I’ve been working as a personal trainer employee at a big box gym for some time, but now have found an opportunity to start my own business as a contractor at another gym in town. We have agreed on a 70-30 split for all my services sold to clients, and the gym expects all payments through their system, and I am to invoice the gym for my share each month.
I have also been studying for a long time the benefits of using a monthly recurring payment system for personal training, a system I’ve wanted to try after struggling selling large blocks of training at my big box gym. For those unfamiliar, the idea is instead of having to sell a block, and have an awkward sales conversation every time that block runs out, you simply get a client to agree to one payment a month that covers so many sessions, and that payment keeps coming out like car payment until they decide to cancel.
My question is, if my clients are billed automatically every month directly through the gym, and I invoice my gym for my cut, do I still send my clients invoices? Most invoicing software I look at involves sending invoices with options to pay, instead of just sending a receipt for their automatic payment. Any tips on better ways to set this up as an independent contractor sharing fees with the gym?
This is in Canada.
While you get your cut, the client pays the gym directly, not you. So I wonder why you would bill the client again? If you are concerned about year end taxes the gym will have to provide you this information when the year ends. Seems like double billing is unnecessary and confusing for the client.