How to Pay Your Trainers
This payment formula is the reason my Studio does nearly 7 figures a year, and is the most profitable Studio in Australia – I’m convinced! And you know why? It’s because I failed many times before I came up with this formula and suffered so you don’t have to. I mean, my Studio was always busy, but the profit wasn’t where it needed to be. Our biggest expense was staff!
I thoroughly researched the fitness industry and found that all gyms and studios were in the same boat, everyone was paying their staff the wrong way. They were paying them even when the Gym or Studio wasn’t busy.. I needed to find a solution by myself.. so, I did!
On one hand you want to pay your trainers well enough to make sure your they are happy and are not going to jump ship for a higher paying position, BUT on the other hand you still run a business and need to make a profit for yourself. It’s a FINE line to walk, but there is a way it can be a “win-win.” Here’s how to set it up:
Let’s get one thing straight right off the bat..
Personal trainers want to be paid MORE than where they are currently working… Yes , they want a great environment to train in, but there is just no way they’re going to leave their last job for a pay cut. People get used to a certain style of living and don’t want to regress.
Having said that my new PTs know that they will inevitably have to start lower with the potential of making far more in the long run.
They also know that I ONLY hire ONE new PT at a time and dedicate my time and resources to helping them build up their client base over a 3 month period.
I let them know that it’s going to take about 90-120 days to get up and running, but after that they’ll have a steady clientele that we can keep building off of from there.
So now here’s how I pay them for private 1-on-1: (all sessions are 30 mins)
1-20 sessions a week = 35% of the client charge out rate per session
21-39 sessions per week = 40% of the client charge out rate per session
40+ sessions per week = 45% of the client charge out rate per session
Click here to get the exact INVOICE TEMPLATE my trainers send me each week
Eg: If a client pays $590 for a 10 pack of 30 minute training (level 2 trainer rate) the trainer gets $20.65/session to $26.55/session based on the above formula.
This leaves between $32.45 and $38.35 the Studio makes per half hour. Times that by 200 30 minute sessions per week and you’ve got a $324,500 PROFIT per year studio. And that’s only 100 hours of PT! Very do-able!
We have 8 trainers doing on average 30 sessions per week at average $65/session. You do the maths! And that’s just PT & SPT 😊
Now, I know there are franchises paying their trainers WAY less than that, and will argue their ‘profit per session is higher’. Well, yes it is, however.. these trainers don’t hang around for more than 6 months, and I know this because they all come and work for me! When this happens, their clients usually come with them OR leave the other facility altogether. So, as you can see, for longevity of your business, my formula is better.
Let’s keep in mind these trainers are independent contractors so I do not pay additional extras like holiday pay, sick leave or other entitlements that an employee would attract.” I tell them I am going to pay them the max I can and that includes Superannuation. They like this because as a contractor they can write everything off for their end of year taxes…
Also, I perform trainer annual reviews and raise each PTs pay by 3% P.A
Lastly, I give incentives for PTs to be paid more (I’ll share that in my “800 Club” post)…
Here’s how I pay PTs for group classes:
$30 Flat rate for 30 minute classes, $45 for 45 minutes and $60 for 60 minutes (max 10 people per class)
We charge $59/week for unlimited classes
Here’s how I pay each PT for corporate clients:
$80/group exercise class (we charge $200-$250/class)
$200/lunchtime workshop (we charge $1,000/workshop)
Remember, though, your overhead expenses and your location will determine how much you can pay your PT’s. IF you charge less and the cost of living is less where you live then obviously you won’t charge or pay out as much!
It’s all about adapting to your environment…
Yours in Fitness Business Success,
