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 and now your face with the fact of where you want to work and what's best for your brand. You do not know which option 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. All I am here to do is give you my opinion of each and how it helped me to realize what it is that 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 that the salon takes in from services performed by a particular cosmetologist. 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 depending on your total service amount, your performance level, and/or 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, but with this just know if you are getting paid hourly, you will not get commission and vice versa. So, if the salon is slow that day you will get paid hourly and if you all have a ton of walk ins you might 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

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

Booth Rent 

      Now when it comes to Booth Rent you have to have a clear mind set because only the strong will survive. Unlike Commission or Salary Plus Commission Base Pay you will have to do everything yourself on top of paying rent to whomever will be collecting the rent (this will be the owner whom you are renting your space from).  I actually loved working booth rent, because it is a lot more flexible. 

     Working booth rent is working for yourself, but you have the protection of the salon to an extent depending on the contract you sign with the salon's owner. You will either pay them daily/weekly/bi-weekly/monthly. So, whatever you do make sure you can afford it, because during times that it is slow you still have to pay your booth rent. I really want to say if you have any doubts at all please follow your gut because it 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 
3. Be able to really get to know your client without feeling rushed to do the service 

Cons

1. Have to buy all your own products
2. will possibly have to work long hours
3. spend more money than you make
4. get own clients
5. 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 (examples: 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 and visit multiple locations. Get to know the other stylist there and ask questions and get a feel for how an everyday experience working there would be like. 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 and if they do then I probably wouldn't work there, but 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 might not have everything you need. You might get lucky and find a place that has a chair, desk, wash sink, and equipment of that nature, but for those who are nail techs you might have to buy your 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 and how often you need to pay them, and you want to see what product brand you want to use and how much that will cost. Like I said before booth rent is not for the weak minded, you have to be extremely prepared for every possible outcome. 

    Whichever route you decided to take just make sure you are well prepared 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 and got a feel for how the pay would work, because 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 so they will be 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 and honestly it was a great environment, or so I thought. The reason I was able to hit commission so easily is because their policy was not a ridiculous one. It made sense and it went off the amount of money you brought into the salon not how many heads you could do in a certain amount of time. This is why I love it. There are many salons out there that go off the amount of money you bring in, but then there are salons like Salon B that go off of the number of bodies that are in your chair in an 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. However, 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 if a had a little more time the cuts would come out a lot better. 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 messed me up because how is that even possible if 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 and my products (check out our shop to make a purchase). I want my brand to not only teach and create confidence in what we all are licensed to do, but also a community where I am honest with you guys on how this industry works behind the scenes.  I struggled to get clients and I have not had the money to cover things because I went out and bought the expensive things to do my job instead of really budgeting and making sure everything could 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 if there is anything that you would like for us to talk about let us know in the comments or via email at kiarateraz@pretty-n-textured.net . 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!

XOXO,

Porscha "KiaraTeraz" Ford