The Real Difference Between Therapy and Coaching [From a Therapist & Coach]
Takeaway: Therapy and coaching have a lot in common. Life coaching continues to grow in popularity and more and more mental health counselors want to add coaching offers to their services. In order to do that there are key differences to be aware of. I would know–I’m both a therapist and a coach! In this post, I’ll break down the differences between the two professions, help you decide whether to start offering coaching, and give my insight from my own personal and professional experience.
Defining therapy and coaching
The past 5 years have seen incredible growth in both the therapy and coaching industries. Life coaches have become more "trauma-informed," offering coaching sessions that increasingly look a lot like therapy.
Meanwhile, therapists have gotten more "coachy"—they self-disclose more and are often directive and action-oriented. Therapists have started marketing like coaches, using social media and their own lived experience as evidence of their expertise on particular issues. And coaches have started marketing like therapists by highlighting their somatic orientation and ability to deal with mental health issues like grief, trauma, and eating disorders. In some cases, coaches even (illegally) call themselves therapists.
If these two services sound similar, you're not crazy. The lines between coaching and therapy have gotten blurry, but this blog will clarify the differences and help you decide if you want to step into the world of coaching!
So WTF is the difference between therapy and coaching?
And as a therapist, should you offer coaching? How do you make sure you're doing so legally and ethically? Mental health professionals who want to start offering coaching need to pay particular attention to distinguishing between the services and know how to clearly communicate the difference between therapy and coaching to clients.
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Therapy is mental health care and therapists treat mental illness. This is the major difference between coaching and therapy. Therapists are highly trained practitioners, with master's degrees or above, and are licensed by state boards after meeting rigorous requirements. As licensed professionals, therapists can diagnose mental health disorders, treat mental health symptoms, and directly address past trauma.
Therapists don't just help clients with acute mental health challenges; they also help clients improve their overall well-being. Therapy services include individual, couples, family, child, or group therapy sessions and clinical supervision.
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Coaching is not considered health care and is not covered by health insurance. A good rule of thumb is coaches can help with personal and professional growth but they should not work with trauma directly and should not delve deeply into a client's past.
Though some coaches choose to get specific training to become coaches, most do not. Coaches help their clients achieve personal goals and can focus on all sorts of life areas like physical health, relationships, career, boundaries, sobriety, and so many other areas. Coaches can work with clients one-on-one and they can offer workshops, retreats, group programs, and digital courses.
Again, the most crucial difference between the two fields is one is health care and the other is not. As such, therapists have many more restrictions and requirements governing their work.
However, the differences go beyond this basic principle. In the next section, we'll take a deeper dive into the main differences between the two professions.
Understanding the difference between coaching and therapy
While both life coaching and therapy have a lot in common, there are major differences you should know about.
One of the best things about coaching is that you don't need any additional training or certification to work with clients as a life coach! You have a lot more freedom in terms of the kinds of services you can offer. You can presell coaching services (a no-go for therapists) if you need a cash infusion now. You will be limited as a coach in some ways. As a life coach, you can't treat mental health disorders and you shouldn't delve into a client's past.
How are coaches and therapists trained and regulated?
In the United States, a therapist is a professional with either a master's degree in something like counseling psychology or social work or a doctorate degree in psychiatry (MD) or psychology (usually a PsyD rather than a PhD).
Therapists are licensed by states to provide mental health services to residents of that state. Professionals who have obtained their master's or doctoral degrees are provisionally licensed therapists or "associate therapists.'"Therapists generally cannot prescribe medication unless they are a psychiatrist.
Coaches are unlicensed and unregulated. Coaches are not required to have any training or education in coaching, though there are training associations like the International Coaching Federation and there is an effort to bring more regulation into the coaching industry to establish standards and protect clients. As of 2021, there were over 44,000 coaches who hold one of three ICF credentials.
That being said, literally anyone can decide to be a coach in anything they want and start charging the public for services.
What issues can coaches and therapists help a client with?
In many ways, a therapist can help a client with more issues and has access to a broader range of time than a coach does.
As a therapist and healthcare professional, you can delve into a client's past trauma, relationships, and experiences to shed light on current issues and alleviate symptoms. In some cases, you can even directly treat trauma through interventions like EMDR and Somatic Experiencing. In psychotherapy, you can treat and diagnose mental health disorders from anxiety to more severe issues like suicidality, sexual trauma, and psychosis.
