Making money from guest workshops

March 12, 2010

Do you have some information on bringing guest teachers into your yoga studio? I’m bringing in a Tai Chi master teacher with many years exp. Well known teacher, etc. I still need to make some money. how do I manage this ?

Thanks
Michele

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One Response to “Making money from guest workshops”

  1. admin
    March 12th, 2010 at 2:38 pm

    Hi Michele,
    Often a studio owner brings in a well-known teacher for a workshop and pays a premium price, only to find that far fewer people showed up than expected. The master got paid well, but you’re stuck with little, or even a loss.

    The key is to offer the guest teacher a generous percentage of revenue, but not a flat rate. This can motivate them to market for you, maybe tell other teachers they know to tell their students, perhaps email to their own email list announcing the workshop.

    They MUST have a stake in the profits. I would rather pay a very well known guru 70% and have them market the workshop than pay the more standard 40% and be left on my own to do it (assuming they had the resources to do a reasonable job – like an email list). Just for reference, if you bring in a little-known guest teacher for a workshop, plan to pay 30-40% of gross revenue to that person (This assumes your costs are low and you’re not doing something like a “wine and cheese” evening, which can drive up your costs. If you do something like this, adjust the percentage split accordingly).

    Keep in mind that when a guest brings in new people to your studio, you should be prepared to try to convert them to your students in the future. Give them materials about your studio before they leave, AND always get their email address.

    Be aware that some gusts will balk at your suggestion that they just get a percentage. Let them know your concerns. Explain that you know they’re so great that they will bring in lots of people, and that you will be grateful for their help. Do the math for them showing them how much they can make with X number of people (show them that it will be more than their flat rate).

    The bottom line is that you want to be sure that workshops are profitable, AND that the guest does marketing too.

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