youve got one person (Mark) who knows what
coaching is trying to coach somebody (Regis) who has no idea what it
is, youve got that person now investing in defense. Its the human
For Regis to truly benefit, the stage must be set for what this
conversations really about! And thats the mission of the hands-off
manager: to define the coaching process up front. Because unless the
person receiving the coaching deeply understands that coaching will
benefit him, it will backfire.
What we want Regis to immediately think is, This conversation
will benefit me. I appreciate this. This is the kind of attention that I
didnt get with the company I worked with before. I love this system.
Once Mark saw that, he had a chance to talk to Regis about the
coaching he himself had been receiving, and how its helped him.
That was all Regis needed to hear.

You can help your team by first creating a clear concept of

coaching itself. Youll want a definition thats easy for your people to
understand and personal to them.
So that when you coach somebody, both parties know what they
are doing.
But what is coaching, exactly? Whats the difference between
coaching and leading? And whats the difference between coaching
and psychotherapy? A lot of people get confused about those
differences. And so theyre hesitant to coach people because theyve
got a fear that its going to be like psychotherapy.
When we think about life-coaching, for example, we sometimes
think of new-age, faux guru types who sit with people and do chants
and channel spirit beings.
And that doesnt sound like something that would be a good fit for
a high-powered organization that really wants to move numbers
forward and achieve proactive success.
But coaching really is effective.
In fact, the name coaching came from the world of sports. A
world of performance and numbers. And sports provides a beautiful
metaphor for what good coaching is in an organization.
In sports, coaching is what happens when a coach or a manager
works with an athlete to increase that athletes ability to contribute to
the team. Thats really what coaching is. Its different than managing
and its different than psychotherapy.
So lets start with the difference between coaching and
psychotherapy. Heres a message that we received in an email from a
long-time mentor and hero, Dr. Nathanial Branden. Dr. Branden has
written a number of wonderful books on psychology.
I have actually used Dr. Branden and his brilliant wife Devers for
psychotherapy many years ago; and that may shock some of you who
know me, to think that I would ever be in such need (laughter here?),
but I assure you I was just doing research for this eventual work.


Now, ironically, Dr. Branden has also now moved, in recent

months, into the world of coaching, simply because he has seen how
effective it is. He especially sees how effective it is compared to
So lets look at his message, because its a good place for us to
begin building an idea about what coaching is, so that were
comfortable with it and we can use it like a tool. So Dr. Branden said:
Recently, I announced that in addition to my practice of
psychotherapy, I was now engaged in the practice of life-coaching.
Almost immediately I received many requests to explain what lifecoaching is and in what ways it differs from psychotherapy.
Psychotherapy, traditionally, rests on the premise that the client has
been damaged by some past event or past events and needs to be
fixed or healed.
The concern is with the past and the present.
Coaching rests on the premise that the client possesses
unrecognized resources with which he or she can develop strategies
that lead aspirations to their fulfillment; the focus is on the present
and the future.
Traditional therapy is about excavating and
neutralizing negatives; coaching is about liberating positives. Its
about putting the client in touch with his or her own wisdom and
creativity. To quote one life coach, Life coaching is about designing
a future, not about getting over the past. Ones relationship to a life
coach is often a long-term project, because there need be no end to
the process of learning and growth. This is why many champion
athletes and high performing business executives retain coaches long
after the time they have become successful.
If a person suffers from acute anxiety, severe depression, or low
self-esteem, he or she needs psychotherapy, not coaching. However,
if a person is basically healthy but is seeking greater fulfillment in or
another aspect of life, coaching can be invaluable, addressing a wide
range of issues, including work, finances, health, relationships,
education, recreation. Coaching looks to close the gap between our
dreams and the realities of our existence.


Studies show that people who do training get a certain amount of

boost in productivity, but if they mix coaching in with the training,
and people are coached on how to use the training, productivity goes
way up.

Once used to bolster troubled staffers, coaching now is part of the standard
leadership development training for elite executives and talented up-and-comers
at IBM, Motorola, J.P. Morgan, Chase, and Hewlett Packard. These companies
are discreetly giving their best prospects what star athletes have long had: a
trusted adviser to help reach their goals. ----

The key element inside coaching is the coachees rational selfinterest. We want to sit down with that person and appeal directly to
their own self-interest, so that we can coach to lift their performance
up to a level that harmonizes better with the team and is more
productive. To do that, they have to see that what we are coaching
them in is really in their own rational self-interest to do.

How is coaching different from managing?

Management is focused on projects. A manager manages
agreements that lead to the successful completion of those projects.
Managing agreements elevates the person that youre managing and
leading to a much more professional level. When you manage
agreements youre partnering together as co-professionals with a
common goal. Thats the best kind of leadership. You manage a
project and you manage input, throughput, and output, but you dont
manage people. You lead people by managing agreements. And thats
a completely separate book (covered in detail in 100 Ways to
Motivate Others) but its very important to get clear.


So, then, whats coaching, compared to leading people and

managing agreements? Why is coaching different?

Part therapist, part consultant, part motivational expert, part professional

organizer, part friend, part nag the personal coach seeks to do for your life what
a personal trainer does for your body. -- Minneapolis-St. Paul Star-Tribune

In leadership, we communicate clearly, show the team the vision,

and show the individual the vision. Then we manage the agreements
that come out of that. Leadership is clear in its communication. It also
welcomes feedback to make sure that the vision got communicated.
But coaching is completely different.
Coaching is a conversation between two individuals. Coaching is
about two people achieving synergy in a beautifully hands-off way.
In coaching, you might take an individual aside who is struggling
and say, Are you open to some coaching on this? When the
individual says, Yeah, sure, the coaching begins. Coaching is a
mutually-endorsed activity, completely different than managing and
leading. It would never occur to you to take someone aside and say,
Are you open to being managed? Are you open to some leadership on
this? That would be a facetious question. But it does fit more
intimately to say, Are you open to some coaching on this? If youre
not, let me know. If you are, lets sit down and talk.
And when the person says, Yes, Id love some coaching on this,
you can sit down and explore. The person may even volunteer, I can
see its. Im struggling, Im stuck, Im not doing it like I know I
probably should be or could be, so, yeah, coaching would be great, so
now we sit down and the coaching begins.
Coaching is more about mentoring than leading. Its a drawing out
of the skills of the individual player in the organization so that that
player can play up to his or her own level. Thats what a good coach
does. He or she brings performance forward by allowing the coached
person to see for themselves that they really can do the job. By


reconnecting the person to the source of their own power through the
coaching process.
So what is this coaching process were talking about? What do we
do exactly when we coach someone?

Stop giving unsolicited advice

A lot of people think that coaching means giving advice; that you
give advice in kind of a nice way so that youre giving advice but you
can call it coaching. Thats not really coaching. Thats advising.
Coaching is a more complete package than that. Because coaching
embraces a bigger picture.
When you are coaching, the first thing you do is seek is to
understand the other person. You do not first seek to be understood.
The first and most important part of coaching is seeking to
understand where your persons heart is. Whats their current
mindset? What are they thinking? How do they see things? Because
if you saw life the way they saw life, youd be doing just what theyre
doing. Youd be behaving the way they were. Youd be communicating
exactly the way they are. When you get inside their mindset and
really see how they see things, then you are ready to coach.
Therefore first stage of the coaching session is the intake: you ask
your gentle questions, and you get in touch with the intentions and
the inner motivations of the person you are coaching. Its really
important for you to see what they want to achieve, what theyre
trying to do, and how they see the situation. So first of all, you want to
listen, ask more questions, and let them talk. Keep your hands off
their answers. They dont need fixing.
Grant that I may not so much seek to be consoled as to console;
to be understood, as to understand;
to be loved, as to love;
for it is in giving that we receive.
St. Francis of Assisi


And this is why coaching is so effective. This very aspect: seeking

to understand first, not to be understood. Because in the old model of
managing, people tried to be understood first. They had all their
communications going out and nothing coming in. They were
thinking, I sure hope Im being understood! And then if somebody
was messing up, the micromanager would sit down with them and
say, Now let me tell you how to do this, or, Let me tell you what
youre doing wrong, or Let me tell you what I expect of you, here.
And then they would try again to be understood. And all the old
school managers would go around the organization trying so hard to
be understood.
And it wasnt working.
In todays organization the young people being hired are much
brighter and more knowledgeable than ever before. They are so
smart! But what comes along with that? Theyre also more
independent and personally sensitive than ever before. Theyre not
going to fall in line like people on the assembly line in the 1940s and
just listen to orders being barked out and move like robotic sheep
through the organization. We all know this. Its a different world.
Thats why hands-off managing works where micro-managing
doesnt. Thats why coaching is so effective now in an organization.
Because with coaching there is a real dialogue going on. Youve got
both people participating in the communication process.
You, the coach, might ask the player Whats life like for you?
How are things going right now? Tell me what youre doing in this
situation? How do you see it? Describe it to me. Because the first
skill of effective coaching is knowing to ask some good, gentle, openended questions that reassure the person youre coaching that youre
really interested in how they feel and how they see things. Thats
what youre going to work with. Youre not going to work with some
preconceived notion of how things should be. Thats just a subtle
form of advising and condescending. Thats the old parent-child
model of hands-all-over-the-person management. Its derived from a
military model of leadership that doesnt work today.
Coaching works because it connects directly into the other
persons mood and mindset.


When you have two people sitting down and one persons coaching
another theres a mutual intention arising. Both people want to do a
good job. Both people want to succeed at what theyre doing. So the
two people intuitively work together.
Because together, there will be mutual mentoring that elevates the
problem to an intriguing level of fresh challenge. Two heads meet
challenges better than one.
So, the coach opens the inquiry: What would cause you to only
dribble the ball with one hand? How do you see life that would have
you use that one hand only?
Well, you know, I never had confidence in my left hand. I always
thought if I dribbled with my right hand, I would have more control
over the ball.
Now, if youre coaching that person you might now say, I can see
that, I understand that. Because you want reassure the person youre
coaching that you really get where theyre coming from, and you
You then give them a sample out of your own life.
Such as, I was in an exactly parallel position. I used to dribble
with one hand only, and let me tell you what I did, and let me tell you
how it cost me. I had the ball stolen from me so many times that I
finally couldnt do it anymore, and I had to learn all over again, just
like learning how to walk. And it worked for me, eventually. So let me
ask you. Are you open to some coaching on this?
And if the person says, Yes, you reassure the person that the
only reason were coaching together is that I can see something in you
thats possible here.


Coaching is about whats possible

Possibility! Coaching is all about whats possible. Coaching is
moving a person from being stuck in a mindset where they think they
are limited to opening a new possibility.
Most of the people who report to you will be stuck in their
imaginary limitations: I cant really work with that department
because they wont listen to me! I cant communicate with their
people! They are stuck in mindsets that rigidly believe certain
truths about the organization. Soon they have truths about their
own personal limitations: I cant do this work. Ive tried everything.
It doesnt work.
One of the first opportunities of the coaching session is to set
those limitations free. To look the limitations in the eye until they
back down. Challenge their truth until they are seen to be largely
imaginary. (Most negativity lives in the imagination only.)

