Medical Spa Compensation:

Regarding Fair compensation for Staff - it's important to remember that NO business can afford to pay more than 20-25% of gross revenues for salaries. Can you imagine the employees of say...3M, Google, Cargill or even Candela demanding a 60/40 split of the gross revenues in compensation? It's ridiculous.

As a rule (Business 101) total employee compensation should not exceed 23.7-24% of gross revenues. Excluding taxes.

After 4 years and 7 Esti’s- Here’s what I’ve found the most effective:
Hourly OR Commission on services delivered. Whichever is greater:
$12 - $20hr OR 15-20% Services and 10% on product. Commissions tallied and paid after month end.
I use a 3 tiered approach. They start low and work their way up to the highest Tier ($20 per hour and 20% commission)

WARNING: Commision is paid on the VALUE of the service performed - NOT total sales of the business. The way an employee can give themselves a raise is by NOT discounting the services during the sales process. This works the best. Do NOT commissioin on total SALES!!! Commissions are paid on the value of the services delivered!!!! Very important distinction. We tried the commissions on Service Sales - seemed like a great idea…but in the end human nature prevailed and the staff was doing ANYTHING to get the sale – like deeply discounting the packages so that they could increase the company sales (and ultimately their commissions)! We discovered much later as that approach started to show up in our Rev Per hour - it tanked our profitability! That approach sets the incentives up to kill the business. Your rev per hour drops to below cost and you are committed to delivering the deeply discounted services.

Hourly rate should be set based on your Market and the Experience of the Esti. Depends on where you are and how established the Esti/Tech is. Personally, I start everyone at $12 for 90 days. No matter what! I don’t care how experienced or knowledgeable an Esti’s look on paper, they never know as much as I need them to know. That first 90 days is like boot camp for them. And once hired, they realize how little they actually know…so basically that first 90 days is an opportunity to see if you have a rock star or a whiner. And trust me, you will know right away.

Remember: Hourly OR Commission (not hourly plus commission) whichever is greater during a 30 day period. My Esti’s get their regular hourly rate pay checks during the month then a separate commission check is paid at the end of the month. NEVER pay commissions as you go! You’ll end up upside down. Commission vs. hourly is tallied up at the end of the month. Refunds on services and return on products should affect the Esti’s commission’s checks.

We use Millennium software to track this. MSpa also works.

And for the sake of everyone involved in Medical Spa’s….business owners please take a basic business class! Again I recommend the group Inspiring Champions – CashFlow camp. It’s designed for the Salon industry and it’s not a perfect fit for us – but this weekend seminar will help you wrap your brain around some key concepts important to your financial health. Do NOT trust your accountant to analyze your P&L. They don't know how to structure it to make sense. You need a crash course in essential Business Basics. There was a lot that I didn’t know. And until you have the basics under your belt, you don’t know where to start to turn your business around.

Good Luck everyone!

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Learn from my experience:

I once hired and Esti with 5 years in the trenches who demanded 50k as a base. Silly me. Her resume was strong and I assumed that she knew basic laser physics, or even her wavelengths or sanitation? Sigh ;-( Length of time in the industry is NOT an indication of skill or knowledge. That’s why that first 90 days is so important.

I also hired an Esti who had worked for a Laser Mfg and had traveled the world teaching physicians and staff how to perform IPLs’ and Erbium Peels. Sounds great right? What a find! She immediately proceeded to burn several of my patients. Up to that point, in my 3 years in business – we had a No Burn clinic. Not a single burn or blister in 3 years! Shortly after hiring the Esti, I happened to answer the phones one day with a client complaining of burns and blister on her arms after an IPL treatment. I asked her to come in immediately. To my horror – there were indeed blisters – and tractor marks left by a sloppy and incomplete approach. Unacceptable! I was mortified. Luckily we were not sued. We regrouped and tried to offer the Esti additional training – she protested. She implied that she already knew what she needed to know and anything that we could possible offer would simply be “review”. She is no longer with us.

My 2 cents:
Of all of the challenges in owning a Medical Spa, finding capable, professional Esti staff has been the most difficult. There are very few that have advanced degrees,A.A., B.S., B.A. MBA, PHD, RN etc...yet they expect to operate and to be compensated at that level. I've had Esti's interview that expect to be paid more than an RN. Perhaps they don't know what RN's are paid? Not sure. Very interesting phenomenon. Makes me wonder what notions the Esti schools are are filling their heads with. In my experience, most Esti's think they know more than they do.Especially those just out of school. I actually had an Esti assume that she would be taught how to do injections! She was actually quite miffed that that wasn't part of her "on-the-job-training" program.

To the real Pro's: I apologize in advance if my musings regarding Esti's offended. That was not my intention. In the state of MN there's a beauty school on every corner and they are most definately "for profit". They'll let just about anyone in - as long as they can pay. So my comments only relate to my own experience in MN of receiving 100's of resumes and conducting 50+ interviews and hiring and working with 7 Esti's.

Because the rules are different in each state, be certain you are compliant with the state in which you live. I believe that in California, the hourly OR commission is not workable. If you have an employee, (as opposed to an Independent Contractor) the employee must be paid minimum wage when not working on a commission-split client/patient.

And, yes most schools inflate earnings potential, unfortunately. It is my view that only trained medical personnel should handle any type of laser, and certainly no esthetician should be doing injections! These things are WAY outside the scope of practice for nearly all states...and a huge potential liability to the business. Pre-op facial treatments and patient instructions...post-op hydrating treatments are fine, but when one tries to use a hammer to do the job of a screwdriver, this is where things just do not work. In the attempt to merge the "beauty" business with the "medical" aspects, it is my view that it would be better to have an RN train to become an esthetician, rather than to try to get an esthetician with, at most, 1,200 hours of instruction and a state license that in most instances have to do with the epi only.

Know what your state requirements are.
Know the limitations of an esthetician's training.
Lathe, rinse and repeat.

usp

Uggggg! I meant "Lather", not "Lathe"... Completely different things! Sorry!

