Business hub

Money · 5 min

Understanding commission structures

Sliding scales, product deductions, hourly-vs-commission — decoded.

  1. 1

    Flat commission

    One percentage on all service revenue. Simple, easy to forecast, and usually lowest at the entry level (35–45%).

  2. 2

    Sliding scale

    Your percentage rises as monthly service revenue crosses tiers. Ask where the tiers reset and whether they reset monthly — a bad month can drop you a full tier.

  3. 3

    Commission after product deduction

    The shop subtracts a product cost or flat percentage before splitting. Always convert this to an effective rate so you can compare offers honestly.

  4. 4

    Hourly vs. commission, whichever is greater

    Common and legally safer for the shop. Protects you in slow weeks but caps nothing on the upside. Confirm what happens on weeks you fall under.

  5. 5

    Team-based or level pay

    Pay tied to a level and a set of metrics — rebooking, retail, retention — instead of raw revenue. Ask exactly how a level is earned and how often reviews happen.

Watch out for

  • Compare offers on effective take-home per hour worked, not on the headline percentage.
  • Retail commission of 10% on a $30 bottle is $3. Don't let it distract from a weak service split.
Run the numbers on thisTake-home income — convert any split to real dollars