Thread: Attn: Studio Owners WWBD

I just started working at a brand new home dance studio where the owner was giving me a 70% cut of the class profits. The studio is less than two months old and the owner revealed at the studio meeting tonight that the instructors now get 40% due to costs of the new flooring and mirrors. The studio takes care of everything and I just show up to teach.

What I am asking studio owners is that when your studio was brand new, did you start your instructors on a 40% instructor, 60% studio pay set up maybe before sliding it to 50/50 or above? Is it reasonable for the studio to offer that rate with promise of a better cut later when there are more students?

I almost quit on the spot, but wanted some belly-input before resigning.

I was glad that I read the "What's a typical venue/teacher split?" post by Lauren_ and it seems that most studios offer at least 50/50.

Are things different for new studios?

All the other places where I've taught paid hourly.

At the studios where I work I either get paid per class or per hour regardless of how many or few students I have.

I don't think it's fair that they dropped your cut to 40% from 70...that seems drastic.

Do you have a contract with the studio? If so, you may have some negotiating room. If not, and since this seems to be an across the board change, you may not be able to negotiate. Did the studio say if this would be a temporary cut to cover one-time costs or if this would be the new permanent rate? If they say it will only be temporary, I would suggest to get that in writing.

A couple of things to ask yourself:
1. Would you have taken this job if the split had been 40% originally or if there was an hourly rate equivalent to the 40%?

2. Would it be worth it to quit or do you need the income? (Leaving the job is 0% income vs. staying at 40%)

Ultimately, it is up to you to decide what cut will be a fair percentage for you. I generally determine this by the amount that the studio does vs. what I do. If they cover advertising, insurance, tuition, and attendance and all I have to do is show up to teach, then I am happy with a 50/50 split. If I do the other items, then I would want a larger split.

If it was only two months ago that you were hired at 70%, I can't believe that the owner did not know she'd be making this upgrade and planned on re-negotiating instructor splits. IMO, you should have been informed up front that the 70% was a starting split, and it would be reduced when improvements to the studio were made.

I don't have a problem with them asking for instructor concessions for the upgrades if it makes your job easier and more enjoyable. Right now I teach in a yoga studio that's fantastic in every way except that it doesn't have mirrors, and I'm thinking about lowering my percentage split for an agreed upon time frame to assist the owner in paying for mirrors, because I really find teaching without them to be more difficult. But in your situation, the circumstances reek of a bait and switch to me, and if I was in your shoes I'd walk.

As mashati mentioned, I feel it's important to have a teaching contract so that we have a leg to stand on when or teaching venues spring stuff like this on us.

In my studio, I pay all my instructors on a 80/20 split unless we agree upon something else before hand. 40/60 is unreasonable. And even more so if you started at 70/30 which is a good pay rate. If I were you, I would have that discussion with the owner.

Thanks girls for the input. I just wanted to make sure I wasn't being unreasonable.

In regards to Mahsati's questions, I would not have taken the job at 40%. I teach at another place that pays more, though it is hourly. I cut down at the old studio from two nights to one so I could make the good 70/30 at this new studio....only now the deal has changed for the worse!

Contracts were passed out last night at the meeting stating the new 40% rate, but I haven't signed it yet.

Maybe the other instructors at the new place are okay with the 40%, but looks like I need to negotiate at least 50/50 to make it worth staying.

Originally Posted by mahsati

I generally determine this by the amount that the studio does vs. what I do. If they cover advertising, insurance, tuition, and attendance and all I have to do is show up to teach, then I am happy with a 50/50 split. If I do the other items, then I would want a larger split.

This is exactly my thought. I wouldn't go less than 50% unless there were very special circumstances, and clearly limited time period.

They're asking you to pay for their new floor out of your agreed-upon pay. That's very unfair.

Perhaps if, ahead of time, they'd said 'Hey, teachers, would you like to buy us a new floor with roughly 40% of your pay' and you'd agreed to do it, that would be ok. But they didn't ask....

I wouldn't lower the teacher's portion of revenue split based on any upgrades I do to my studio. Thats what a budget is for - the studio owner should plan for that accordingly without deducting pay from teachers.

If my rent, or insurance or something like that was drastically increased, I would discuss it in advance with the teachers and adjust accordingly - but CERTAINLY not offer a 30% reduction in pay, nor offer less than 50% and certainly NOT with less than 6 months notice.

I get a 50/50 split at one gym, wouldn't do it for any less. Do you have a contract? Always have it written!!!

I opened my studio early in 2008 - and we pay 60/40 (40% to Instructors)
unless they carry their own professional insurance (then it's 50/50)

But we rent a large space, with all the overhead etc that comes with it - and you're saying this person has a "home studio". So their overhead would def be quite a bit less than for a space like ours...
As for spreading the cost for mirrors and such among the instructors - our 6ft high x 28 foot long wall of mirrors ran us $850 fully installed. I can't see it costing that much for a smaller space. A 30% differance isn't justifiable.

Sounds like the owner has inquired as to what kind of split retail studios use and decided to apply it to their little home based biz.
What kind of insurance do they carry? Most home operators try and cut corners by simply relying on their homowner's insurance. If something ever happens that they (or you get sued), this will get the policy canceled.
AND what kind of advertizing/promoting are they doing to get students in? or are they relying on you and the other instructors to do it all?

My guess is that the owner is fairly inexperienced and had no idea how hard it was going to be to make expenses--which isn't your fault. I understand that. But having a bit of empathy for an inexperiened studio owner might help you in this situation. I'd still re-negotiate and shoot for a 50/50 split. Without some flexibility, there might not be a studio to work with.