I have been working for a dermatologist for 8 months now. I only get paid 14.00 dollars an hour nothing else. This was my first esthetic job from leaving school. I am very grateful for my extended knowledge. My doctor (employer) has three derm spas. She opened a very high end medi spa. I have marketed her office like no other. Going door to door to local businesses, passing out flyers, post cards business cards. We've had Cosmetic day special events that I was very instrumental in launching, bring in many high end services that were performed by PA's and the doctor her self. I've worked business expos, after hour networking parties, and women fairs, where I set up tables displaying all her services. I have many clients now that I have become very close with. I recently went to my office manager and said I can't keep being the butcher the baker the candlestick maker and paid the way I'm paid. I was told a business needs a year before it takes off. What a shame to not see hard work and compensate that employee. I'm high energy and my wheels never stop turning. I'm ready to hit the pavement running for my next employer who is going to pay me what I'm worth. And with that I know I will bring much success to that business because I absolutely love what I do. To the next esthetician who takes this job after me, good luck .
'

Peggy,

So the education that the derm has given you is not worth anything? It sounds as if you are a hard worker, but you need to realize that you have likely learned more in the last 8 months than you did in school. You also need to understand that it takes time to make a business profitable. So you may be asking for the owner to go further into debt. I would tell you to hold on a little longer and learn absolutely as much as you can. I

I too thought I would learn a lot working for a physician. Not. She was a family practice physician who rammed "acne facials" through her practice like cattle, selling them her cheap PL products for a fabulous profit. I quit when she wanted me to do acne facials every thirty minutes...not why I got into esthetics. The epitome of the McDonald's method of "skin care"...

usp

I think most of you are one sided. Alot of estheticians out there do not have the skills or personality to ever be great. I am an esthetician and spa manager for 11 yrs. and have only found a handful who truely do there job well. Even if they have been trained, they are not real thinkers. Most go to school because they think the money is good. Others truely learn all there is to no about skin, products, and medical esthetics. I do think that if the esthetician is bringing in repeat clients and selling other services there commission should be that of a hair stylist. Why not they are servicing the client, giving all there knowledge and skill to keep them coming. I currently work for two MD's, one is great and the other thinks he's God. I think more often then not MD's think to much of themselves. There for the think they should not pay someone a decent wage. The key is to search out the BEST esthetician and they can be your greatest asset. PAY THEM WHAT THERE WORTH! IF THEY ARE NO GOOD GET RID OF THEM! As a prior CNA I find most LPN's and RN's no nothing about esthetics. They no nothing about how the skin works or how laser works! They would need a lot of training! Every job is about finding the right person!!!!!

Spa Manager,

Is English your second language? I ask because your post is nearly impossible to read. Sorry, I do not mean to be insensitive here, but it is very difficult to read such poor writing and take what you say seriously.

wow- USP- I read it and understood it.
I liked most of what you said and also spa manager when you answered Peggy. But LH this girl is taking a on huge amount of Marketing responsibilty. It is unclear what subject her extended knowledge is in-esthetics or running a business 101.
Frankly, I'd love to get my hands on an esti that was doing guerilla marketing and building up a clientele as well. But $14 an hour is fair for a newbie out of school.
LH is right-stick it out a little longer. When you make the spa work enough to turn a profit approach the owner about commissions or a raise.

I have been an Esthetician for about 4 years now, fresh out of school i began working for a small day spa, and they base paid me 40% and i work on call, over the past few years i have built up a good clientele and brought the service sales from about $1200 a month to about $4000 a month. after years of dedication, i asked them to TRY to start putting small services together, so on tue, wed, thur i wouldnt be running back and forth for 2 or 3 eyebrow waxes but rather make an attempt to put things together. My boss whom i have never so much as had a bad look for, threw a hissy fit and told me she'd replace me and im just lucky she dont make me stay from open to close, i told her if she wanted me to id be happy to for an hourly wage... well then she essentially went bat shit and has been giving my clients to a friend of her sisters who is an ethetician. I feel hurt and betrayed after all my devotion to them and the clients im being tossed out because i asked to not have to make 3, 30 min trips back and forth for MAYBE $7....
i strongly believe a 50% wage is fair for a small spa, however larger spa's with a guarantee of 6 or 7 facials a day i would think that 40% is plenty fair. I think the important part is having someone who is friendly and reliable, and if you find them treat them with respect!!

Let's stop confusing what esthetician pay should be in a day or resort spa vs. what it must be in a medical setting. Estheticians wanting to work in a medical setting please take notice! The situations are completely different when you look at the costs of that business. A room in a day spa probably costs at most $10,000 for high end equipment. In a medical setting, the cost of each room is probably 10x that. Each piece of laser equipment probably cost the business anywhere between $50,000 to $100,000. Ongoing maintenance not including consummables, particularly in the case of fraxel, probably cost about $10,000 per year.

In my city/state most estheticians lack a college degree and have very limited skills coming out of esthetician school. Nearly all estheticians (and nurses) need to be trained significantly on everything ranging from laser physics, product ingredients, skin anatomy, our treatment protocols, etc. etc. etc. That means we have to schedule staff to train them and book out rooms so they can get hands on experience. Easily by the end of a 90-day probation/training period I've spend $10,000 to train them and foregone 5x that in revenue.

On top of that the business spends thousands of dollars on advertising, rent, product inventory, supplies, insurance. The business feeds each client to each staff esthetician. In slow periods the business may have to increase advertising or run promotions that discount services or products. Compensation has to reflect all of these realities.

With that in mind, can an esthetician actually justify getting 40-60% commissions on services? From a business standpoint does it make sense to pay an esthetician or nurse $120-$180 commission for a $300 laser treatment? Absolutely not! I think a lot of estheticians only look at the $300 individual sale or the $1500 package and think they deserve half of it. I'm sorry but if you want 50% then you belong in a day spa where the most expensive treatment costs might top out at $120-$150 where the variable costs per treatment are about $10-20 for water, products, and clean linens.

How much do we pay our staff estheticians? A basic hourly rate of $10-15 depending on experience with us or another medical spa. Additionaly commissions are paid according to the profitability and difficulty of each treatment that can increase the effective hourly rate to $45/hr. Now if the esthetician takes additional responsibilities such as handling product inventory, working promotional events, etc. we do provide increase their pay for that work. We also pay 15% commissions on product sales profit and offer quarterly performance incentives such as higher rates for providing consultations if their consultation to sales conversion rate is over 85%.

