Booth Rent vs Commission Calculator

The Core Difference

Under commission, your technicians are employees. You keep the service revenue, pay them a percentage, and carry the payroll taxes, supplies and scheduling. Under booth rent, they are independent contractors who rent a station from you for a fixed weekly fee and keep everything they earn. Your income becomes predictable rent instead of a share of revenue.

Why Booth Rent Looks Better Than It Is

Booth rent gives you a fixed, predictable number and removes payroll tax, supply costs and commission math. The catch is occupancy: an empty chair earns nothing, and you cannot fill the gap yourself. One chair sitting empty for a month can wipe out the advantage over commission entirely. Booth rent rewards salons that always have a waiting list.

What You Give Up With Booth Rent

Independent contractors set their own hours, prices and service standards. You generally cannot require them to work Saturdays, follow your price list, use your products, or take walk-ins. If a consistent client experience matters to your brand, commission gives you control that booth rent legally does not.

The Misclassification Risk

Calling someone a booth renter does not make them one. The IRS and state labor boards look at behavioural and financial control: who sets the hours, who provides the tools, who sets the prices, who takes the walk-ins. Salons that collect rent but still run the schedule are the ones that get reclassified — and back taxes plus penalties can dwarf whatever the rent brought in. Rules vary by state; several have tightened sharply in recent years.

The Hybrid Middle Ground

Many salons run both at once: senior technicians with their own following rent chairs, while newer staff work on commission while they build a book. This keeps the busy chairs predictable and the growing chairs flexible. It also means two different sets of records, so make sure your software can track rent and commission side by side.

What the Numbers Above Do Not Include

This comparison covers service revenue only. Booth renters usually buy their own products, which removes a cost from you but also removes retail profit. Commission salons often earn 10-15% on retail sales the technicians make. Also consider that booth rent is collected whether or not the technician has a good month, which is exactly what makes it attractive and what makes technicians resist it in a slow season.