In the beginners mind there are many possibilities,

but in the experts mind there are few.
Shunryu Suzuki

The hands-off manager has what the Zen masters used to call a
beginners mind: nothing is impossible. If you are that manager you
are always looking to move people from rigid limitation into
possibility. You might now say, Lets look at whats possible here. So
is it possible, even possible, that you could dribble as well with your
left hand as you can with the right. Is it possible? Do you see it as
possible? Would you be willing to take on a training program that
would have you become masterful in using that left hand? Is that a
possibility here?
Because you want the person to then feed back to you, Well, you
know, Ive never been good at training, and so forth. The limitations!
But you understand limited thinking because youve been there in


your life. So you want to now reassure that person that youve never
been good at training, either, or some similar limitation you have had.
Because as an effective coach you never want to seem to be saying
Im better than you, Im your superior and thats why Im coaching
you and telling you how it ought to be. That would be the expert
giving advice, not a professional partner delivering coaching. Advice
is not effective. It simply doesnt work very well. Not unless its asked
for. Not unless you are asked in the coaching session, Tell me, what
would you do if you were me? Tell me, how do you do this?
Because unless you are asked, you want to move slowly through
the session so that it occurs to the person across from you to want to
do this new possible action. It looks like it is in their rational self
interest. And only that self-awareness creates lasting behavioral
change. Expert advice will not bring change. It is more likely to bring
humiliation. And thats only because we are dealing with human
Lasting behavioral change is always the ironic specialty of the
hands-off manager. By not micromanaging, more changes. By
keeping your hands off the process, the process improves faster.
Would you pull a flower up with your hands from the ground to
help it grow?
Why try to do similar things to an employee?
Hands-off coaching is a dialogue that leads to the person being
coached being able to see something clearly and getting an aha, and
saying, I could do that! I see that as possible now, and I didnt see it
as possible before. Thank you. I couldnt see that before.
A human being can be moved from limitation to possibility inside
a single conversation!


Coming from a quest for understanding

Hands-off management is not a technique so much as an inner
place to come from. So again, to repeat and emphasize, the first
principle in coaching is to seek to understand.
If the person youre coaching has a fear of something, or an anger
about a certain department in the company thats blocking that
person from communicating freely and openly and moving this
project along, youll want to fully understand that before you go any
further. (Especially understanding that anger is a mask for fear.) You
cant coach a person if their emotion is hidden. If a strong feeling is
kept hidden from you and they walk away still harboring that deep
anger toward another person in the company and they havent shared
it with you, what good was the session? How complete or
transformative could it have been?

What does coaching lead to?

Better behavior? More productivity? Something I as a manager
want? No.That brings us to element number two: the second most
important element: What good coaching leads to is that the person
youre coaching will achieve his or her objectives faster. Not yours.
Thats really vital in coaching: Focusing on the wants and needs of
the person being coached, not your own.
When youre coaching someone, you are coaching them so that
they realize their objectives faster; youre not coaching them so that
they become better for what you want, or that they serve the company
better after the coaching session. Now, they will, but thats a side
effect. They will, but thats not what youre there for. Because if you
go directly to that, youll get resistance. The coaching wont work
because youve got your hands all over it. This is hands-off. Therefore
it works.
If you say to someone, I know a way you can really serve this
company. I know a way you can deliver for this team. I know a way
you can really please me. That will produce an absolutely resistant


response. You cant connect from there because, what we said earlier
is true: rational self-interest is the route of appeal for moving another
person forward.
Therefore one of the things I want to know about coaching, deep
down in my soul, is that Im coaching you so that you achieve your
objectives more efficiently. That your intentions are being honored,
not mine. Thats why Im here! Thats why I asked for this
conversation. Thats why I asked if you were open to coaching, and
thats what were going to work on: you realizing your immediate
objectives. Not me getting you to do what I want you to do. That
doesnt work.
Lets say you are coaching someone whos not getting along with
the warehouse people. You dont want to coach that person to get
along with the warehouse because you want them to get along with
the warehouse or because you have a vision that if he got along with
the warehouse better, things would move faster through the company
and wed be more efficient and your numbers would look better as a
manager. You dont want that to be the focus.
You want to talk to him about what his life would be like if he got
along better with the warehouse. How would his life be better if he
had better communication with them? So if he tells you, when you
ask him questions while youre seeking to understand where hes
coming from (rather than you being understood), he says, You know,
Id really like to have some respect from the warehouse. I would really
like to have them do this and have them do that for me so I didnt
have to go to them three or four times, and I didnt have to show up
and not have a part ordered And maybe hell go on and on. But in
going on and on, this person is going to tell you what he wants. And
why he wants it. And thats the key here. Youre taking notes.
Because you want to know what he wants. And why he wants it.
Because when you do coach him, and ask him if hes open to a
recommendation, what youre going to show him do is that the
recommendation might lead to getting what he wants. You dont want
to have the recommendation merely lead to the company getting
better numbers. That does not inspire people.
And if he doesnt tell you his wants and needs right away, you
might ask him, How would you like to see this go? If you could wave


a magic wand over the warehouse, how would you like them, in your
ideal scene, to interact with you? What would be perfect for you?
Lets start from there. I know itll never be perfect, but it helps me to
see what your picture of perfect is.
And so the person will tell you. Because what they want is exactly
what a true hands-off manager wants; it will always be the same. If
youre reassuring and empathetic and truly a mentor, youve got
their back and they know it right there in the coaching session, and
theyre going to spill the beans. Theyre going to give you information
about what they would like to have happen. Thats a beautiful
moment because thats where you can effectively coach them.
When you are listening to somebody, completely, attentively, then you are
listening not only to the words, but also to the feeling of what is being conveyed,
to the whole of it, not part of it.
Jiddu Krishnamurti

When you are doing your hands-off coaching youre helping

people align with their own intentions and noticing how their
intentions are in alignment with yours. Which, by the way, they are.
And if they arent, you havent listened long enough.
So your coachee says, I would like to have better communication
with the warehouse so that they would do things with me on time,
then you can coach them toward, perhaps, getting an agreement with
the warehouse. Perhaps going to the warehouse and sitting down
with someone and listening and taking notes and getting an
agreement with that person to respond to each other within a certain
amount of time. And you can coach a person that way, because youre
coaching into what they want.
In the old systems of hands-on micro-management there was no
coaching. There were just people bossing people around and giving
advice all dayunsolicited advice. Managers would go to a person
frustrated with the warehouse and say, Well, why dont you just go
over there? Look, just go over there and work it out with them! And

then when the manager would walk away, the person would say, Boy,
he doesnt get it. Yeah, like I can just walk over there and it would all
solve itself! Like that would happen! He so doesnt get what its like to
deal with those people. The last thing Im going to do is go over there
and try to get an agreement with them; thats the whole point! They
dont respond, they dont communicate.
And so the problem just got worse. Because not only is there a
problem with the warehouse, but theres a new problem with having
an arrogant, clueless manager who doesnt know anything about the
reality of the situation.
No wonder that national HR studies show that the number one
reason employees list for quitting their job is my manager.
Whenever you try to boss and micromanage a person, the problem
gets worse. When you order someone around or pull rank and speak
as their superior, they get very defensive. Do you blame them? Its
threatening. Theres no real professional respect or trust in that
approach. It comes from a deeply insecure place.
Sometimes your intimidated employee might go into a totally false
act of agreeing with you. Or, theyll strike back and start telling you
why things cant happen. Or they just go silent or just barely say, Yes,
boss, okay, right. And when you walk away they tell everyone else in
their department why you dont get it, and how you dont understand.
And thats why the old hands-on micromanagement system really
doesnt work anymore. And thats also why coaching is imperative if
youre going to be powerful in the workplace and incorporate other
people into your leadership power and share that power so that
everyone moves forward together.
Were talking about power versus force.
Micromanagers keep wishing people were better than they were.
They have many expectations of people, which always leads to
disappointment, and so they are walking around disappointed in how
people are performing all the time. Thats very ineffective. That robs
them of energy.


Hands-off coaching and mentoring eliminates expectation and


What companies think of coaching

Ive worked for over 100 companies, many of the Fortune 500,
doing coaching inside their organizations, for more than ten years. I
have discovered during that time that most companies do their
people-managing this way: If theres a deficit or something missing
inside the organization, managers wring their hands and pace around
and talk to themselves about why, why, why cant we do this?
The beautiful thing about a commitment to a fully hands-off
management system is the question is elevated right away to: How
did we create this system? How do we design a new system that
guarantees that everyone knows what to do?
Coaching itself is a system. Coaching is a commitment to create a
system for the higher good of the two people, rather than the other
way. What is the other way? The other way is trying in vain to
manage our expectations of people. The other way is even sometimes
doing a form of psychotherapy, like trying to analyze somebody and
label their personality: Well, hes not a detail person, or shes very
sensitive about this. And those two, well, theyll just get in a cat fight,
those two women. And people start labeling people in a very
demeaning way and nothing gets advanced.
The beautiful thing about coaching is that coaching is a system
wherein two people dialogue so that the person being coached gets in
touch with the power thats already inside them.
Lets review: 1) I seek to understand the person Im coaching. So I
ask about how they see things. 2) I find out what the ideal scene is for
that person. I might ask that person, If you could have it your way,
what would you really like to have here?
Because whenever we move the conversation from whats bad to
what would be good, we elevate consciousness, add creativity, and

increase and enhance the mood of the person being coached.

Everything gets up on a higher level.

"I never cease to be amazed at the power of the coaching process to draw out the
skills or talent that was previously hidden within an individual, and which
invariably finds a way to solve a problem previously thought unsolvable."
John Russell, Managing Director, Harley-Davidson Europe Ltd.

Theres no one proper way to coach. But once you get a hands-off
feeling established, great things emerge from the coaching process.
And you can continuously ask for permission to coach. You might
even ask for permission to coach halfway through a conversation.
Even in my own work a professional full time coach, Ill often do
this two or three times in a session. A client will talk about something
and they will go down a blind alley of being a victim and theyll tell me
what a victim they are of this and how somebody doesnt do that and
theyre showing up late and not helping them, and say I dont know
what to do with them, they always do it. And I say, Okay. And if
Ive already established a good rapport, the person already trusts that
I get where theyre coming from, so I might just ask, halfway through
this conversation, Are you open to some coaching on this? And then
they sit for a minute, and then they say, Yes, yes I am.
When you ask that question, the person youre talking to will adjust
their mind so that theyre ready to listen in a fresh way. They
associate coaching with being open.
Because if you dont get them relaxed and ready to listen, you
might just jump in with quick advice that wont connect. And that will
create a trigger inside that person and that persons heart will start to
pound and theyll say, No, no, no. Ive tried no, no, no. Thats the
last thing I want to do. And youve lost ground.
So people can only really be coached effectively with permission.
The permission can be unstated and wordless, or the permission can
be explicitly requested: May I give you some coaching right now?
Are you open to some coaching on this? If the person says, Yes,


they can take a deep breath and listen. Now could even be time to
suggest something. Heres something I recommend thats worked
for me. Or: Heres something I recommend that worked for some
others. Heres something that might be worth trying.
Your recommendation may be the same one that used to show up
as unsolicited advice, in the old system of random criticism, bossing
around and managing people. But inside a hands-off system of
coaching, its not unsolicited. It has been requested. Therefore it will
be appreciated and utilized.
Tiger Woods is an excellent example of how sports is the perfect
metaphor for this process. Thats why the word coaching is so
appropriate for this system of hands-off communication. Tiger
Woods will go sit down with his swing coach and view videos of his
last round. And hell be so open to coaching at that time, that hell
ask, Whats wrong? What do you see? He craves the weakness and
he craves a flaw. He wants his coach to spot something. Stop the
tape. Freeze frame right here. Look at where you dipped your
shoulder, Tiger. Thats not going to work for you. And so the
coaching occurs and Tiger becomes excellent.
In the world of entertainment people have acting coaches,
dialogue coaches, voice coaches, and body movement coaches. In
entertainment and in sports and in every field in the world where
excellence and high performance are so necessary for success,
coaching is accepted as the obvious answer. Because coaching works.
Two heads are better than one, and coaching gives a person distance
from themselves to objectively see themselves. Its a way to step
outside your own body, assume a higher level, smarter mind for a
moment and look at what youre doing. Instead of being stuck in the
same rut of habitual negative thinking about your limitations. So
coaching and excellence go hand in hand.
Bob Nardelli, CEO of Home Depot said, I absolutely believe that
people, unless coached, never reach their maximum capabilities.
If you want to be in a body building contest, you hire a personal
trainer whos there with you, coaching you, working with you,
spotting. Anybody who really wants to be good at what they do will
do that.


