Tuesday, July 29, 2014

Calculating the Split

"The Split" is often a source of consternation and confusion for massage therapists. "What's normal" or "what's right" or "what's legal" are often bandied about by MTs who don't fully understand the Split.

Here's what most of us don't grasp: the portion of a massage session payment that the establishment owner keeps is payment for specific goods and services they provide for you. It's not (or it shouldn't be) a random number based on what any of us think we are "worth". It's a payment for goods or services.

No two business owners and no two massage therapists are exactly alike. Which is why you need to negotiate this as part of your contract and why it needs to be spelled out in your independent contract.

Ask yourself this:

  • What would I pay the establishment owner for at the end of every session if I had to pay as I went along?
  • What goods or services do I receive that make my work possible?
  • What goods and services are easier for me to have them provide than to have me provide?
  • What would cost me time and money if I had to provide them for myself?

And here's your bottom-line question: What goods and services have actual financial value to me?

Make a list. Don't list everything you get by working in someone else's space. List those things that have measurable financial value to you. Those things that would cost you a noticeable amount of money if you had to provide them yourself. Here's my list of what I'd pay someone for:

  • Doing the kind of marketing that gives me a reasonably full schedule
  • [OR If I'm a tenant in a medical office, referrals of their clients to me]
  • A massage-appropriate room (with table!)
  • Doing the laundry
  • Handling the scheduling (and doing it well)
  • Massage supplies (lubricant, linens, music)
  • Processing payments for me
Assign a percentage value to each one. How much out of each massage would you be willing to pay for that good or service? Since my personal philosophy is to never pay more than 50% of my earnings in goods and services, my percentages look like this. These percentages are based on real quantifiable economic value to me; they're the things that help me make money (which is why you don't see "office decorations", for example). I know what it costs to provide these things for myself:

Marketing / full schedule = 15% [OR referrals (in a chiro / medical office) =  15%]
Room = 10%
Laundry = 5%
Payment processing = 5%
Scheduling = 5%
Supplies = 5%

I'll negotiate these numbers to a certain extent, of course but if, in effect, I can walk in, do my work, and walk out I will pay up to but never more than 50% of what I make. The more I've got to do, the less I pay them.

We need to think about The Split in a business way:

  1. They are paying us 100% ($70 / $80 / $90 / $whatever) to provide a professional massage to their clients.
  2. We pay a certain percentage of that back to them for any goods and services they provide that make it easier for us to provide professional massage to their clients.

In practical terms, how do we pay them for the goods and services they provide? Through a portion of each massage. We could also agree to pay them a flat fee per month. Or a monthly fee for the actual cost of these goods and services. In our industry The Split has become the most convenient way to do this.

Quit thinking "they're only paying me $$ for each massage!" Start thinking "They want me to pay them $$ for the goods and services they provide. Are these goods and services worth this kind of money to me?"

If you don't know what your Split is paying for, you need to get clear with the business owner about that. If your Split keeps changing based on the owner's whims, you need to get clear with them about this. If the business establishment is adding on little fees on the fly, you need to sit down with the owner and specify, between you, what you pay for and nothing else.

You don't do this because you're mean or venal or greedy or aggressive. You do it because you are a smart business owner yourself and you know that getting clear on this leads to fewer problems in the business relationship down the road. It's what real business owners do.

Lots of business owners don't realize this is actually the thinking that is underneath The Split. They may rant and rave about "I need to make $$ from massage or I can't survive!" Possibly true, but not your responsibility as a contractor. You are in business with this person for your mutual benefit. You can like each other and hope for the very best for each other and strive to make each of you successful. But your relationship is still a business relationship and needs to be conducted like one.

What happens if the business owner won't do this? You are dealing with someone who is less professional than you are and, I promise you, that will come back to bite you in the piriformis at some point. How long are you willing to wait for the Munch On Your Backside to happen (because it will happen)? Plan accordingly.

Friday, July 25, 2014

Are We Nothing More Than Cannon Fodder?

From Wikipedia:

Cannon fodder is an informal, derogatory term for combatants who are regarded or treated as expendable ... generally used in situations where combatants are forced to deliberately fight against hopeless odds (with the foreknowledge that they will suffer extremely high casualties) ... derives from fodder, as food for livestock. Soldiers are the metaphorical food for enemy cannon fire.

I was going to write about marketing this week but I've got a burr up my butt and I'm going to share it with you, you lucky people.

I read a couple of massage therapist boards on the internet. This week it seems like every third post is some form of "I'm being taken advantage of but I don't know what to do about it" or "they say I have to do [fill in the blank] and that doesn't seem right but I don't know!" or "the workplace is so toxic but what else can I do as a lowly massage therapist?"

