In a commission-based pay structure, a staff member earns a percentage of the revenue from each service they perform or product they sell. This percentage is the commission split. For example, a stylist on a 45% commission split who performs a $150 colour service earns $67.50 from that appointment.
Commission splits vary by experience level, service type, and the venue's overall pay philosophy. A senior stylist typically earns a higher split than a junior. Some salons pay the same commission rate across all services; others pay a different rate for services versus retail product sales.
Commission structures are a key retention tool. Staff who feel their earnings reflect their performance are more likely to stay. Transparent, automatically tracked commission — where the stylist can see their earnings update in real time — builds trust and reduces disputes at pay run.
Booth rental is a different model: the stylist pays a fixed weekly fee for their station and keeps 100% of their service revenue. In this arrangement, the stylist is typically self-employed rather than employed by the salon.
On OpenChair Pro, commission rates are set per staff member and per service or product category. The platform calculates every earning automatically when an appointment is marked complete, so there are no manual calculations at pay run. Each staff member can see their own earnings in real time; owners see the consolidated commission report in Intelligence.