What is in this article?:
- How to Determine a Fair Compensation Package for Your Personal Trainers
- Other Factors
- Structuring Compensation Packages
- More Systems
Structuring Compensation Packages
Once you decide how much you can pay your trainers, you have many options for structuring the compensation packages:
- Straight percentage of revenue
- Sliding scale
- Tiered Plan
Here is how each of those work:
Straight Percentage of Revenue. In this structure, you decide on a percentage that goes to the trainer and a percentage that goes to the business. For example, if you set it up so that 50 percent of the fee goes to the trainer and 50 percent to the business, then the trainer will receive $30 of a $60 session payment.
- Your risk is lessened since you only pay trainers when they generate revenues for your business.
- It is an easy system to calculate payroll
- In many states, if your trainers are employees, they cannot perform administrative duties or complimentary sessions with no pay. So you will need to develop a wage for when they are not with paying clients but are conducting business within your facility.
- This system often forces the trainer to work long hours to obtain a full work day. For example, they may train a few early morning clients, have a couple of hours off, then see a few lunch clients and then experience another lag time and then have to train a few clients after work and evening clients to make up a full eight hour day. This can quickly lead to burn-out.
- This system can get tricky if you offer packages with different rates. For example, if one client purchased 10 sessions at $60 per hour and another client purchased 20 sessions at $58 per hour, the trainer would make a different rate for different clients. You would need to ensure you have a good system for tracking training sessions and various rates.
Sliding Scale. In this system, you pay the trainer more based on their performance. For example, let’s say the average client fee is $60. The trainer pay may be as follows:
- One to five sessions per week equals $17 per session for the trainer
- Six to 10 sessions per week equals $18 per session for the trainer
- 11 to 14 sessions per week equals $19 per session for the trainer
- 15 to 20 sessions per week equals $20 per session for the trainer
- 21 to 24 sessions per week equals $21 per session for the trainer
- 25+ sessions per week equals $22 per session for the trainer
- This system rewards the trainers who are performing more for your business. They receive a higher hourly wage.
- It encourages trainers to get more clients and work more hours because they would have the potential to make a greater hourly wage.
- This system can be a nightmare to manage when completing payroll since trainers’ rates will change week by week depending on how many sessions they complete.