3 Most Important Elements Of A Salon Commission Structure

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Maybe you're a salon owner trying to set up a commission structure, or a booth renter looking to build a commission salon, or maybe you just want to figure out if the pay structure in your salon is right. Either way, it’s important to understand the main elements that go into establishing an effective commission structure.

The first thing you should do is compare how your commission scheme fits into your overall budget. A lot of people don't know what to pay, so they end up overpaying. Run your commissions against your budget and see what you can afford to pay. After all, you need to know if you're actually going to make a profit on your services.

The second key element of a commission structure is that you want to have a bell curve inside your salon. The idea is that your center point in the pay structure should be profitable for you as a salon owner, along with the highest and lowest points. And keep in mind that most of your staff should be in the middle of that bell curve.

Finally, the most important thing is to have levels for your staff to ascend to inside your salon. There will be a base commission and a top commission, but you should also allow people to progress along various levels in between. These levels should be based on productivity, and should be matched to the commission structure.

Most people end up leaving a salon because they don't see a future for themselves. As a salon owner, establishing the right pay structure is a crucial part of providing the right incentive for your staff. Give people room to grow and develop, and you’ll have no problem keeping them around.