And heres why. The system of coaching is a system in which two

people work together for the higher good of both. What do we mean
by the higher good? What we mean is the person being coached is
going to be elevated to a higher level of performance, where shes not
only better at what she does, but she enjoys it more. Because the two
go hand in hand. And so the hands-off manager and her employee
work together for the higher good. What is guaranteed if we coach
with the right kind of hands-off dialogue is that the person being
coached will emerge as a better player. It cant not happen, unless you
have someone resisting coaching.

What about follow-up to coaching?

So far, weve been talking about coaching as an individual session.
One conversation. And in that conversation, we can coach for ten
minutes, or we might sit down for two hours, depending on the
situation. Those are single coaching events.
Now lets look at a more ongoing opportunity.
Lets look at follow-up and accountability. Many times a coaching
conversation can be enhanced by follow-up. Because a lot of people
dont trust themselves to follow through on breakthroughs they
receive in the coaching session.
So theres a great opportunity for this near the end of the session.
If youre coaching somebody you can see (maybe theyve even told
you) that theyve had some breakthroughs in the session and theyve
seen some things they couldnt see before, and they might even be
excited about doing some things they hadnt done before. You can
now ask for permission to hold them accountable. You can ask for
permission to follow up. And youll request it in a way that asks
whether that will be useful to them.
Would it be useful to you and helpful if we met again in two
weeks and checked in on the progress youve made to see if there are
any bumps in the road that we hadnt anticipated on this issue?

Nine times out of ten, if its asked the right way, a person will say, I
would love that. That would be good for me because sometimes things
just sort of drop out of my system and I forget to do them. That
person now gives you permission to hold them accountable, so theyre
not off the hook and they cant just snap back to their old ways.
What most people miss in corporate life today is that individuals
have systems as well. And so the person whos got a dysfunction going
on has some kind of thinking system that is producing that
dysfunction. And part of the coaching conversation is going to be to
shine light on that thinking habit---perhaps a habit of always making
the other person wrong, or the habit of always getting your feelings
hurt if someone doesnt answer an email and then retaliating in subtle
passive-aggressive ways. Those are systems, too.
So well use follow-up and accountability to replace the prior
system. We want to see in the person were coaching that the new
thinking system is getting the result we both want---the result were
calling the higher good.
People produce their own results with their thinking and coaching
helps illumine that. Coaching helps shine a light on how responsible
peoples thought patterns are for the problems theyve generated in
the workplace. And thats not bad news; thats good news.
Just as with the athlete. If the coach walks up and says, The
reason theyre taking the ball away from you is that your dribbling
with your left hand is very weak. You always go to your right hand
when youre crowded or double-teamed, and they know youre going
to! And boom! Its a stolen ball. You need to develop your left hand.
And so that kind of coaching makes the athlete happy. Wow, Ill be
A salesperson we knew named Trina was down on herself for not
making enough cold calls and not prospecting enough. We met with
her and she said, I just need to prospect more. I just dont prospect
enough. I know thats my greatest flaw, I dont enjoy it and I put it off
and handle things that I think are important, and then the
prospecting never gets done.
Great. So how does that look to you when you come to work?


(We asked that because we really wanted to see how prospecting

looked to Trina. Why it looks a little scary, unpleasant, and
uncomfortable, and why the other work Trina does looks really fun
and enjoyable. A coach seeks to understand how her thinking
systemthis is the fun part, this is the not fun partis leading to
low performance. In fact its guaranteeing it.)
So when we were with Trina for a while in the coaching session we
had a few breakthroughs. She began to see that if she were to create a
routine for cold calling and a routine for prospecting, she wouldnt
have to try to decide whether she felt like doing it. She would simply
follow her routine. And after a while she would know that the routine
was something he was committed to following and she wouldnt have
to re-visit it. She wouldnt have to feel that pit in her stomach driving
in to work wondering if she was going to be able to get herself to
prospect. She would now have a routine to cover that for her.
And when co-designing a new routine with someone, you the
coach might ask, Would you like me to introduce a level of
accountability to you until the training wheels can be thrown off?
Yes! Oh, would you? Yes, thank you. That would be great. That
would keep me from bailing on the routine, the new system.
Theres no set prescription for how to do this follow up work.
Sometimes weve said, Every day I want you to email me that youve
done your hour, youve made x amount of calls, and its done. Email
that to me and Ill email back saying Bingo, way to do, keep it rolling!
And we will do this for the first two weeks, then well meet again for
another coaching session, when well review your new system and
how its working for you.
So one day, perhaps, you notice you dont get an email. So you
call Trina and say, Whats up? Hows it going? I didnt get an email
and we had an agreement that you would, so I wanted to check in
with you.
Oh, just as I sat down to do my prospecting, the boss called
everybody in. Were acquiring a new company and he gave out a
bunch of new assignments. It was just chaos all day.


You can say, Okay, so when that occurs, you want to put your
commitment right back on track, because now is the time, today is the
time to keep your commitment. Not in the past, not in the future.

More routes to hands-off accountability

In some ongoing coaching sessions you might not have anything
in particular that youre holding someone accountable for. There may
not be any routine that needs to be put in, or anything measurable.
There are just a few breakthroughs on what kind of new spirit and
mood to take to various communications.
Yet even in these situations theres an opportunity for you to hold
them accountable and to provide a level of follow-up. As you sit down
and coach this person, you can ask them to travel back in time to our
last coaching session. Lets review that for a few minutes and review
what it was in that session that was helpful to you and then well look
at how it might have been applied or not applied in the last week. And
then well take off from there.
This is another way to keep the coaching consistent and to let the
person know that what you talk about in the coaching sessions are not
things you forget about! You as the coach remember them because
youve got a commitment to the higher good, too. Youre in support of
this person succeeding. Thats really what coaching is all about. Its
two people in support of the evolution of the coached person toward
greater and greater excellence and performance. Greater mastery.


If its not fun youre not doing it right

The hands-off coach knows to link mastery to enjoyment.
And theres always a component of greater enjoyment when
people get good at what they do. We really want the people we coach
to learn to enjoy what theyre doing. Their dysfunctional past
behaviors are always accompanied by anxiety and stress. So the more
we can get the stress out of the system, the higher a person performs.
Its true when you watch a golf match and you see a golfer
enjoying the process. Its true when you watch a car race and see the
wicked smile on Tex Earnhardts face. The person without fear---the
person operating on a more joyful level than fear---is performing in
the most excellent way. Playing to win.
The person with fear is playing not to lose.
One of the greatest accomplishments of coaching is how good it
has been at taking the fear out of the workplace. Thats one of the vital
things that the great business efficiency guru Dr.W.Edwards Deming
preached to companies: Whatever youve got going on, you must take
the fear out of the system, because that will always sabotage the
system. And coaching is a beautiful way to do that.

A system at play in every workplace

In the uncoached, micromanaged organization there is a fallback
default system of judgment and reprimand. Any organization,
families included! We learned it in families when we were growing up.
You surely learn it in the military. Most people in American
corporations, when you examine their communication styles and
their leadership skills, reflect a 1930s 1940s system of military
management and thats usually combined in some unhealthy way
with parent-child management.
And hands-off coaching is the way out of that.
Because coaching is partnership. And it requires that the people
doing the coaching to also receive coaching. If thats not occurring,
then leaders are not role models.


I coach for a living. But I also have a coach. And every two weeks
I sit with him in his office and he coaches me for two hours. Hes a
powerful unremitting tremendous coach, and Ive written about Steve
Hardison in at least ten of my books. Ive written about his coaching
and how he does it and how powerful it is and how its changed my
life. But it is very useful, when Im coaching someone else, to often
remark that Ive received coaching on this issue or, My coach has
helped me see this. Now most people will think that would weaken
me, I wont look like a leader. They think they wont look like a strong
manager if they say something like that. But the opposite is true. In a
coaching session it wont weaken you at all; it will elevate the higher
good. It will elevate the whole concept of coaching.
Two people, after a coaching session, have an elevation in mood.
They bring good spirits to the workplace where before there was
discouragement and resentment. Coaching solves a tremendous
number of problems, including attitude problems that were
previously thought to be a part of someones personality. They
werent. They came from not feeling heard by anyone.
Many times the two of you will come up with something that will
be an instant breakthrough, depending on your level of trust and your
level of caring and compassion for each other. If those levels are high,
you can go cut right to the chase and go right to possible solutions,
and have both people really enjoy the session.
If there still some fear in the session, youll want to go slower and
ask more questions. Many times a coaching session will be purely
Socratic. What you will do is ask gentle, leading questions that allow a
person to express a problem, and then continue to ask questions
because your Socratic questioning may cause a person to come upon
the answer on their own.
You can coach. Just be you and be committed to the higher good.
As a hands-off manager, you enjoy great creative freedom. Because a
hands-off manager is not burdened with doing things right or
making others wrong.
Thats why the hands-off manager is such a success.


Steps to Hands-Off Success in your life:

1. If you see yourself as a manager supervisor and leader
only, make the commitment today to be a coach and mentor
2. If your company employs outside coaching for its
executives and top account people (most companies now
do), ask to get some coaching from one of them. Not that
you need it! But it will give you experience receiving
coaching from a pro, and you can use that experience to
help you learn how to coach others.
3. Ask someone in your organization to coach you on
something today. Sit with them and take notes. Notice how
good it feels to be completely open to coaching.

Work is love made visible.

Kahlil Gibran


Appendix C:
A COACHs Excerpts from The
Hands-Off Manager:
Coaching with incredible,
life-changing power
Morale in the workplace is the creation of the leader. He or she
coaches it into existence. Or doesnt. But morale is not just an
accidental climate that comes in on the wind.
Tony Robinson (a name we will give this manager) was a gifted
project manager who oversaw construction sites for Duane Black
many years ago. His skills and intellect were exceptional, but Tony
was not happy in his work.
Two upper managers who came to review Tony's progress in monthly
update meetings were relentlessly critical and questioning of Tony's
decisions, and Tony was too sensitive a person to let it go.
The quality of his work began to deteriorate to levels that were
unacceptable. He justified his actions by saying these two managers
were interfering with his well-being and driving him crazy. He
couldn't stand the criticism.
Finally Duane had had enough. He knew that compassionate listening
had run its course, and it was time to upgrade the coaching to the
tough love level.
"Tony, I want to ask you a question," Duane said.
Tony said nothing.
"Has there ever been a time when these two managers' comments
were deliberately designed to hurt you and undermine your work?"
"No," Tony said, after some hesitation.

