Help, I need advice on what to pay therapist

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skalu
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Help, I need advice on what to pay therapist

Post by skalu » Fri Jul 23, 2004 3:46 am

I am openin a new massage clinica and wellness center.  I have 4 treatment rooms available.  I would like to develop a fair way of paying therapist that doesn't cause hardship on either them or me.   I will be doing a lot of advertising and promotion of the space and services and I need to be compensated for that in terms of services.  I also need to make sure my rent is paid so that I don't end up on the street.  The average in the city is 50/ 50 split or 400-450 per month rent.   My concern is that if I go straight 50/ 50, the therapist may not be as motivated to help promote and I may be stuck with the responsibility.  I generally believe that those that have a stake in bringing in business generally will work harder to do so.    <br>I have a few ideas about pay and I would like to get some feed back from you guys.  <br><br>1st senerio-  Split fee-  $50 per week rent ( shared space) and percentage.  For clients that the therapist bring in (ie current clients or ones that the therapist has personally recruited throught their own efforts)  the therapist would get 90-100% of the fee.  For clients that come through the advertising or promotions that I do, we go 50/50.  They also get 10% of any product sales that are made and they keep their gratuities.  <br><br><br>2nd senerio-  50/50 split with a minimum of $200 per month   from them.<br><br>3rd senerio-  65% going to me till it reaches $200 and after $200 65% going to the therapist. <br><br><br>There is another thing that i would like to do.  Since I am doing a lot of promotions, I thought about asking for either 2 hours per month donated to promotional events or $50 more per month. ( Clients recruited from events would be theirs) <br><br>Sorry to go on so long, but I want to be fair and still pay my bills.  What do you think?  Are any of these reasonable or am I being unfair.  
Sarita Kalu, PhD, LMT
Certified Massage Therapy Mentor/ Trainer
NCBTMB Approved Continuing Education Provider
Certified Massage Therapy Instructor

Staggnant
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Re: Help, I need advice on what to pay therapist

Post by Staggnant » Fri Jul 23, 2004 5:40 pm

I will be doing a lot of advertising and promotion of the space and services and I need to be compensated for that in terms of services.  I also need to make sure my rent is paid so that I don't end up on the street.  The average in the city is 50/ 50 split or 400-450 per month rent.   My concern is that if I go straight 50/ 50, the therapist may not be as motivated to help promote and I may be stuck with the responsibility.  I generally believe that those that have a stake in bringing in business generally will work harder to do so.


Personally, I would never work for 50/50. I would rather pay rent, or at least work 60/40, myself getting 60%. Sure, you'll be doing a lot of advertising, but you're not doing that for the therapists, you're doing it for yourself and the therapists. I'd say unless the therapists have say in how you advertise, they shouldn't have to pay for it. But if I were working for a 50/50 split, I would probably end up advertising for myself in a private practice / outcalls, and leave whatever i'm getting 50% for up to you to advertise. I'd stick with rent if I were you.
1st senerio-  Split fee-  $50 per week rent ( shared space) and percentage.  For clients that the therapist bring in (ie current clients or ones that the therapist has personally recruited throught their own efforts)  the therapist would get 90-100% of the fee.  For clients that come through the advertising or promotions that I do, we go 50/50.  They also get 10% of any product sales that are made and they keep their gratuities.


As a therapist, I wouldn't take it. I wouldn't pay rent AND commission at the same time, when I could just be paying rent, no matter how small the rent is. And with the trouble it can cause over who's client it is, etc. it would just bring in too much drama. Keep the pay / rent simple.
2nd senerio-  50/50 split with a minimum of $200 per month   from them.


Eww. I wouldn't do this at all! That's double-paying, when they could easily just pay $400 / month somewhere else.
3rd senerio-  65% going to me till it reaches $200 and after $200 65% going to the therapist.