As a coach, this is a no-go. Coaches don't spend time processing the past nor should they attempt to treat mental illness. Coaches work with clients to identify obstacles, clarify goals, and create action plans to achieve specific behavioral outcomes.
But you shouldn't catch a good coach spending a whole session learning about a client's childhood relationship with their estranged parent or attempting to treat bipolar disorder. In general, coaches focus on improving a client's life instead of alleviating symptoms.
What kind of services can therapists and coaches offer?
One of the main reasons therapists become coaches is because they want more freedom. As a coach, you have many options for how to serve your clients: workshops, courses, retreats, group programs, one-on-one coaching, memberships, and more. You also have the freedom to work with clients across state lines and even all over the world!
Since mental health counseling is a regulated profession, there are only certain services you can offer as a therapist. Individual therapy is therapy. Group therapy is therapy. A self-paced course, workshop, or retreat is not. It doesn't mean you can't create and offer workshops, courses, or retreats. It just means you may want to consider opening a different business for those coaching services.
Plus, therapists can only work with clients who are physically located in states where they're licensed. This can limit therapists' reach and disrupt continuity of care when a client relocates.
How do therapists and coaches get paid?
Therapists are paid on a per-session basis when clients attend therapy. Coaches often get paid for a "package" of services ahead of time. Coaches have much more flexibility when it comes to their pricing and packaging. They can change prices without having to adhere to ethical codes, offer discounts, require pay in full, or offer payment plans. Because coaching clients usually sign a contract, a coach may be able to create more predictability in their income than a therapist could.
What happens if a client is unhappy with your work?
Therapy clients can report their therapists to state licensing boards. The state regulatory body will investigate the complaint and take disciplinary action if needed. Under some circumstances, therapists may even lose their licenses.
If a coaching client is harmed, they can file a local complaint against the coach's business or if the coach did something illegal, they can file a police report. But coaches don't have a license to lose so sometimes providers feel that there's less risk.
Therapy vs. coaching at a glance ↓
As you can see, each profession has its own set of restrictions and advantages. That's why so many therapists decide to add coaching to create some variety, increase cash flow, and serve even more clients, sometimes without adding more direct services to their day!
Deciding whether coaching is the right fit for you
Coaching appeals to therapists for so many reasons: less intense subject matter, larger pool of clients, less regulation, and more options for services. So, how do you know if coaching is right for you?
Here are some signs that you may want to consider expanding into coaching services.
You want a break from dealing with mental health problems all the time.
Working as a mental health professional can be draining. Maybe you love working with people one-on-one but want to help people with less intense subject matter. Working as a life coach doesn't require any additional training, and you can choose an area that's more focused on personal growth and less on symptom alleviation.
You notice you're already being "coachy" with your therapy clients and like it.
If you find that the line between psychoeducation and coaching is getting blurry in your therapy sessions, you may enjoy coaching. Of course, coaching isn't just telling people what to do, but if you love teaching, mentoring, and guiding in a more strategic way, you might love coaching. You can turn your great ideas into a program, course, retreat, or book that can help not just people in your local area, but people all over the world!
You want to use your skills and expertise in a new way.
There are a lot of restrictions to what you can do as a therapist. I remember being told I couldn't walk with a client outside while I worked at an agency. But what if a client would benefit from outdoor work or a more hands-on approach? What if you know you could change a client's life through a retreat, online course, or workbook? Working as a coach allows you the flexibility to create a variety of offers that meet client needs AND create a more fulfilling career for you.
You want to be way more bold in your work.
There's nothing that says you can't be a bold, badass therapist but that sneaky "good therapist conditioning" does tend to mute our fire. Without the fear of losing a license, you may find you feel more empowered to get creative in your work with clients.
You're tired of not being able to work with clients who don't live in your state.
It's starting to feel a little arbitrary that we can't work with clients across state lines, ya know? My guess is you've felt frustrated by this at least once. With coaching, state lines aren't an obstacle. If you create an online coaching business, your reach is potentially global.
You want to make large amounts of money fast and have a more predictable income.