Duane continued, "Has there ever been anything they have

communicated to you that wasn't intended to make you more
successful at getting the job done?"
"I suppose not, no," said Tony.
"So it's a matter of style, then," said Duane. "You are reacting
emotionally, not to what they are communicating, but the way in
which they say the words."
"If you put it that way, I guess I am."
"Then I'm going to ask you for something. Im going to ask you to
grow up. I'm going to ask you to learn a more mature way to
reformat what they are saying so that you can hear it as support and
not a threat to you."
"I dont know." said Tony.
"Because it is support, Tony, and they just don't know how
communicate with you in a way that considers your sensitivity to
Tony was quiet.
"Tony," Duane said, "today is Thursday. I want you to take the rest of
the week off and do whatever it is you do to help you make a big
decision. Then Monday we will meet and discuss your future with
this company. You are capable of far better work than you are
producing. If you find you are unwilling to grow up and take their
communication gracefully, I'm going to let you go. I have no desire to
have someone as capable as you are be this unhappy."
Tony came in Monday with a huge smile on his face.
Duane asked him what decision he had made.
"I'm excited," Tony said. "I never saw my own part in this. I never
realized that I could reformat this. I really think you have changed
my life."
As the months and years rolled along, Tony came to Duane many
more times to thank him for that fateful meeting and "for changing


my life." He told Duane that he was one of the most influential

people in his life. This ended up being an incredibly positive
experience for Tony. Learning to deal with the two critical managers
had in fact provided him with a great service. It helped him grow up.

The thing we surrender to becomes our power.

Ernest Holmes

Do people really change?

I get that question all the time in my leadership seminars and asking
the question itself betrays a lack of understanding of humans in this
People do nothing but change. Sometimes for the better, sometimes
for the worse. But its in the nature of a human being to be everchanging. Every living thing is ever-changing. Why would humans be
Yet we think they don't! We think people have permanent, fixed
personalities that they are all stuck with. Especially in the workplace.
People get labeled early and dealt with based on the label. This is a

Can you coach another person so that

the person really changes?
We saw the example of Duane coaching Tony. Thats one example
that confirms it. Lets look at another. Let's look at the example of me.
Let's examine the notion that people never change through the
sample of this one life of mine.
If you saw a man who used to be drunk most of the timea young
man whose life was nothing much more than lying, cheating, stealing,
drug-taking, drinking and running up a massive debt you would have

a hard time trustingor even liking that man. But what if you saw
that same man today and he had not had a drink or drug in 26 years,
was happy and healthy with a wonderful family and fulfilling
successful career dedicated to helping other people? Would you call
that a change?
Every person on the planet today who has transformed from the low,
suicidal life of addiction to a new life of spirit and service and health
and there are millions of them!has more than changed. They have
become someone else. They have become their potential. A potential
that was always in them, but needed help from them and others to
come through.
And, in most cases, they have been coached.
Sometimes coaching takes on the form of parenting. Sometimes it
shows up as a 12-step sponsor, sometimes it is just sharing idea with a
friend, but one thing is certainpeople do changeand coaching
accelerates change.
My first sponsor in my 12-step program coached me from the living
suicide of drinking and addiction to higher levels of life than I ever
dreamed possible. We worked with a book (and most coaches are very
intimate with transformative books) and we charted a new path for
my life based on spiritual principles rather than the lowest human
emotions of animal fear and gratification.
Once I'd reached a (blessed) level of clarity and sobriety my mind was
open to even more coaching from books and then from mentors.
(Spiritual growth has no upper limit. Just when you think youre as
happy as a person can be, it gets better.) The coaching I received took
me from abject financial disaster to a successful professional career.
Yet when we think about coaching and especially life-coaching, we
sometimes think of new-age, faux guru type who sits with their clients
and channels spirit beings.
And that doesnt sound like something that would be a good fit for a
high-powered organization that really wants to move numbers
forward and achieve proactive success.
But good coaching does just that.


In fact, the name coaching came from the world of sports. A world
of performance and numbers. And sports provides a beautiful
metaphor for what good coaching is in an organization.
In sports, coaching is what happens when a manager works with an
athlete to increase that athletes ability to contribute to the team.
Thats really what coaching is. Its different than managing and its
different than psychotherapy.
Heres a message that we received in an email from a long-time
mentor and hero, Dr. Nathanial Branden who has written a number
of wonderful books on psychology. I actually used Dr. Branden and
his brilliant wife Devers for psychotherapy many years ago; and that
may shock some of you who know me, to think that I would ever be in
such need (laughter here?).
Now, ironically, Dr. Branden has also now moved, in recent months,
into the world of coaching, simply because he has seen how effective
it is. He especially sees how effective it is compared to psychotherapy.
So lets look at his message, because its a good place for us to begin
building an idea about what coaching is, so that were comfortable
with it and we can use it like a tool:
Recently, I announced that in addition to my practice of psychotherapy, I
was now engaged in the practice of life-coaching. Almost immediately I
received many requests to explain what life-coaching is and in what ways it
differs from psychotherapy. Psychotherapy, traditionally, rests on the
premise that the client has been damaged by some past event or past
events and needs to be fixed or healed.
The concern is with the past and the present.
Coaching rests on the premise that the client possesses unrecognized
resources with which he or she can develop strategies that lead aspirations
to their fulfillment; the focus is on the present and the future. Traditional
therapy is about excavating and neutralizing negatives; coaching is about
liberating positives. Its about putting the client in touch with his or her
own wisdom and creativity. To quote one life coach, Life coaching is
about designing a future, not about getting over the past. Ones
relationship to a life coach is often a long-term project, because there need
be no end to the process of learning and growth. This is why many
champion athletes and high performing business executives retain coaches
long after the time they have become successful.


Coaching looks to close the gap between our dreams and the realities of
our existence.

Studies show that people who do training get a certain amount of

boost in productivity, but if they mix coaching in with the training,
productivity goes up even further.
Coaching is about two people achieving synergy in a beautifully
hands-off way. Therefore, coaching is more about mentoring than
bossing. Its a drawing out of the skills of the individual player in the
organization so that that player can play up to his or her highest level.
It is about seeing potential and gifts in them that they may not even
be aware of. Thats what a good coach does.
The first thing a masterful coach does is decrease the fearful
emotional charge inside the person being coached. If youre coaching
me, you first bring your positive attention to my situation. Soon my
negative feelings about being all alone with this situation start to lift.
I was working with a large group of managers one day when Duane
Black himself volunteered to step to the front of the room to illustrate
a point I asked him to make. He walked up to the two flipcharts I was
using to contrast the thinking of ownership versus the thinking of
Lets try looking at it this way, Duane said going to the ownership
flip chart. He drew a very large + sign on the page and said, When
you are positive, (pointing to math sign: +) you add something to any
situation, conversation or meeting you are in. That's what being
positive does, it contributes, it adds.
He then walked over to the victims flip chart and drew a large
minus sign (-) and said, When you are negative (-) you subtract
something from the conversation, the meeting or the relationship you
are in. If you are negative enough times, you subtract so much from
the relationship that there is no more relationship.


Duane was giving us the simple math of the human interactive

experience! It was the law of the universe up there on the flip chart of
life: positive adds, negative subtracts. A positive person contributes, a
negative person takes away. I immediately recalled that in grade
school the minus sign was called the take away sign.
As in math, when you introduce a negative it diminishes the total.
Add a negative person to the team, and the morale and spirit (and,
soon, productivity and profit) of the team is diminished.
When you are a positive leader with positive thoughts about the
future and the people you lead, you add something to every person
you talk to. You bring something of value to every communication.
Even every email and voicemail that's positive adds something to the
life of the person who receives it. Because positive (+) always adds
(increases, improves) something.
It's a definite plus.
It even runs even deeper than that. If you think positive thoughts
throughout the day, you are adding (+) to your own deep inner
experience of living. You are bringing a plus (+) to your own spirit
and energy with each positive thought.
Your negative thoughts take away (-) from the experience of being
alive. They rob you of your energy.
And so the first thing a coaching conversation does is change the
math. It alters the charge in the mind of the person being coached
from negative to positive. That alone makes coaching immediately
Notice that most hands-on old school micromanagers almost
always bring a negative charge to their human interaction
throughout the day. Every time they indulge in sarcasm about the
organization, skepticism about the mission or cynicism about the
customer, the negativity builds. And believe me, they do this all day


One of the internets most successful business gurus is Matt Furey

(, a former international champion martial artist
who specializes in coaching his clients to stunning financial results.
He is a friend of mine and shared with me the other day his own
thoughts about negative people and the message he likes to send.
If you're interested in more success, said Matt, then you and I can
spend time together. If you're interested in blaming others, staying
stuck, whining, complaining and so on, then we will not hang out
together. Simple as that. Now, why do you think I have this rule? I
have it because I have witnessed what happens to me when I am
around successful people. I get charged up. I get excited. And I
succeed even more than before. But if I hang out with people who act
and think like losers, then I start going downhill.
A client of mine Ill call Linda had a real problem. She was trying to
run a sales and marketing team and failing at every turn. She was
selling a service targeted to women and her team was a team of
women who loved and admired Lindaalmost to the point of
Linda's product was wonderful but her team was losing money and
when she hired me to coach her she thought she was a hands-off
manager, but she wasnt.
Linda had the same misconception about hands-off management that
many people holdthey think it means no accountability. They think
it means to just fire people up, love them and then look the other way.
If they don't perform, then express your hurt and disappointment.
Dangerous misconception.
Dangerous because you can lose your business, or have your team fail
miserably thinking this way.
Linda didn't realize it, but she was trying to run her team on emotion
alone. If her people had a bad month she would get angry and subtly
intimidate them. If they had a good month she would become
overjoyed and take them all out to a champagne dinner filled with
promises and mindless joy.


When we sat down together for our first session I wanted to have
Linda see the importance of accountability.
"Business is a logical process run by emotional beings," I told her,
paraphrasing my favorite small business millionaire Sam Beckford.
"How does that apply to our team?" she asked.
"Your team is on a roller coaster, up one day and down the other,
based on your mood. You are teaching your people that their only
real job is to win your approval."
"Well, yes, that's right. I want them to sell more and know that I'll
approve of them for that."
"Not logical," I said.
"How do you mean?"
"Youre basing the mission on emotion. They can't perform well if
they are constantly trying to anticipate your mood. That takes them
back to dysfunction. Like little girls living in a household with an
alcoholic mother. No one knows when it's safe to talk to Mother."
Whats the alternative? she said.
I told her that the alternative was to return her people to their work.
To let them love their work, and make it better every day. To measure
their progress. But not to strike fear into their hearts.
Linda was stunned by my assessment of her leadership style, but as I
worked with her she began to see the value of holding her people
accountable to themselves and their own best possible performance.
She was opening up to a new way of seeing her business. She hadnt
always been this open!
Why do I need coaching? she once asked. Why can't I be fiercely
This myth of isolation is just about the most painful thing any of us
experiences.all day thinking I'm all alonelost and afraid in a
world I never made.


