Lease and Trainer Commission

[Topline888]

My trainer asks for a commission be paid when anyone in the barn signs/renews a lease, regardless of whether she found the horse or not. Is that a norm in the industry? I think she asks for 10%.

A bit of context — the horse I’m about to lease is coming off a lease with another rider at the barn. That rider brought him with her when she moved to our barn (our trainer wasn’t involved with the original lease). Now that we are going to lease him, our trainer wants 10% of the annual lease fee as a commission (which comes out to a couple thousand dollars).

I can pay it (we have a good relationship and want to be fair), it’s just an extra expense I didn’t think about or plan for as I thought commission fees were to compensate a trainer for the time they spend sourcing, communicating, trialing, etc. If I were going out into the market to find something to lease and the trainer helped, I’d definitely expect to pay a commission!

Assuming this is normal, is 10% about average to expect? Helpful information to know moving forward!

[Amberley]

It’s normal in the hunter world but not in any other discipline. I personally think it’s BS but if you want to stay at the barn you likely have to pay it.

[blondewithchrome]

Yes, this is pretty normal. Some trainers charge 15%, some 10%, on any sale or lease transaction, regardless of if it is in barn or external.

[BeeHoney]

H/J trainers use this policy to make sure they don’t miss out on any possible revenue. They also do it because they don’t want clients shopping with anyone else or making private deals to avoid commissions. It’s not great, but it’s not an unusual policy.

[EmilyM]

Yes this is normal and 10% on the low end of normal.

Whether it should be that way is an age old discussion.

[findeight]

Not just in HJ land either.

[Ponyplusaninch]

This. For the general market, fair/low end of normal.

The best policy I ever saw a trainer have was 10% on sales/leases above $20k; 15% for sales/leases under $20k. If it’s an in barn lease or sale–ie not really a heavy lift, just a matter of paperwork, 5% and 7.5%, respectively.

Alas that kind of scale seems to be a rarity now–most have a flat fee regardless of circumstance.

[Topline888]

Thanks for the input! I’ll plan accordingly moving forward.

[endlessclimb]

General Question - how does this work if it’s a care lease?

[risuenaVT]

An eventing barn near me has a flat fee for any horse purchased or leased under a specific amount. Anything over that amount is 10%. So a care lease would pay the flat fee.

[Dr_Doolittle]

IMNSHO this is greedy gouging and bull crap, just any excuse to rip off the client.

OTOH, I am in “eventerland” – and am a conscientious, experienced, capable, caring trainer who specializes in providing an excellent foundation for the lower levels. I never ever rip my clients off, and in fact tend to undercharge for my services because my goal is to help people improve - and I am as honest as as the day as long. Which is probably why I am constantly poor!

[Tini_Sea_Soldier1]

That’s the norm. It’s money spent for pairing the 2 of you together and keeping horse in the barn. They’re making money on both sides… as I’m sure they’re also charging the one leasing the horse to you a commission as well. This is the perfect circumstance for the trainer as they get to keep a reliable horse and make 2 commissions.

[Peggy]

The only time I paid to lease a horse that was owned by someone in the barn, the owner paid a fee and I did not.

Never did a paid lease on an outside horse but others in that barn paid a commission when they did that. I think.

Same trainer’s policy on commissions for purchased horses (and presumably outside leased horses) was that you owed her a commission on a horse you bought if she looked at a video, went to look at a horse, etc. and you eventually bought a horse, any horse, as a result of the process in which she was involved. Hope that makes sense—having trouble trying to phrase that succinctly.

[Demerara_Stables]

@Dr_Doolittle

IMNSHO this is greedy gouging and bull crap, just any excuse to rip off the client.

Yup.

[paw]

Is it normal? Yes. Is it right? No. Now, if the trainer has helped in finding the horse to lease (and the horse wasn’t already in the barn), they certainly should be paid for their efforts. But otherwise? BS.

[2DogsFarm]

Apparently you, dear Dr, are a unicorn

I’m totally out of the Board/Train loop, for over 30yrs, but find this “common practice” an immense ripoff
If client buys themself, or leases on their own, how is it justified?

Back in the Day (late 80s), if a trainer was directly involved in a sale, a commission was paid by buyer & seller. 15% was the going rate.
Unspoken, to the surprise of many Ammies new to the sport.
If buyer went on their own & bought a horse no commission was paid to the trainer.
Unless, of course, that went on behind the scenes.
I only bought 1 horse through a trainer, so my knowledge is limited as to that.
But trainer was a “friend”, just getting established as a Pro & their practices - AFAIK - were made transparent to me.
Trainer was upfront about that 15% to me.
If collected from the seller, I didn’t ask, didn’t care.

That said, expecting a commission for every sort of transaction is a pure Moneygrab & a shameful practice.

[Chestnut24]

I suppose the logic could be that the connections were made in-barn because one has access to them only by being part of that barn.

It seems sad to monetize all transactions but I am not familiar with H/J lease practices…what kinds of risks or expenses the trainers have to cover for that to make sense.

[LilRanger]

This seems to incentivise never upgrading.

Trainers should just charge appropriate rates for their skills. This reads to me that these trainers arent good with valuing their skills.

[Demerara_Stables]

@LilRanger

Trainers should just charge appropriate rates for their skills. This reads to me that these trainers arent good with valuing their skills.

Exactly. I feel this way about the incessant showing as well. If you have to take clients to 2-3 shows a month to pay your bills, you’re not charging enough for your regular training/boarding (if you own the facility) rates.

[CBoylen]

@2DogsFarm

If client buys themself, or leases on their own, how is it justified?

That’s the point. No one wants a client doing that.