Does anything sound unfair about that?

We would never consider paying an aesthetician a commission at all in our cosmetic dermatology practice.

We currently employ only nurses (LVN and RN's) who are excellent at the kind of aesthetic procedures we provide--Fraxel laser, Thermage, IPL, HR, SilkPeel, acne glycolic peels/extractions, etc. We pay all employees by the hour with bonuses for all employees including front desk and back office when the practice achieves profitability goals. That gives the staff an incentive to work together to achieve profits not just sales. There would be zero incentive/interest for us to hirean aesthetician at commissions of 40-50%. We would be losing money, the overhead is already 50% for salaries, equipment costs, rent, advertising etc. We would never tie up a room without making a profit on it.

Medspas and cosmetic medical practices make their money on high dollar procedures not facials. They take too long, tie up a room and the service fee is too low to justify anything remotely near a 50% commission. Med spas and cosmetic practices are a totally different business model than day spas.

Would anyone consider hiring an outside staffing agency to hire/ recruit and deal with estheticians and provide business and service training and motivation? This could reduce money wasted by hiring ill suited esthies and increase overall revenues.

I interviewed at a retail cosmetic store today who is looking for an Esthetician to do facials using the products she is selling. She would like to start of paying 50% to me for every service I do. She would provide the room and the product, and I would bring my own equipment, tools, facial table, etc. I have a years experience and I am also a licensed Esthetics Instructor. We are located in the Midwest. Does this sound fair? My issue is that I really need an hourly pay. I need to make enough money to live on my own. If I were to present her with a hourly wage what should I ask for?

Hello,

I am 30 years old and have completed two degrees (Bachelor in Business & Associate Applied Science - Computer Networking). I have been in the technology field for 8 years and enjoy my current position, but esthetics has drawn my interest. I have always been a girly girl and no one can believe I didn't go into the beauty industry...I'm starting to realize they may have been right. I currently make an average + salary and may be able to advance into management and make what I'm striving for...although now I think I want to go to an esthetics School, in Michigan. I had severe acne as a child and I'm still dealing with it (scars and minor breakouts) and I have tried numerous treatments to subside/cure it. Also I hate shaving everyday and dealing with cellulite...like most women. IThe main factor is that I want to start a family soon and then I would prefer to work part-time. I am trying to find if this would be a good career change for me. I am currently a patient at a laser/skin clinic and I’d like to apply there because I know the employees/environment and the perks they receive. I would have to keep my current job and go to night classes to obtain my license. Then I would like to work night and weekends at the clinic and eventually leave my current position (unless things change in the meantime). I'm nervous on spending another 5-6 grand on esthetics school (still pay the remaining half of 50 grand) and which school one to pick???
I consider myself a professional and driven individual and I love learning anything referencing beauty. I think I would be a great match for a medical\cosmetic clinic (NOT so sure about sales though...kind of hate that stuff because I hate it when people do it to me), but I need to eventually be making at least 22+ an hour for it to be worth my time. Am I heading in the wrong direction? What are the best, yet affordable esthetics/cosmetology schools in Michigan?

Any advice would be greatly appreciated.
Thank You!!!

I'm in year 4 of owning a medical spa. Prior to that I had 30 years in corporate America the last 10 in a senior executive capacity. Nothing I had done prior could have prepared me to be an owner of a Medical Spa. ALL the compensation is out of whack in this industry. PA's, NP's and Estheticians. I've had a different plan each year with this years plan a salary plus commission structure of $11.00 to $16.00 per hour plus up to 10% depending on productivity for Estheticians. For each esthetician their room cost me $13,000 per month. Any revenue short of that and I lose money. Paying 30-50% commissions on services is insane and is the single biggest reason so many MedSpa's have failed. I try and target no more then 23% of revenue for salaries and that is the absolute maximum anyone should pay. Also an absolute job requirement for Estheticians is to go out into the community and market, market, market. 70% of all new patients are from an owners physical structure, advertising, mailings etc and the other 30% is from what the Estheticians do outside the MedSpa to bring in new patients. The good news is that with the industry in a downturn, salaries for PA's and NP's have finally come down as well. If there are any GREAT Estheticians who read this column in the Fort Lauderdale area that are looking, I have one room available for the right person who knows how to market outside the MedSpa and understands how to build a practice inside a practice...

The difference is that you're a "medical" esthetics practice and can bill insurance and probably perform surgical procedures. In a straight retail environment without insurance billing and surgery paying that kind of wage is out of the question unless... They bill $260,000 or more per year and she might be doing that in your practice. Most bill less then half that amount in a retail setting.

Hi. I just wanted to say to the doctors/spa owners that not all estheticians are lazy and irresponsible. I am an energetic, eager esthetician and a hard worker. It is ashame that some estheticains are giving the rest of us a bad name. I feel that it will definitely depend on what area of the country you are in as to what hourly you pay. I feel like an esthetician can be a valuable asset to your business. I know that I could do a great job, and would be well worth the good pay. It is essential that the esthetician know what it expected of her. I apologize on behalf of all the professional estheticains out there for the ones who disappoint.

Brian, while we are a medical practice. most of our procedures are not covered by insurance as they are considered cosmetic. We are not a surgical based practice. I just think I need to compensate my staff fairly. Of note, my esthetican is cidesco certified and my nurse is very experience. I was lucky to have found them.

I am a medical esthetician and have worked with Dr's for 5 years. I have medical knowledge and often cross sell. If I see a skin condition that going to the Derm clinc can help, I send them. If they need filler or botox, I send the patient to the Dr's. Last year my total sales were $320,000. Not including the cross references given to the Dr's office. My old pay scale was $12.50/hour, plus 3% commission when I met my goal of $12,500, and 5% on product sales over $1500. I made my goals every month and made about $36,000 for the year. Well, I guess they thought I made too much money, because they changed my payscale to this: I am being paid $13 an hour and 3% commission with a rolling average over 3 months with a $20,000 goal. So essentially I have to make at least $60,000 for three months combined in order to make a commission off of services. I have to meet a goal of $3500 for products and get 5% commission on those. I am now making 40% less this year than I did last year, and my total sales are $315,000. How stupid am I for staying and how can I get across to my employer that she needs to value my skill level and the money I bring in?! HELP!