Originally Posted by Chandra

What kind of insurance do they carry? Most home operators try and cut corners by simply relying on their homowner's insurance. If something ever happens that they (or you get sued), this will get the policy canceled.
AND what kind of advertizing/promoting are they doing to get students in? or are they relying on you and the other instructors to do it all?

I don't know what kind of insurance they carry. I'll have to ask since I certainly don't have my own. The studio is in her garage and the new mirrors she installed are closet doors along the length of an averaged sized garage door.

For promoting, she has a website and wiki-page, but the instructors are also supposed to put up/hand out flyers and help pull in more students from the other places we teach at (this is kind of awkward for me as well).

I was also thinking that this might be her inexperience speaking. This is the first time she has done anything like this so I'll just have to sit down with her and explain what will have to happen to have me stay. I don't want to be a diva and make unreasonable demands, but I also don't want to be a cause of lower belly dance instructor rates in my area.

I didn't have a contract for the 70/30 (stupid I know!) but she has contracts now for the 40/60. I haven't signed mine though.

Originally Posted by Samira_dncr

My guess is that the owner is fairly inexperienced and had no idea how hard it was going to be to make expenses--which isn't your fault. I understand that. But having a bit of empathy for an inexperiened studio owner might help you in this situation. I'd still re-negotiate and shoot for a 50/50 split. Without some flexibility, there might not be a studio to work with.

LOL I was writing that last post while you were doing this one. Inexperience is kind of what I'm thinking too. It is a cool studio with a very co-op feel and I would love to be able to do something for the "love of the art", but I'm a grad student and my "free" time is super precious to me. I think I'll renegotiate my contract to have one session to attract enough students to make it worthwhile for me to teach and shoot for at least 50/50 by the end of the 5 week session.

Originally Posted by crystalllized

LOL I was writing that last post while you were doing this one. Inexperience is kind of what I'm thinking too. It is a cool studio with a very co-op feel and I would love to be able to do something for the "love of the art", but I'm a grad student and my "free" time is super precious to me. I think I'll renegotiate my contract to have one session to attract enough students to make it worthwhile for me to teach and shoot for at least 50/50 by the end of the 5 week session.

I think this sounds like a good plan.

Originally Posted by mahsati

A couple of things to ask yourself:
1. Would you have taken this job if the split had been 40% originally or if there was an hourly rate equivalent to the 40%?

2. Would it be worth it to quit or do you need the income? (Leaving the job is 0% income vs. staying at 40%)

These are excellent questions. I'm writting them down for future reference.

For me I guess you could call me an independant contractor. I rent my space by the hour $25.00 an hour my classes are hour and half long so 37.50 per session. I need minimum of three students to break even. I handle all the details; advertising, insurance, and so forth.

The studio stated they would help with advertising by promoting me in their news letter and website but to date I have not seen them promoting my classes in any form. Hope fully that will change, but I'm resided to the fact that it is all in my hands.

Good luck in what ever endeavor you choose.

Hmm... I don't think that kind of sudden paycut sounds right. If she agreed to one thing, she should stick to it for a reasonable amount of time or at least explain why and at least do 50/50 or something.

I'm opening a studio right now (grand opening this weekend) and we're starting our instructors at a 70/30 split (they get 30) and while I know that sounds really low, we have a minimum enrollment to ensure they get paid at least as much as the local fitness instructor rate (which in some cases is better than what some dance studios pay). Once we're more settled, it'll probably switch to a flat rate more suitable for dance instructors or a 60/40. We take care of all the advertising, insurance, website, handing out fliers, registration, etc.

Originally Posted by crystalllized

For promoting, ..., but the instructors are also supposed to put up/hand out flyers and help pull in more students from the other places we teach at (this is kind of awkward for me as well).

Where's the emoticon showing alarm bells ringing? I think this is unethical - certainly, it's not something that should be expected of you. I would be concerned about dealing with this studio simply from the standpoint that they are behaving unprofessionally. If they are new and learning all this stuff, you can perhaps forgive that and work alongside them to improve things. But if they are going to play by these sort of standards in an ongoing manner, I wouldn't have a bar of it. Your personal reputation as an ethically minded and professional instructor/dancer are of far more value than any one job.

Originally Posted by crystalllized

I don't know what kind of insurance they carry. I'll have to ask since I certainly don't have my own.

More alarm-bells! Find out pronto, and make sure you're adequately covered. This is an absolute must, for your protection if anything happens to you, and again for your protection if anything happens to your students and they sue you!

Def check insurance (a biggie) Gen Liability covers if say they trip and fall and break a bone or whatever. Professional Insurance covers if say they are doing a move incorrect and instructor doesn't correct and the student torcs their back or something (can't work for while or longer, etc). Prof Insur also covers if you are performing somewhere and your sword falls while spinning and knocks somebody out kind of thing...


I'm still thinking 30% diff is mighty high/mighty costly

Resolution:

After meeting with the owner to discuss the above issues, it turned out that yes, this was all due to her not knowing the normal instructional rates.

I negotiated a 60/40 split:) and a minimum pay no matter how many students show up. (I gave up teaching a night at another place so what I would have gotten there as an hourly rate is my minimum pay). In return for the higher rate I am helping her train some of the new teachers and help to advertise classes.

I brought up the insurance issue and you gals were right, she was operating off of her home owner's insurance and having the students sign a very long a wordy waiver that they wouldn't sue. She is looking into professional insurance right now.

Thanks girls for all of your input and helping me understand what is "normal" with these kind of arrangements.

Before this, I had only taught at very-formatted gyms that paid by the hour.