I have two personal trainers that are working for me and I want to give them a retention bonus every time one of their clients re-signs for more personal training sessions. Can you give me some insight/advice on what is a fair rate to pay. When they sign up a new client, I give them 10%, so I am assuming the retention bonus will be less, since it will be residual.
I agree with Karin. How about every time they re-sign the client you can increase their % up to point? Even by 1% each time can be a great incentive for these trainers. If they do their job right and keep business coming in or in this case stay, I think they deserve the extra %. If they lose the client, you lose as well. These clients will also spread the word and might bring you more clients at your gym. Of course you know what your costs are and the amount of money you need to run the gym, so you can adjust the % you accordingly.
I feel that anywhere in the range of 5-15% would be fair. What would your budget allow?
How much you offer them might also impact how likely they are to stick around and continue training for you at your facility. If they feel they’re not making enough for all of the clients they have re-signing they might be more likely to train elsewhere. Or they might resort to setting up something more independent for themselves.
Do you think a lower retention bonus would have this effect on your trainers?
All of You,
Thank you very much for all of your feedback! In back of my my mind I had between 5%-10%. My reasoning is that I employ my trainers, which means I want them to focus on being awesome personal trainers. As the owner, I have decided to cut back on my training in order to focus my efforts in bringing in all of their client leads, running marketing campaigns and doing initial fitness consultations. My trainers do not have to Market themselves that much because I do my best to make sure we maintain our No. 1 status for organic Google rankings for most major keywords, keep active in the community, and continual market by the means of Facebook targeted ads, writing articles, press releases and working with Comcast in running our first commercial. My goal is to make sure they get at least 2 new clients per month in addition to maintaining their current work load.
Do you think that 5% is a fair rate then? Also, if they bring in a new client, then I give them a 10% bonus too.
Thank You for all of your suggestions,
based on your last comment, I would even reverse the bonus. If you do all the marketing, then they should only get 5 %, but if they then maintain the client and s/he re-signs, then they should get the bigger bonus. If they bring a client themselves, then maybe a higher rate.