I would never start out at only getting 35% of my work. I'd laugh and walk out.
There is another thing that i would like to do.  Since I am doing a lot of promotions, I thought about asking for either 2 hours per month donated to promotional events or $50 more per month. ( Clients recruited from events would be theirs)


You could ask them to donate the 2 hours, and advise them that it would be very wise to do so as that's advertising for themselves as well as you, but if you ask for $50 more per month, they're going to see you as money-hungry and not want to work with you.
Sorry to go on so long, but I want to be fair and still pay my bills.  What do you think?  Are any of these reasonable or am I being unfair.  
They all sound somewhat unfair to the therapist. The going rate in my area is $400 - $500 per month in rent, and I found office space for $300. The going rate for commission bases is 60/40, therapist gets 60, and I found a room that has a 80/20 split, therapist keeps 80%. There are always better deals out there, and the therapist who gets stuck with a crummy deal will not be a happy therapist. If I were stuck with commission such as a 35/65 split where I keep 35%, I would not advertise your place one bit. I'd use your space and possibly steal your clients and branch out into my own practice, or do primarily outcalls. Sorry, but that's just the way it is. You have to make your living, but so do we.

MichelleTX
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Re: Help, I need advice on what to pay therapist

Post by MichelleTX » Sat Jul 24, 2004 1:07 pm

Consider the costs involved in recruiting massage therapists - then consider the costs of continually replacing dissatisfied massage therapists.  On top of that, consider how happy your clients will be with your unhappy massage therapists.<br><br>In the end, you'll probably come out way ahead by keeping your massage therapists happy with a more generous split.

skalu
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Re: Help, I need advice on what to pay therapist

Post by skalu » Sat Jul 24, 2004 5:09 pm

I am considering the cost of those things.  But it also will cost me thousands of dollars each month in radio and tv ads, the space for the room, the equipment, all of the supplies and the laundry.  I am a massage therapist as well as an instructor.  I have personally trained hundreds of therapists. and worked in the field for over 13 years.  I have also talked with hundreds of employers who frankly rarely pay more than 50%.  If they do, it is because the therapist is doing all the work, advertising, supplies, and equipment.  Then it typically is  60%.  for the therapist.  Most of the time, the employers want an additional 5% because of the supplies and such.   However, I will consider a different cut.
Sarita Kalu, PhD, LMT
Certified Massage Therapy Mentor/ Trainer
NCBTMB Approved Continuing Education Provider
Certified Massage Therapy Instructor

Kneadfulthings
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Re: Help, I need advice on what to pay therapist

Post by Kneadfulthings » Mon Jul 26, 2004 4:39 am

Skalu,<br><br>You have presented very fair scenerios.  And you are right about therapists work harder when there are stakes involved.  Those that will oppose your offerings have either never worked for themselves in a situation that includes overhead, or they have not worked in it long enough to realize how much really is involved with covering overhead.  <br><br>I am assuming you will be hiring these Therapists as Independent contractors.  95% of people that think they are independent contractors are going under completely different guidelines than the IRS considers as independent contractors.  Risk of loosing money is one of the main factors.  Type in "Independent Contractors, Massage Therapy" and read what comes up...you may be surprised.  (However Skalu, you are on the right track).<br><br>Now let's look at the fact they are representing your reputation.  There is a risk involved.  Advertising is an investment.  Normally, investments are made to bring a return.  You have every right to ask for their time in return...it will benifit them as well.<br><br>You are not in this for charity.  The idea of business is to turn a profit in the long run.  If it were so easy to run a profitable business, everyone would be doing it, and their wouldn't be any therapists out there looking for work.  It is easier to work for someone else.  You put your time in and you go home.  When you work for your self, you think of your business all day long, have dreams (or nightmares!) at night of it.  When you look at how many office hours I put in compared to how much I make, I would make a higher hourly wage working at Mc Donalds.  Not to mention I would have benefits and a normal 40 hour work week.<br><br>With other therapists there is added responsiblity, manging, and stress.  You have every right to be compensated for it.<br><br>If you cannot find therapists that can appreciate what it takes to run a full scale wellness center/ massage clinic, chances are, they will not be happy regardless where they work.  And if that is the case, you may want to consider renting the rooms for a flat rate, they are responsible for bringing in their own clients, and they have the opportunity for overflow...at whatever rates you wish to offer.  They have the option to turn it down if they do not approve of the rate.  They are in control of their income, you are getting your rent paid for, everything you make personally is profit.  Then you can cut back on your advertising, which cuts back on your overhead.<br><br>Just a business owners point of view...<br><br>
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