Because you can sell high-end coaching packages before you provide the service, you can increase your revenue FAST. This is great if you have a slump in your therapy practice and need cash now. With coaching, you have the option to offer discounts to increase sales. Selling services ahead of time or offering discounts just isn't an option with therapy.
Furthermore, coaching clients typically sign service contracts. Having legally binding contracts ensures you'll get paid for the full value of your service. Even if your therapy clients stick around for months or years, there's still no guarantee. With coaching, you can sell multi-month packages and be able to predict your income well into the future. This creates peace of mind and allows you to plan your future financial investments.
Still not sure if coaching is right for you? I get the hesitation—and I know that you already have the skills you need to be a great coach. Let's explore that more.
Why therapists make great coaches
Therapists make great coaches! I am always so excited when I see mental health counselors get into the coaching world. You already have fantastic training and experience to hold humans in all their multitudes, and the coaching industry needs more highly trained practitioners in their ranks.
You may have some understandable hesitation about stepping into the coaching world, especially if you've seen clients get burned by scammy, unethical coaches. However, I'd argue that this is an even better reason why experts like you are a great fit for coaching.
Not convinced? Here's why I think you'd be a highly effective life coach.
You don't need more training to offer life coaching.
Many therapists think they need to get additional training to be a life coach. You don't! If you're a licensed therapist reading this, you have literally thousands of hours of experience working with clients and receiving years of training and education to hone your skillset. Most coaches will never get close to touching this kind of training experience. When I advise therapists transitioning to coaching, I tell them they would be better off investing in help with their businesses.
You deserve a fun and rewarding career.
Therapists tend to focus on what's not working. Day after day working with mental illnesses can take a toll. Life coaching can feel light in comparison while mirroring a lot of the rewarding aspects of a therapeutic relationship. If you've been feeling burnt out or stifled, you owe it to yourself to create a more fulfilling career that makes the most of your hard-won skillset.
You're a great problem solver.
While you don't need more training to know how to be a life coach, you will need to learn how to run a successful coaching business. Your curiosity and problem-solving skills will be a huge asset in this area along with working with a business coach.
You have so much to share with the world.
If you've been working as a therapist for a while, you've developed expertise in an area, certain practices you recommend, and insights others would benefit from. You may not realize that what you have is the beginning of a course, program, retreat, or workshop! Branching out into life coaching gives you an outlet for your creativity and creates the opportunity to reach people who are interested in self-improvement.
Still not sure what coaching could look like for you, or ready to dive in headfirst? I'd love to support you, no matter where you're at in your business journey. Book a free call with me here and let's chat about how I can help.
In my experience
I love being a coach! Since working as a coach I have gotten to travel the country hosting CEO Days for clients in luxurious hotels and resorts, lead an international retreat on a gorgeous island in Thailand, create a podcast and incredible online community, and serve clients all over the country. I even hear from people in India, Portugal, and Italy that they've been impacted by my work. I take more time off than I did as a therapist, go on vacations all over the world, and still save money. Did I say I love being a coach?!
And I'm not the only one. Some of my clients include an IFS therapist specializing in grief who decided to use that experience to offer grief workshops and a group program for people who have lost a parent. Another client of mine, a group practice owner in New Jersey, wanted an outlet for her spiritual, witchy side. She partnered with a local apothecary owner to create Mini Mom Retreats and sold out her second time running!
Get the support you need to transition into coaching.
You already have an incredible skill set. Now all you need is help to launch your first successful coaching offer.
I know what it's like to be a therapist (I am one) and add coaching to your suite of offerings. Some of my clients choose to do both therapy and coaching. Others decide they're ready to stop being a therapist altogether and pursue coaching full-time.
Either way, I've got you covered.
I can teach you the skills you need to clearly communicate with clients, finally finish your online course or offer your first retreat, and make sure you do it all in a way that grows your impact and makes you money.
I have two really amazing offers coming up soon that are created especially for you. If you are ready to make your first scalable offer (online course, group program, or workshop), check out Scalable Offers for Therapists, my two-month course for therapists who are ready to create and launch their first coaching offer.
If you want to learn how to lead a retreat, join me on a retreat in Thailand where I will teach you everything you need to know about running your own retreat. The best way to learn how to create coaching offers is to experience them yourself.
Sign up for the interest list for Scalable Offers for Therapists and Host Your First Retreat. I hope you'll join me!
