What % of Tuition Should Teachers Keep? [7FMS Ep. #49]

by Daniel Patterson


What percentage of lesson fees should your teaching team keep?

Or – an even better question – should you pay them a percentage… or an hourly rate?

What about benefits?

Should you pay teachers to attend meetings and training?

It turns out that the question of teacher pay is actually a lot more nuanced than simply deciding on a “flat percentage” of lesson fees…

And the key to retaining great teachers for the long term really depends on getting this right.

(And, I probably don’t have to remind you that a key ingredient to great student retention is in great teacher retention).

In this episode, Nate gives his formula for getting the “perfect” teacher pay percentage…

Plus, Nate and I uncover the four major team expenses that you will incur in your music school.

Click below to listen to the episode.



Or, check out the video version of the podcast:




Here’s what we cover in the episode:

  • How much should you pay your teachers?
  • How Nate got his cost of labor down to 32%
  • Why studio costs are more than just flat lesson fees
  • The breakdown of costs in your studio – from high to low
  • How your studio margins can explain your retention problems
  • How will your percentages change as your company grows?
  • Why not just target one percentage at a time (and try to cut costs)?

During the episode, we mentioned an episode that we released earlier this year called “Pay, Disgruntled Staff, and Team Meetings”… about how to get the best out of your teaching staff. 

If you are focusing on team right now, these two episodes might be a great one-two punch as you are thinking about the future of your school.

Do you have questions? Have a question that we could answer on an episode?

Send us a message to let us know!



The following two tabs change content below.
Daniel Patterson is a private teacher, writer, and marketing consultant for music schools. He began teaching in 2004. He co-founded and led marketing operations for a summer music camp that sees over 200 children each summer.

How Do You Want to Grow Your Studio?

Get More Students

Bring in $1000s in new revenue with a studio funnel

Begin Group Lessons

Start a high-quality group program that parents say “Yes!” to

Free Up Time

Scale your studio, make more, and in less time

Leave a comment

Your email address will not be published. Required fields are marked *

Share This