Consider a Percentage-Based Commission Structure (PART 1)

How do you make money owning a gym? Well, you need to fill your gym with paying members.

The next question you have to ask yourself is, why should someone join your gym versus the one down the road? The answer to this question could be the decision making factor for a potential member. You want to be sure your staff can answer questions properly, that they are motivated to make sales, and they strive to gain as many new members as possible. Putting a commission structure in place is a great way to keep your staff engaged in the clubs sales.

Before This, You Must Know That

A commission structure, in any form, is going to be based on goals you put in place. When we are striving to reach goals there is usually a rewarding factor waiting for us when we cross the finish line. If you set a goal for your staff to sell 40 new memberships in a month, what is going to push them to actually sign up 40 new people? They do not own the gym and they are most likely earning an hourly wage. Money motivates people. This is why implementing a commission structure is a great option. Let your team know they can “earn as much as they are willing to work for”. Upon implementing a commission structure you are likely to see your staff engaging more eagerly with prospects, doing follow-up work on the phones, and try to get more referrals!

Percentage-Based Commission

With percentage-based commission, you will be paying your sales team an hourly wage of your choice, plus commission (if they hit their goals). You need to make your goals achievable for your team. Always strive for more members then you gained in the previous years month. For example, if your gym gained 12 new members in June 2017, then you might want to set your goal for this June at 15 members. Aim higher but be realistic. Your team will be motivated to not let any prospect walk out that door without a new membership.

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