Reaching out for help is not weakness, it is the ultimate in strength.

It is a commitment to something other than looking strong. It is a
commitment to something beautiful, a mission beyond the ego.

We are afraid of truth,

afraid of fortune, afraid of death,
and afraid of each other.

Ralph Waldo Emerson

Doctors coach us on how to get well, teachers coach us on how to

become knowledgeable, parents coach us on how to grow up and why
is this not just the most beautiful, natural way of it? Why is this not
the most powerful way to grow?
It's certainly the fastest.
Which is why the hands-off manager learns to become a masterful
Life is a comedy for those who think
and a tragedy to those who feel.
Horace Walpole

The great business management author and advisor Tom Peters

says the manager in todays workplace cannot be like yesterdays
micromanaging boss. He tells managers, Stop giving orders. Being
the boss is no longerif it ever wasabout issuing mandates from on
high. Ordering change is a (stupid, stupid, stupid) waste of time.
Your own humility will allow you to win the total support of your
people. Because you value them at the same level you value yourself.

Humility is not low self-esteemquite the oppositehumility is

exceptionally high self esteem. It demonstrates a self-confidence that
is so unshakable that you never have to put some one else down in
order to make yourself feel better.
Coaching that helps bring a person "into alignment with their true
talent (passion) is not some goofy new age narcissism. It increases
productivity: hard numbers and profitability are impacted. The
growth curve and real dollar profit margins of the company Duane
works for can only astonish competitors and onlookers who are
reduced to guessing that they must have made some "lucky land
acquisitions in a prime market with good timing."
Well, yes, timing is everything. Especially when we notice that the
time is always now.

What to do when coaching doesnt work

If you have an unhappy employee who is under-producing, coaching
is always your first option. Coaching can do so much!
Except when it can't.
Yes, there are times when even the most masterful coaching will not
change an employee's poor attitude and inconsistent performance.
Some people are just not open to inner change.
It is at this point that we like to remember the words of Harvey
Mackay, chairman of the Mackay Envelope Company, who said, "It's
not the people you fire that give you problems; it's the people you
don't fire."
So why are we so reluctant to fire people? Aside from the paperwork
annoyances involved, we are traumatized by the thought of firing
someone for two very unnecessary reasons: 1) we think replacing
them will be difficult, and 2) we think we will be doing them great
Let's look at the first mental obstaclethe difficulty in replacing a
person. The truly masterful hands-off manager must be a great (not
good, but) great recruiter and attractor of talent. Talent is
everything today. The company with the most talent wins. Hands-off


management is wasted on mediocre people. You want dedicated

people who love what they do, and you want to be great at bringing
them on board. So releasing a person who is unhappy and
underperforming and not a team fit is a pleasurenot a problem. It
is a pleasure because of who you have waiting in the wings! You are
always making your team better and better. You get that talent rules.
The second mental obstacle is that thought that you are harming
someone by firing them. You are not. If that person is unhappy and
unproductive you are harming them by keeping them. Letting them
go will set them free to find work they like to do. In the end, that's the
greatest gift you can give. Even current HR surveys show that people
who are fired are more likely to improve their financial standing in
life than people who quit. The career value of a wake up call!
Hands-off managers make certain that the firing of an employee is a
positive, enlightening experience. They use the phrase, "right
person/wrong job." They let the employee know that they are the
right person stuck in the wrong job. They want the employee to be
happy somewhereand it's clear that it's not here.
Football coach Vince Lombardi was famous for saying "If you are not
fired with enthusiasm, you will be fired with enthusiasm."
Was that heartless? Not to the true hands-off manager. It is actually
compassionate to want your people to be enthusiastic about their
work. A manager is not managing if he is not managing morale.
Unhappy people are bad for morale. They destroy their own spirit as
well as that of their colleagues.
The hands-off manager is clean, clear and crisp about who works here
and who doesn't.
Duane lets people go who won't give one hundred percent to the
team. He lets them go! He says to them, "You're my friend. I really
care about youand you're in the wrong position on this team. Even
if you feel disappointed right now that I'm letting you go. Even if
you're angry. I still want you to have an opportunity to find
alignment for yourself somewhere in a job that works for you. You're
the right person for that. This is the wrong job for you."


Duane says that over the many years of working in his company he
and his colleagues are unanimous on one point"We've never let a
person go too soon."
It's hard to lead people well. We get distracted by the daily
"problems" of the workplace. Soon we think we're too pressed and
swamped to recruit and interview properly so we hire people to "fill
immediate needs" and the quality of the team goes downhill. We have
become distracted from our original vision.
Therefore, vision-renewal is a daily activity of the hands-off manager.
There cant be exceptions to the vision of excellence.
"You have to release people who are not right for the team," said
Duane. "Because you care for them in a more elevated way than just
trying to please them or be their buddy. You can't let the rest of your
team suffer because of that one unhappy person."
The hands-off manager is willing to disappoint people by letting them
gois willing to sacrifice his own popularity for the higher interest of
the team itselfthe other players. Duane has let a lot of people go
over the years. But now its a rare occurrence.
"You end up working through a fair amount of people before you get
the team you want," Duane says, "but once you do, they'll serve you
for a long time. It's not like a sports team where athletes have short
careers. Bodies wear down. But the mind does not."
Under the supervision of a hands-off manager, the mind only grows
stronger, more imaginative and more excited about doing great work.
"We have people who have been offered more money to work
elsewhere," Duane says, "but they dont leave because they can't
duplicate this environment somewhere else."
Mariano was a powerful CFO of a company with a good-sized
accounting staff. He had been on my website reading about
breakthroughs that hands-off management was achieving.
"I dont agree with your theories at all," he said, as we sat down to
chat at an outdoor restaurant.

"Really," he said. "In fact, I told my partner that I was angry with you
after reading your theories about hands-off guidance or whatever it
"That is okay with me," I said, "but remember that they're not
theories. They are experience. You don't need theories about success
in the workplace, there's enough actual experience to look at."
"Well whatever, I got angry because I know it wouldn't work. I could
never trust my people that much."
Mariano had always had problems with his people. He hired people
in a hurry to meet needs and then spent most of his time furious with
the mediocre work coming from his people.
"I have mediocre people," he said, "who need to be watched and
monitored every minute."
"They are not mediocre people," I said. "In the right job, with a
trusting mentor, they could be magnificent. Every last one of them."
"So you say."
Mariano was not a respecter of human talent although he himself had
a great deal of it. To him, people basically weren't trustworthy, so
therefore his recruiting efforts were never very visionary or creative.
He always hired to fill a need. Never to fill a want or to fulfill a vision.
Mariano's anger came from not knowing how to mentor people and
allow them to be successful. He thought mentoring was weak.
Especially compared to his own system of criticizing, correcting,
humiliating and embarrassing his people.
"Your system is too easy," he said.
"You were a parent raising your son for many years if I am correct," I
Mariano nodded and said, "Oh, yes."
"Was that easy?"
"Hardest thing I've ever done."


"But you loved him."

"More than anything."
"And you guided him and mentored him."
"Constantly, until I didn't need to."
"Oh, yes."
"And because of your love, was parenting a weak or soft activity?"
"I see where you're going with this but there's no comparison."
"Why not?"
"You dont want me to all of a sudden love my employees like I love
"Maybe not all of a sudden."
"After when? I get a heart transplant? After I get new employees?"
"After you coach them. After you really, truly coach them, you won't
have to try to love them. It will just happen."
"Why is that?"
"Because you'll get closer with every session. You'll be partnering for
the higher good. You'll be sharing life's most difficult experiences.
And you'll be sharing life's best moments . . . moments of growth."
Mariano wasn't convinced. But he was willing to listen. And,
ironically, he'd always been an admirer of Duanes team. ("How does
he pull down those numbers year after year?" he would ask, shaking
his head at his strange "magic.")
I wanted Mariano to get something: When firing a non-producer is
not your current choice then coaching is what you must do.
Seems obvious?


Not to Mariano! And not to most managers. Most managers know

nothing of coaching. When a person underperforms they don't coach
them, they do other things, all of them toxic and dysfunctional. They
become sarcastic. Or they ignore their employee, playing the timeworn game of "Guess Why I'm Mad?"
They reduce the logical
process of business into an emotional battleground. Tension fills the
workplace. Morale suffers.
"I don't know what else to do!" an angry CEO named Mark said when
I talked to him about a team leader who wasn't getting the job done.
"I'm caught between a rock and a hard place! I am furious with
Gordon but the nightmare of finding a replacement is too much to
think about."
"How do you think he feels?" I asked.
"Frankly, that doesn't concern me right now, he has totally betrayed
This was getting to be like a scene out of General Hospital for me, so I
looked for a way to introduce coaching as an alternative to the daily
"Have you ever coached him?" I asked. "Have you ever mentored
Mark stared at me like I'd asked him whether he'd ever given him a
pedicure. His face was twisted with confusion.
"What do you mean by coaching?"
That was a valid question! What is this coaching process were
talking about? What do we do exactly when we coach someone?


Stop giving unsolicited advice

A lot of people think that coaching means giving advice; that you
give advice in kind of a nice way so that youre giving advice but you
can call it coaching. Thats not really coaching. Thats advising.
Coaching is a more complete package than that. Because coaching
embraces a bigger picture. Coaching is not directing. Coaching is
another word for true open communication.
When you are coaching, the first thing you do is seek is to
understand the other person. You do not first seek to be understood.
The first and most important part of coaching is seeking to
understand where your persons heart is. Whats their current
mindset? What are they thinking? How do they see things? Because
if you saw life the way they saw life, youd be doing just what theyre
doing. Youd be behaving the way they were. Youd be communicating
exactly the way they are.
Therefore first stage of the coaching session is the intake: you ask
your gentle questions, and you get in touch with the intentions and
the inner motivations of the person you are coaching. Its really
important for you to see what they want to achieve, what theyre
trying to do, and how they see their situation. So first of all, you want
to listen, ask more questions, and let them talk. Keep your hands off
their answers. They dont need fixing.

Grant that I may not so much seek to be consoled as to console;

to be understood, as to understand;
to be loved, as to love;
for it is in giving that we receive.
St. Francis of Assisi

And this is why coaching is so effective. This very aspect: seeking to

understand first, not to be understood. Because in the old model of
managing, people tried to be understood first. They had all their
communications going out and nothing coming in. They were
thinking, I sure hope Im being understood! And then if somebody

was messing up, the micromanager would sit down with them and
say, Now let me tell you how to do this, or, Let me tell you what
youre doing wrong, or Let me tell you what I expect of you, here.
And then they would try again to be understood. All the old school
managers would go around the organization trying so hard to be
understood all day.
And it wasnt working.
In todays organization the young people being hired are much
brighter and more knowledgeable than ever before. But what comes
along with that? Theyre also more independent and personally
complex than ever before. Theyre not going to fall in line like people
on the assembly line in the 1940s and just listen to orders being
barked out and move like robotic sheep through the organization. We
all know this. Its a new world.
Therefore enlightened management is no longer about tenure, or
position, or control. It is about guaranteeing an opportunity for
people to become their highest vision of who they can be.
About a decade ago I worked for a company called TimeMax and we
delivered productivity training and sold time management products.
Our company was struggling financially when it brought in a business
coach by the name of Steve Hardison.
Hardison was dynamic. His coaching went through the company like
a hurricane and it wasn't long before empty classrooms were
converted to standing room only! and major Fortune 500
companies were writing six figure checks for our training.
Hardison was a force. His coaching sessions opened people up to
levels of performance and creativity they never knew existed.
I'd never seen anything like it.
And the best part of the company transformation was that it included
Not since I'd transformed from a hopelessly addicted person to a
happy clean and sober person had I changed so much.
Do people change?

