Detailed comparison of booth rental vs commission pay. Financial breakdown, pros and cons, and which is better for your situation.
One of the biggest career decisions in beauty: booth rent or commission? Here's the complete financial and lifestyle comparison.
## Commission Model
### How It Works
- You're an employee or contractor
- Salon provides space, supplies, marketing, front desk
- You earn 40-60% of services (plus tips)
- Salon handles booking, inventory, cleaning
### Pros
- Steady paycheck (if guaranteed minimum)
- No overhead or business expenses
- Marketing and location provided
- Front desk handles booking
- Supplies provided
- Easier to start, less risk
- Can walk away anytime
### Cons
- Lower earnings per service
- Limited control over prices
- Limited schedule flexibility
- Don't own your client relationships
- Can't sell your business
- Subject to salon rules and changes
### Good For:
- New professionals building skills
- Those who want simplicity
- People uncomfortable with business side
- Professionals in expensive areas
- Those wanting employee benefits
## Booth Rental Model
### How It Works
- You're an independent contractor
- You rent a space (booth or suite)
- You keep 100% of service income
- You handle all business aspects
- You pay fixed rent ($150-$500+/week)
### Pros
- Keep 100% of service income
- Complete control over pricing
- Full schedule flexibility
- Own your client relationships
- Can build and sell a business
- Build your brand
- More earning potential
### Cons
- Fixed rent even if slow
- Must buy all supplies
- Handle all marketing
- Manage own booking
- Pay all business expenses
- Quarterly taxes
- Need liability insurance
- Higher risk
### Good For:
- Experienced professionals with clientele
- Self-motivated individuals
- Those who understand business
- People wanting full autonomy
- Professionals ready to build equity
## Financial Breakdown
### Commission Example
**Monthly service revenue:** $10,000
- Commission (50%): $5,000
- Tips: $1,500
- **Take-home:** $6,500/month
- **Annual:** $78,000
**After taxes (~25%):** $58,500
### Booth Rental Example
**Monthly service revenue:** $10,000
- Keep 100%: $10,000
- Tips: $1,500
- Total: $11,500
**Expenses:**
- Rent: $1,600/month
- Supplies: $400/month
- Insurance: $100/month
- Marketing: $200/month
- Misc: $200/month
- **Total expenses:** $2,500
**Net:** $9,000/month = $108,000/year
**After taxes (~30%):** $75,600
### The Math
Booth rental nets $17,100 MORE per year in this example.
## Break-Even Analysis
You need to generate enough revenue to cover rent and expenses.
**If rent is $400/week ($1,733/month):**
- Add $800 for supplies, insurance, etc.
- **Total overhead:** $2,533/month
**At 50% commission equivalent:**
- You need $5,066 in services to break even
- Anything over that, you keep 100% vs 50%
**General Rule:**
If you can generate at least $2,000/week in services, booth rental is usually more profitable.
## Which Should You Choose?
### Choose Commission If:
- You're new (less than 2 years experience)
- You have less than 20 repeat clients
- You don't have 6 months savings
- You're not comfortable with business tasks
- You want benefits (health insurance, PTO)
- You prefer predictable income
- You're in a very expensive market
### Choose Booth Rental If:
- You have strong existing clientele
- You're consistently booked 50%+ in advance
- You have business knowledge or willingness to learn
- You have 6+ months emergency fund
- You want full control
- You're entrepreneurial
- You want to build equity
## Hybrid Options
### Suite Rental
- Private suite in shared building
- Like booth rental but more privacy
- Usually $200-$600/week
- Best of both worlds
### Commission with Higher Split
- Some salons offer 60-70% to experienced stylists
- Less than 100%, but less risk than booth rental
- Good transition option
## Making the Transition
If you're moving from commission to booth rental:
1. **Save 6+ months expenses first**
2. **Build your client base while employed**
3. **Understand your true income needs**
4. **Research spaces and costs**
5. **Create a business plan**
6. **Set up legal structure**
7. **Give proper notice**
8. **Launch strategically**
KwickStudio works for BOTH commission and booth rental professionals, helping you manage clients, track income, and plan your career path—whether you're employed or independent.
