Commission or booth rent: which one is right for you?

 So, you took your state board test and got your results. All you read is YOU PASSED. Now you must decide where you want to work. You need to figure out what’s best for your brand. You do not know which choice is better for you. Should you do Booth Rent or work on Commission Base Pay.

             Luckily you have me, Babes. I have worked in both booth rent, and commission base pay, and I have Pros and Cons for each. And just know everything is not for everybody. At the end of the day this should be your choice and your choice alone. I am here to share my opinion of each. I will tell you how it helped me realize what I want for my brand. 

COMMISSION BASE PAY

     Let’s start with Commission Base Pay. I have a love hate relationship with this pay rate.  But why Porscha? Okay hold your horses I am going to tell you, but first let me explain what Commission Base Pay means. 

      Commission Base Pay- (according to Milady)- A percentage of the revenue comes from salon services. This amount is generated by a particular cosmetologist. This percentage is based on what you make for the salon. Basically, the salon will take a percentage of what you make them and give you a percentage. Usually, it ranges from 25 to 60 percent. This depends on your total service amount. Your performance level also influences it. It also varies based on how long you have worked for that establishment. 

      I have worked at 2 salons and commission was easier to make at one than the other. Now both of these salons were Salary Plus Commission, which is actually a more common way that corporate/franchise salons work. It just means that I was paid both hourly and commission. Know that if you are getting paid hourly, you will not get commission. The reverse is also true. So, if the salon is slow that day, you will get paid hourly. Still, if you all have a ton of walk-ins, you can hit commission. This is why it is important to take the walk-ins and turn them into weekly/bi-weekly clients for you.  Below is a list of pros and cons of working on Commission Base pay: 

    Pros

1.  Get paid weekly/ bi-weekly depending on the pay range for the company
2. have the potential to build clientele 
3. Continuing Education through the company 
4. You do not have to worry about buying products 

   Cons

2. Some companies make it harder to actually get commission 
3.  no free time for yourself and family
4. will not always hit commission
5. never know if you client is loyal to you or the company 

 

Booth Rent 

      Now when it comes to Booth Rent, you need a clear mindset. Only the strong will survive. Unlike Commission or Salary Plus Commission Base Pay, you will have to do everything yourself. Additionally, you must pay rent to whoever will be collecting it. This will be the owner from whom you are renting your space.  I actually loved working booth rent, because it is a lot more flexible. 

     Working booth rent means you are working for yourself. You also have the protection of the salon. This protection depends on the contract you sign with the salon’s owner. You will either pay them daily/weekly/bi-weekly/monthly. So, make sure you can afford it. Even when times are slow, you still have to pay your booth rent. I really want to say, if you have any doubts at all, follow your gut. Doing so will save you the headache later on.  Below is a list of pros and cons:

Pros

1. Freedom to set your own prices, policies, and schedule
2. More take home profits 
4. Be capable of really getting to know your client without feeling rushed to do the service 

Cons

1. Have to buy all your own products
3. will have to work long hours
4. spend more money than you make
5. get own clients
6. pay will change depending on how busy or slow you are 

How to make your decision?

        So, now that we went over the pros and cons of each, how do you make your final decision? My advice to you is to make a list of your goals for your brand. Then ask questions: Will I have the money to cover booth rent? if I don’t make enough money for the week to cover it? Can/Do I have the clientele to bring in the business I want? Do I prefer to work for someone or work for myself) because you need to evaluate everything. 

       Now once that is done, if you choose to go the commission base route, I suggest that you go out. Visit multiple locations. Get to know the other stylist there. Ask questions to understand how an everyday experience working there would be. But don’t just show up, call first and speak to a manager. Let them know that you are a newly licensed cosmetologist, barber, nail tech etc. and that you would like to schedule a day to come and visit the establishment. The most they can say is NO. If they do, then I probably wouldn’t work there. That’s my opinion. 

     If you decide to go the booth rent route you need to really do your research. You need an overhead of how much money you do have to put towards all your supplies and equipment needed. I say equipment too because they will not have everything you need. You can get lucky and find a place with a chair, desk, wash sink, and similar equipment. Yet, some nail techs will have to buy their desk and chairs. So, make sure you know if you need to or not. Also, you want to make sure you know how much your rent will be. You should know how often you need to pay it. Additionally, you want to see what product brand you want to use. Consider how much that will cost. As I mentioned earlier, booth rent is not for the weak minded. You have to be extremely prepared for every possible outcome. 

    Whichever route you decided to take, make sure you are well prepared. Be ready for the ups and downs that come with it. Like my teacher always said, “if being a cosmetologist was easy, everyone would do it”. Keep your faith and stay focused because the road is going to be long and time consuming. 

As promised why I have a Love Hate relationship with Salary Plus Commission Pay….

     Now when I started doing hair, I actually went on salon visits. I spoke with many salon owners. I got a feel for how the pay would work. Let’s be real, I did not understand this pay grade at all.  While telling my story, I will not mention the establishments that I worked at. They will be referred to as Salon A and Salon B.

Salon A:

   At this salon I actually started getting commission pay in my first 2 weeks. I mostly worked on women’s hair, and I actually loved it. While at this salon, I learned so much about properly applying a relaxer. Honestly, it was a great environment. Or so I thought. The reason I was capable of hitting commission so easily is because their policy was not a ridiculous one. It made sense. It went off the amount of money you brought into the salon. It didn’t depend on how many heads you do in a certain amount of time. This is why I love it. Many salons base their policies on the amount of money you bring in. Nonetheless, there are salons like Salon B that focus on how many clients you have in your chair per hour. 

Salon B:

     This salon is actually the reason why I do not like commission base pay. Now at this one we had a revolving door of walk-ins. Still, we were a franchise that need to do a cut and consultation in 20 minutes. Now even though this is achievable. I always felt that with a little more time, the cuts would be significantly improved. So, in their policy they wanted you to get 2.1 heads in an hour and you get I believe it was 0.10 cents for both heads towards your commission, but also you had to bring in a specific amount of money. So, if you do a color that day, you probably missed up you commission for that week. Also, you had to do the same numbers every day of the week. So, that’s what confused me. How is that even possible? During the week it is super slow because people are at work or school, or both.  I just really had a hard time grasping my head around their commission policy. 

Salon B is what made me really concentrate on this blog. It also made me focus on my products (check out our shop). I want my brand to teach and create confidence in what we all are licensed to do. I also want it to be a community. I want to be honest with you guys about how this industry works behind the scenes.  I struggled to get clients. I did not have the money to cover things. I spent it on buying the expensive things to do my job. I did this instead of really budgeting and making sure everything get paid. I hope that this really helps someone, and they flourish in this industry. I want you guys to keep pushing and make good business decisions at the end of the day. 

As always, remember to let us know if there is anything you would like for us to talk about. You can reach us in the comments or via email at [email protected]. We are here to help you reach your goals in this industry and mentor those who need it. All questions and comments are welcomed! Thanks for reading and speak to you guys later!