I'm getting ready to graduate from medical aesthetics/laser school next month and I'm a bit disappointed by the sounds of some of the pay rates. It seems like it would be much easier to hire someone to be a medical director and rent out my own space or even share with another aesthetician or two. Even if I make energy based treatments cheaper, it seems like I would make more money than if I was paid $10-$12 an hour. Is there anyone here thats already doing this type of situation?

I'm a fresh out of college licensed Esthetician that got great hands on training with the outside public. I work very hard at what I do, and my priority is my client and how I can better their life through esthetics. I have an interview on monday with a Dermatologist office and I pray I get the job! First thing is first EVERYONE no matter what trade/career you went to college for, you have to start new somewhere. You don't just graduate a professional right off bat. It is very hard hearing the statements these Spa/Medi Spa owners are saying about new Estheticians, don't you remember whe you first started? I highly believe that if you know you are going to hire a new esthetician, then it's your responsability to train them and let them know exactly what you expect from them. Also if you have a dgree and years of experience in your practice and want your Esthetician to know how to do advanced treatments, then you should get them trained and certified. Estheticians help people look and feel better about themselves, and I don't know one person who loves their acne, wrinkles, hyperpigmentation, etc. which unfortunately is costly to fix/maintain. "Newbies" need a CHANCE and guidance from a professional who knows what they're doing and has a true passion to educate and pass on the knowledge, instead of being lazy and just expecting the new Esthetician to do it all fresh out of school. I have a passion to help my clients and the new ones to come, and have no quarrels about marketing the business I work for and my services to bring about success and financial abundance. I'm looking foward to being that "Newbie" that goes above and beyond and sets the standard for a new up and coming Esthetician. Just remember though Spa owners/Physicians and Estheticians the hard work goes both ways not just one sided.

I have been reading about fair commissions and hurly rates . It has all been very helpful, but one author interested me the most - Skin -

I have been offered a position with a medical doc, but he wants to hear my idea of a pay structure. I would like to talk to you - Skin- if your out there

MEDICAL SPA OWNERS HAVE TO READ!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

It seems like most of the people on here are estheticians trying to get a higher wage and complaining about employers attitude. I think that it is very difficult for a business to make any money off of estheticians. They go to school getting hyped up on how much they should be getting. The reality is that NO employer wants to spend money on somebody who is just sitting around. Which is honestly why I decided to train myself. As a MA I can do anything under a doctor. I purchased my states estheticians training book which you can get online. I can't tell you how much aggravation I have saved myself. But if that is not for you or any of your current employees then I suggest a Commission rate of 50% minus 7% for product. This is totally legal and is what estheticians were meant to be "Independent Contractors". They are similar to hair stylist and you don't see them complaining about hourly wage. You wanted to be your own boss so then you better get out there and build your own clientele. Most Employees don't realize how much work and money goes into owning your own business. Who pays for rent, advertising, products and a secretary to make your appointments. And you want 20$ per hour. Please! After less than 1 year of school you are ridicules to think you should make such an hourly wage. The only person in the medical field that makes $20 an hour are RN's. If you want $20 an hour go back to school and get your RN degree and then you can do anything under a doctor. I am not trying to belittle estheticians again I have done your job, But it is not an hourly job. If you are getting an hourly then there is no motivation to get more clients in for the spa. I just couldn't read these ridicules posts without saying something and putting a real medi spa owners opinion up.

Noelle, I'm a DDS and employ an esthetician at $30.00/hour + 10% commission on topical retail sales, she has administrative and laser skills. I have an RN as well, she's in training mode so she's at $20.00/hour +10% on retail sales, 20% on injectables commission. Unfortunately this has been a little too generous and I'll have to restructure.

I believe in giving part of the business to the my staff so they can benefit from the growth of the business and to provide them with an incentive to keep up the good work. My over head runs about $13,000/mn so I'm going to propose a minimal wage/ hour until we hit that magic number and then a profit sharing arrangement where the boss (me!) gets 50% and the staff splits 50%. They own that 50% and if they feel they need more staff, well, that's up to them, but less of the pie remains for them. Has anyone tried this? Or is it a form of communism?

Dear Medi Dent: It is none of my business, but I can't resist asking what state you practice in and whether you consider these laser procedures (I assume aesthetic on areas outside the face and neck) in the "scope of your practice" as a dentist???

If you check your state laws and regs you will probably find that the physicians typically have this market "cornered" in most cases. You may be taking a big risk setting yourself up as the licensed practitioner who is delegating these activities -- especially delegating to a non-medical person such as an esthetician. I am a lawyer and I have as much medical credentials as an esthetician (i.e., zero).

I"ve not posted on this topic in quite some time. I've owned a Medical Spa for the past 5 years. Compensation plans for my staff has evolved as I've learned the business. Payroll to gross income should never exceed more then 23% and that includes including admin staff. How anyone can believe they should received 30-50% compensation is simply mind boggling. So lets see. A business owner invest $750,000 to over a million to open a MedSpa. They have an average operational breakeven cost of about $60,000 a month which does not include the cost to open. Then some hotshot who has spent 6 months in school comes in asking for 40-50%. When I'm done laughing I refer them to practices that actually pay that amount knowing it's a matter of time before the practice closes.

