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The coaching industry has experienced significant growth in recent years, thanks to the proliferation of online coaching businesses. However, in a field that is often focused on developing sales and marketing, the importance of retention can sometimes be overlooked. Michael Chu, creator and CEO of the Health and Wealth Academy and Champion Development Coaching Company, is changing that narrative. In a recent interview, Chu discussed how his focus on retention has led to massive success in helping coaches achieve life-changing experiences.
Chu’s expertise in retention was born out of his early experiences in the direct sales industry, where commission-based sales often resulted in high turnover rates. Chu recognized that a focus on attracting new clients was not sustainable if he wanted to build a successful, long-term business. Instead, he developed systems that would help him keep his salespeople for longer periods of time, which he then applied to his coaching businesses.
Chu’s success in the coaching industry has been built on his ability to deliver results for his clients. He began his coaching journey with the Health and Wealth Academy, an online peak performance, fitness, and weight loss coaching program that he grew to two to three hundred thousand dollars per month using organic marketing strategies. Chu’s passion for coaching led him to develop systems that he used to build three successful, multi-million dollar businesses before he even entered the coaching world. The three successful multi-million dollar businesses he had before the coaching world had generated over $100 Million in revenue for bigger corporations.
Your Best Leads Come from Your Existing Clients
Chu’s emphasis on retention is based on the idea that the best leads come from existing clients. By focusing on providing outstanding service to current clients, coaches can avoid giving them reasons to leave. Chu stresses that the key to building a successful business that has true value and is built to last is establishing proper expectations for clients, having a delivery roadmap to client success, fostering a community and having a system for predictable LTV.
Chu says that most people don’t follow Jay Abraham’s advice when it comes to growing your business and generating more revenue. Jay Abraham mentions there’s three things you could do.
- You could get more clients
- You could increase your average price
- You could get your paying clients to stay longer and pay more often
Chu says most people are stuck in #1 where they have to continually get more clients which could feel like you’re on a hamster wheel. However, if you focus on building out your LTV method like Michael Chu has, you have a predictable basis of MRR (Monthly Recurring Revenue). He says that most companies in the health space hardly get to 7-figures because average companies keep their clients for 3-4 months but with their company the Health and Wealth Academy they keep clients for 3 to 4 years.
In fact, his academy has 88 to 95% retention depending on some quarters with an annual retention rate of 90%. Chu has $100K at the start of every month in recurring revenue before they even sell a single new client.
Chu’s method has even worked for some of the biggest names in his industry and their work together has helped them unlock $1 Million Dollars in just the first 90 days by using the LTV Method. As this is his 5th 7-figure organization, his success with his clients and his company has helped him become #548 in Inc’s 500 Fastest Growing Companies in America.
Creating Life Changing Experiences
Chu’s goal is not just to teach coaches how to build successful businesses but to show them how to create life-changing experiences for their clients. He believes that coaching is about leadership, and that great coaches are those who provide value to their clients and create a positive impact in their lives. By focusing on retention, coaches can build long-term relationships with their clients, leading to greater success for both parties.
Chu’s story is a reminder that success in the coaching industry is not just about generating leads and making sales. Instead, it’s about providing outstanding service, creating life-changing experiences for clients, and building long-term relationships. Chu’s expertise in retention provides a roadmap for coaches looking to build successful businesses and create a positive impact in the lives of their clients.
