Q: How do I make more money?

Curtis from Sacramento, California asks, “I’m a fairly successful personal training in the area.  I train out of a local gym and also out of my client’s homes.  I work 6 days a week and put in about 10 hours a day.  Even with what I feel like is a heavy client load (which has taken me 5 years to get to), I’m not making the kind of money I would like to.  Don’t get me wrong, I love what I do, but I thought by now I would be making really good money – and in reality, I can’t even afford to buy a house.  What can I do about my problem?  At this rate I’m just going to be working forever and not getting any further ahead.”

Curtis, I can’t tell you how many times I’ve heard personal trainers say they aren’t making the kind of money they thought they would be.  In fact, when I talk with personal trainers around the country, and they express this sentiment, I first try to find out how much they are making annually.  I just figured one person’s idea of “enough money” may be different than another’s.  Can you believe out of the dozens of personal trainers that I’ve asked this question – I have yet to find one that is making a 6 figure income?

I use the “6 figure income” reference because when I dig deeper and I ask them, how much money they would like to earn, it seems that more often than not, they feel like someone that works as hard as they do should be making $100k a year.  In fact, only once did a I meet a trainer that even comes close, making $78k last year.  Keep in mind though that he lives in the very expensive Upper East Side of Manhattan (which is where all of his clients live).  In fact, he has some clients on his list that are names you would know – so he is sort of an East Coast “trainer to the stars”!

So Curtis – if you are like most trainers that work out of a gym, you are paying the gym something for this priveledge.  Usually it is a % of revenue – I’ve heard figures as high as 50% and as low as 10%.  I’m going to assume you’re right in the middle at 30%.  So in effect, the client is willing to pay 30% more than what you are making to receive your services, and the gym owner pockets that 30%.  So one question to ask yourself is – what do I get from the gym owner for his 30% cut?  Well clearly, you are using his or her facility and equipment – and that has value.  Also, is the gym owner actively promoting you and finding you your new clients?  You are responsible 100% for client retention, but where are your new clients coming from?  If you’ve been in business 5 years, my guess is that your existing clients are referring most of your new ones.  Is that’s the case, then you really need to take a serious look at the 30% cut – what does it translate to in dollars?  For example, if the gym is billing out $50k on your services an then paying you 35k, then the cut translates to $15k per year.

The real question is, could you replace what the gym owner is providing you with for less than $15 a year if you were to open your own personal training studio?  It’s doubtful.  So what options do you have?  I am curious about the clients you say you train out of their homes.  It isn’t uncommon for wealthier individuals to have high quality fitness equipment in their homes and hire a trainer to come in and work with them there.  And since the relationship with them is direct, my guess is that you aren’t paying anyone a percentage or cut.  So do you maintain the same prices that the gym is charging?  I hope so!  I wonder, could you slowly start replacing your gym clients with “in home” clients?  If you were able to start to do this now, and once you reached a tipping point, maybe you could move to this arrangement exclusively.  Then the extra 30% could go in your pocket instead of the gym owner’s.  This would be something I would seriously look at in your case – it could be the answer to giving yourself a 30% raise!

In summary – look very closely at the numbers.  Compare and contrast the money you make from the gym clients against the money you make from the “at home” clients.  One or the other should emerge as the clear cut winner – my guess is it will be the home clients.  Remember, the only thing you have to sell is time – so the dollars per hour is what we’re looking at here (not total revenue).  If I am correct and the in home clients make you more dollars per hour, focus your business efforts fully in that direction – eventually to the exclusion of gym clients.

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