Dear Anthony, can you give any advice/insight into how to calculate a commission for stylists so they have the potential to earn more than their secure basic weekly wage when they are more productive, so they have an incentive to accommodate more clients? Many thanks 🙏🏻
Hi Michelle, great question and unfortunately there isn’t really a short or simple answer. But a few things to consider as follows: Depending on the country you are in the commission rates will vary because the guaranteed benefits also vary. For example in the US there are bigger commission percentages because they have very few benefits in terms of holiday pay, sick pay, paid vacation etc Whereas in the UK and parts of Europe there are a lot of guaranteed benefits so the commission rates are lower. I know you are in Spain and so I’m assuming you are more in line with the UK. As a guide, a simple system is that once a stylist achieves a sales target that is 3 times their gross wage they will often be paid a percentage on everything above that. That figure might be 10% or 15% or 20% or more of sales. There is no right or wrong way of doing this it’s about finding the right way for you and your situation. You also need to also consider the operating costs of any individual business which will also vary and therefore impact on what you can afford to pay and still be able to make a profit. I am working on launching a course titled ‘Money’ In April and there will be a lot more about this topic in there. Thanks for the question. I hope that’s helpful.
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Dear Anthony, can you give any advice/insight into how to calculate a commission for stylists so they have the potential to earn more than their secure basic weekly wage when they are more productive, so they have an incentive to accommodate more clients? Many thanks 🙏🏻
Hi Michelle, great question and unfortunately there isn’t really a short or simple answer. But a few things to consider as follows: Depending on the country you are in the commission rates will vary because the guaranteed benefits also vary. For example in the US there are bigger commission percentages because they have very few benefits in terms of holiday pay, sick pay, paid vacation etc Whereas in the UK and parts of Europe there are a lot of guaranteed benefits so the commission rates are lower. I know you are in Spain and so I’m assuming you are more in line with the UK. As a guide, a simple system is that once a stylist achieves a sales target that is 3 times their gross wage they will often be paid a percentage on everything above that. That figure might be 10% or 15% or 20% or more of sales. There is no right or wrong way of doing this it’s about finding the right way for you and your situation. You also need to also consider the operating costs of any individual business which will also vary and therefore impact on what you can afford to pay and still be able to make a profit. I am working on launching a course titled ‘Money’ In April and there will be a lot more about this topic in there. Thanks for the question. I hope that’s helpful.