Personal-Training Business Fundamentals

Question 1

trainer is paid one rate when working the fitness floor and a higher rate when working with a client as a PT

Answer 1

direct-employee model

Question 2

pay rate range for a personal-training session

Answer 2

40-70% of what the client pays the fitness center

Question 3

advantages of the direct-employee model

Answer 3

1) employer pays for marketing and equipment
2) employer-provided benefits
3) employer submits taxes on behalf of trainer and issue W-2
4) PT can take part in remodeling
5) opportunity for promotion
6) clients come to the same facility instead of the PT traveling to different places for clients
7) meet prospective clients through group exercise classes
8) deliver small-group training sessions

Question 4

disadvantages of the direct-employee model

Answer 4

1) PT has to conform to uniform and grooming standards of the employer
2) per-session training fees are typically lower than what the PT could make independently
3) minimum work-hour requirement
4) sales pressure goals

Question 5

the personal trainer contracts their services to a health club or training studio

Answer 5

independent-contractor model

Question 6

advantages of the independent-contractor model

Answer 6

1) PT is able to establish fees
2) flexibility to coach and workout at different facilities
3) financial autonomy (develop personal financial goals)

Question 7

disadvantages of the independent-contractor model

Answer 7

1) PT must maintain business records and pay quarterly taxes
2) PT responsible for all marketing costs
3) PT has no control over operations of the facility
4) PT may have to travel to multiple locations for their clients

Question 8

training “under the table”

Answer 8

being paid directly by a client while working at a fitness facility; this is illegal and unethical

Question 9

components of a business plan

Answer 9

1) executive summary
2) business description
3) marketing plan
4) operational plan
5) risk analysis
6) decision-making criteria

Question 10

contents of an executive summary

Answer 10

1) business concept (e.g., description, type of service and market)
2) financial information (e.g., start-up costs, ROI)
3) current business position (e.g., experience, legal structure)
4) major achievements

Question 11

contents of the business description

Answer 11

1) succinct mission statement
2) business model
3) current market status (including fitness industry and number of competitors)
4) how business fills a market need
5) management team (highlight their knowledge, skills, and experience)

Question 12

purpose of the business description

Answer 12

provide information about the structure of the business, the market it will serve, and the people who will run it

Question 13

contents of the marketing plan

Answer 13

1) details on the demographics of the area
2) demand for personal-training services
3) specific type or brand of training services offered
4) plan for communicating the benefits of personal training to potential customers

Question 14

describes the structure for how the business will operate, including an org chart that identifies key decision makers and the employees responsible for executing those decision

Answer 14

operational plan

Question 15

the general areas of risk analysis

Answer 15

1) barriers to entry: associated costs of running the business (e.g., rental fees, equipment, employees, marketing)
2) financial: access to capital required to start or expand the business
3) competitive: other professionals in the same market
4) staffing: managing employees and budgeting for consistent payroll

Question 16

component of the business plan that includes a detailed cost-benefit analysis, as well as highlighting specifics of the business plan, proving that it will be a successful business venture

Answer 16

decision-making criteria

Question 17

establishes an instantly recognizable value for the product or service being sold and can create an almost immediate emotional connection with the client

Answer 17

brand

Question 18

questions a PT should ask and answer when building a brand

Answer 18

1) What can be done to create and communicate a unique brand identity that will attract the target demographic?
2) Who is the ideal target customer?
3) Where is this target customer located?
4) What time of day will the customer be interested in working with a trainer?
5) What marketing efforts can be used to reach the potential customer to convert them into an actual paying client?

Question 19

initial session needs to accomplish these 2 goals

Answer 19

1) Collect information about the client to screen for health risks and design an exercise program for their specific abilities. The program should provide what they need, along with their wants.
2) Give the client an opportunity to experience a specific brand of training so they can understand how working with a trainer will help them safely achieve fitness goals.

Question 20

5 reasons for using connected health tools for delivering web-based health, wellness, and fitness interventions

Answer 20

1) reduced delivery costs
2) convenience to users
3) timeliness
4) reduction of stigma
5) reduction of time-based isolation barriers

Question 21

social benefits of group exercise increase adherence in these 3 ways

Answer 21

1) dissociation, wherein the exerciser’s attentional focus is diverted away from the unpleasant sensations related to exercise by engaging with others during the physical effort
2) enhanced self-efficacy through receiving compliments and support from others in the group
3) stimulus control through reminders from group participants and the trainer to attend a scheduled session

Question 22

the training concept that should be utilized to retain a client for the long-term

Answer 22

periodization

Question 23

T/F: Periodization can meet individual client needs, as well as provides the trainer with a marketing strategy for client retention.

Answer 23

True

Question 24

the first step when establishing a personal budget

Answer 24

list monthly expenses

Question 25

the success rate of a salesperson in making a presentation to a prospective customer and actually having the customer make a purchase to complete the sale; it is a measure of the number of sales made divided by the number of presentations given

Answer 25

closing ratio

Question 26

T/F: A positive aspect of establishing a set schedule of hours is that it makes the trainer’s time more valuable and creates the perception of demand, i.e., the “velvet rope” principle.

Answer 26

True

Question 27

a trainer’s schedule should include time for all of these activities

Answer 27

1) working with clients
2) client management
3) prospecting for new clients
4) developing marketing or advertising materials
5) other job duties
6) exercise
7) personal time / home life

Question 28

most sought-after timeslots

Answer 28

5-9 am
12-2 pm
4-8 pm

Question 29

2 basic components to being a successful sales professional

Answer 29

1) marketing the personal-training service to potential clients
2) asking for the sale

Question 30

7 basic rules for selling

Answer 30

1) say it in terms the customer wants, needs, and understands
2) gather personal information and learn how to use it
3) build friendships
4) build a relationship “shield” that no competitor can pierce
5) establish common ground
6) gain confidence
7) have fun and be funny

Question 31

T/F: Buying decisions are emotionally driven, meaning that prospective clients will think with logic, but act on emotion.

Answer 31

True

Question 32

the ability to understand the thoughts and feelings of another person

Answer 32

empathy

Question 33

T/F: Having empathy for someone requires an understanding of how a person feels, but does not require the trainer to feel the same way.

Answer 33

True

Question 34

6 ways to earn a person’s immediate respect and trust

Answer 34

1) become genuinely interested in people
2) smile
3) remember that a person’s name is to that person the sweetest and most important sound in any language
4) be a good listener and encourage others to talk about themselves
5) talk in terms of the other person’s interests
6) make the other person feel important and do it sincerely

Question 35

T/F: In a conversation with a prospective client about personal training, both open-ended and closed-ended questions should be asked.

Answer 35

True

Question 36

when applied to the personal training sales process, the stage of the transtheoretical model when a prospective client is inquiring about buying personal training sessions

Answer 36

making the transition from the preparation to the action stage of change