Booth rental vs. commission: which model fits your salon and your stylists?
Compare booth rental and commission models: income, control, taxes, risks and the right software for each side.
Short answer: On commission, the salon controls clients, prices and products and pays staff a share of revenue. With booth rental, the stylist pays fixed rent and runs their own small business. Commission suits salons that want to control the client experience; booth rental suits stylists with a steady book of their own clients.
Quick comparison
| Commission | Booth rental | |
|---|---|---|
| Who sets prices | Salon | Stylist |
| Who owns the client list | Usually the salon | Stylist |
| Who pays for product | Usually the salon | Stylist |
| Salon income | Remaining share of revenue | Fixed rent |
| Taxes | Salon runs payroll and withholds | Stylist files and pays their own |
When commission makes sense
- The salon wants consistent quality and pricing.
- Lots of walk-ins that need fair turns.
- Newer staff without their own clientele.
When booth rental makes sense
- The stylist has a steady base of regulars.
- The owner wants predictable income and less management.
- The stylist wants to set their own hours and prices.
The risk to know about
If a salon calls someone a booth renter but sets their hours, prices and rules like an employee, tax authorities may treat them as an employee. Put the rental agreement in writing and talk to an accountant or attorney.
Software for each model
- Commission salons: need a front-desk POS, turns and payroll. See salon pricing.
- Booth renters: need a booking page, reminders and their own checkout. See pricing for independents.
This is general information, not tax or legal advice.
Frequently asked questions
Is a booth renter an employee of the salon?
Usually not. A booth renter runs an independent business, sets prices, manages clients and handles their own taxes. How the relationship works in practice decides the classification.
What software does a booth renter need?
Their own booking page, reminders and a way to take payments. A plan for independents is usually enough.
Can a salon have both employees and booth renters?
Yes, many do. Keep clients, calendars, payments and books clearly separate between the two groups.