We are trying to develop a personal training program at our City-run community rec center. My supervisor has asked me to look into independent contractors who would train at our facility for a percentage of their sales OR a monthly facility rental fee. I would love some pointers on what percentage splits look like for the trainer/facility and what a monthly rental fee might look like. Right now, my sup is pushing for a monthly flat rental rate and I have no idea what is typical. Any advice and insights would be immensely helpful! THANKS
This is something that I have seen on both sides of the fence. I used to manage a studio thus I had renters renting from me. If they were a group exercise class and utilized the space at least three hours per week I charged $28 per hour. All rents paid at the beginning of the month.
If they were personal trainers I charged $17 per hour but I think that’s too high.
I had a new teacher come in and rent a back space, she turned it into “her room” I charged her a flat rate of $600 per month.
Today, I sometimes have the need to rent space and I find the average is $20 per hour for a personal trainer which I think is too high.
I would base my decision on the number or hours the person will train.
Also, have contracts drawn up!
it’s difficult to come up with a number because a lot depends on the location of the facility. I used to be an independent contractor a long while back and paid a flat fee plus a guest fee when the person I trained was not a member of the club. At the time, I only paid $50 flat fee and $5 per guest/session. The club’s rationale was that they were interested in membership, and they succeeded because all of my clients became members of the club.
Nowadays, $50 would be unrealistic but if you ask too much, then you will have a hard time attracting trainers, particularly those starting out and not having many clients yet.
On the other hand, a percentage split is a challenge to manage. Trainers as independent contractors set their own rates, and you have to rely on the honor system that they tell you how much they charge and how much they train. You only need one bad apple to game the system, and the honor system falls apart because the other trainers see that one ‘gets away with it’. Trainers as employees often have a 60/40 split, for contractors who have to provide their own insurance, it should be more 70/30.
I wish you good luck figuring out the best way.
I have worked as a contractor in the past with a 70/30 split. All clients had to sign in at a front desk area before working with me. The club kept track of the number of people (I had a three ring binder at the front desk. All clients signed in and out.) At the end of the month, my total was tallied up and the club paid me out (clients paid the club, not me). It helped keep my paperwork clear and I knew what I was to be paid each month, as did the club.
I will say, now, I’d prefer a flat fee. I could set my rates dependant on the fee and know what I had to hit to cover the fee and make the profit I was looking to make. It certainly makes the paperwork easier for the club and increases the incentive for me to reach my numbers!