## Commission Model
### How It Works
- You're an employee or contractor
- Salon provides space, supplies, marketing, front desk
- You earn 40-60% of services (plus tips)
- Salon handles booking, inventory, cleaning
### Pros
- Steady paycheck (if guaranteed minimum)
- No overhead or business expenses
- Marketing and location provided
- Front desk handles booking
- Supplies provided
- Easier to start, less risk
- Can walk away anytime
### Cons
- Lower earnings per service
- Limited control over prices
- Limited schedule flexibility
- Don't own your client relationships
- Can't sell your business
- Subject to salon rules and changes
### Good For:
- New professionals building skills
- Those who want simplicity
- People uncomfortable with business side
- Professionals in expensive areas
- Those wanting employee benefits
## Booth Rental Model
### How It Works
- You're an independent contractor
- You rent a space (booth or suite)
- You keep 100% of service income
- You handle all business aspects
- You pay fixed rent ($150-$500+/week)
### Pros
- Keep 100% of service income
- Complete control over pricing
- Full schedule flexibility
- Own your client relationships
- Can build and sell a business
- Build your brand
- More earning potential
### Cons
- Fixed rent even if slow
- Must buy all supplies
- Handle all marketing
- Manage own booking
- Pay all business expenses
- Quarterly taxes
- Need liability insurance
- Higher risk
### Good For:
- Experienced professionals with clientele
- Self-motivated individuals
- Those who understand business
- People wanting full autonomy
- Professionals ready to build equity
## Financial Breakdown
### Commission Example
**Monthly service revenue:** $10,000
- Commission (50%): $5,000
- Tips: $1,500
- **Take-home:** $6,500/month
- **Annual:** $78,000
**After taxes (~25%):** $58,500
### Booth Rental Example
**Monthly service revenue:** $10,000
- Keep 100%: $10,000
- Tips: $1,500
- Total: $11,500
**Expenses:**
- Rent: $1,600/month
- Supplies: $400/month
- Insurance: $100/month
- Marketing: $200/month
- Misc: $200/month
- **Total expenses:** $2,500
**Net:** $9,000/month = $108,000/year
**After taxes (~30%):** $75,600
### The Math
Booth rental nets $17,100 MORE per year in this example.
## Break-Even Analysis
You need to generate enough revenue to cover rent and expenses.
**If rent is $400/week ($1,733/month):**
- Add $800 for supplies, insurance, etc.
- **Total overhead:** $2,533/month
**At 50% commission equivalent:**
- You need $5,066 in services to break even
- Anything over that, you keep 100% vs 50%
**General Rule:**
If you can generate at least $2,000/week in services, booth rental is usually more profitable.
## Which Should You Choose?
### Choose Commission If:
- You're new (less than 2 years experience)
- You have less than 20 repeat clients
- You don't have 6 months savings
- You're not comfortable with business tasks
- You want benefits (health insurance, PTO)
- You prefer predictable income
- You're in a very expensive market
### Choose Booth Rental If:
- You have strong existing clientele
- You're consistently booked 50%+ in advance
- You have business knowledge or willingness to learn
- You have 6+ months emergency fund
- You want full control
- You're entrepreneurial
- You want to build equity
## Hybrid Options
### Suite Rental
- Private suite in shared building
- Like booth rental but more privacy
- Usually $200-$600/week
- Best of both worlds
### Commission with Higher Split
- Some salons offer 60-70% to experienced stylists
- Less than 100%, but less risk than booth rental
- Good transition option
## Making the Transition
If you're moving from commission to booth rental:
1. **Save 6+ months expenses first**
2. **Build your client base while employed**
3. **Understand your true income needs**
4. **Research spaces and costs**
5. **Create a business plan**
6. **Set up legal structure**
7. **Give proper notice**
8. **Launch strategically**
KwickStudio works for BOTH commission and booth rental professionals, helping you manage clients, track income, and plan your career path—whether you're employed or independent.