I'm not angry at the MTs posting. Most of them are young and/or new to the field (though not all of them). But I am very angry at the schools running these people through their "professional training programs". There are way too many schools teaching people how to rub oil on naked people but not really preparing them to be massage therapists. That sucks.

Preparing someone to truly be a massage therapist includes giving them a realistic picture of the work world for massage therapists and giving them the tools to navigate that work world. As near as I can tell, more than half the schools in this country are turning out the massage equivalent of cannon fodder -- you are just meat to fill the pockets of business owners. Don't ever forget you can be replaced!

We are a profession in an active state of evolution. Evolution should be towards something bigger and better. That is not where too many massage therapists are being led. I'll be damned if I'll sit back and watch us "evolve" into professional serfs. So listen up, kids, here are some truths about the massage therapy workplace.

We are not as educated as PTs, OTs, chiropractors, and doctors. But in a room with them, we're the experts about massage therapy.

Yeah, you spent months and months and too much money getting your  massage education. In the workplace, no one cares (nor should they). That's not the reason you should get respect. The reason is this: if you're the only massage therapist in the room, you are the one that knows the most about massage therapy!  Quit allowing yourself to be cowed by their educational background!

If you don't believe you're a valuable asset, no one else will either.

Yes, you're the expert on massage if you're the only MT in the room. But you may not be the only MT in the room. Or you may not be the first MT they've worked with. So you're green and insecure and they know it. They aren't going to respect that.

The answer: conquer your insecurity. Your insecurity resides securely and entirely in you. You need to fix it and you need to interact with the work world with confidence even if you are completely faking it. All confident people are faking it at some point.

The green-ness? Of course you're green. That doesn't mean you're worthless and should accept crap. They'll be charging money for your work. If it's good enough for their clients then it must be worth something!

The only real power you have in a professional relationship is your willingness to end it. Be willing to end it when it becomes abusive, dismissive, or wrong. Walk the bleep-bleep away!

What is it Dr. Phil likes to say? You teach people how to treat you. No, you aren't directly responsible for some manager / owner / other kind of professional treating you like s**t but you are directly responsible if you put up with it. You. Are. It's only "taking advantage of you" if you let it happen.

  • If someone regularly short-changes your check and you keep coming back to work, you're letting them take advantage of you.
  • If someone regularly schedules you on your day off and you come into work on your day off anyways you're letting them take advantage of you.
  • If they won't block Mr. Happy Pants from scheduling massage and you do a session with him anyways you are letting the owner and Mr. Happy Pants take advantage of you!

Quit expecting them to take care of you. That's your job.

If a client is acting inappropriately, you don't have to ask permission to end the session. You are the massage therapist in the session, you end the session and inform management that you're doing so.

For the love of all things holy, you don't have to wait for a client to actually sexually assault you before you're "allowed" to end the session! You're the professional. If, in your professional opinion, the behavior is out of bounds (and they did teach you about boundaries in your school, right???) then end the session.

If management doesn't like it they can take the chance of being groped next time.

You don't have to be nice to your clients. You have to be professionally courteous. They aren't the same thing.

Too many of us can't differentiate between rules of social engagement and rules of professional engagement. You have to be "nice" at family reunions and at your partner's company holiday party. You have to be professionally courteous with your clients.

That doesn't preclude you from being sympathetic and friendly and gracious with your clients but it does mean you don't put up with bulls**t because you're afraid of being seen as "not nice". You aren't friends just because you work together. You're colleagues. And the person on the table? Also not your buddy. That's your client.

If the client is out of line, say so clearly and directly. Don't know how to do that? Figure out your go-to phrase now (maybe with some help from other MTs) and practice it as long as you need to (out loud!) till you know you can say it when you have to.

If you are contemplating setting a client straight on boundaries and the voice you hear in your head is your mom's telling you that's not a nice thing to do, that's a pretty clear sign you're operating from social rules rather than professional rules (also, unless your mom is also a professional massage therapist, tell the voice to shut up).

They make money off your hands. You have concrete measurable $$ value to them. Quit acting like the beggar at the gate.

"But they'll fire me!" (whimper whimper) If you're an employee they might. That can happen virtually anywhere to anyone. There are no guarantees. You should always be prepared for that. But remember, while they're trying to find your replacement and bring them up to speed, they aren't making any money from you or them. You are their INCOME. Start acting like that matters.

If you are an independent contractor, your contract spells out the conditions under with either party can terminate the contract early. Which means your contract needs to define (1) the length of the contract and (2) the conditions for early termination. But, wait, their standard contract doesn't have either of those things? Don't sign it until it does. Those are basic requirements of a legal independent contractor relationship.

They won't hire you if you don't sign their contract as-is? Then they aren't someone you want to work with because the odds are that down the road they will, intentionally or unintentionally, take advantage of you.

