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Medical Spa Business Forum > Commission percentages on medispa

How are percentages determined for commission on selling products in your medspas/laser clinic? Does it work for you? Or should I consider another sales pay scale?

Wish I could say all are based on percentage of what you do although, one physician I worked for paid a flat hourly rate (no gratuity allowed in medical facility) and 10% commission on product sold. Hope that is helps.

01.3 | Unregistered CommenterYskin

I've seen several models. One that works well, is a sliding scale that increases from 5%-10%-15% as the ratio of Retail to Service Revenue increases from 10%-20%-30%. These ratios are evaluated quarterly. The percentages of both retail commission and ratio of Retail to Service revenue can be adjusted to suit the business. Another retail commission model that works is based on a weekly minimum retail sales amount. As this is exceeded, the percentage of retail commission can increase.

The industry standard is 10%, although there are some that offer tiers so when you reach a certain volume your percentage increases.

01.11 | Unregistered CommenterClare,coo

I have been employed by an amazing plastic surgeon. He gives us 25% commission on selling products to our clients. But we still make a point not to oversell. We only recommend products that will suit our patient's needs.

01.23 | Unregistered CommenterPaterson

What is your average hourly rate in a doctors office?

02.4 | Unregistered Commenterlk gupta

I generally see commission on products to be around 15% in the medspa I work in.

I am a LE and I'm paid $20 an hour plus 30% commission, and don't forget the tips. IMO, the medspa I work for compensates employees very well.

02.27 | Unregistered CommenterMWebb

You have to take into consideration your geographical area. Obviously, the hourly wage they are offering you is very low. I would never work for $25/hour, or anything less for that matter. 15% commission is standard. MDs need to be aware on what the industry standards are.

03.6 | Unregistered CommenterButton

Overall, it's disheartening how grossly underpaid estheticians are in general. The esthetics market is overly saturated and competition is cut-throat.

03.18 | Unregistered CommenterJulie, LE

We worked for $9/hr, 15% commission on products and 10% commission on up sales in the treatment room. That worked pretty well for us,

03.27 | Unregistered Commenters.b.

What I believe when choosing the commission for retail sales and service sales is to have a clear understanding of retail and wholesale costs. You may have multiple lines that can pay different commissions. In my medical spa I based retail sales against service dollars generated and had a scale made.

04.19 | Unregistered Commenterdeb

I pay a generous hourly wage, plus 10% service commission, plus 10% product commission

I receive 30-46% of retail sales every Friday electronically deposited on a Debit Card.

05.28 | Unregistered CommenterCandice D.

I've been asking around locally and most spas are paying 10% commission to employees for product sales. One even said they pay it on the wholesale price, not retail. I'm currently paying 15% and wondered if that was high.

As an esty , I am being paid 10% commission from sale price. As an owner, I woudn't pay more then 10% commission from sale.

06.5 | Unregistered Commenterevelyn

What % of treatment revenue is paid to aestheticians under these scenarios:
-where the aesthetician just does the work given to her
-for treatments that are generated by the aesthetician

It seems from the responses here that 10-15% of retail price for products is paid to aestheticians as an incentive.

06.5 | Unregistered Commenterbarwest2

By the way, any experienced aestheticians looking to join a medispa in the New York City metro area, especially if you have a client base? You can email me directly, in confidence, to barwest2@aol.com. Thanks.

06.5 | Unregistered Commenterbarwest2

I think these numbers are outrageous, and false. I get 20% as a starting point, with increases based on total sales (retail). I don't know anybody who gets less than 15%, no matter what the level, and I wouldn't even raise my head at 10%. If you want to retail, you have to make it worth an esthetician's time, and 10% is NOT worth an esthetician's time.

07.4 | Unregistered CommenterJ Mason

It's nice to be generous but by the time you pay shipping and other fees, there's not that much of a mark-up left. And the owner takes the risk of products sitting on the shelf. It's a tough situation.

08.7 | Unregistered CommenterVida L

Empowering the employees to have control over the amount of money they can earn is very important for morale. My belief- tips should not be counted into commissions or pay unless there is a flat/fixed rate. Staff needs motivation and the tools to keep them motivated to continue to increase their checks. Work smarter not harder! Retail is key.

