How it is used in a coaching business
Founders feel this number before they measure it. Every twenty new clients means another coach, and the coach costs more than the twenty clients bring in margin. That is fulfillment cost rising in step with revenue, and it is what makes group programs feel like they cannot scale. A back end built on SOPs, a client success team and a portal that clients actually complete breaks the link.
| Cost line | Include |
|---|---|
| Coaches, full-time and fractional | Yes |
| Client success managers and community managers | Yes |
| Community, course and results-tracking platforms | Yes |
| Founder's own delivery time | Yes, at a real hourly value |
| Sales and marketing | No, that is acquisition cost |
<5%
fulfillment cost as a share of revenue at one client running 600 to 800 active clients with 3 full-time staff and fractional coachesSource: Acquisition Ace, a client of Scale With Fulfillment. Diego Miescher also builds this client's website. Not typical of every program.
A low number is only good if the client success rate is high. Cheap delivery that produces no results is a refund problem waiting to arrive.