Any contract is only as strong as your willingness to take it to court.

That's true for everyone, including the person / organization you're signing the contract for. Yes, they might take you to court (and they're even more likely to threaten to take you to court) but that costs money and time and energy. Are they really going to do that?

Same goes for you. Don't threaten it if you aren't going to follow through.

If someone is regularly violating the terms of your contract, they aren't going to stop.

They aren't going to suddenly have a change of heart and be all nice and fair and sweet. If they have a history of doing it, they'll keep doing it. Tell them -- once -- that they've violated the terms of the contract. Give them one chance to straighten up (this is not baseball, they don't get 3 strikes). If they don't respect your backbone and the contract after your warning, walk away. It's the only choice you have.

Private practice is not easy and it takes anywhere from 2-5 years to build a full client base. But it's all yours when you do.

Private practice is not nirvana. It's not like free money just flowing into your hands. And your schedule won't be full 6 weeks after you open. But if you're sick of working for other people, figure out how to do it.

There is no shame in having a second job so you can still do massage therapy.

There are tons of us who can't make a full-time income from massage. It's not easy. It's no shame to have something else with a steadier income stream. It doesn't mean you're not a "real" massage therapist. It's means you're a real person who deals with the reality of their life.

Independent contractors are not employees. You must understand how independent contracting works.

You are working with another organization as an IC, not for them. You have a contract with them, you aren't employed by them. I'm not just splitting hairs. It really matters. Not understanding the difference is at the root of a lot of massage therapy conflicts.

The split isn't because they're greedy. It's because they're providing you with specific services. Make sure it's worth it.

What are they providing for the money they're keeping? A room? Linens? Lubricants? Music? Scheduling? Laundry? Payment processing? Marketing / clients you didn't have to find yourself? These things are all very valuable and worth something. You get to decide how valuable they are to you. Don't just passively accept whatever number is on the contract they flourish in your face.

Seriously, sit down and figure out how many percentage points each of these things is worth to you (and that's the bulk of what it's worth paying for; anything else they throw in there, like office decorations, is gravy). Tell them what you're willing to pay them for. And make sure the contract spells it out! Which leads me to....

Learn to negotiate!!

Oh, Lord have mercy, if you can't / won't / don't know how (and won't learn) to negotiate you've just made yourself cannon fodder and I can't help you. If you are going in as an independent contractor or a potential employee, you can negotiate! The deal's not set in stone just because they already wrote it down. It's only words on paper. They are real easy to change.

You can't compare how much you make per massage in private practice with what you make per massage as an employee. That's like comparing apples to...lawn furniture.

I'm not going to spell it all out here but they are two very different ways of making income. You can't just say "I make more per hour in private practice/independent contracting" and assume that's therefore automatically the best deal.

When you've got a good working relationship, don't take it for granted.

Not all working relationships are doom and gloom (though more than I like to think about based on what I read on Facebook). Some are great. Some are with managers / owners who understand and respect massage therapists. Who strive to create a pleasant professional supportive work environment. Who will have your back when Mr. Happy Pants shows up. Who pay on time (and accurately). Who honor their contracts. Who provide good snacks (wait, snacks? Where did that come from? Must be dinner time).

Treat them like the treasure they are. Take care of them too. Speak well of them to others. Think of it like finally finding that great boyfriend / girlfriend. They're worth doing what it takes (within reason) to hang on to them.


I'm not yelling at you, honest. I'm not angry at you. I'm angry for you. I'm hyper-pissed-off at schools who either didn't prepare you or set your expectations too low (maybe to stay popular with local employers? Only a guess.). It's the #1 reason I teach business classes; it makes me crazy to see massage therapists taken advantage of or leave the field entirely because they don't know these things.

This is still a profession where the vast majority of us are self-employed, either in private practice or as independent contractors (yes, ICers are self-employed). It is our job to take care of ourselves. We have to have confidence, a sense of our worth, and a vertebral column (yes, backbone). Without those, being treated well is entirely up to chance. The odds are slightly better than, say, the lottery but not as much better as you might think.

You are a professional, valuable, and half of a business transaction. Make your half solid.


Confidential to Aries: wow, that massage this afternoon really shook some things up!  Thanks!



Friday, July 18, 2014

Your Marketing Headspace: Rules of Thumb

You can approach marketing a lot of ways. Since I'm so fond of the number 3, I tend to approach it as a triangle:


  • How you think about marketing
  • Things you purchase for marketing (when you have more money than time)
  • Things you do for marketing (when you have more time than money)
The foundation, though, the place you always need to start is "thinking". If you're not clear in your head about how you think and feel about marketing, you'll expend time, energy, and money that you don't need to. Most of us aren't exactly swimming in excess time/energy/money so doing a little thinking first is worth it.