Because of Hardison, I started teaching classes, giving seminars (I'd

previously had a public speaking phobia) and writing books. I was 49
and had never written a book before. I've now written 16some of
them bestsellersso, do people change? Does coaching work?
More than anyone can imagine!
"But you've got to have someone willing to receive," says Hardison.
"Coaching can't be imposed from one person to another. It's a two
way street. It's an exchange of life. Both people learn. Both people
Hardison has now coached some of the top celebrities in the
entertainment industry and personal growth field and says that
everyone's "problems" are the same.
"There's no new problem," Hardison said. "People are afraid to really
express who they are. That's all that's going on. My job is to listen
and connect."
Hardison likes to quote one of his own clients, Byron Katie, who says,
"If you have a problem, you have a solution. There's no problem
without a solution."
When Hardison started coaching me a decade ago, fear dominated
my life. Especially my professional life. But he was able to connect to
me on such a deep level that I knew he had the same fears I had. And
his growth to transform fear became my own. His commitment to me
was total, and I could feel it in every coaching session. I was no
longer alone. I was connected now to the whole universe and all its
I have seen Hardison give so much of himself away in a coaching
session that he emerges physically drained to the point of almost not
"It's an exchange of life," he says of coaching that works. "It's almost
like giving a blood transfusion. But when the people you coach can
see what they're afraid of and then meet it, it's exhilarating!"
Exhilarating financial transformations occur, too.
I watched
Hardison coach TimeMax from deep debt to exhilarating, staggering


profits. I experienced my own professional life go through the same

So coaching is not just some new age amateur
psychotherapyit combines the very best of sports coaching and
business consulting to produce astonishing quantum leaps in
Hardison taught me to create from the present moment. He showed
me the startling leverage we have in the present moment actions we
take. He taught me to let the past dissolve away. He showed me that
my future was just an anxious anticipation. Did I want to spend my
whole life swinging between memory and anticipation like a bipolar
monkey in a jungle of fear? Or would I like to swing on a star?

To me every hour of the day and night is an unspeakably perfect miracle.

Walter Chrysler

Hardison hooked me up with Duane Black a few years ago and told
me that Duane was one of the few leaders in the corporate world who
was fearless about bringing love, nobility and integrity into the
workplace, treating work itself as a sacred act.
I was very interested in that! And after meeting with Duane and coproducing seminars and workshops for his leadership teams I knew
Hardison was right. The extraordinary financial success of Duane's
company was no accident.
Duane was genuinely excited about his team of people. And I recalled
that Hardison had always told me, "Most of what is called coaching
today is not really effective. There is no commitment to relatedness,
and if a 'coach' has no excitement about listening to the other person,
no change will take place."
After Walter Chrysler had built a dramatically successful automotive
company against great odds in the 1940's he said, "I feel sorry for the
person who can't get genuinely excited about his work. Not only will
he never be satisfied, but he will never achieve anything worthwhile.

This kind of excitement is not passive or limp. That's a big mistake

people make when they first hear about hands-off management. They
think it's soft. It's the opposite.

Coaching is about whats possible

Coaching is all about whats possible. Coaching is moving a person
out of being stuck in a mindset where they think they are limited.
Therefore the hands-off manager has what the Zen masters call a
beginners mind: nothing is impossible.

Life shrinks
or expands
in proportion to ones courage.

Because as an effective coach you never want to seem to be saying

Im better than you, Im your superior and thats why Im coaching
you and telling you how it ought to be. That would be the expert
giving advice, not a professional partner delivering coaching. Expert
advice will not bring change. It is more likely to bring humiliation.
And thats only because we are dealing with human beings.
Lasting behavioral change is always the ironic specialty of the
hands-off manager. By not micromanaging, more changes. By
keeping your hands off the process, the process improves faster.
Would you pull a flower up with your hands from the ground to
help it grow?
Why try to do similar things to an employee?


When you are listening to somebody, completely, attentively, then you are
listening not only to the words, but also to the feeling of what is being conveyed,
to the whole of it, not part of it.
Jiddu Krishnamurti

Tiger Woods is an excellent example of how sports is the perfect

metaphor for this process. Thats why the word coaching is so
appropriate for this system of hands-off leadership. Tiger Woods will
go sit down with his swing coach and view videos of his last round of
golf. And hell be so open to coaching at that time, that hell ask,
Whats wrong? What do you see? He craves finding a weakness
and he craves a flaw. He wants his coach to spot something. Stop the
tape. Freeze frame right here. Look at where you dipped your
shoulder, Tiger. Thats not going to work for you. And so the
coaching begins and Tiger becomes other-worldly in his play.
Bob Nardelli, former CEO of Home Depot said, I absolutely
believe that people, unless coached, never reach their maximum
A salesperson we knew named Trina was down on herself for not
making enough cold calls and not prospecting enough. We met with
her and she said, I just need to prospect more. I just dont prospect
enough. I know thats my greatest flaw, I dont enjoy it and I put it off
and handle things that I think are important, and then the
prospecting never gets done.
Great. So how does that look to you when you come to work?
(We asked that because we really wanted to see how prospecting
looked to Trina. Why it looks a little scary, unpleasant, and
uncomfortable, and why the other work Trina does looks really fun
and enjoyable. A coach seeks to understand how ones thinking
systemthis is the fun part, this is the not fun partis leading to
low performance. In fact its guaranteeing it.)
So when we were with Trina for a while in the coaching session we
had a few breakthroughs. She began to see that if she were to create


an interesting routine for cold calling, she wouldnt have to try to

decide whether she felt like doing it. She would simply follow her
routine. She wouldnt have to feel that pit in her stomach driving in to
work wondering if she was going to be able to get herself to prospect.
She would now have a rather fun routine to cover that for her.

A system at play in every workplace

In the uncoached, micromanaged organization there is an
unconscious default system of judgment and reprimand. This is true
for any unconscious organization, families included! We learned it in
families when we were growing up. You surely learn it in the military.
Most people in American corporations, when you examine their
communication styles and their leadership skills, reflect a 1930s or
1940s system of military management and thats usually combined in
some unhealthy way with parent-child management.
And hands-off coaching is the way out of that.
Because coaching is a mature partnership. Two grown-ups with a
common goal. Not Mad Dad versus Bad Child (how most teams are
Duane says, "Coaching takes a level of commitment, passion and
desire that most people are not willing to give."
A great leader is more committed to the success of the team than he is
to the success of any individual. So his mission when coaching his
people is to show them that success comes from what they can
contribute to the wholenot from how they can stand out as
individuals. And this allows him to apply some very tough love to the
individual in the name of the team win.
"The hands-off manager has to be absolute," says Duane. "He or she
can't be wishy-washy when it comes to excellence. There must be
unwavering commitment to everyone becoming the best they can be
at what they do."


And these results are not numbers or money (although they will be
nice side effects, in the long run).
These results are the ever-improving quality of work. They are the
process of great work, not just the financial outcome.
"We want a team that is so excited that they can't help but produce a
great product," Duane said. "Our love has to show through."
A typical life coach will work with one individual, solely to bring the
individual's talents forward. The hands-off manager, however, has to
add a dimension to thathe or she has to be tougher in the coaching
process and not settle for an okay contribution to the whole. The
point is not to be a babysitter in the name of compassion. The path is
to consistently insist that the player is giving his all to the team. (And
becoming personally fulfilled in the process.)

Know when to fold em

A coach with true commitment to the vision can light you up even
when he's fictional! My wife Kathy was working for a large
organization whose leader was taking hands-off to a negative
extreme. It was no-hands-at-all, no head, no heart, no leadership, no
direction and no vision. Kathy hadnt figured out exactly what felt so
wrong at work each day, but she knew she didn't like it.
Then one afternoon she and I went to a movie called Any Given
Sunday with Al Pacino playing the head football coach of a team in
disarray. In one brilliantly dramatic scene Pacino calls his team
together in the locker room and allows himself to burst like a fountain
of passion and fire. He pours his heart out on the subject of team and
the beauty of all-for-one and one-for-all.
Pacinos teamlike Kathys team at workhad become demoralized.
There were jealousies, politics, and drama going on all day instead of
a single unified mission.
Were in hell! Pacino yelled to his team in the locker room before
the final game of the season. Either we heal as a team or we crumble.
But we can heal. We can fight our way back into the lightwe can

climb out of hell one inch at a time. What will it be? Look into the
eyes of the person next to you. Either we heal nowas a teamor we
will die as individuals.
Kathy was in tears. She knew right then and there what was missing
in the company she was working for. And she knew the missing leader
wasnt just going to appear. There was no Al Pacino to pull them all
back into a team.
When she went to work the following Monday she put in her twoweek notice and hit the pavement looking for other work. The next
company she worked for had true leadership at the top and was a joy
to work for. And had it not been for Pacino in Any Given Sunday she
may never have seen the higher vision.

The main ingredient in stardom is the rest of the team.

John Wooden

If its not fun youre not doing it right

The hands-off coach knows to link mastery to enjoyment.
Theres always a component of greater enjoyment when people get
good at what they do. Notice when you watch a golf match and you
see a golfer enjoying the process. A spring in his step, a twinkle in his
eye. Its true when you watch a car race and see the wicked smile on
Dale Earnhardt Jr.s face. The person without fearthe person
operating on a more joyful level than fearis usually performing in
the most excellent way. Playing to win.
While the person with fear is always playing not to lose.
Great coaching takes the fear out of the workplace. Thats one of the
vital things that the legendary business efficiency guru Dr. W.
Edwards Deming preached to the companies he transformed:
Whatever youve got going on, you must take the fear out of the
system, because that will always sabotage the system.


Should you fire someone for being afraid? Or for being unhappy?
Wow. That sounds like the ultimate cruelty. They are already
unhappy and now you're going to fire them?!?
It reminds me of British philosopher Colin Wilson's observation that
the fastest, most efficient way to change the mental state of a
depressed person would be to throw him down a flight of stairs.
Depression wouldn't be there any more. It would certainly be
replaced by something else.
Although Wilson was being deliberately absurd and insensitive to
depression, his point was worth taking.
Unhappy people don't make as much money as happy people (when
everything else is equal). They don't produce or perform as well in the
workplace, either. So, yes, it is your role as coach to address the issue
and solve it.
Many corporate cultures almost guarantee widespread unhappiness
by being conditioned to be fearful of criticism "from above." Soon
everyone is living in paranoia, hoping nothing "goes wrong" today.
The hands-off manager cultivates a culture of "NO FEAR." Team
mates can be bold, and be happy. They can make mistakes and "fail
Recently a woman who owned a home design business named Stella
sat down with me for some coaching. She wanted to know what to do
about Rosie, one of her veteran employees, who "came to work angry"
every day.
Every day? I asked. She comes in angry every day?
Every day.
"Why does she still work for you?" I asked.
Stella looked stunned. She was taken aback by my question. Which
was the reaction I was hoping for.
I pressed her further. "Does her anger affect your other employees?"
I asked.


