If there’s ever been an industry milestone set by marketing gurus, it has got to be making six figures as an online health and fitness coach. However, very few people actually talk about what it looks like to reach six figures, how realistic it is to maintain, and what it might mean for taxes.
My name is Annie Miller and I help you build a sustainable online health and fitness business without selling your soul to vanity metrics or having to do sales calls if you don’t want to do them.
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Allow me to be the person who sheds light for you onto the reality of making $100,000.
Note: I said making $100,000 which leads us to point number one.
There is a difference between you making six figures and your business generating six figures. Both are awesome goals to have, but they are not necessarily the same thing. The revenue that your business generates is just that revenue. It is not your personal income, though.
The structure of your business entity does matter when saying that.
So yes, if you are a sole proprietor, then you can pull money from your business, but it would still need to be transferred to a personal account before spending that money on personal things.
Once you’re an LLC or an S-Corporation, you might pay yourself a set monthly salary, no matter your entity type. Business money and personal money are not the same. That’s the point.
The next thing that I want you to think about if you want to hit six figures, which is a respectable and worthwhile goal, is the “how”.
How do you want to make six figures? In my own experience, I was bombarded with “coaches who coach coaches” sliding into my DMs, telling me that they love what I’m doing and they see potential in my business, but they could help me reach X metric… (umm barf).
They all had the same tactics…
Cold DMing, getting prospects on a call, hiding prices, and then charging up the butt for one single service. Sending someone a cold direct message (someone you have established no relationship with) is incredibly impersonal and off-putting, in my opinion.
This is one business model that you could use, but if you know about my Fitspro Foundations course, you know that I don’t think that “one size fits all” works for a fitness business or life in general.
You have options and how you’re going to reach that six-figure milestone in your business.
Be careful in buying into a business model that doesn’t actually align with what you want for your life. Life and business need to go hand in hand.
They should play nicely with one another, or at least that is my personal perspective, especially if building a personal brand.
Note: Sales calls into a high ticket offer is not a bad thing. I want to make that clear. It’s also probably the fastest way to make that $100,000. But what happens after you see that $100,000 generated in your Stripe account?
Do you just keep doing sales calls all day?
Is that your growth plan for your business?
That’s what I want you to look at.
For me, I traveled the world full-time during the season that I was working to scale my business. Meaning, that I’d maxed out my one-on-one roster and was building out a membership to scale through.
That’s how I personally hit $10K months and $100K years. I had to find another way because being on sales calls or even client calls while jumping in different time zones was not a business model that was going to work for me. And frankly, I don’t think it is a business model that works for a lot of people, in particular, parents or students who have busy and or unpredictable schedules.
Let me be clear here. I do think one-on-one higher ticket services are the best way to start an online health and fitness business for most people, but that could be a whole other blog in itself.
This approach may be how you reach your six figures. I just want you to think beyond that and be sure that you’re approaching the milestone with a business model that makes sense for scaling beyond that six figures or simply nailing that six figures.
Hitting $100K and beyond oftentimes means that it’s time to hire a virtual assistant or an assistant coach. It could also mean maybe paying someone or using some software to help your business run more efficiently.
Doing this makes more space to serve more clients and therefore generate higher revenue.
Consider that hitting those six figures and beyond may also involve hiring help.
So you’ve now made $100,000 and now have to pay the government $30,000 of that (LOL)… I’m kidding, kind of.
Obviously, we have write-offs in ways to decrease our total taxable income. You need to consult an accountant for that to be clear, but in general, I want you to be prepared to pay taxes as you build a more profitable business.
Taxes are a reality of having a successful, profitable business. You can’t play the “I want the biggest return” game forever. If you actually want to build a legitimate business in the long term, paying taxes just becomes another business expense.
It’s not fun. It is your hard earned money, especially when you are a self-made entrepreneur. I get that, but if you can swing it to be a good thing, it may reduce the sting a little bit.
I personally keep a bank account titled The Government’s Money, and that started back in 2018 or so, and I based that off of the book Profit First, which I highly recommend you read if you are interested in finances and business.
This final point could be my own projection, but I’ve seen that often six figures is touted as some parallel to a glamorous life. While I do think that it’s a big milestone and you can absolutely be proud of it (yes, you can want it)…
It does come with paying more taxes, having to maintain and scale it, and more business expenses just come with that. 100% still worth it to keep going, just don’t forget:
The more that you make, the more often they want you to pay.
I now pay the IRS what most Americans would consider a very hefty salary. It’s all part of the game, and I still think that capitalism is the goat.
Go get after it.
Build your business.
Don’t be a slime bag in the DMs and tell them that Annie sent you.
Drop a comment below and let me know if you offer one-on-one coaching currently and if you plan or want to scale beyond that.
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I'm an adventurous introvert from Vancouver, Washington who lives on sleep + "me time." I'm a lover of lifting weights, dinosaurs, real talk and traveling with my husband. I am here to help you move better, lift more, bust the myths of the fitness industry, and inspire you to love the process.
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