A MedSpa simply has to high and overhead to compete with Day Spa's on pricing. My compensation targets for all practitoners does not exceed 18% through combination of salary and compensation. Add in my admin staff and it's 23%. The other area no one seems to want to discuss is production. My minimum threshold for pain for an Esthetician is $15,000 in revenue per month but a target of $20,000 per month. At 20k per month a good esthetician will make 45-50 with product sales. Ok so now I can hear some wheel turning that I'm making $16,400 while my esthetician makes $3,600. Now let's peel back the onion. My average cost to fund an Esthetician room not including compensation is $12,700. How that's caculated are the allocated cost per room for rent, insurance, equipment, supplies, maintenance for equipment, marketing, medical supplies, office supplies, taxes, credit card & financing fees, patient & staff refreshments & admin support. So if an Esthetician bills out $20k he/she makes $3,600 and I net $3,700.00 which is about a 50/50 net split. I've had two of my Estheticians with me for over 4 years and by the way a job requirement is to also go out and market our services and create synergistic partnerships. That's not just the Estheticians but our PA, front desk staff and anyone who works for us. In this economy if you wait for the door to open or phone to ring you will not survive.

In closing before anyone not owning a business slams the owner crying foul you will do well to remember that over 80% of all MedSpa's are not making a profit and almost 57% have gone BK. The rest are hanging on with most having not paid back a dollar the start up debt again of about 750k. And now as wise old Paul Harvey used to say "you know the rest of story"

Med Spa Guy,

You're right, doc's dominate. But I'm not in a state. I'm licensed, certified, trained, and insured, as are all my staff members.

Scope of practice?

Scope of practice statements describe in general terms what a profession does and how it does it. Dentists may practice dentistry, which is defined as:

"the health profession in which a person provides the services of assessment, management, treatment and prevention of diseases, disorders and conditions of the orofacial complex and associated anatomical structures."

Yes, we're about the face and I think are the future of my profession. Nothing like putting a nice set of veneers in a catchers mitt. And though I like Brazilians, I don't do them.

I appreciate your comments and curiosity.

I am currently offering 50% commision to my as needed esthetician. and 12/hr in addition if they manage the front desk. they are all on 1099 and pay their own malpracttice and liscence. any comments if i'm doing ok?

I am appalled by some of the suggestions and comments in this thread. "you have to treat them like children", "they are lazy". Statements such as those demonstrate why some salon owners are struggling. Staff productiviey is relative to many factors, and one of those is the the leadership and management abilities of their employers.

I have been an esthetician for almost 4 years. I initially received 900 hours of esthetics training from school. Started out at a derm office for $13/hr doing facials, chemical peels, make-up, IPL (hair removal and pigment/vascular lesions), and selling skin care and make-up with NO commissions. I worked with another esthetician on staff, but I was the one who made flyers for events, protocols for treatments, came up with our spa menu as well as skin care Rx sheet, and the list goes on of all the un-noticed hard work I put in for over 2 years.

I finally had enough and found a position where I felt as though I offered what I am worth. I started at $17/hr with monthly production bonus which are usually atleast an extra $200/month. Of course I am now performing more lasers and treatments which has furthered my education.

Not all estheticians are LAZY and unwilling to learn. If you have a dedicated one on staff, treat her(or him) right! Some are definitely worth it! And WANT to work because they LOVE their job!!

Does anyone know the pay rate for the Austin, TExas area for aesthetician in a medical spa?
One of the school here is telling their students that they should be requesting no less than 38-45% commission or at least 18/hr pay rate. The commission sounds high to me given my overhead.

I hear all this talk of estheticians being paid $20/hour & they are not good workers. I would KILL for an esthetics job that paid that much! I have been looking for over a year & cant find one. Any ideas? What am I doing wrong? Any advice would be appreciated.

Wow I hate reading about all the problems everyone is having with etheticians. I have wanted to be an esthetician since I was about 16 (I am 22 now). I am planning on going to school next year. I have always realized that being an esthetician involves marketing yourself and the spa you work in to build up clientele and I have not even went to school for it yet. It makes me sad because I feel passionatly about it and want to help people and be the best at what I do. It sucks that everyone seems to be having such a hard time with estheticians, I dont want to be viewed negativly right out of school because of all these bad prior experiences. Does anyone have any tips for me so I can try and be as efficient and profitable as I can??

Hi, I used to own a day spa with my two sisters, and we did just fine for a few years. After 5 years we splited about a month ago and closed down the spa. I am considering in re-opening the spa by miself, but do not have experience about the rates in hiring other people such as estheticians and massage therapists. I am planning on expanding services and doing new things. As I am doing some Calculations I thought about offering (20%) services and packages commision, plus (10%) retail. I would like to take the approach of letting them build their clientele and empower them to be creative in their area. I will provide trainings semi anually. The Spa will be located in a high end area and tips are never bad. Please let me know what are your thoughts on this,.
Thanks!

I am both a licensed Aesthetican, and a Certified Laser Technician. I attended the best Aesthetics college in the state, and I was top of my class. Not only was I very studious in Aesthetics school but I was also highly recognized for my "Touch" and "technique". After recieving my license I furthered my education and attended the best Laser school. I now work at a Day Spa/ Medical Spa, and I feel like I'm REALLY being ripped off and taken advantage of by my employer. I am paid strictly 25% commission ( based on the amount that the clients pay for the procedures I perform ). I do everything from facials, body treatments, chemical peels, nonsurgical facelift, microdermabrasion, photofacials, laser hair reduction etc). Shortly after starting there I would work Wed-Sun and bring home TINY paychecks. Like $150 BIWEEKLY. I am a VERY hard worker. I am skilled in my trade, and my clients are always very happy. I sell retail, and further services. As time went by, after seeing nothing more than $350 in a paycheck I started asking questions. I was working atleast 4 days a week, and while some days were terrible with very few clients there would be times where I was booked back to back from open to close with no break. Thats like 9 hours, and atleast 7 proceedures. A lot of work, and VERY little compensation (not enough to live off of!). This is what I found out, AFTER THE FACT : My employer was doing a lot of "Deals"/ Discounts with marketing. $99 Snag-and-save laser hair removal for 4 sessions, $48 hour facials. with weekly deals. Smart Circle cards with prepaid services. When I asked how those deals work this is what she told me : "clients purchase the $99 series through snag and save, and out of that she recieves $48. (Snag and save apparently keeps the rest in exchange for the marketing and bring in the clientele) SO out of that $48 I reciece 25%- or $12. Thats $12 divided by 4 because there are 4 treatments in the series which is a grand total of $3 every time I am performing laser hair removal. THREE dollars! I didn't find this out until after I had done a significant amount of these services. Apparently the hour facials were going for $48, so she assures me she recieves $20 so 25% of that I'm making $5 . Five dollars for an hour of my time. I KNOW I'm worth a lot more than that, and it really upsets me that I wasnt told ahead of time how it was working, she only explained it after I questioned her several times. On top of that I'm expected to show up early, set up, do laundry, vaccume/clean, and do inventory and filing for free. I am NOT paid hourly, yet somehow these duties are expected of me. I've gone to events, and womens health fairs, and not been compensated for the day of my time (time that she blocked out of the schedule so I couldn't be booked with and services.) I'm really fed up but I'm staying until I find something better. What I'm wondering is if that is even legal?? Is that even heard of? I think I'm being cheated, and taken advantage of. This is not just me, but also the massage therapists. I know I'm a quality employee and I know I deserve better but the question is, when I look for something new what are acceptable commission wages? We're talking straight commission, no hourly, and what should be entailed as far as responsibilities? Is it legal to have me performing other tasks such as cleaning, filing, opening, closing etc. without being paid?

