I am looking to hire independent trainers and take a % of what they make from each client they train that I give them. However most trainers are charging less than what I charge. So for example I charge $60/hour and I want to give a trainer a client but want them to charge $60/hour and take a cut of it. But the trainer only charges $50 hour to his own clients. How can I get around this?
I am looking at trainers that are already running their own business.
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12-18-2014, 10:31 AM #1
How To Subcontract Trainers If They Charge Less Than Me?
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12-18-2014, 11:41 AM #2
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12-18-2014, 12:06 PM #3
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12-18-2014, 12:07 PM #4
You kind of answered your own question. If you want to make a fixed amount charge them an amount per session and they can charge whatever they want, ie they pay you $25 an hour and can charge what they like.
Are you the one selling the packages? If you are then it's easy - they get paid x percentage of whatever the session cost is once the sessions are trained. If you are just making the introduction and they are the ones selling then you have to simply know what they are charging up front. All money should go through you.
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12-18-2014, 06:49 PM #5
It has nothing to do with avoiding payroll tax. It has to do with what is simpler in terms of running my business. Now I would need some sort of payroll system, different insurance, and also I don't even know how busy I can keep them. It all has to do with simplicity which is what I am looking for as I am already working 60 hours a week.
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12-18-2014, 06:50 PM #6
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12-18-2014, 06:52 PM #7
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12-18-2014, 06:53 PM #8
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12-19-2014, 10:12 AM #9
So intelligent and inspiring let me tell you....
Look pal. Anytime someone wants to use the phrase "I need to work around this", it's usually fraudulent. And I actually have been on the downside of being misclassified, so I understand that issue pretty well.
Maybe you could explain further what exactly it is that you are offering these personal trainers that are to pay YOU a cut? You are not supplying them with clients(which would actually be reasonable)so are you providing them a facility?
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12-19-2014, 10:51 AM #10
Okay, well, I do HR in Canada so I *do* know. The answer is simple - you would be an employer, not a contractor. If you want to "get around this", you either act as a legal employer OR scrap the whole contractor thing and work as someone who charges a finders fee for clients, likely based on the contract signed with the outside trainer.
But taking a cut of an hourly wage is not contracting, it is simply a violation of tax and business laws.
You're welcome!
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