08.21 | Unregistered Commenterlotts

have been on both sides: the Esthetician and now the employer. What's shock to sit down and really figure out the numbers! Any one paying an employee more than 25% TOTAL of the hourly income is losing their shirt! I used to make 50%, plus 10% product commission. There is NO WAY I could afford to pay this to anyone now. Think about what the other benefits are to you at a potential employer: liability insurance, backbar supplies, education, linens, disposables, marketing....all of these expenses are part of your actual compensation. It's easy to think in terms of straight hourly wages, but there really is more to it.

By the way, even though I am still in business, the employers who paid me 50% are not. That is just not sustainable. I pay a generous hourly wage, plus 10% service commission, plus 10% product commission: add on to that 45% employee discount, free education, marketing, liability insurance, etc.

10.13 | Unregistered CommenterLN

We pay our spa therapists and our receptionist 10% retail commission, do you think the commission should just be paid to the spa therapists the day of treatment or do you think if the client comes back 6 months later to purchase more products without a service the commission should go to them as well..or to the receptionist?

10.17 | Unregistered CommenterSpaMan

I pay 10% to new employees while they are still acquiring knowledge, 15% to employees who moved over $500 a week and 20% if they break a thousand for the week. They try much harder when there is more to gain.

11.19 | Unregistered Commenterdawn rn

Interesting. I've only experienced (in Arizona) being paid commission based on the retail pricing of a product or service I've sold.

12.7 | Unregistered Commenterkel

In my experience as a rep, employees of my clients were rewarded based on retail, never wholesale. Commission rates varied greatly but the basis on retail didn't. Of my former clients, about 60 were spa/salons.

12.15 | Unregistered CommenterWindy

I have always paid my employees 20% on the retail price. I want to give them a good incentive and to realize just how important their sales can be to their bottom line and for the client. It has always been a win/win!

12.16 | Unregistered CommenterBoudreaux

The average amount of commission is in the 6-10% range of the retail price. The emerging trend to pay is also based on the # of units sold ( such as during a promotion) versus the dollar amount.

I make 25% on all laser services, 30% esthetic and chemical peel services, $150 to $400 per Thermage.....plus tips and 10% on product sales. We work hard and have a lot of licensing and continuing education and deserve the pay.

I am going to present this to my doctor and practice management. Having read all the above on standard esthetician base pay and commissions, add an RN license and 7 years experience in this office building the medical spa practice. What would be your responses to hear the pay is $16 per hour (started $13, 7 years later with raises now at $16) with NO COMMISSION at all?

I've never heard of this before! I wouldn't accept that offer if I were you. I believe depending on experience, commission is usually 10 to 20 percent of retail. However location of salon or practice can be factor. Good wishes for a great outcome on that!

03.1 | Unregistered Commenterswanson

Laughed at both requests : to either earn commission or being paid industry standard for Office RN. Taken advantage of for 8 years, I am told my "work is not worthy of RN wages" and "We will not have a competitive nature in the office, not commission, potentially a quarterly group bonus". I take with me the knowledge I have gained over the past years, and my dignity, and a clean conscious. Resignation tendered and I am gone. Never signed a non- compete, however my goal is not to steal clients, but to make a living to take care of my family. Unfortunately, you can't make "grown up" wages in the field of esthetics is Indiana. Wages are suited for married women on their husbands benefit plans or little girls fresh out of college. No room for intelligent and highly skilled women. Back to being a nurse! I will miss skin care, but buying food and paying rent has to take priority

Not happy, then leave.
Not happy, them don't take the job.
Not happy, then start your own

Simple rule of life.
If you decide to stay, then just stop whining.
No one forces you to stay.

03.1 | Unregistered CommenterPaul

I stayed so long because I was dedicated to the clients I served. I left because my family is more important. You are correct, no one forces anyone to stay. TOOK the job hoping for the opportunities that I (mistaking) thought were there. STAYED because I had dedication and LEFT because they did nor compensate for the first two.

If you want quality dedicated employees... they need to be compensated a living wage. If not, then they will see the quality of employees they get. No sir, no whining here. Whining changes nothing.