Absolutely illegal. Not only for whatever state you are employed in but on a federal level.

You are not being paid even minimum wage nor are you making OT when you go over 40 hrs per week which you must be if you are working events.

Are you being paid under the table- or is your employer taking out taxes of your check? Are you paid in cash? Are you recording your hours? Are you getting breaks? If your appointments are blocked off for you to work an event are you not compensated for the event? are you being incorrectly classified as a 1099 employee? How long have you worked there, have you filed taxes for last year or is this a brand new job?

Google your state's labor laws. You may want to also contact your former school and see if they can give you any help on this.

good luck

Greetings! I have been following this post and it's replies as I am a new Esthetician looking for work. I am curious as to what pay rate I should expect for work on the west coast? I have recently graduated from a reputable Aveda Institute. The school was very educational with high standards for spa cleanliness as well as sanitation and procedure. However, I have not yet found a school that accurately teaches a student how to market and promote, let alone how to sell product. It's unfortunate, but I am seeing a lack in training with programs, not just future employees. Perhaps offering advanced training for sales and marketing technique would help owner and employers to obtain the qualified employee you seek. With having several years of retail sales myself, I feel I am suited for the sales portion of my position. But from seeing the students who were in my 2010 class (average age of 25), I feel offering a sales class to new employees may help to bring in profit. It could simply be a lecture and example added to your spa orientation.

Hope his helps and I look forward to any tips or critisism you may have to share.

Aveda has a pretty good training program for basic estheticians. I have hired laser techs that have had their esti training from Aveda and you're right- they have a major focus on cleanliness and holistic skincare.

But this blog is really geared more towards medical and esthetics in a medical setting so I wouldn't even begin to hazard a guess for compensation for an esthetician without any laser training.

As far as product sales and training, it is my understanding that most lines provide training on their products ie: Dermalogica etc. It would really be the responsibility of the spa owner/management to train you as they will benefit the most from your sales. Although with your retail background you shouldn't have any trouble selling.

The schools are really in business to get a student certified, not to train them to sell. I actually see that as a plus rather than a minus, as when I hire someone fresh out of school, they haven't learned any bad habits yet, and can be trained to sell in a real world, real life setting rather than an academic one.

Many MD's here will disagree with even using the word "sales" as they take the approach that they offer the best service to the patient regardless of the profit, and sales and marketing have no place in a medical setting.

So FYI- I try to keep our product sales up to about 9-10% of my medspas gross revenue per month, so as you can imagine, it helps...but is not our main focus.

I hope this has been helpful for you, good luck in your job hunt!

I need an idea of what I should be making. I have been an esthetician for 10 yrs. I always worked in the spa industry. I was a stay home mom. for 3 yrs and just got back into working. I now work for a private med. practice. Ive been there for almost a year now. I make $15.00 hr. No commission on sales or retail. I want to go to my boss at my year mark and talk about what I think I should be making. They are very flexible on my $30.00 myself. We have a bonus program in place but it is based on hours. I only work pt so my bonus last month was only $25.00. The receptionist who works full time but really doesnt make any money for the practice got a $400 bonus. I feel I should make more. I got some info about another practice in our area and their estheticain makes $14hr. 30% commision on services and 20% on retail. I was just told today they wont pay me commision on retail because they use it as a med. exspense on supplies. Also they allow their patients to use their insurance to pay for product as a med.exspense. I dont feel thats right. Any suggestions on what I should say to the doc. about what I feel I should make?

Some things I forgot to add to my post where. I do all the promotional work. I put together a big open house last month to draw in more clients. The doc would pay nothing in advertising so I went from buis. to buis and posted things everywhere. I put adds in free local magazines anything I could to get the word out. I do my own promoting. I created the menus. Any inventory, product ordering ect. I'm basically like an independent contractor building a buisness. I've been very accomidating. I have a client I come in to do laser on at 6am. I guess I feel I have orven myself to be a hard worker who wants to make this practice succeed. I just feel I may be a little under paid. Dont get me wrong I love the flexibility they give me and the education is priceless but when I'm making what I pay in daycare. I feel that something is wrong here!

Most of owners try to take advantage. It is outrageous to pay 10 per hour. A few more bucks than smb at McDonald's. You went to school, you are skilled in this profession and of course owners want to get rich and estheticians just to survive. Shame on you!!!

I had my own spa business for 4 years. Joined in with a Dr. for 60% and I supply everything. My clients went with me also. Machines products and he would consider buying products after 1 year. Never happened! I have been there 4 years now. He treats me with no respect and talks down to his employees. He does not respect my degree. I have since got my Laser certification. He does not use me in the med area. States I am not on pay role, that I work on commission. He makes 40% of my income. Lately he talks as if I am not in the room, does not acknowledge me hardly and talks down to me. I send him daily botox, lasers, skin tightening, Juvederm and he sends back nothing. Just takes. He gives work to his hourly workers now. He states estheticians only make the most of 30% on procedures and he only wants to pay others $10 an hr or less with 5 to 10% on retail. He will also retails himself to keep from paying us that. He will not allow you to have an opinion. We are not even allowed to drink a bottle of water in the office. Told us to drink from the tap. Good christian, church goer. I am on the verge or resigning after 4 years with him. I cry all the time now and my nerves are bad. My husband is a retired physician and I know how Drs. think after 28 years. You treat people with respect. That might be why he has gone thru about 8 estheticians since I have been there.The aura is bad.

