Commission or rent?

Question

1.07K viewsJuly 9, 2011

0

Andrew July 9, 2011 0 Comments

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?

10 Answers

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score 0 · Answer 1

If this is a full time gig then paying rent is usually the most beneficial; if just meeting with a client or two a few times a month then a commission will probably work best.

score 0 · Answer 2

The answer is both. From a personal trainer point of view it is good to work on commissions to start with then once the clientel list grows its time to move to a monthly fee. If a trainer only has one or two clients it doesn’t make any sense to pay a monthly fee and if a trainer is booked solid then it makes more sense to pay the monthly fee if it is lower than the commission would be for all the clients.

score 0 · Answer 3

I pay rent plus a small commission for each person. It works for me, see how it works for you.

David

score 0 · Answer 4

Well you could do a flat fee up to x amount of trainings. Then anything above that is an additional fee/ % of ticket sold. This would help you budget better.

score 0 · Answer 5

Hi Andrew. Really good questions! In my opinion, the answer to the commission versus rent question depends on a couple of factors. If I’m looking at it from the studio owner’s perspective, by charging a monthly rent you will have a known monthly rental income that you can budget from and make projections on. If you’re the trainer, unless you have a client following that can not only satisfy and justify paying the monthly rental, but also leave you with net income in your pocket, a monthly rental makes little sense.

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
www.lecfitness.com
[email protected]

Commission or rent?

10 Answers

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