"Yes, of course. It makes them very uncomfortable."

"Every day?"
"Just about, yes."
"And what about you? Does her angerthe anger she brings into
workdoes it infect or affect your own mental well-being?"
"All the time. That's why I called you."
"So let's look at it logically," I said. "Businesswhen it succeedsis
logical. When it fails, it's emotional."
Okay," she said.
"What if this personthis Rosiecame into work and sprayed an
aerosol can of skunk mist throughout your showroom and offices
every day. What would you do?"
"I'd tell her to stop. And if she did it again, I'd dismiss her."
"But why?"
"Because she would be damaging our ability to do business."
"And she's not now?"
Stella grew very quiet. Finally she started nodding her head.
"So I just fire her for being angry?"
"No, you coach her. First you see if you can help her find herself so
she can be happy and very proud of her work."
"And if she refuses?"
"You decide whats next. But don't leave it like this. Remember,
nowhere is it written that you have to put up with unhappy or angry
people. It's not in the Bill of Rights."
Stella was even tougher than I expected her to be. The next day that
Rosie showed up angry and cursing, Stella sent her home and told her


to take a paid week off and when she came back next week they would
talk about her future with the organization.
Rosie was stunned, shocked and a little frightened. She had just been
thrown down a flight of stairs.
The hands-off manager is not a coward.


Appendix D:
How to double your income
as a coach
Being a millionaire is the best possible thing you can do for society.
If you have more, you have more to give. If you are financially
independent, then you will not be a financial burden on others.
Contrary to what you have been led to believe, your dream of being a
millionaire is extremely virtuous. Having the status of a millionaire
will give you the influence to make a major difference in the world; it
will give you a voice.
John R. Colt
Theres an exciting concept that anyone can use and we are just
going to call it doubling. We stumbled upon this as a mental
phenomenon years ago when we were coaching a young salesperson,
and he was selling a certain amount of cars a month, and he was only
improving by a little bit each month. So he said, Will you coach
me? and we did.
We sat down with him and said, What would you have to do
differently if you were going to double the amount of cars you sold?
He said, Well, you just dont understand. This is a hard business
and people dont just double what they dothey improve.
We explained to him the difference between creating from the past
and creating from the future. When you create your life from the past
(as most people do) the best future you can ever have is really not the
future at all but a newer, better past. Almost all companies do this. To
chart their future they put up a projection of their past year and then
just improve it by 10 or 12 per cent. Thats not a future, thats a
warmed-over past. Groundhog Day!


To create from the future is to either forget the past completely,

which is hard for the uninitiated mind to do. Or, to take the next best
mental step, look at the past and double it. Just for a mind-stretching
So our car salesman said, Im selling about six cars a month and I
would like to get to eight, maybe even ten. We said, Thats great.
That would be fine, but youre going to think differently if you answer
my question.
We asked him to really seriously look at what his week would be
like, and what his average day would be like, if he had to double his
outputif it was absolutely necessary. That they were going to take
him away and put him in a dark damp jail forever if he didnt do it.
He said, Well, if I had to. And he started coming up with a lot of
unusual and unorthodox ideas about how he could maximize his time,
and multiply the number of conversations he had each day with
prospective customers. He came up with a lot of really wonderful
ideasthings he wouldnt have thought of while thinking about
incremental improvement.
Most people think incrementally. They think about a little bit of an
improvement here or there, or maybe they could raise their coaching
fee just a little bit, or maybe they could start coaching a different kind
of thing, or maybe they could coach groups now, and charge a little
more, and little tiny improvements come in.
But we find that when coaches actually open their minds to
something incredible, something extraordinary, like if they HAD TO
start very quickly making twice what they are now making, ideas start
to flow.
Its amazing what you can do if you have to do it. A lot of people
say, Well, if I absolutely had to double my income, I would work
twice as many hours. I would simply work 16 hours a day instead of
Actually, that would work and what would really happen is that
after the first two or three 16-hour days you would start to find


efficiencies and leverages to take it down to 14 then 12 and still have

your doubling happen. Then youd get it to ten and even eight.
Because out of that heightened consciousness youd find intuitive,
innovative ways to do things that were really powerful and effective.
You would find tasks that you could delegate that you werent
delegating before, so that your time was spent only on activities that
produced income; which would be the 80/20 rule kicking in.
We all know that 80% of our income comes from 20% of our
activities. Almost everybody who looks at their calendar and schedule
will discover that thats true. We actually know coaches who spend
hours poring over taxi cab receipts, expense submissions,
bookkeeping, copy-paper bills, and all kinds of housekeeping when
they could have been transforming the lives of clients and writing
amazing large coaching proposals. They could fill their day with
productive activity.
Thats what we do at the six-month prosperity school for coaching.
(See if you want to enroll in the next one.)
We re-invent and completely renovate how a day is constructed and
how a week is constructed for a coach. That is step one (How do I
spend my day?). It can come from the experimental question, If I
had to double the income and the revenue, what would I do and what
could I do?
A lot of people ask, Well, why dont people just on their own,
double things, or think in terms of doubling? Most people dont
think to do that. The mind likes to stay in homeostasisthe comfort
zone of repeating the past. In most coaches lives you could start their
end-of-day journal this way, It was a day like any other day.
In other words, daily habit protects the status quo all by itself.
Unless its challenged. And when its challenged, when somebody in a
room full of people says to you, What would you do if you had to
double your monthly income as a consultant, coach, public speaker
(whatever you are)? you start thinking of things that youve never
thought of, and you are thinking in ways you havent thought in, and
its a really tremendous experience. The time that Ive spent with
individuals who have looked at their lives this way has been


rewardingits really opened things up for them. Because in the past

(and in their own minds) they havent even had permission from
themselves to think in these ways. The ego will try to control the
status quo and keep the human construct safe from anything
dangerous, anything radical, and anything new. It thinks its doing
you a favor! But when you have a coach, or when you have an
inspiring leader or somebody who gets the best out of you, they wont
think that way, they wont say, I bet you could be 10% better. They
really do believe, and in fact know, you could be twice as prosperous
from what you are doing and you know it too, you just havent
admitted it to yourself.

Time management for coaches

There was a definite process by which one made
people into friends, and it involved talking to them
and listening to them for hours at a time.
Rebecca West
Time management for coaches is a really key factor in whether
their income just explodes or stays stuck. Because coaches bill their
time! So coaches mentally work by the hour, or by the 45 minutes or
by the half hour (even though Sam Beckford does 15-minute coaching
sessions and they are just amazingly productive).
Therefore the time management issue for coaches is really vital
because there are only so many hours in the day that you can use to
coach with. So, its not as if you can fit 20 times more coaching hours
in one day; but in certain ways you actually can.
The key thing is this: the number one way to have time
management start to be really effective for you is to have your fees
raised. When your fees are raised, it really sorts out prospective
clients faster; so you dont have a lot of clinging, high-maintenance
clients that you are working with and that call with tons of questions
and whose coaching sessions descend into therapy.

Now I talk to a lot of coaches who are really tired of the coaching
profession at the end of the week; because of these low-paying or
medium-paying clients whose sessions wander all over the place, (and
then when you coach them again, they havent made any real
progress.) One of the great things that happens when you increase
your fees, is that the commitment-level of clients increases. You have
more committed people. Therefore you get better results. And
because youre getting faster, more dramatic results, you are now
getting faster, more enthusiastic referrals.
A client who has paid you a large fee is really ready to work! If Ive
paid my coach a great deal of moneyand I (Steve) doI am truly
committed inside those coaching sessions to alter my life. I have a
coach that I pay $150,000 a year to and Ive signed a four-year
contract with him! Every year he coaches me, my income goes way
through the roof. So its worth the money to me, but Ill tell you
something. When you write a check to someone for $150,000 and he
recommends something in that coaching session, youre going to go
do it, and youre going to change your life, and youre going to listen
hard, and youre never going to be late to a session, and youre going
to take notes, and youre going to allow your life to be completely
changed based on that fee. Basically, because thats the value you
now place on the service of coaching.
So, if your fees are irrationally low, or modest, or in your mind you
are thinking, Well, I havent coached for long, so I better start out
small, please realize that it will lead to a less committed clientele.
You may get a lot of clients trying you out (and wearing you out) if
youre known as a discount coach, but you will have a very hard time
making a dramatic difference.
Stronger fees, or more rational fees, will actually help do time
management for you. It will sort your life out. It will make it simpler,
cleaner and bolder. Time management for coaches is not an issue of
organization. Its not a matter of how you are going to organize your
office, and your files, and how you are going to do your day planner,
your Blackberry calendar and all of that, as most people believe.
Time management is an issue of boldness. Time management is all
about the courage to say no. And the courage to speak a fee so large
it turns business away.


Time management also means not doing a lot of Rolodexing and

contact building. It means not doing things as a means to an endlike
a free talk that will get you business later sometime. Time
management means you make your money NOW, in this conversation
right here, wherein you ask if the person wishes to receive the
coaching and then instruct where to send the retainer.
It means saying no to nonpaying callers who want your timeto
email from nonpaying people. It means a really good strong,
high-quality no where people are deeply impressed with your no.
No, thank you. No, thats not something I will do, and they are
completely impressed with that and they go away thinking, Im going
to use him or her as a coach.
When your priorities are strong, that helps organize your day in
and of itself. Then ask yourself at the start of each day, not How Many
things you can do today, but How Bold are the things you are going to
do. Give tasks a boldness rating. Because that bold, daring, audacious
coaching proposal to the company youve been talking to is a better
use of your time than all the little things you thought you had to get
done. You know that. But unless you start charting a degree of
difficulty with your task plans you will not manage time well. Youll be
overrun with small items and bothersome time-wasting people and
youll look at the end of the day at the one opportunity you have
postponed. Remember, procrastination is not the problem. Boldness
is the problem. So be fearless in creating your day. Thats where you
have the opportunity EVERY DAY to take a heros journey, in what
you choose to do. Will it be a very brave journey? Or will today be a
day like any other day?
Then, when boldness starts to come in at every point, youll be a
role model for your clients on how ruthlessly simple a professional
life can be. Youll show them how to courageously keep your life
simple and clean and clear, and youll show your clients that thats
what you do, and they can do it too. For a coach, thats really so
important. A coach cant afford to have a life of chaos, hangers-on,
busyness, all kinds of scrambling, all kinds of wild marketing, on
the internet all the time trying to search for new clients. That doesnt
work. It doesnt work as a real bold system that leads to clients, and it
doesnt work for role-modeling.