However, I am free to express a general disappointment. It was disappointing to invest 7 years somewhere, and not get a mutual investment. Tsk tsk, onward and upward.

I have never heard of such a thing. It is NOT common practice,and strikes me as wholly unethical. Run, as fast as you can, from this,lousy deal.

03.6 | Unregistered Commenterjm

If you can't stand the heat, get out of the kitchen.
No one will sympathy you if you continue to stay.

03.6 | Unregistered Commenteradam

Wow, I keep getting response from people that apparently can't read. I left half a month ago, happier and healthier than I have ever been. and "Adam" , honey, there was no "heat" in any kitchen there. Just me constantly cleaning up the messes created by an obnoxious and rude a co worker. Clients won't come back because of this person. Even more so that I am not there to apologize for her anymore. Washed my hands of that mess.

wow. Not sure what is happening in the comments section here- seems like a lot of undeserved hostility.

Yes- "Was totally Underpaid"- you were. But you also put up with it for 7 years.

My agenda in hiring staff is to pay as little as possible for as much work as possible. Their agenda is to work as little as possible for as much $ as possible. We usually end up meeting in the middle and everyone is relatively happy. We have very low turnover.

We pay a monthly bonus to each employee when we hit our goal. Didn't hit? no $ for anyone. Made it? then it's based on the # of hrs. you work. We find that that takes care of competition among staff and everyone pulls together as a team.

and where we are located? We have to pay way, way above a living wage.

But then again? I dont't hire nurses. It's not necessary for my state's laws and have found they oftentimes have unrealistic expectations about wages.

I wish you the best in the future.

Well, I apologize if you sensed hostility. I was just surprised at the responses suggesting if I don't like it leave, I though I mentioned I had left a few messages back.
What is disturbing to me is the trend of hiring non-licensed individuals in medical offices, because they are cheap labor. You indicated "you don't hire nurses because they expect more". What has happened to the respect for longevity and dedication? Forget that I am an RN, I stayed because I felt a responsibility and dedication to the clients that put their trust in me for medical skin care. Over and over again I heard from them how comfortable they felt with my choices and recommendations BECAUSE of my nursing back ground. They wouldn't trust their faces with anyone else. How they were tired of uneducated staff pushing off the most expensive goo in a jar, not listening to their individual needs and concerns. Because that is what you get when you have non-licensed staff. Staff that DOES NOT go that extra mile to maintain trusting client / skin care professional relationships. "Sally" at the from desk will just push off the most expensive goo in a jar to they clients, and are more concerned with getting lunch on time or the text from their boyfriend.

I took pride in my level of individualized customer service, and always went that extra mile. Unfortunately, the unlicensed staff hired after me for the receptionist resented that, she did not want to match it, and was more concerned with her lunch break. So, after 4 years of petty "Mickey Mouse" office drama she instigated, as retaliation for my bringing the continuous barrage of client complaints to managements attention, I decided I had had enough of peanut pay and female drama. I have heard from at least 20 clients I served that they won't go back, as I was the only reason they continued to come to our medical spa.

It is sad, but I suppose, you get what you pay for.

By the way, any experienced aestheticians looking to join a medispa in the New York City metro area, especially if you have an established client base? You can email me directly, in confidence, to barwest2@aol.com. We are in an upscale community, just north of NYC and will train you on exciting new technology we recently acquired. We also will be very fair as far as compensation, especially if you have an established client base. To be honest, we are not at the point where you can join us and walk in to a fully booked schedule. Thanks.

03.7 | Unregistered Commenterbarwest2

I've been an esthetician for 5 years and have been at the same spa since becoming licensed. Hourly + 5% on service & 10% products.

On a side note, I'm hoping I can get some of your input on who's gets the commission? All of my co-workers are part time including myself. We are having an issue in regards to applying commissions...

We tried two ways to solve the problem.
1. If you made the sale you receive the commission
2. Who ever made the "original" sale with the customer, always gets the commission

Since our manager who has been there since the clinic opened become part owner - has changed the policy to #2. What do you think???

I am a sales consultant in a medical Spa. I do quite well. Problem is when I close a sale ...filler in particular the nurse thinks she should get part of it when she had no part in the sale. What are your thoughts

07.11 | Unregistered CommenterKim Smith

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