The Biggest Mistake Estheticians Make with Pay Structures
Most estheticians set up their pay structures the wrong way—by copying what everyone else is doing. And the problem? They’re looking at hairstylists, booth renters, and outdated commission models that don’t work in today’s industry.
Here’s the harsh truth: Booth renters aren’t business owners—they’re landlords. And if you’re a beauty business owner, you can’t afford to structure your pay the same way they do.
Even worse, many estheticians overpay their employees with unrealistic commission rates, leaving themselves broke. Sound familiar?
Today, I’m breaking down exactly why your pay structure is failing you—and how to fix it so your business actually pays you what you deserve.
Why Most Estheticians Struggle With Pay Structures
Pay structures are one of the most confusing parts of running a beauty business. Most estheticians struggle because:
• They don’t start with enough capital.
• They reinvest every dollar back into the business, leaving nothing for themselves.
• They overpay employees because they’re afraid of being seen as “greedy.”
The result? They’re working harder than ever, but their bank account doesn’t show it.
My Personal Story of a Broken Pay Structure
I’ve been there.
When I first started hiring, I made a huge mistake—I brought on a 1099 contractor without realizing it was illegal in my state. After that, I hired my first W-2 employee at 65% commission.
At the time, I thought I was doing the right thing. But one day, I sat down and ran the numbers… and I was shocked.
My employee was making bank, while I was barely covering expenses.
I was running a business, but I wasn’t making any money. That’s when I knew something had to change.
The Consequences of a Bad Pay Structure
If your pay structure is broken, it doesn’t just affect your business—it affects your entire life.
• You end up working for free. If every dollar goes to expenses and payroll, where does that leave you?
• Your family suffers. You’re working long hours but don’t have the income to show for it.
• Your business stops growing. Without profit, you can’t afford new equipment, better technology, or higher-level services like lasers and Hydrafacials.
Why a Bad Pay Structure Leads to Burnout & High Turnover
One of the biggest reasons estheticians burn out is because their business isn’t profitable.
If you can’t afford to invest in better services, your employees can’t grow. They get stuck doing low-ticket facials forever—and eventually, they leave.
On top of that, if your overhead is too high, you can’t raise prices without losing clients. It’s a lose-lose situation.
Commission vs. Hourly vs. Hybrid: What Works Best?
There’s no one-size-fits-all answer, but here’s the reality:
• Commission rewards high performers, but can be unpredictable.
• Hourly creates stability, but leads to complacency.
• Hybrid systems balance both, offering security and incentives.
If you want to build a long-term, sustainable business, you need a system that works for both you and your employees.
The Core Philosophy Behind My Course
I get it—when I started hiring, I didn’t know how to pay people either. I had to invest thousands in mentorship just to figure it out.
But most estheticians don’t have the time or money for that. That’s why I created The Esthetician Guide for a Profitable Pay Structure—to give you a step-by-step system you can implement yourself.
How My Method Helps Both Owners & Employees Win
The key to a successful pay structure is simple: everyone has to win.
• Your employees need growth opportunities.
• You need profit margins that allow you to reinvest in the business.
When you structure pay correctly, you build a future where both you and your employees thrive.
Common Myths About Pay Structures
Let’s clear up some common misconceptions:
❌ “1099s are legal for estheticians.” Wrong. Unless they truly operate independently (meaning they book their own clients and provide their own supplies), they should be W-2 employees.
❌ “50% commission is the industry standard.” No real business can sustain that long-term. You need a structure that supports growth and profitability.
A Simple Shift to Increase Profitability Today
One of the biggest game-changers for my business was realizing that solo estheticians can’t compete with teams.
When you’re working alone, you’re limited by time. But when you hire a team and implement the right pay structure, you create a business that grows beyond your own hands.
Addressing Common Fears & Objections
I hear the same fears from estheticians all the time:
🛑 “I can’t afford to pay employees more.” → You don’t need to. You need a better bonus structure.
🛑 “Employees will leave if I don’t offer 50%.” → If you want to work for free, go ahead. But real businesses make money.
🛑 “Employees should just be grateful for a job.” → Only if their boss is investing in them. A great pay structure creates loyal, high-performing employees.
What’s At Stake If You Keep Doing It Wrong?
If you keep running a broken pay structure, here’s what happens:
• You’ll never have true financial freedom.
• You’ll be trapped behind the chair forever.
It’s time to fix it.
Ready to Finally Pay Yourself What You Deserve?
If you’re serious about creating a pay structure that actually works, my course will walk you through it step-by-step.
Start with my free training now! here
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