Salon commission structure: the 7 common types
A commission structure is the set of rules that turns what someone sells into what they're paid. Salons use seven main ones, and most mix two or three. Here is how each works, with a $6,000 service month as the example.
Updated October 2, 2026
At a glance
| Structure | How it pays | Example on $6,000 | Best for |
|---|---|---|---|
| Straight commission | A split of service sales | 45% = $2,700 | Established staff |
| Tiered commission | Split rises with sales | 40% / 45% / 50% = $2,500 | Rewarding a full book |
| Hourly plus commission | Wage plus a smaller rate | $2,400 + 10% = $3,000 | New staff, slow seasons |
| Salary plus bonus | Fixed pay plus a goal bonus | Salary + bonus at goal | Managers |
| Retail commission | A rate on product sales | 10% of retail | On top of any of the above |
| Team commission | A pool shared by the team | Pool split by hours or rank | Small, close teams |
| Booth rent | Stylist pays rent, keeps sales | $6,000 − rent − costs | Independent stylists |
The tiered example uses bands of 40% to $4,000, 45% to $6,000 and 50% above, paid marginally. The hourly example is 150 hours at $16.
1. Straight commission
The stylist keeps a fixed share of the services they perform — 45% of $6,000 is $2,700. Simple to explain and to check. It pays a senior stylist the same rate as a new one, which is why many salons move to tiers. Try it in the commission split calculator.
2. Tiered commission
The rate rises with monthly sales. Decide whether a higher tier applies only to sales above the line (marginal) or to the whole month once reached (retroactive) — on the same month the difference can be hundreds of dollars. The tiered commission calculator shows both.
3. Hourly plus commission
An hourly wage with a smaller commission on top. It protects staff in a slow week and keeps pay above minimum wage, which commissioned staff must still earn for the hours they work. The commission vs hourly guide compares the options.
4. Salary plus bonus
Common for salon managers and front desk: a fixed salary with a bonus for hitting a team or personal goal. Predictable for both sides, but the bonus has to be large enough to matter. See how to set sales goals.
5. Retail commission
A separate rate on product sales, usually lower than the service rate, or a bonus for passing a share of retail. It sits on top of any of the other structures. The retail commission guide compares percentage, margin and product-mix bonuses.
6. Team commission
A pool — a share of the salon’s sales, or a fixed amount for hitting a team goal — split by hours worked or by rank. It encourages covering for each other, but strong performers can feel they carry the rest. Tanning salons often run a ranked pool for memberships; see EFT membership commission.
7. Booth rent
The stylist pays a fixed weekly rent, sets their own prices and keeps their service revenue. It pays more once a stylist’s sales clear their rent and costs, and less below that. Compare both in the booth rent vs commission calculator. Whether someone is an employee or independent depends on how the work actually runs, so take advice before switching.
By type of business
- Hair salons — splits, tiers and back-bar charges.
- Nail salons — splits with real product costs.
- Tanning salons — memberships, lotion and upgrades.
- Barbershops — splits and chair rent.
- Spas and massage — percentage or pay by treatment length.
- Med spas — commission on net, and the legal question first.
Common questions
What is the most common salon commission structure?
A straight split of service sales — often 40% to 50% to the stylist — with retail paid separately at around 10%. Many salons add tiers so the split rises as a stylist’s book fills.
What does commission structure mean?
It is the set of rules that turns what someone sells into what they are paid: which sales count, the rate or split, any goal or minimum, bonuses, and when it is paid.
Which structure is best for a new salon?
Hourly plus commission is the easiest to start with: staff are covered in slow weeks, and the commission rewards building a book. Move to straight commission or tiers once books are full.
Whatever you choose
Write it down, apply it the same way to everyone, and let people see where they stand during the month — a structure only changes behaviour while there is still time to act. CommissionBoard runs any of these from your POS report and shows each person their pay building on their phone — see how it works, or try the numbers for your business in the commission calculators.
CommissionBoard turns a POS export into a live commission leaderboard your staff can see on their phones. Get started for $20/month, try the commission calculator or read the other guides.