On commission, the salon owner pays you a percentage of your service total, typically 40 to 50 percent. The salon covers supplies, credit card fees, software, and marketing. You get a predictable check but give up control over pricing and scheduling. On booth rental, you pay the salon owner a flat weekly or monthly fee to use the space. You keep 100 percent of what you earn above that rent. You buy your own supplies, set your own hours, and build your own client base. The risk is yours if you have a slow week. When my salon closed in 2006, I went back to booth renting at 34 with no savings and rebuilt from that chair. Most stylists who earn over $75,000 per year are booth renters. The calculator below shows you which model pays more at your current volume.
Run the booth rental vs commission calculator →
Is booth rental worth it?
Booth rental is worth it once your book is full enough to clear the rent and still beat commission take-home. The rule of thumb is weekly service revenue at 4 to 5 times your booth rent, held for at least 90 days, plus setting aside 25 to 30 percent for self-employment taxes. If you are booked solid and want to keep everything above rent and control your own prices, it pays off. If your book is still thin, commission is the safer seat.
Which is better, booth rental or commission?
Neither is better in every case, it depends on how busy you are and how much risk you want. Commission is lower risk and lower ceiling: a steady check with the salon covering costs. Booth rental is higher risk and higher ceiling once you are busy, because you keep everything above a flat rent. Most stylists earning over $75,000 a year are booth renters. Run your weekly numbers through the calculator to see which one pays you more right now.