Commission or booth rent. Every stylist faces this decision at some point, and most make it based on gut feeling, a friend’s advice, or whatever the salon down the street offers. The smarter move is to run the numbers.
How Commission Works
In a commission salon, you earn a percentage of the revenue you generate. The industry standard ranges from 40% to 60%, depending on the salon, your experience level, and whether the salon provides products and clients. A 50% commission on $1,000 in weekly services means you take home $500. The salon keeps the other $500 to cover rent, products, marketing, front desk staff, and profit.
The upside: low risk. You do not pay rent. You do not buy products. If you have a slow week, your income drops but your expenses stay at zero. The salon absorbs the overhead.
The downside: a ceiling. No matter how good you get or how full your book is, half your revenue goes to the salon. At $2,000 a week in services with 50% commission, you earn $1,000. You cannot negotiate your way past the split without switching models.
How Booth Rent Works
Booth rental flips the equation. You pay a fixed weekly or monthly fee for your station, and you keep 100% of your service revenue. Average booth rent in the US runs $400 to $600 a month in mid-market areas, though it ranges from $250 in smaller towns to over $1,500 in cities like New York or LA.
You also cover your own product, tools, marketing, and insurance. These costs add up. A realistic monthly expense sheet for a booth renter might look like: $500 rent + $150 product + $50 insurance + $100 marketing = $800 in fixed costs before you earn a dollar.
The Tipping Point
There is a specific revenue number where booth rent becomes more profitable than commission. The Lutily booth rent vs. commission calculator lets you plug in your actual numbers to find that crossover point.
Here is a simplified example. Say your commission rate is 50% and your total booth rent costs (rent + product + insurance) would be $900 a month. At $1,800 in monthly revenue, both models pay you the same: $900. Below $1,800, commission is safer. Above $1,800, booth rent wins, and the gap widens fast.
At $4,000 a month in services, commission pays you $2,000. Booth rent pays you $3,100 ($4,000 minus $900 in costs). That is a $1,100 monthly difference. $13,200 a year.
Commission Is Not a Stepping Stone. It Is a Safety Net.
New stylists, stylists rebuilding after a move, and stylists who do not want to run a business should stay on commission. There is no shame in it. Commission gives you a chair, a flow of clients, products on the shelf, and a paycheck that does not depend on your marketing skills.
But if you have a loyal book, consistent weekly revenue north of $1,500, and the willingness to handle your own admin, booth rent likely puts more money in your pocket. For a deeper look at what going independent actually costs, read this breakdown of the hidden costs of going independent.
Questions to Ask Before Switching
How many of your current clients will follow you? (Be honest. Not all of them will.) Can you maintain at least $1,500 a week in revenue from day one? Do you have three months of living expenses saved? Are you willing to handle your own scheduling, reminders, and marketing?
If the answer to all four is yes, the math probably favors booth rent. If you hesitated on more than one, commission is the smarter choice right now. There is no deadline. The option does not expire.
