Choosing between commission and hourly pay is one of the most important decisions for both salon owners and beauty professionals. Each model has distinct advantages and drawbacks that affect earnings, motivation, and job satisfaction. Understanding these differences helps you make informed career and business decisions.
Compare: Commission Pay vs Hourly Pay
Commission Pay
Stylists earn a percentage of each service they perform. Commission rates typically range from 35% to 60% depending on experience and salon type.
Typical Earnings
$40,000-$85,000/year (varies widely)
Pros
- +Higher earning potential for skilled, busy stylists
- +Direct correlation between work and pay
- +Motivates productivity and client retention
- +Can earn more during busy seasons
- +Rewards building a clientele
Cons
- -Income varies based on bookings
- -Slow periods mean lower pay
- -No guaranteed minimum income
- -May create competition among staff
- -Less predictable for budgeting
Best For:
Experienced stylists with established clientele, high-performers who thrive on incentives, and salons in high-traffic areas.
Hourly Pay
Stylists earn a fixed rate per hour worked, regardless of services performed. Rates typically range from $15 to $35+ per hour.
Typical Earnings
$30,000-$55,000/year
Pros
- +Predictable, stable income
- +Less stress during slow periods
- +Easier to budget and plan
- +Often includes benefits eligibility
- +Good for building skills without pressure
Cons
- -Earnings capped regardless of productivity
- -Less financial incentive to build clientele
- -May feel unrewarding for high performers
- -Busy stylists may earn less than commission
- -Limited upside during peak times
Best For:
New stylists building skills, those who prefer stability, stylists in slower markets, and those prioritizing work-life balance.
How Commission Pay Works
Under a commission model, stylists typically receive 35-60% of each service's price. Some salons use tiered commission, where rates increase as stylists hit service targets. Product sales often carry separate commission rates, usually 10-20%.
- Entry-level: 35-40% commission
- Mid-level: 45-50% commission
- Senior/Master: 50-60% commission
- Product sales: 10-20% commission
- Tips: Usually kept 100% by stylist
How Hourly Pay Works
Hourly pay provides a fixed rate per hour worked. Some salons combine hourly with performance bonuses or small commissions on retail sales. Hourly stylists are often classified as employees with access to benefits.
- Entry-level: $15-20/hour
- Experienced: $20-28/hour
- Senior/Specialist: $28-35+/hour
- May include benefits (health, PTO)
- Tips typically kept by stylist
Hybrid Models
Many salons now offer hybrid compensation combining base pay with commission. This provides income stability while rewarding productivity. Common hybrid structures include hourly + commission above a threshold, or salary + bonus based on targets.
- Base hourly + commission over threshold
- Guaranteed minimum vs commission (whichever is higher)
- Salary + quarterly performance bonuses
- Hourly + retail commission
- Team-based bonuses on top of individual pay
Factors to Consider
When choosing between commission and hourly, consider your career stage, financial needs, and work style. Location, salon type, and local market conditions also play important roles.
- Your experience level and clientele size
- Financial obligations and need for stability
- Salon traffic and booking consistency
- Local cost of living
- Access to benefits through other means
- Personal motivation style
Calculate Your Potential Earnings
Use these factors to estimate your earnings under each model.
Frequently Asked Questions
A good commission rate ranges from 45-55% for experienced stylists. Entry-level stylists typically start at 35-40%, while top performers may earn 55-60%. Consider the full package including benefits, education, and product costs.
High-performing stylists with established clientele typically earn more on commission. However, hourly may be better for new stylists, those in slower markets, or those who prefer income stability.
Yes, most salons allow stylists to keep their tips regardless of whether they're paid hourly or commission. Tips are in addition to base compensation and typically average 15-20% of service prices.
On commission models, salons typically keep 40-65% of service revenue. This covers rent, utilities, supplies, front desk, marketing, and other operational costs. The stylist's portion (35-60%) is their gross earnings.
Related Resources
Booth Rental vs Commission
Compare booth rental independence with commission employment
Team-Based Pay Structures
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Salary Guide for Stylists
Comprehensive salary data for beauty professionals
Career Paths in Beauty
Explore growth opportunities in the beauty industry