Starting your private practice is an exciting milestone, but choosing the right financial model can be challenging. Most independent practitioners—whether massage therapists, clinical counsellors, acupuncturists, or physiotherapists—either pay rent for a treatment space or opt for a revenue split with a clinic.
Each model has its advantages and drawbacks, and the right choice depends on your income stability, growth plans, and financial flexibility.
In this guide, we’ll break down the pros and cons of rent vs. revenue split, so you can choose the best payment structure for your private practice.
Option 1: Renting a Treatment Room
Renting a therapy or treatment room means paying a fixed amount, either hourly, daily, per shift, monthly, or through a long-term lease.
Pros of Paying Rent:
✅ Predictable Costs – You know exactly how much you’ll pay each month. This helps with budgeting and financial planning.
✅ Higher Profit Margins – Since you keep 100% of your earnings, the more clients you see, the more you take home.
✅ Business Independence – You control your schedule, pricing, and branding without clinic restrictions.
✅ Ideal for Established Practitioners – If you have a steady client base, renting offers greater financial benefits.
Cons of Paying Rent:
❌ Risk of Empty Slots – If you don’t see enough clients, you still have to pay rent, which can be costly.
❌ Upfront Costs – Many clinics require a security deposit or long-term commitment.
❌ Additional Expenses – You may need to cover costs for equipment, supplies, marketing, and administration.
Best for:
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Therapists with a consistent client base
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Practitioners looking for long-term stability
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Those who want full business independence
Option 2: Revenue Split with a Clinic
A revenue split model means the clinic takes a percentage of each session fee instead of charging a fixed rental fee. Common splits include 70/30, 60/40, or 50/50, where the therapist keeps the larger percentage.
Pros of Revenue Splitting:
✅ Lower Financial Risk – You only pay when you have clients, so there’s no risk of losing money on unused space.
✅ Clinic Support – Many clinics provide reception services, marketing, and administrative support, making it easier to focus on your practice.
✅ Great for New Practitioners – If you're building your client base, a revenue split reduces upfront costs and financial pressure.
Cons of Revenue Splitting:
❌ Less Profit Per Session – Since a percentage goes to the clinic, your take-home income is lower than if you were paying rent.
❌ Less Control Over Pricing & Branding – Some clinics set session fees and may have restrictions on how you market yourself.
❌ Potential for Unfair Splits – Depending on the clinic’s services, a 50/50 split may not be worth it if they don’t provide significant support.
Best for:
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New or growing practitioners building a client base
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Those who want clinic support for admin, reception, or marketing
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Therapists who prefer flexible costs over fixed rent
Which Model is Right for Your Private Practice?
| Factor | Rent a Room | Revenue Split |
|---|---|---|
| Cost Structure | Fixed monthly or shift-based fee | Percentage-based (clinic takes a cut per session) |
| Financial Risk | Higher (must pay rent even if you have no clients) | Lower (only pay when earning) |
| Earning Potential | Higher for established practitioners | Lower per session but easier to start |
| Control & Flexibility | Full control over pricing, schedule, and branding | Limited control (depends on clinic policies) |
| Support Provided | None—you handle all admin, marketing, and client management | Clinics may offer reception, booking, and marketing |
If you prefer stability and control, renting a space is ideal. If you’re just starting out or prefer lower financial risk, a revenue split could be the better option.
Alternative: Hybrid Models
Some clinics offer hybrid models where you pay a low base rent + a small revenue percentage. This structure balances financial risk and profit-sharing, making it a great middle-ground option.
Find a Treatment Room That Fits Your Business
Choosing the right financial setup is a key decision when starting your private practice. Whether you rent a room or choose a revenue split, the best model depends on your financial situation, client volume, and business goals.
Looking for flexible, cost-effective treatment rooms? Browse verified clinic spaces on Sway and find the right fit for your practice.