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,
Hello Andrew, I like rent..I can budget my expenses. I find that if I have a finacial commitment every month, that makes me work harder. If you are approaching this as full time, treat it as a business and a small business loan might be a choice to make to get started and talk with your tax advisor with benifits to this approach.
If I was a club owner, I would have a rental fee as well and all trainers would be treated as independent contractors.
I agree with Shawn & Stephen – if a trainer has built up the clientele, than it may be more worthwhile to pay a flat monthly rental fee. If they only have a few clients or is a part-time trainer, a commission may make more sense.
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.