Commission or rent?
Which system works better for club/studio owners and also is going to be favourable for Personal Trainers - a monthly rental system or working on a commission structure? Also what are reasonable rental amounts and what commission structures would be recommended?
As for commissions, from the studio owner's perspective, this system would allow you to attract newer trainers with little following, and allows you and your rental revenue stream to grow along with their business. If attracting trainers to your studio is of little concern, then commission may not be so advantageous. However, with a commission-based system, it is fairer to all concerned since the trainers using the facility more are paying more (similar to the whole rental-space concept of if you were renting studio space, you would expect to pay more rent if you had a larger rental space than other tenants). As a trainer, I would like the commission system because, as I said, it would encourage a newer trainer with a smaller following to sign-on with your studio. One caveat: as the studio owner, the commission system is going to be a lot more difficult to administer since it's going to require a lot more record-keeping.
I hope this helps.
LaRue, MHA, JD, CSCS
If I was a club owner, I would have a rental fee as well and all trainers would be treated as independent contractors.
The last time IDEA did their compensation survey, the found the commission to be a split between 50/50 or 60/40 with 50-60% for the trainer, 40-50% for the studio.
As for a rental fee, I'm not sure if there is an industry standard for this. You may be able to estimate a figure based on the number of clients full-time trainers see per month, the price they charge, and base the rental fee on the commission split you would get from these total sessions.
I agree with LaRue, Stephen and Shawn. Good luck!
One factor that I will look into is volume. If one is getting a ton of clients then commission may end up being a costly decision.
Assess the impact of each on your margin with some basic accounting and make the most financially sound decision.
Margins in the health and fitness industry are typically slim, so always think about a business decision with strong consideration to how it will affect your profit margin.
Best of luck,