Every nail salon owner eventually has to answer one question: do I pay my technicians commission, or do I rent them a booth? The answer changes your income, your workload and your legal obligations. This guide works through both with real numbers.
What is the difference between commission and booth rent?
On commission, the technician works for the salon and earns a share of each service. The salon sets prices, owns the client list, buys supplies and takes payment. On booth rent, the technician runs their own small business inside your salon and pays you a fixed weekly or monthly rent for the station.
| Commission | Booth rent | |
|---|---|---|
| Who sets prices | Salon | Technician |
| Who takes payment | Salon | Technician |
| Who buys supplies | Salon (usually) | Technician |
| Owner income | A share of every service | Fixed rent |
| Owner control | High | Low |
| Payroll work | Yes | No |
How much does a technician take home on commission?
Take a busy week: a technician performs $2,400 of services. On a 60/40 split in the technician’s favour, she earns $1,440 in commission. If the salon deducts a 6% product charge first, commission is calculated on $2,256, which gives $1,353.60. Tips, say $430 for the week, are added on top in full.
Try your own numbers in the commission and tip calculator. Commission ranges in this guide match what industry guides report for 2026 (Zenoti salon commission guide).
What the owner keeps on commission
From that same week, the salon keeps $960 (or $902.40 after the product charge) to cover rent, utilities, supplies, the front desk and profit. On a slow week the owner’s share drops, but so does the technician’s: risk is shared.
How much does booth rent bring in?
A booth might rent for a fixed amount per week. The owner receives that amount whether the technician has a great week or a terrible one. The technician keeps everything above the rent, buys their own supplies and handles their own taxes.
Booth rent is attractive when a salon has more stations than it can fill with commission staff, or when experienced technicians bring their own loyal clients. It is less attractive when the salon’s brand and front desk are what bring clients in, because the owner is paying to attract clients the renter keeps.
Which model is better for the owner?
There is no universal winner. Commission usually earns the owner more in a busy, well-marketed salon, because the owner shares in every service. Booth rent wins when the salon is quiet or when the owner wants less management work.
Ask yourself three questions:
- Who brings the clients? If it is your brand, location and front desk, commission captures that value.
- How much do you want to manage? Commission means payroll, scheduling and quality control.
- How consistent must the experience be? Commission lets you set standards for every service.
Is a booth renter an employee or a contractor?
This is decided by your state’s law, not by what you call the arrangement. If you set the renter’s hours, prices or methods, they may legally be an employee even if you call them a renter. States such as California apply strict tests. Talk to an employment lawyer or your accountant before you set up booth rental.
What about tips?
Under either model, tips belong to the person who earned them. For employees, federal law (the FLSA) says the employer may not keep any part of a tip (U.S. Department of Labor Fact Sheet #15). See our guide to paying out card tips.
How GetSpaPOS handles both
GetSpaPOS records the technician on every service line and calculates commission per technician or per service, with an optional product charge, then sends it to payroll with tips kept separate. Booth renters can have their own register and sales record in the same location. See technician commission and payroll.
