When you work with another professional (chiropractor, physical therapist) in their building do they hire you ro do you work on your own, paying them a flat fee (about how much?) or do they get a percentage of what you make (about how much?)Massage therapists....?
This depends greatly on the situation, and which way works best for you will depend on the situation, too. I have worked in offices where I paid a flat rent for my space, and I have worked in offices where I paid a portion of what I made. If your client base is small, paying a portion of your revenue may work best for you. At one time I had an arrangement where I paid a percentage of my revenue until I reached a certain amount per month.
';There are two basic ways to pay the owner of the existing business. One is to give the owner a percentage of every massage performed. The rate varies from 10% to 50% (the average is 30%). With this arrangement, the business owner profits from every massage done and may be more likely to support your business with word-of-mouth advertising and referrals. It also is common to advertise together.
';Under the other type of agreement, the practitioner pays the owner a monthly rent. Rental fees vary depending on the business location and the area of the country. It is difficult to give a range, but most rooms in established businesses can be rented for $100 to $500 per month. One formula for figuring rent involves calculating the percentage of the total square footage of the space. For example, let's say that the room you want to rent is 12 feet by 12 feet, or 144 square feet. The business occupies 2000 square feet. The 12x12 room is about 7% of the total available space. The owner pays $2800 per month for rent ($14 per square foot); 7% of $2800 is $196. The business owner needs to make some money to apply the business principle of making a reasonable profit. A 50% return is normal; 50% of $196 is $98. The rent for the space would be $196 plus $98, or $294.
';It may be a better choice at first to pay a percentage for each massage. If there is a slow week or very few massages are given, the professional is not obligated to pay a monthly bill. As the business builds, it is common to end up paying more per month with a percentage agreement than with a flat fee. If a mutually beneficial relationship is desired, a compromise can be negotiated, such as an upper limit cap on monthly rent. This is the type of information that must be included in a written legal agreement, or contract.';
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