One thing we find when we are hired by a coach to coach that

coach, that what has been missing in his life (or her life) is
accountability. And so the very fact that they now have a coach that
they are going to talk to regularly and report back to on steps they
have taken to grow their practicethat very fact grows their practice!
No matter how the coach coaches, just that very reporting. That level
of accountability alone changes how a client looks at the week ahead.
If they know that they are going to report progress to someone, they
will make progress. Human nature.
Usually what happens is this: Someone is coaching, and their
consciousness becomes very high during a coaching session; so they
bring the best of themselves to their clients. And they keep changing
their clients lives, and they keep transforming what occurs with a
client, and its really great work; and after the sessions (you know it,
youve experienced it-I have) total exhaustiontotal down time. I
dont want to think about anything. I just want to kind of veg out for
a while and get ready for my next session. Because in each coaching
session, we bring such a high level of attention, and listening, and
consciousnessand we really listen for breakthrough potentials with
our clientsthat when its over we shut down a little bit and take care
of ourselves and re-group, rejuvenate, and relax.
Heres the problem with that. Its not a bad system; however, who
is coaching the coach? In other words, who is making sure that I
myself, am having breakthroughs and seeing innovative ways to
leverage what I do and maximize and optimize my own talent? Who
is looking after that, and the answer is no one. The answer is, there
really isnt any accountability for that. Theres no one I answer to;
because most coaches dont have a board of directors that they report
to and say, Well, in the past 30 days heres what Ive done to grow
my practice. There isnt that kind of feedback or accountability so
the coach is on his own or her own to see that that happens; and at
the end of the day, that usually has not happened.
Now the beautiful thing about having a coach yourself (and we
urge every coach to get one) is that were going to think long and hard
about progress. What have I done? What bold proposal have I put
out? What have I done in the way of delegation? How have my fees
strengthened? What innovative way of serving an existing client has


now been introduced and they are now paying me for? And I will
report that at the end of the week about my project,
And just having this changes consciousness of everything during
the week. Someone calls you from a company that youve coached a
couple of people at before, and youre listening from a different place.
Youre listening from I could grow my practice dramatically if I
played my cards right, right now, instead of, Oh, well, heres
another company person calling and this is good, it might result in a
client, might not. And most coaches Ive talked to, if theyre not
really being held accountable for growing their practice, simply dont
grow it. They will get a call from a company saying, Weve got a
couple more people were interested in having you coach, and theyll
just say, Well, OK, thank you. Give me their names, Ill see if I can
chat them up and talk to them and then Ill get back to you and send a
little invoice over and well get rolling, and everything is just so
mediocre and low key and down trodden that it really doesnt grow
the practice.
What needs to happen for a practice to become vibrant and vital is
for that call to come in and for me to now say, Ive got a whole new
way of doing things that Id like to talk to you about that I believe
would benefit you and your company a great deal more than the way
weve been doing business together. When do you have time on
Friday that I can come by? So now Im going over with a whole
new proposal thats bolder, stronger, more long-term and has a
very nice retainer fee in it for me, and I report that on Friday and,
bingo, it looks great and it feels great. I feel like a winner, and that is
whats missing in most coaching practicesaccountability of any
There is one kind of accountability that we hear about and that is
the coach goes home at night, talks to the spouse or partner about
whats going on and kind-of says, Well, you know its looking good,
Im doing better and time will tell, and experience helps, and you
cant help but get a little better. And then at the end of the year its
like, Yeah well, we did it but 10%... I dont know why youre
complaining, of course we cant afford everything you want, but we
did 10% better, and theres really a sense of defensiveness in it and a
sense of burden, and misery, and my gosh, why do I have to explain


myself? Its so much better to have it be pure, success, accountability

and it really works for coaches. Its really the missing piece.

Grow your practice by doing less work

One of the great ways of growing a practice is to do less work. Of
course, this is counter-intuitive, but the paradox actually works.
If you have at least one designated day a week where you do no
business, no coaching, nothing to grow your practice, and youre just
away from work and you are on vacation and youre spending a great
time with people you care about or youre reading, or you are working
out, or youre walking by the beach, or you are playing golf, you will
be amazed at how that improves the other four days and makes them
more prosperous and makes your whole practice more effective.
Theres a reason for that! There is a certain level of esteem that a
coach feels that gets transferred to a coaching prospect during an
exploratory conversation. Because, in the end, people dont pay you
what they think you are worth. They pay you what you think you are
worth. And this is reflected in the way you live, and the way you speak
and the way you communicate with them.
So if your whole life is not strong and impressive, in and of itself,
that will cause you great problems in the long run. Because there are
huge self-esteem issues that come into play here. Your lifestyle is vital
to the success of your coaching. It is powerful, and its a key to the
success of your practice.


How to grow a coaching practice

is not as important as WANTING TO
The how to is not as important as the want to. And the want
to is triggered by the decision to. People who make a decision to
double their income as a coach, or consultant, or public speaker, have
already done it. Thats it right there. That decision changes
Now heres the big myth out in the world. All the people we
coachincluding over 20 Fortune 500 companies over the yearsget
sidetracked by a single myth about life. Even coaches that we coach
are thrown by it. And that is this: they believe that they have to know
how to do something before they can do it. And thats just not true.
It stops so many people! Because they think they have to learn how to
do something! So they dont do things because they dont know
how! Well knowing how is not necessary.
People back off from doing so many great things because they say
they dont know how to do them. I talk to business owners who
would love to build a sales team of great people and they tell me, Ive
always wanted to do that, but I dont know how. So they dont do it.
People say, Ive always wanted to turn a lot of this business over to
someone else, but I dont know how to do it. So they dont.
But not knowing how is really not whats stopping them.
Remember this forever: You dont need to know how to do something
in order to do it. And thats something that most people dont realize.
For you to do something you dont need to know how to do it! Now
I know that sounds somewhat bizarre, but its absolutely true. When
you decide, and really decide, that you are going to do something, the
how to is easily found, many times on the fly.
The first step is the decision that Im going to! Once youve
decided you will and you are going to, then all the tips, techniques,
proven methods, ideastheyre there. They are out there. There are
so many coaches who have improved their income by much greater
factors than doubling; and weve worked with them, and weve both

been one of them. We have MORE than doubled by following the

ideas in this book.
But the key was not the things we learned how to do (although all
those are in the school) the key was deciding to do it.
People are stopped by giving an exaggerated respect to the how
to. You ask them when youre coaching them, How about this idea?
Have you ever thought about doing this?
Well, Ive always wanted to do that but I didnt know how to!
And thats why they didnt do it. We had a client the other day who
said, Ive got this great product and I dont know how to put the sales
team together to run itI just dont know how to do it and its
stopped me for about the last year.
Well, the truth was, she didnt want to do it yet. If we can see
that, we have opportunity. Most coaches cant see that. They buy into
their clients stories about not knowing how to do something yet.
But they wouldnt have had to know how to do it. Thats not
necessary. We have people contact us constantly who read our books
and they say, I want to be a public speaker. I think Ive got a lot to
say, and I think Im really good, and I think I could make a lot of
money, and the only thing missing is I dont know how to do it. How
do you get started?
Well, you dont need to know how to do it if you want to do it.
Steve remembers, When I did it, I didnt know how to do it. I just
made a decision, Im doing this, and I began stumbling around,
figuring this out and finding that out, and I did it. Anybody who
really wants to do something doesnt need to know how to do it.
Now lets give a final example of that. Lets say that somebody told
you they would pay you ten million dollars if you ran a marathon a
year from now, and youre not even a runner, but all you have to do is
finish a marathon. Would you say, Well, I dont know how to train
for a marathon so Ill have to decline your offer! Well, no. We dont
think you would say that.


You know in the back of your mind that there are so many
thousands of people who know how to do it, you can find that out.
Youve decided right now, yes, Ill run a marathon, Ill take the ten
million dollars even though I dont know how. Now lets go a step
further. What if we say the restriction is that you cant use anybodys
knowledge on how to train. You cant even find knowledge on the
Internet or anywhere elseyou have to do that on your own, even
though you dont know how.
Well, you still run the marathon in a year because you would figure
out on your own how to train for it, through trial and error; so you
dont even have to access the Internet, which we all have, or books,
which we all have. Even if you cant access those, you can decide what
you decide to do. You can decide to do anything. Even become a
millionaire coach.
Thats the important message here. The how to is never whats
missing. The want to is whats missing. And we dont mean that in
an accusatory way. We dont mean to say the clients we have worked
with didnt have the desire. Heres really what it was. They had not
yet made the decision.
Thats all it was. Its not like theres something missing in them.
Like they dont have the character, or the willpower or the desire; or
like some people say the fire in the belly. Theyre not missing any of
thatthey simply havent decided yet! But once you decide you are
going to do anything powerfullike doubling your income from now
ononce you decide, thats more than 50% of the battle. Wed say
thats 90%. That decision alone.


And heres a final word from 100 Ways to

Motivate Others:
"A teacher affects eternity. He can never tell
where his influence stops."
Henry B. Adams
Great coaches always cite the coaches they themselves learned
from. In today's environment, most (surveys show over 70%) of
today's top business leaders have coaches.personal success coaches
or life coaches who take them to higher levels of success than they
ever could have attained on their own.
The object of the coaching process is to allow the leader to discover
his or her hidden strengths and bring them to the forefront in the
daily life of the business. Every great actor, dancer and athlete credits
most of their career progress to a coach who gave them support and
teaching along the way. In the past, our society has celebrated the
concept of coaching in sports and show business, because those were
fields where excellence was always expected. Business was just
But because of coaching, today's business leader has the same
opportunity to explore the upper limits of his or her excellence as
does a sports star or an actor. Coaching makes that opportunity a
conscious part of the leader's career.
Remember this quote? "I absolutely believe that people, unless
coached, never reach their maximum capabilities," said Bob Nardelli,
former CEO of Home Depot. If you're a leader, be open to being
coached. There's no value in going it alone just to prove you can.


A message from Steve Chandler about learning to

live the fearless and successful life
Do not follow the path
Go where there is no path
to begin the trail.
Ashanti proverb

Dear Fellow Traveler,

Fear closes the human mind. It shuts it down. Soon the mind
is contracted and shivering in the corner. But when you open your
mind to the soft upward spiral of repeated shifts, it soars. And soon
what you wanted to "succeed at" becomes a joke . . . it's so easy to
do. That's been my experience, anyway. And so on a series of ten
CDs called MindShift I share it with you.
All my life I waited for this moment: the chance to say that I
no longer need to coach you or train you or write a book for you,
because it's all contained here: in this new program that teaches
you to MIND SHIFT.
It took me 10 CDs to say to you what I wanted to say about
success and how to achieve what you want to achieve. How to shift
upward from fear to grace and courage and pure action. It's a shift
that anyone can do, because it's a shift that happens in the mind.
What if fear were the only real problem you had? Well, it is.
And what if a series of shifts in your mind could take you above all
that so you could achieve what you always wanted to achieve?

So listen to these CDs and allow them to become a part of

who you are. Play them over and over and don't get too literal or
linear about what you are "learning," but just let your mind roam
freely while you listen. I've recorded them slowly in a very
low-key way so that you can listen again and again and let your
mind drift in and out of the content. Soon it will be yours.
What would the ultimate success course have in it? That's
what I wondered as I went through the years sampling success
courses by all the motivational greats and the New Age gurus.
Then one day I thought, why don't I just turn on the microphone
and say what it is?
Of all the books I've written, of all the audios I've made, this
is what I would leave behind. If I could just leave behind one thing
for my children and their children, and you and your children, it
would be this. It would be MindShift, because it's the only thing
that says what I really wanted to say. A mind that is open will shift.
Go here to order it:

Sincerely Yours,
Steve Chandler

To help you create the courage to
change the things you can!

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