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Question asked by Kisar Dhillon 2877 days ago

Retention Bonus for Personal Trainer: What is a fair rate?

Business: Personal TrainingPersonal TrainingCompensationClient retention

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.
Thanks,
Kisar

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Answered by Karin Singleton 2877 days ago
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2995 Questions Answered, 13 Questions Asked
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Hi Kisar,

actually, I think that the retention bonus should be more. Even though, on the surface, it seems counter-intuitive but repeat business is more valuable than having to find new clients over and over. Giving a little more bonus for re-signs gives them the incentive to do their very best to the end rather than going around hunting for the 'new client bonus'.

Karin Singleton
www.meltnc.com
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Answered by Michael Saiz 2877 days ago
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Hello Kisar,
Our facility offers 5% for renewals. Some clubs unfortunately, do not pay any percentages for renewals.

Wishing You Great Success!
Michael
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Answered by Joanne Duncan-Carnesciali 2877 days ago
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I believe 5% is fair.

The costs involved with running a gym alone limit what you can offer as a percentage as far as I am concerned. It also depends also upon what your overheads are as well as who is your market.

However, 5-10% sounds fair to me.
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Answered by Lawrence with Gym Insight 2877 days ago
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I concur with Joanne. As a gym owner myself, I believe 5-10% is fair!
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Answered by Bryant Seton 2877 days ago
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/Agree with both Lawrence and Joanne. You run the gym. Space and utilities don't pay for themselves.

However, I also /Agree with Karin. Getting someone to resign means you don't have to market, get a new assessment/program set up, and working with a client over extended periods of time means they'll have a greater chance of reaching their goals and doing your marketing for you. Referrals are huge in this industry.

I'd suggest giving them that 10%, or even 15%.

I'd rather have a trainer with a 5-8 hour day paying less per session than a trainer working 1-2 hour day paying more. Taking care of current members means your membership base will be more stable.
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Answered by Natalie Smith 2876 days ago
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Hello Kisar Dhillon,

Keeping an established client requires much less work than starting with a new client who pays the same rate.
Five percent seems fair for retention.
Take care.
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Answered by Harris Sophocleous 2876 days ago
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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.
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Answered by Michael Siler 2876 days ago
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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?
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Answered by Kisar Dhillon 2876 days ago
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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,
Kisar
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Answered by Karin Singleton 2875 days ago
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Hi Kisar,

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.

Karin Singleton
www.meltnc.com
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Answered by Jabez Gibson 2870 days ago
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My opinion:
What do you find is harder in your market, changing prospects to paying clientele or retaining the ones you have.

Retention is what I eye most. Yes, getting them in is primary but, worthless long term if other factors don't add up. I have in the past offered less than your stated % persentage for new business w/a higher % on the residiual business which KEEPS THE DOORS OPEN.

You can take advise from whomever on this, just remember they don't have to sign those checks you gotta distribute...get it?

Good way to reward staff, build enthusiasm from them also. That should filter back to the client.

WIN WIN situations are great, the other hand NOT SO MUCH...

GAMBLERS CREED:
scared $ don't make $
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Answered by Martin Petrofes 2172 days ago
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I feel very strongly about being very supportive and generous with staff members. 10% is definitely the way to go if not 15%. And I agree with the comment that you want to make retention more important to your staff then new customers. I also will give a bonus to trainers who are willing and able to work with more difficult clients that other trainers clearly are not connecting with or clients with special needs that require special skills.
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