Legal Contract Essentials for Business Coaches | What you need to make sure you’re protected!
Over the past few months, I've been working closely with my business coaching clients to address a vital but often overlooked issue: the promises that coaches make in their marketing (including on their sales pages and in their ‘transformation promises’).
As a business lawyer for coaches, creatives, and consultants, I've seen the potential pitfalls of making guarantees that go beyond what any coach or service provider can reasonably deliver. Here's why it's essential to get clear on what you can and can't promise—and how doing so can set you up for a successful, legally sound coaching business.
1. Why Your Promises Matter
In today’s competitive online space, coaches are encouraged to highlight the transformations they offer. Sales pages, social media ads, and website copy all focus on results like "Transform your business," "Increase your revenue," or "Get booked out with clients." While this messaging is designed to appeal to potential clients, making specific guarantees like revenue increases or full client bookings can be legally risky. If you're promising results that you can't control or guarantee, you’re potentially setting yourself up for legal trouble, particularly under consumer protection laws set out in the Australian Consumer Law.
In my experience, when I see a business coach promising specific results—like “double your revenue” or “become a top speaker”—it raises a red flag. These claims suggest the coach may lack an understanding of their legal obligations, and this could easily lead to broken trust and dissatisfied clients if expectations aren’t met.
2. Getting Clear on Your Expertise and Qualifications
One of the first steps in crafting honest promises is being transparent about your qualifications and expertise. It’s crucial to represent your skills accurately and avoid overinflating your credentials. For example, if you hold an outdated accounting or legal qualification, avoid marketing yourself as a current accountant or solicitor – the reality is unless you’re actively licensed and insured and are keeping up with your continuing education requirements, you have no business calling yourself an accountant or solicitor. Misrepresenting your credentials or experience may not only mislead clients but also expose you to legal liability if clients rely on those misrepresented qualifications.
Consider this scenario: you hold an old degree in law or accounting but no longer hold a practicing certificate, or you’re not registered with a professional body. If a client hires you expecting legal or financial advice based on that outdated qualification, you’re at risk and could be exposed to liability if they rely on your advice and experience negative outcomes.
3. Understanding What You Can (and can’t) Promise
As a business coach, you provide valuable guidance, tools, and support, but ultimately, you’re not responsible for the unique decisions, implementations, or intricacies of each client’s business. This means you can’t guarantee specific outcomes like revenue targets or client bookings. What you can promise is to support your clients in working toward their goals, providing them with the strategies, materials, and guidance that, if applied diligently, can increase their prospects of certain success. This sets realistic expectations and fosters trust without making guarantees you can’t control.
For example:
Don’t say: "Work with me and double your revenue."
Instead, say: "I’ll provide you with tools to focus on increasing your revenue."
4. Reviewing Your Marketing and Agreements
Given the nuances between what you can and can’t promise, it’s helpful to review your marketing materials and client agreements. Look over your sales pages, website copy, and social media ads to ensure your messaging is accurate and aligns with what you can genuinely deliver. If needed, refine these messages to eliminate any misleading guarantees and keep your promises grounded in what you can reasonably support.
After this, make sure your disclaimers and liability clauses are consistent throughout your client agreements or your client service terms and conditions. Legal contracts for business coaches should be clear about the limits of your coaching services. Disclaimers should clarify that you aren’t responsible for client outcomes and that clients must consult licensed professionals (like accountants or solicitors) for specific advice outside your expertise.
5. Keeping Consistency from Start to Finish
To foster trust and protect your business, it’s vital to ensure consistency in all client touchpoints—from your initial marketing to your service delivery. Every part of your process should reinforce what you offer and what clients can expect, making sure there are no misalignments that could lead to confusion or disappointment later.
When you work with a new client, outline what your coaching will involve and clarify that you won’t provide legal, financial, or other specialised advice unless you’re explicitly qualified. This transparency helps manage expectations, reduces misunderstandings, and protects your business from liability risks.
6. A Holistic Approach to Client Success
As a business coach, your role isn’t just about promising outcomes but rather guiding and equipping clients to work toward achieving their goals. By setting clear, realistic promises, you’re not only protecting your business but also building the trust and credibility that are foundational to long-term success.
In my work with clients, I take time to understand their processes, messaging, and promises so I can provide advice and tailor solutions that work. This clarity enables coaches to confidently engage clients, knowing they’re positioned to meet and exceed expectations without over-promising. Taking this extra step to refine your language and protect yourself legally may seem like a small detail, but it makes a big difference in building a successful, resilient business that clients can trust.
I talk more about this topic in Episode #186 of the Rise Up in Business podcast What promises can you legally make as a Business Coach? , and I encourage you to take a listen.
If reading this has made you question the promises you are making – you don’t have to endure sleepless nights worrying about whether you’ve got this wrong; I’m here to help. Reach out here and let’s chat so we can restore your peace of mind.
