The commission method of compensation is where the person responsible for the acquisition of the member gets paid on the basis of a percentage of the revenue the new member pays to a health club. There is no such thing as a set commission scale for the health club industry but the usual commission has been 1% to 10% of the total revenue paid to the membership director and anywhere between 20% to 40% of the gross revenue is paid to the marketing company depending on their role and the cost in reference to the acquisition of the new member.
After it is all said and done a health club should plan on investing an average of about 30% of the gross revenue for the acquisition of each new member. This may sound like a lot but it is a very small exchange for new members and the revenue stream they bring to the health club.
The commission method of compensation is undeniably the best way for a health club owner to acquire new members and/or health club memberships because they only pay for results. I personally have never worked on a salary even in the beginning of my career. I always knew I would work 10 times harder and 100 times smarter than any of my co-workers so I loved being on a commission based compensation plan which paid me on my performance.
At MMC®, we work on commission as well. We work on performance. If our promotion does not successfully grow your health club, you won’t owe us anything. We even take it several steps beyond that because we invest our own money and our promotions are absolutely self-funding and risk-free.
Never pay someone a salary if you expect them to grow your health club through health club marketing and/or professional health club membership sales. Make them depend on new business just as you do as an owner. They say when you work on the commission method of compensation, there is no ceiling on how much you can earn, and this is a fact; but don’t forget that sometimes there is no floor either. So make your health club marketing company produce by putting them on a commission method of compensation; if they are not confident enough in their skill set to agree to a success fee only, then they shouldn’t be in the business.
Incorporate a commission method of compensation for your health club marketing, paying for results only, and you will grow your health club and your health and fitness career.
For more free tips on increasing your health club membership base through health club marketing, health club campaigns, professional health club membership sales and advancing your health and fitness career visit us today @ www.healthclubmarketingmmc.com or call 904-217-3762.