What Every Business Coach Needs to know about Income Claims and Guarantees

Success sells. 

In the competitive world of business coaching, it’s tempting to make bold promises to attract clients. Phrases like “I’ll help you hit six figures in six months” or “Double your income in 90 days” can grab attention and build trust with potential clients. But these income and results-based claims can also lead to serious legal and ethical consequences if not handled properly.

As a business coach, your goal is to help your clients succeed, but guaranteeing results is a slippery slope.  In this blog I'll discuss the risks associated with income claims, the importance of using disclaimers, and how to structure your marketing and contracts to protect your business while still highlighting the value you'll bring to your coaching clients.

Why Business Coaches Make Income or Results-Based Claims

As a business coach, your ability to attract clients often hinges on demonstrating the value you bring to the table. Highlighting success stories, sharing client testimonials, and showcasing impressive results are all effective marketing tools.

The pressure to differentiate yourself from other coaches can lead to promises of specific outcomes—like hitting a revenue milestone, attracting a certain number of clients, or achieving a measurable transformation. While these promises can inspire confidence in potential clients, they also set expectations that may be impossible to meet due to factors outside your control.

It’s critical to balance ambitious marketing with realistic commitments to avoid overpromising and underdelivering.

 

The Legal Risks of Income Claims

Making income or results-based claims without proper evidence can open the door to legal trouble.

1. False Advertising

In the U.S., the Federal Trade Commission (FTC) regulates marketing and advertising practices to ensure they are not misleading. Similarly, in Canada, the Competition Act prohibits false or deceptive marketing. If you claim that clients will achieve a specific income increase or business result, you must have verifiable evidence to back it up.

2. You better have proof

Coaches who make income claims are legally obligated to prove that their statements are accurate and typical of what clients can expect to achieve by working with you. Another way of thinking about this is asking yourself - are the claims, results and testimonials you're showcasing the average of what your clients achieve by working with you. Testimonials, case studies, or results from one or two clients who had atypical results won’t cut it unless you disclose (next to that testimonial) that these outcomes are not typical and not guaranteed. 

3. Client Disputes

If a client feels misled by your claims, they could demand a refund, leave damaging reviews, or even take legal action. This could result in financial losses and reputational harm, both of which are difficult to recover from. Too many of these could get you flagged to the FTC. 

Disclaimers and Income Claims

Disclaimers are a powerful tool to set realistic expectations and protect your business from liability. 

What are Disclaimers?

Disclaimers clarify that while you aim to support your clients, their results depend on many factors, including their own effort and circumstances. They signal that you cannot guarantee specific outcomes.

Examples of Effective Disclaimers

• "Results may vary based on individual circumstances and effort."
• "No guarantees of specific income or business outcomes are made."

Where to Place Disclaimers

• On Your Website: Include disclaimers on your sales pages, testimonials, and program descriptions.
• In Your Contracts: Clearly outline limitations and client responsibilities.
• In Marketing Materials: Add disclaimers to social media posts, emails, and webinars where income claims or success stories are shared.

Remember, disclaimers must be easy to understand and clearly visible to be legally effective. Using specific disclaimers does not mean you don't have to still comply with other requirements (realistic results and income claims) - they are meant to compliment, not replace, your honest marketing.  

Managing Expectations using your Client Coaching Contract

Your client coaching contract is another important way to manage client expectations while also protecting yourself against disputes over income claims or results. Here are a few things that should be included. 

1. Set Clear Expectations

Outline what clients can expect from your coaching services, including the scope of work, deliverables, and timeline.

2. Avoid Specific Guarantees

Be mindful of the wording in your contract. Avoid phrases like “you will achieve” or “you are guaranteed” and replace them with “we will work towards” or “our goal is to support you in.”

3. Include a Results Disclaimer Clause

Specific disclaimers relating to the services you provide are an important tool to limit your liability and rely on if a client isn't happy with the results they've achieved from working with you, for whatever reason. 

 

Ethical Marketing Strategies for Business Coaches

You can still showcase your expertise and attract clients without making risky promises. Here’s how:

1. Share Success Stories Responsibly

Highlight client wins but include a disclaimer like: “This is an example of one client’s results; outcomes vary.” This demonstrates transparency while showing the potential of your services.

2. Focus on the Process

Instead of promising specific results, emphasize the tools, strategies, and support you provide to help clients achieve their goals.

3. Build Trust Through Transparency

Honest marketing builds long-term relationships. Clients appreciate candidness about the factors that influence success, rather than overhyped guarantees.

 

Conclusion and Action Steps

While income and results-based claims might seem like the key to attracting clients, they can lead to serious legal and ethical issues if not handled carefully. Protect your business by:

• Avoiding guarantees in your marketing.
• Using clear disclaimers in your materials.
• Structuring your client agreements to set realistic expectations.

Now is the perfect time to review your marketing materials and contracts to ensure they align with these best practices. If you’re unsure where to start, consider using a customizable coaching agreement template tailored to business coaches.

Legal compliance and ethical marketing aren’t just safeguards—they’re also ways to build trust and credibility with your clients, setting your coaching business up for long-term success.