Incentive Programs - need help!

[Sora Rumbleton]

I am a massage therapist who owns a small day spa with independant contractors. As an MT myself, I really try to provide a quality work environment for my IC's so they will enjoy working with me, feel respected and be nicely compensated for their effort. Currently, I offer a 60/40 split in their favor - 10% higher than anyone else in the area!

Unfortunately, I am having trouble getting my IC's to make any real effort to bring in their own clientele... I have worked hard to build up my own clientele, and my spa provides a small amount of bookings for them (and steadily growing), but as IC's it's really their responsibility to build up their own following. We all know that we can't just pass off our following to others - that's just not how it works!

Does anyone have any suggestions for how I might motivate my IC's to bring in business on their own? I would like to put some sort of incentive program in place, but I can't afford to throw much more money at them... Any suggestions?

 

[backspace]

Stop paying commissions.

Rent the rooms to them.

 

[Zach]

I am sorry to hear that you are having this problem, especially since you are already so generous. Maybe it is time to sit down and have a heart to heart with them. Let them know that they need to start carrying more of their own weight. Since you are already more generous than others in town, it seems silly to me to throw more money at them. Maybe you could tell them you will be considering hiring other therapists at a lower commission rate and giving these new therapists all the business generated by the spa.

Perhaps it is time to consider changing the split. Maybe go to 50/50 with the incentive that they get more once they bring in a certain amount of their own clients.

I don't know how this all fits in with definitions of IC's, etc., so it may not be a feasible idea.