Salary, Commission, or Self-Employed? Understanding Salon Structures (and What’s Right for You)
If you’re a hairstylist — or thinking about becoming one — you’ve probably realized there’s no single “right” way to work in this industry. Different salons operate very differently, and what feels perfect for one stylist might feel completely wrong for another.
Whether you’re currently comparing your salon to another option, brand new to the industry, or simply daydreaming about what your future could look like, understanding salon structures is a game changer.
Let’s break it down calmly, honestly, and without the pressure to have it all figured out today.
Salary-Based Salons: Stability First
Salary salons are often where many hairstylists begin, and for good reason.
A salary stylist is typically:
New to the industry
New to a city
Without an established clientele
Looking for consistency and structure
In this setup, the salon provides the clients, and you’re paid a steady wage to take care of them. You show up, do your job, and go home. No marketing. No client sourcing. No worrying about slow seasons.
The biggest benefit? Predictability.
Christmas busy? You make the same.
January slow? You still make the same.
There are no major highs… but also no scary lows.
The Trade-Off
The downside of salary salons is growth.
As you become busier, more in demand, and more skilled, your income doesn’t scale at the same pace. Raises exist, but they’re gradual and usually capped.
You’ll often find salary salons in:
Malls
Department stores
Country and Private Clubs
High-volume environments
Salary salons are great if you want stability and simplicity. They’re less ideal if you’re highly driven by growth or long-term earning potential.
Commission-Based Salons: More Clients, More Earning
Commission salons are one of the most common structures in the hair industry — especially for stylists with an existing clientele.
In a commission-based salon, you earn a percentage of the services you perform. This can look like:
Fixed percentage of income split by you and the salon.
For example:
70% to the salon 30% goes to you
60% to the salon 40% goes to you
50% to the salon 50% goes to you
Sliding scale based on income
For example:
income under $1000 = 70% salon 30% you
income over $1000 = 60% salon 40% you
Some salons also offer a hybrid model — a base salary plus a lower commission — to help stylists transition.
Why Stylists Choose Commission
Commission salons work well for stylists who:
Have an established clientele
Want to earn more than a salary model allows
Don’t want full business ownership responsibility
Are okay with some marketing, but not all of it
The salon typically provides:
The space
Product and colour
Reception
Cleaning
Amenities (sometimes client refreshments)
In many cases, salons will also help market you — because your success benefits the business as a whole.
The Cost of Convenience
The trade-off? You’re still paying a significant portion of your income to the salon.
Anywhere from 20% to 60% (sometimes more) of every service goes toward overhead — even when you’re fully booked.
Commission salons are a solid middle ground — but they do cap how much of your earning power you truly keep.
Self-Employment: Freedom, Flexibility, Responsibility
Self-employment in the hair industry isn’t one-size-fits-all and it definitely isn’t all-or-nothing.
At its core, being self-employed means:
You control your schedule
You (generally) keep the most of your income
You take on more responsibility
But how that looks can vary a lot.
Chair Rental: Fixed Costs, Fixed Commitment
Traditional chair rental usually means paying a set amount per day, week, or month in someone else’s salon.
You’re self-employed, but the cost stays the same regardless of how busy you are.
Pros:
Predictable expenses
Access to an established salon
Cons:
Little flexibility
Paying for days you may not work
If you’re only booking two days a week, renting five days a week can quietly drain your income — fast.
Full Salon Suite Ownership: High Risk, High Reward
Opening your own salon suite gives you complete control, but also complete overhead.
This often includes:
Renovation costs
Furniture and equipment
Product inventory
Retail investment
Decor, branding, and maintenance
It can easily require thousands of dollars upfront before you ever take home a dollar.
When business is booming, you keep everything.
When it’s slow? The bills don’t care.
This option works best for stylists with a very established clientele and financial cushion.
A More Flexible Way to Be Self-Employed
This is where Chair Collective fits into the conversation.
Chair Collective is designed for self-employed hairstylists who want independence without fixed commitments.
Instead of paying for unused time, you:
Book only the days you need
Scale up during busy months
Scale down during slower ones
Your spending adjusts with your demand.
Each fully private salon suite includes:
A beautiful, secure space
Two styling chairs
Hair colour, shampoo, and back bar
Clean towels, robes, and client capes
Client refreshments
Access to high-end retail with commission with no upfront buy-in
There’s no lease. No contract. No pressure to overbook yourself just to “make rent.”
So… Which Salon Structure Is Right for You?
The honest answer? It depends on where you are not where you think you should be.
Salary salons offer safety and structure
Commission salons offer growth with support
Self-employment offers freedom and control
Chair Collective allows you to explore self-employment slowly, intentionally, and stress-free.
One day a month. Then two. Then four.
Your business grows when you’re ready — not before.
Thinking About Self-Employment? Start Gently.
You don’t have to leap. You don’t have to panic. And you definitely don’t have to sign a lease before you feel ready.
Chair Collective exists so stylists can build their brand, their clientele, and their confidence — at their own pace.
Explore self-employment without the pressure. Book your first day at Chair Collective and let your next chapter unfold naturally.
Frequently Asked Questions About Salon Pay Structures
What is a salary-based salon?
A salary-based salon pays hairstylists a consistent hourly or salaried wage. The salon typically provides clients, products, and structure, making this model ideal for beginners or stylists who value stability over growth.
What is a commission-based salon?
In a commission salon, hairstylists earn a percentage of the services they perform. This structure rewards stylists with an existing clientele and offers higher earning potential than salary models, while still providing salon support and amenities.
What does it mean to be a self-employed hairstylist?
Self-employed hairstylists run their own business, control their schedule, and keep their earnings. This can include chair rental, salon suite ownership, or flexible daily salon rentals like ChairCollective.
Which salon structure is best for new hairstylists?
New hairstylists often start in salary or hybrid commission salons to gain experience. Flexible salon rentals can also support new stylists who want to slowly build a clientele without long-term financial commitments.
How does Chair Collective support self-employed hairstylists?
Chair Collective offers fully equipped, daily salon suite rentals with no contracts or leases. Stylists can book as many or as few days as they need, allowing their business to grow naturally with client demand.