There's two aspects to "thinking about marketing".
  • What do we already know is true generally?
  • What is true for me specifically?
Let's start with what we know is true, generally (aka, rules of thumb). Next week I'll write about what is true for you, specifically, about marketing.

You will give someone at least 6 business cards before they manage to hang on to one.  That's why you print a bunch and give them away like popcorn. And why you always have your business cards on you. Where do those business cards go? Same place as missing socks I suspect.

It can easily take up to 6 months from the time someone firsts asks for a business card to when they actually book an appointment. Sad but true. Expressing interest is often the first step in a complicated dance (inside them, not with you) that gets them to actually booking an appointment. Or maybe they'll book tomorrow. Patience, grasshopper, patience.

People need to be in a conducive-to-thinking-about-massage headspace for your marketing efforts to have any effect. It's why I think grocery store bulletin boards, for example, are usually pointless places to leave your business cards (unless it's a small town or tight community where everyone uses that board to find local merchants). If they are absorbed thinking about something completely unrelated to massage, your massage will likely wash right over them. Where are your potential clients when they are primed to hear a message about their body, their health, and about spending money on themselves? (No, I don't have the answer. That depends on who you want to attract.)

You don't have unlimited time, energy, or money. Focus them on attracting clients who are just right for you. We can't reach everyone and we don't want to. Focus the resources you've got reaching the kind of people who are a really good fit for you.

Unless you have a gigantic budget and/or unlimited time and energy, it will take 2-5 years to build a self-supporting private practice. You heard me folks, 2-5 years. That's true of virtually everyone. You might be able to do it in a year if you really bust your glutes and every single star in the sky aligns perfectly but you aren't going to have a full schedule in your private practice in 6 weeks. It just doesn't work that way. This is a marathon, not a sprint (so you may not want to give up the day job right away).

Notice I said "private practice". It doesn't take 2-5 years to get a job working in someone else's shop and have a full schedule (if they know what they're doing). This only applies to private practice.

People need to hear / see your marketing message 5-8 times before they remember they've even seen/heard it once.  Not 5-8 times until they take action; 5-8 times before it weaves its way down through all the layers of noise, news, and consciousness and takes root as something they've seen once.  You have to keep putting stuff out there just to be noticed.

Marketing is as much mystery as science (translation: we're all guessing). Even huge corporations with full-time marketing departments headed by people with multiple degrees make stupid marketing decisions (New Coke, anyone?). Marketing is based on figuring out how people think, how they will value something, and what will generate a reaction. It's about the human psyche and that's still a lot of mystery to all of us. Don't feel bad if some of your marketing efforts go splat. Everyone's do sometimes.

Anyone else out there got any good rules of thumb for marketing? I'd love to hear them!

Friday, July 11, 2014

Is It In Your DNA?

How was "business" understood in your family growing up? Did you talk about "business"? Were members of you family involved in running a business?

When your family (especially your parents) talked about money, was it discussed openly and calmly or was it a stressful secretive conversation?

How did your family tend to think about "businessmen"? (If you're my age, there weren't a lot of conversations about business women.)

What word comes to mind, from your family and childhood, when you hear the word "work"?

I grew up in a military family so we didn't talk about business. We talked about Dad's career but not "business". When my dad retired from the military, he bought a small roofing and siding business. He was.....OK at running a business. I suspect he made too many decisions from emotions (especially his hiring decisions) and the business struggled.

As for money....we may "honor" our troops but we don't pay them very well. Yeah, yeah, yeah, "free" healthcare, "cheap" commissary and PX, "paid" moves. It adds up to less than you think if you didn't grow up in the military and my parents were usually stressed in one way or another about money. They didn't talk about it openly but when you're a kid, you know.

Because of the military background the word that comes to mind, immediately, for me when I think of work is "professionalism". That was a strong motivator for my dad. "Honor" is probably in there too. I now realize how deeply rooted those ideals are in me. Being a professional, and taking our profession seriously, is instinctive for me.

What you saw and experienced in your family around "business", "money", and "work" are a permanent part of your perception of these things. That may be a huge benefit or a significant hindrance but it's there, it's definitely down in you.

I recently read something (can't remember what) that made me realize that people who grew up in families that were involved in running businesses, especially successful small businesses, enter adulthood and their own small businesses with an advantage. They've been steeped in it for years. They may already have a deeply ingrained (and hopefully healthy) sense of what it means to be a smart / good / successful business person.

Re-connect with the person you were as a kid and then answer these questions without too much pondering or analysis. What's the first thing that pops up in your mind?

Business is:

Businesspeople are:

Money is:

Work means:

Take a look at your answers. How much is this affecting your massage practice today?