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Commission Structures, explained.

By Hamza Sajid, founder of VantaReach Technologies · Updated July 2026

Salons pay staff via flat commission (one percentage of service revenue), tiered commission (the rate rises past monthly thresholds) or hybrids (base salary plus commission). Tiered structures reward high performers; hybrids stabilise income for staff and rosters for owners.

Flat commission is simple but pays your best stylist and your slowest the same rate. Tiers fix that: for example 25% up to a monthly threshold and 35% beyond, so the rate rewards momentum. Hybrids add a base salary for stability, common where labour law or hiring markets demand it, with a lower percentage on top. Whatever the structure, the maths must come from recorded sales, not memory: commission disputes are almost always data disputes. Model your structure with a commission calculator, then let the POS attribute every service so payday is arithmetic.

Frequently asked questions

What percentage should I pay?
Worldwide norms span roughly 20% to 50% of service revenue depending on base salary, product costs and market. Work backwards from chair profitability, not from what the salon next door pays.
Should product sales earn commission?
A smaller retail commission (often 5% to 15%) motivates recommendations without eroding retail margin.

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