Renting Gym Space As a Personal Trainer

Do you wonder if you have a good deal at the gym you rent from?  Are you currently searching for a facility to train your clients at?  Navigating the numbers can be tricky for independent contractor personal trainers.  Some of us take what we can get without much thought and others have the option to choose between various facilities and options.  IT can be confusing.

One way for you to MAKE MORE MONEY as a trainer is to raise your rates.

THE OTHER WAY is to negotiate a better deal on the rent you pay the facility. 

Compare these two scenarios:

A. Monthly Rent – You pay the gym a flat rate of $1,000/month.
You charge $50/session x 20 sessions/week = $1,000/week x 4 weeks = $4,000/month.
You take home: $4,000 – $1,000 (rent) = $3,000/month.

Pros: It’s a flat fee, so if business is good, you see every dollar extra.

Cons: If you have a slow month, you still have to pay the same rent fee.  If you’re out of town for a week, you still have to pay rent for that week.

B. Percentage of each session – You pay the gym 40% per session and keep 60% per session.
You charge $50/session x 20 sessions/week = $1,000/week x 4 weeks = $4,000/month.
$4,000 x 0.40 = $1,600/month to gym and $4,000 x 0.60 = $2,400/month to you.
(You earn $30/session and gym keeps $20/session)
You take home: $2,400/month.

Pros: If you have a slow month, you only pay a percentage of the sessions you did.  If you are out of town for a week, you don’t pay anything.

Cons: When you earn more money, by raising rates or recruiting new clients, the gym also gets a percentage of it.

Which One is Better?
This depends on the numbers for your situation, so it’s important you plug them in to see. 

In the scenarios above, A (rent) made $600/month more than B (percentage).  This would change if the rent fee was $1,600/month because then they would be equal.  $4,000 – $1,600 = $2,400.  This would also change if the gym percentage was 25% instead of 40%.  $4,000/month x 0.25 = $1,000.  At 20 sessions/week they would also be equal.  

When the number of sessions each week varies, this changes the numbers.

This is why I encourage all my business coaching clients to keep track of their numbers each week.  Data can make you more wealthy.  It’s the easiest way to earn more money, in my opinion.

The Easier Answer
If you’re doing less than 20 sessions/week, paying a percentage is usually better.  Especially if you’re a new trainer.  You might pay more rent overall, but won’t owe anything if you’re not making money in a particular week. 

If you have 5 sessions/week x $50 each = $250 x 4 weeks = $1,000 to cover your rent, but leaves you with ZERO income.  With a percentage, you would still take home 60% of what you’re making.  Which would be $1,000 x 0.60 = $600 take home.

If you’re doing more than 20 sessions a week, your book is always full or you have a waiting list, then a flat rent is almost always a smarter financial choice.  You pay that flat amount and keep every dollar after that.

Put your own numbers into these scenarios to find out what your situation looks like.

***Realize the pros and cons are reversed for the gym.

Numbers can be tricky, but knowing how to navigate them can earn you more money easily.

If you have questions, leave a comment below.  We’ll help you sort it out.

The post Renting Gym Space As a Personal Trainer appeared first on The NFPT Blog.