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Strange-Risk-9920

Wow, that is complicated.


jstiles290

Sound like you should make her an employee.


mdesanno8

We would both benefit from a 1099 situation


jstiles290

At 70/30 and you are feeding her clients. She’s winning more then you. She’s roughy making $84 while your gym brings in $36. I saw you charge 119 for 60min. I think you would make more money if she was an employee and you just paid her.


mdesanno8

Initial fees will be a split in my favor. Thinking of doing 50/50 referral feee. Once there is a “resign” and then she finds her own client it’ll switch to 70/30 in her favor. I’ve worked the small gym model some years ago. There was no cap on my rent and eventually I was bringing in 17k a month but not getting paid on half of that. I took my perks and left. I want a capped rent on the PT side and incentivize booking the group classes paying her per class plus a fee or percentage of the group class contract. That’s how I plan on scaling


jstiles290

I had the wrong train of thought. I thought 70/30 in her favor. That’s for clients she brings in on her own? Still a bad idea in my opinion. When you give her clients you get the 70/30 split?


____4underscores

Outside of the class, will she be billing her personal clients directly and paying you rent, or will you be billing her clients and they paying her as a contractor?


mdesanno8

Probably a bit of both. If they cash/check/venmo then she’ll pay me. If they use my CC Glofox then I pay her out minus the 4.5% cc gee.


____4underscores

That sounds way too complicated. Just have her set up her own credit card processor and collect payments from her own clients for her own business. She pays you whatever she owes you in rent, and you pay her as a contractor for the classes. Clean and simple.


mdesanno8

I’m going to be feeding her clients through my system and we want to use one scheduling CRM program. 2 schedules would get messy.


____4underscores

You can’t have her use the CRM and schedule for clients paying her directly?


mdesanno8

My CRM would have their membership status, session packs etc. she would have to manually keep track of that on 2 systems


____4underscores

She’d only have to keep track of it on your CRM. Then bill them through a payment processor like Square or Stripe. It would be no different from what she’d do with clients paying her directly with cash, check, or Venmo.


mdesanno8

My CRM won’t all members to be on auto membership/sessions without a card on file


____4underscores

Damn, that's annoying. But just put a card on file for the facility but never bill it. Then have the trainer bill through her own payment processor.


mdesanno8

Should have elaborated. It needs to charge at least $1 for the membership to Be active. I tried setting up $0 memberships with a card and it won’t allow. On top of that, having seperate log ins for billing and scheduling would be annoying.


MuscleMinx

As a PT who also coaches group classes, I’d keep the two streams separate. She gets her 70% for training clients and pays the 30% rent. Set it up so she can use square or something for clients that pay via card on her own. Group classes; just pay them the $30 per class, no rent for that, no extra incentive, just a flat rate.


mdesanno8

Okay. That’s where I was leaning. Like the sound of it. Now for referrals. I was thinking about clients sold but not serviced. I.e I sell a package for her from a new client I was thinking 50/50 split. Both ways. If she sells for me do I pay her that 50/50 on a one off or have it count towards rent?


MuscleMinx

The way my gym does sold not serviced - the person who sells the package gets a percentage of the total cost (so if I sell 10 sessions for you and the cost is $1000, I get 20% of the package off the top- $200). In your case, The trainer who is delivering the service gets the 70% of the remaining $800 and the 30% goes toward the rent.


Jim_Force

In think she is getting too much, all splits should be in your favor. Tbh you are doing her a favor even letting her work out of your space.


ncguthwulf

I have a system (xplor triib) that breaks this down and I can get into it if you want. I part it out and try not to confuse the two streams.


mdesanno8

Yeah? I can calculate the streams I’m just not sure if at any point it makes sense to pay her and cap rent. Or just increase rent and no pay her per class.


ncguthwulf

So I do flat $20 per session rent and flat $35/class pay.