I have been an Aesthetician since 2000. My first job was in a day spa at 55% commission and 15% on the products I sold. After three years my commission went to 60%. This was fair to me although when I wasn't busy I made nothing. After eight years the owner sold the business and the new owner brought her own Aesthetician and I was out. My husband built a spa room for me in our home, had the county approve everything and most of my clients followed me there. I have been working out of my home for three years. With the economy, some of my clients have cut back on the amount of appointments and services they receive and I am only busy for 2 days a week. Still not bad at all since I keep 100% of all I make minus product and taxes.
Now, I am about to start a new job. I saw an ad on Craigslist for a medical assistant in a dermatologist's office. I thought, " They can use an Aesthetician instead of a MA." And guess what? They called me, I sold myself and the services I can do and I got the job. I'm excited. Going to make $14 an hour to start with a review in 90 days. The job is just 15 minutes from my house. I know I am worth more money but I'm pleased with this for now, I have a lot to learn at this State of the Art -latest equipment office. Wish me luck.

P.S. I'm going to keep my home spa business until I see if this works out. Any thoughts? Suggestions?

Hi everyone,

I've been an esthetician for about 5 or 6 years. number of yrs practice is just a number sometimes. Most of the estheticians i network with who can hold a conversation on esthetics usually has about 10-20 yrs toppimg me. Before i started esthetics i was a jack of all trades. I believe i am better at what i do today bc of all my various backgrounds in experience and during my journey of curiosity to find myself. i think to have the right combination in characteristics in an esthetician is rare. Some sales background is almost a must. She must be comfortable selling skin care products without overwhelming the client or approach too aggressive. She should educate the client on how to use products properly to yeild results/ maintain the acheived results during today's treatment. warnings when not to use such as for p.m. use only products for contraindication purposes are very important bc one oops and you can loose a clients trust. Use this purpose to build a relationship. Basicly consult & build them a regimen if their current is not working. Etheticians should appreciate that when you have just graduated, you have no experience in the real world hands on to possibly make top dollar to start. not in any industry, new grads take a paycut and pay their dues, in hopes you will survive long enough to make top dollar one day when you are good. Your employer has to make an investment to train you, bring you up to date with all advance treatments you have no idea how to utilize lawsuite free. During which they make nothing just in hopes you stay and grow with them and do your part and have high retention. You must be willing to learn how to secure rebooks to survive in this industry. Ability to build new clients will earn more pay in time. til then new bees should take it slow and study the skin carefully. Business owners took all the risk to start a business, you cannot realisticly expect them to just give you half or 50 % commission. That's not ever going to add up on paper nor in reality.

The facility's bills needs to be paid which also includes the room you are working in, someone has to pay for those equipment to exist.. There's no mysterious elf just leaving gifts. esthitician should ask themself why can't you take every client you do business with to your home in a spare bedroom??? Safety should be a concern and lawsuits, stateboard regulation may be violated, no machines just a basic facial , of course there's a few that has machines but not medical grade ones......etc

Esthetician who receives hourly wage $10-12 as new bees are lucky. They have a chance to take it slow, pay attention and learn the diff skin conditons and learn how to treat it effectly while having a garanteed pay ..to learn and not just being a working bee, research online anything you don't know, rebook clients, market yourself not just sit around bc theres plenty to do to get booked. if you are sitting around with nothing to do then you are not meant for this job. You chose to sit around bc you need a boss to delegate and tell you what to do to make money. you need to pull your weight Ask your clients for referrals. offer discounts as intro to get warm bodies in to try your service. If your esthetician knows her crafts, chemicals, has thorough knowledge of anatomy of the skin layers, and understand healing or trauma behavior then she can adjust protocal of treatments to treat the skin correctly, then she can apply it to any skin care line and any post physician's treatment You cannot know everything out there. I still look up my clients new meds when i update their regimen for treatment. i always ask if they started anything new, once I knew exactly the medication purpose was for base off my knowlege of the skin anatomy and applied it,and confirm with my investigative questioning. her dermatologist has not met me but we can work insyncly for over a yr treatment.. She has also sent me several referrals that are monthly client with multiple service per visit. Most of my clients see me in-between their dermatologist visits or medispa, post botox or deep chemical peels, post Sx. I have a few clients who fly into New Orleans to see me monthly and thats an honor. I also fave a few estheticians who come see me, also an honor. Esthiticians need to be able to follow closely calculating the acids or any treatment clients are using or having. Dont leave the client in the dark ,set realistic goals as an overview with the undrstanding that treatment may vary during course depending to skin's findings and response. Keep open ended conversations.

Esthetician's who have some experience in hospitality are great assets bc they are more likely to be a people person, communication is important, shy estheticians usually dont last more than 2 yrs.. (ability to accomofate) This service is very personal bc we touch ppl to service them, you must be able to carry a conversation with clients of various age. many find an esthetician in her late 20's ealry 30's or older are ideal. Younger Estheticians tend to lack the understanding of what it takes to be successful . of ten i find many who are interested in becoming an esthetician has no idea about the hard work and pay scale. Also, an ethetician cannot work with chemicals while pregnant, so many business loose them. Not to sound unfair as though pregnant women are discriminated, only meant business owners should be aware, they should encourage an open communication with their estheticians just in case her availability status for working should change to avoid either party from being burnt out.

some business administration oriented background will also help. She should be able to work solo and perform all the admin work required to produce rebooks whether its follow up with clients, knowing when clientare almost out of products to efficiantly order inventory and so forth.

your esthetician should value education bc free education should not be questioned " do i get paid for going". They are cutting themself short. When i worked at day spas, i would bring training onsite to sharpen estheticians skills. Some clinic setting or medical settling experience would be great/ working with physicians. She needs to chart all the valueable data to utiliize to increase revenue. It can also be used later for marketing purpose during slow times.

