Most academies are best off paying coaches an hourly or per-class rate, with a bonus tied to something you want more of, like retention or full classes. Per-student pay and revenue share can work for senior coaches who bring in their own students, but they shift risk onto the coach and need care to set up fairly. Whatever you choose, make sure it meets award rates and super if your coaches are employees.
Your best coach asks for a pay rise. She’s been with you four years, her Thursday classes are always full, and her students stay for years. You pay her the same $40 an hour as the coach who started last month. You’d like to reward her, but you’re not sure whether to bump her rate, give her a share of her classes or something else. And whatever you do for her, the others will hear about it.
Key takeaways
- How you pay coaches shapes what they focus on, so pick a model that rewards what you want.
- Hourly or per-class pay is the simplest and the most predictable for both sides.
- Per-student and revenue-share models reward full classes but make coach income less stable.
- A small bonus on top of a base rate often works better than changing the whole model.
- In Australia, check award rates, casual loading and super before you set any rate.
What are the main ways to pay coaches?
There are four common models. Most academies use one as the base and add a bonus on top.
| Model | How it works | Best for |
|---|---|---|
| Hourly | A set rate for every hour worked, including set-up | Most coaches, especially newer ones |
| Per class | A set amount for each class taught | Academies with set class lengths |
| Per student | An amount for each student in the class | Senior coaches running their own groups |
| Revenue share | A percentage of what the class or private lessons bring in | Private lesson coaches who bring their own clients |
Hourly pay
Hourly pay is the simplest. Coaches know what they’ll earn, and you know what each class costs to run. It also makes it easy to pay for the work around a class, like set-up, pack-up and the five minutes talking to a parent afterwards.
The downside is that hourly pay doesn’t reward a coach for filling a class or keeping students. A coach with three students earns the same as a coach with eight.
Per-class pay
Per-class pay is hourly pay in a different shape. You pay, say, $50 for a one-hour class. It’s easy to work out and easy to explain. Just make sure the amount covers the real time involved, including arriving early and staying back, or you can end up paying below the minimum rate without meaning to.
Per-student pay
Per-student pay ties a coach’s income to the size of their class. A common setup is a base amount for the class plus an amount for each student over a set number.
Example: a coach gets $30 for a one-hour class, plus $4 for each student above four. With eight students, they earn $30 + (4 × $4) = $46. With four students, they earn $30.
This rewards coaches who fill and keep their classes. But it also means a coach’s pay can drop through no fault of their own, like a timetable change or a wet term. If you use it, keep a decent base so the coach is never worse off than a fair hourly rate.
Revenue share
Revenue share gives a coach a percentage of what their sessions bring in. It’s most common for private lessons, where a coach may bring their own clients. Splits vary a lot by sport and by who finds the client, so set yours based on what your academy provides, like courts, bookings, payments and marketing.
Example: a private lesson costs $90. The coach gets 60% ($54) and the academy keeps 40% ($36) to cover the court, admin and payment fees.
Revenue share can make sense for experienced coaches, but it’s harder to explain, harder to calculate each pay run, and can make the coach feel the clients are theirs rather than the academy’s. Agree in writing what happens to those clients if the coach leaves.
How do the models compare?
Here’s what each model looks like for the same coach teaching ten one-hour group classes a week, with an average of six students each.
| Model | Rate | Weekly pay | Coach risk |
|---|---|---|---|
| Hourly | $45 an hour | $450 | Low |
| Per class | $45 a class | $450 | Low |
| Per student | $30 base + $4 per student over 4 | $380 | Medium |
| Revenue share | 25% of $30 per student per class | $450 | High |
On paper these look similar. The difference shows up in a quiet week. With four students a class, the hourly coach still earns $450, the per-student coach earns $300 and the revenue-share coach earns $300. Think about who carries that risk, and whether the coach can do anything about it.
Should you add a bonus?
A bonus on top of an hourly rate often gives you the best of both. Coaches get stable pay, and you reward the things that grow the business.
- Retention bonus: a set amount each term if, say, 80% of a coach’s students re-enrol
- Trial conversion bonus: an amount for each trial student who enrols
- Full class bonus: an amount for each class at capacity
- Qualification bonus: a higher rate for coaches who complete the next coaching level
Keep bonuses simple enough that a coach can work out what they’ve earned. If they need a spreadsheet to check, it won’t change what they do. For ideas on what drives retention, see how to keep students longer.
What do Australian employers need to check?
If your coaches are employees, their pay must meet the minimum rates in the award that covers them. Many coaching roles, including swim teachers and fitness instructors, fall under the Fitness Industry Award, but check which award applies to each role using the Fair Work Ombudsman’s tools.
- Minimum rates: your rate, however it’s worked out, must not fall below the award rate for the hours worked.
- Casual loading: casual employees under most awards get a 25% loading on top of the base rate.
- Minimum engagement: many awards set a minimum number of paid hours for each shift, even if the class is shorter.
- Super: employers must pay the superannuation guarantee, which is 12% of ordinary time earnings.
- Contractor or employee: calling a coach a contractor doesn’t make them one. The ATO and Fair Work look at the whole working relationship.
This is general information, not legal or tax advice. If you’re unsure, talk to your accountant or an employment adviser before you set rates.
How do you handle cover and cancellations?
Decide these rules before they come up, and put them in each coach’s agreement:
- If a class is cancelled for rain with less than a set notice period, does the coach still get paid?
- Does a coach covering a class get their own rate or the regular coach’s rate?
- Are staff meetings, training days and parent nights paid?
- Is time spent writing progress reports paid?
Clear answers stop small grumbles from turning into resignations. For more on rain cancellations, see how to handle rain cancellations.
Common mistakes with coach pay
- Paying per class but ignoring set-up time. The real hourly rate can fall below the award.
- Bonuses nobody understands. If coaches can’t work it out, it won’t change anything.
- Different deals for every coach. It’s hard to manage and causes resentment when people compare notes.
- Treating everyone as a contractor. It may not hold up, and the back-pay bill can be large.
- No records of hours. You need them for pay disputes, award checks and your accountant.
How does Outcoach handle coach pay?
The Staff module in Outcoach keeps coach records, hours and pay in one place.
- Pay history, hours and totals for each coach
- Fortnightly work-time reports built from the classes each coach actually taught
- Certifications tracked, with alerts before a coach’s check or qualification expires
- Transfer classes in bulk when a coach is away, so cover is recorded properly
- Coach availability for bookings
See the latest updates on our new releases page or read more about class scheduling.
Frequently asked questions
For most academies, an hourly or per-class rate with a simple bonus works best. It gives coaches stable pay and rewards things like retention or full classes.
It can work for senior coaches running their own groups, but keep a decent base rate so coaches aren’t penalised for things outside their control, like timetable changes or a wet term.
It varies a lot by sport and by who finds the client. Set the split based on what the academy provides, such as courts, bookings, payments and marketing, and agree it in writing.
If your coaches are employees, yes. The superannuation guarantee is 12% of ordinary time earnings. Some contractors may also be entitled to super, so check with your accountant.
It depends on the whole working relationship, not the title in the agreement. Most coaches who teach your classes, on your timetable, with your equipment are likely to be employees. Get advice if you’re unsure.
