According to marketingpower.com, bonus is a special compensation option that is a payment made at the discretion of management for achieving or surpassing some set level of performance. Whereas commissions are typically paid for each sale that is made, a bonus is generally not paid until the salesperson surpasses some level of total sales or other aspect of performance.
The size of the bonus, however, might be determined by the extent to which the salesperson exceeds the minimum level of performance required to earn the bonus. Thus, bonuses are usually additional incentives to motivate salespeople to reach high levels of performance rather than a part of the basic compensation plan.
This is an element in a salesperson’s compensation that is paid infrequently in a lump sum, often based on subjective judgments of performance.
I love giving bonuses. MMC® is a performance-based health club marketing company that works on results. If we successfully grow your health club, then you pay us, but if for any reason we do not, then you don’t owe us anything.
I love giving my staff bonuses, because bonuses are based on performance and I believe everyone should perform at their maximum capacity, therefore, be compensated well for their effort and only for the value they bring the health club.
Bonuses are paid on performance, which means the salesperson/director is growing your health club. I like to set bonuses on several different levels; I give bonuses to people for locking-up one relationship, then give them another bonus if they lock-up more than two relationships and give them an even higher bonus if they lock-up more than five relationships and so on. The bonus is also based on what product or service they are selling, the profit margin and the bottom line.
Numbers are the most informative parts of running a health club, you know what it costs you to run your health club, you know your overhead, you should know where you stand and where your business is going every month based on the numbers and projections, etc.
Designing a bonus system where you can compensate your staff through performance, motivating them to perform at their maximum capacity will help you 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 promotions, professional health club membership sales, and advancing your health and fitness career visit us today @ www.healthclubmarketingmmc.com or call 904-448-5727.