Starting, post grad i was not satisfied with my education fromth tech or vocational school so I traveled around a few statesfreelancing, outcalls, and or oncall as an independent conctractor, bc i wanted to see what was out there in this industry instead of only expose to whats here locally. It was definitely a beneficial experience. Your region definitely makes a difference in setting your menu price. Demand and supply varies depending on your area. your estetician should research price ranges in the area and learn to set menu price , coordinte menu updates to increase revenue. She should build tiers up to higher end services, promote them and upsell when time allows.

After traveling a bit i came back to new orleans. I;ve been freelancing and doing contract work and gain a little experience.I land my 1st real consistent job at this day spa. My 1st facial rebooked, my boss's jaw dropped, he was estactic and the rest of the day everyone rebooked. except for those who didnt live here, but wre so kind with their compliment that they wished they had lived here so they can see me again. same thing my 2nd day,many rebooks, so my boss immediately gave me a raise from 40% to 50 % . A week later i was offer Lead Esthetician still getting 50%, and he was trying to find a way to let go of his current lead esthetician. not that i wanted to step on anyones toes. Within a month, the esthetics side of the business was mine to run. I was pretty much a spa director. I managed some hrly wage employees other than esthetics also. when i was not in service, i would help the receptionist with phone calls, booking, laundry, greeting and giving tours, coordinating clients transition through the spa for multiple services. I had to repremand one esthitician for not cleaning after herslf and not properly sanitizing tx rm post service, I was pretty much everywhere, even dumping trash.

I wasnt just servicing. I was cleaning the place with pride to work there. Following up with clients, send thank you notes, charting their tx, He never had to ask me to do anythiand. I closed every night for him and somtimes open when the moring person runs late . My boss really wanted to pay me salary but that actually went unfulfil for over a yr. We still remain friends. Owners must not disrespect an esthetician with empty promises and keep her happy within reasonable menas. Most emplyers do not know how to be an esthetician so you hire one and think thats the solutioon. If you dont know what her work entails and able to practice it yourself then how can you micro manage her.I often find being a bad boss expecting an ethetician to perform unethical proctice wiill loose her trust you are looking out for her.Owners must know 1st hand, esthetic work entails hard work. My boss wanted to a couple times to service a client and skip signing consent/ consultation forms and that is very unprofessional and unethical. a risky playing a small part in me resigning. A new hire withdual license as MT and Esthetician accidently revealed to me he hired her to managed both massge dept and esthertic dept. and i was in the midst of training her. I felt betrayed, of course this young lady was looking forward to traing with me bc she heard how great i was, she had just closed her business doing massages and esthetics but esthetics were rarely sold. I had to resign bc i refuse to train someone to take my place when ive worked very hard, Clients come back on my lunch time to talk to me about skincare bc im not available while im in service. i was ask by my boss not to spend too much time with my clients bc the other estheticians were having problems with my regulars expecting them to be outstanding as i. like i said i left on good terms.He later ask me to come back twice and i consider but he gives me sunday, i only wanted a monday or tuesday. Other estheticians were very competitive and saw me as a threat or competition. i was ask pretty much to not outshine the rest so i sadly had to depart from my 2nd home. i brought in peels so we can all make money but yet i was burnt out.

I also worked in a high volume waxing salon. Performing about 10 service daily @ average $60 service, i was paid 30%, but im putting in my dues to prove myself and willing to work hard. I rebook as usual and my commission increase to 40% within a month. It was tuff doing 10 per day for 5 or 6 days a week and my paycheck barely $500. again i walked in with best intentions but was burnts out again.

I must say, I cant see how anyone can afford to pay more than 45% unless that esthetician is doing more than servicing,

I now own my own business. Keeping myself busy. I wish i didnt have to grow up so fast but i had no choice, this opportunity fell in my lap. I am able to find more work for myself than any employer ever did. ive been trying to network with derm or medispa to refer clients for botox, fillers etc if anyone can give me a few pointer on this? i appreciate it much. Being an owner comes with a lot a responsibilities and it also means less time you can contribute servicing. and if you dont service you dont make money. but at 6months i broke even and i have no debt. Does anyone think i should merge with a medispa or derm?? for future growth in case i cant find an esthetician who is trainable??
I will be going back to school hopefully next yr once the business is more settle. I can only further my studies through higher education. now that i know this is my passion, i will try to get into dermatology, if not im sure the knowledge wont go to wast. After all my jack of trades, has not gone down as useless talents after all. Im looking to hire and know its going to be hard to find a good esthetician. i prefer an esthetician with some "monk" ocd and of course with a few skin problems of her own(usually these are candidates who truely inderstand the skin) to ensure she does get this piece of skin. I thank everyone for sharing their experience. I hope this helps the search for an ideal esthetician. i apologize for anyway i may have offened anyone. not my intention. no sugar coating. thank all and good luck.

If you are not happy with your pay scale, then just leave and find a better paying job with another M.D.
It is just supply and demand.

If you think you are worth $45 / hour plus 50% commission, then stop complaining and look for the right spa for you, or you can hire me and I work for you?

I am a massage therapist that is expanding my private practice into a Wellness Center. I have 3 massage therapists that will be paying rent in order to build their private clientele and will be independent contractors in regard to working on my clients.
I also have an esthetician that will be paying rent to build her private clientele. The only issue is she is planning on getting her clientele from me. I think if I am the one bringing in a good amount of her clients I should be receiving a commission off those clients.
How do I tackle this fairly?

My response is to doinestheticsandlovinit. Kudos to you for suggesting hiring the more mature individual that returned to school. I am 52 years old, and have only been licensed for 5 months. Becoming an Esthetician is something I have wanted to do for several years, but was unable to do so until now. I have not been able to secure my first job, and have tried everything I know to do. When I call or go into the spas, they are full of very young ladies that look as though they have just graduated high school. Maybe my age is working against me, and keeping me from receiving any offers. My goal is to preferably work on the medical side, but no one is giving me a chance. Yes I am the older woman, but I am also more mature, reliable, dedicated and passionate about the industry. If anyone out there has any suggestions on how to secure that job, please respond.