Hourly/ Commission Employee
What does it mean to be a commission stylist? Let’s start with defining a sales commission; the percentage of the value of a sale that a sales representative may earn. This is saying you’ll make a percentage off of each service that is predetermined before employment. Each salon has different commission rates, so it’s important to ask each salon what their rates are. In most salons, you can expect to make commission off any retail sales you make (usually between 10% and 15%). Some salons hire employees as commission only, while others will hire employees with an hourly rate until the stylist is hitting numbers that qualify them for commission. The benefits of working as a commission stylist are not having to worry about running a business/marketing, you get employee benefits like sick pay, health insurance, etc. and the support and knowledge of the salon and peers. Some drawbacks would be having to follow the set prices of the salon, your schedule/hours are dictated by the manager/owner, and only using the products the salon sells.
Renting a chair is a form of self employment. Unlike the other pay structures, this one requires you to have additional licensure. Similar to renting an apartment, you exchange a monthly rent for a space to work. Because you are renting the space, you are able to run your business as you would like, with a few exceptions. As an independent contractor you are in charge of your own tools, supplies, and product. The benefits to renting include setting your own schedule and prices, all the money you make is yours, and you aren’t tied down to any specific product lines. Drawbacks include having to pay and find your own insurance, marketing is completely on you, needing to keep good accounting, and paying your own taxes. Renting a chair is usually recommended for people with a strong clientele base and/or someone with a strong work ethic and self discipline.