#378 - When should a salon owner reduce commissions?

Thriving Stylist Podcast

Britt Seva

Stylist, Business, Hair, Hairstylist, Marketing, Salon, Careers, Businessbuilding

4.7 • 2K Ratings

🗓️ 24 March 2025

⏱️ 24 minutes

🔗️ Recording | iTunes | RSS

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Summary

Ever feel like your salon's commission structure is holding your best stylists back? Are you trapped in a cycle of high turnover and struggling to keep top talent engaged? In the last couple of months, there have been a few conversations where I have had to address this topic of overpaying people and we have had to take a deep dive into the compensation model.

In this episode, I share what overcompensating in the salon looks like, what the best way to calculate a compensation percentage is and some of the biggest compensation mistakes salon owners make.

There are definitely risks of overcompensation, and this can be a scary (and controversial) topic, but with the right steps you can create a win-win scenario for both you and your stylists and build a thriving salon culture where everyone feels valued and empowered!

With Grow My Clientele Calculator, you’ll get instant clarity on how many new clients you’ll need to hit your 2025 financial goals! Enter just four numbers, and this tool will show you exactly how many new guests you need monthly and yearly to reach your target income. No guesswork or complicated math required, and you can get it now at www.thrivingstylist.com/growmyclientele/!

Do you have a question for me that you’d like answered in a future episode like this one? A great way to do that is to head over to Apple Podcasts and leave a rating and review with your question. I'm looking forward to answering your question on a future episode on the podcast!

If you’re not already following us, @thethrivingstylist, what are you waiting for? This is where I share pro tips every single week, along with winning strategies, testimonials, and amazing breakthroughs from my audience. You’re not going to want to miss out on this.

Learn more at: https://thrivingstylist.com/podcast/

Transcript

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0:00.0	Do you feel like you were meant to have a kick-ass career as a hairstylist?
0:05.8	Like you got into this industry to make big things happen?
0:09.1	Maybe you're struggling to build a solid base and want some stability.
0:12.5	Maybe you know social media is important, but it feels like a waste of time because you
0:16.1	weren't seeing any results.
0:17.9	Maybe you've already had some amazing success, but are craving more. Maybe you're
0:21.9	ready to truly enjoy the freedom and flexibility this industry has to offer. Cutting and
0:26.9	coloring skills will only get you so far, but to build a lifelong career as a wealthy
0:31.5	stylist, it takes business skills and a serious marketing strategy. When you're ready to quit
0:36.6	just working in your business and start working on it,
0:39.0	join us here where we share real success stories from real stylists.
0:42.7	I'm Britt Siva, social media and marketing strategist just for hairstylists,
0:46.3	and this is The Thriving Stilist Podcast.
0:51.3	What is up?
0:52.7	And welcome back to the Thriving Stilist podcast. I'm your host, Britsieva, here to talk about a very scary, and I'm sure very controversial topic. When should a salon owner reduce commissions? I know. Stylists are like, we're coming for her. I know. I totally understand.
1:16.4	But please, please note, I'm also the business coach who coaches to uncapped commissions.
1:21.4	I don't understand why a salon would be like, well, you can earn up to a 60% commission.
1:23.0	Why can't you have an 80% commission?
1:27.1	Like the math doesn't math on that.
1:30.2	It's because most salons in the way they're running and are structured are run in a way that fundamentally doesn't allow top performers to continue to grow
1:39.3	which is why you hear employee stylists say i I wish I could have stayed at my salon.
1:45.7	There was nowhere for me to grow.
	...

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