Chair Rental vs Commission: What Really Works Better for Beauty Salons

It's the question that divides the salon industry: should stylists rent chairs or work on commission?

Ask ten salon owners, and you'll get passionate arguments for both sides. Ask ten stylists, and you'll get the same divide.

The truth? Both models work. Neither is universally better. What matters is understanding which one fits your business, your team, and your goals.

The Commission Model

How It Works

Stylists are employees (or contractors in some regions). They perform services, the salon collects payment, and the stylist receives a percentage—typically 40-60% of service revenue.

The salon handles:

• Scheduling and booking
• Marketing and client acquisition
• Products and supplies
• Rent, utilities, insurance
• Often: benefits, training, mentorship

Who It Benefits

New stylists: They get clients without having to build from scratch. Training, support, and steady work while developing skills.

Stylists who want to just do hair: No business management. Show up, do great work, go home.

Salon owners who want control: You set standards, maintain brand consistency, and manage the client experience end-to-end.

The Challenges

Lower earning ceiling: Top performers might feel capped. 50% of €100 is always €50, no matter how good you are.

Management burden: You're running a team, not just a space. HR issues, scheduling, performance management.

Payroll complexity: Especially in Germany with social contributions, taxes, and employment law.

The Chair Rental Model

How It Works

Stylists pay a fixed weekly or monthly fee to use a chair in your salon. They're self-employed, running their own businesses within your space.

Typical arrangements:

• Fixed rent (e.g., €400-800/week depending on location)
• Sometimes: percentage of revenue instead of fixed rent
• Sometimes: base rent + product fees

The stylist handles:

• Their own clients and scheduling
• Their own marketing
• Their own products (or buys from you)
• Their own taxes and business registration

Who It Benefits

Experienced stylists: Those with established clientele who want to keep more of what they earn.

Entrepreneurial types: Stylists who want to run their own business without the overhead of their own salon.

Salon owners who want simplicity: Predictable income, fewer management responsibilities, less payroll complexity.

The Challenges

Less control: You can't dictate their schedule, their prices, or their service standards (within limits).

Brand inconsistency: Each renter is a mini-business. Quality and experience can vary.

Empty chairs hurt: If a renter leaves, you're paying the overhead until you fill that chair.

The Real Comparison

Questions to Ask Yourself

As an Owner

What's your vision? Do you want to build a branded experience you control, or a space where professionals coexist?

How involved do you want to be? Commission requires active management. Rental is more passive.

What's your financial situation? Rental provides stability; commission has higher upside but more risk.

What's the local market? In some cities, talented stylists only work independently. In others, they prefer the security of employment.

As a Stylist

Do you have clients? Rental only works if you can fill your chair. If you're building from zero, commission provides safety.

Are you business-minded? Self-employment means taxes, marketing, pricing, client management. Are you ready?

What do you value? Freedom and maximum earnings? Or stability and support?

The Hybrid Approach

Many successful salons combine both:

• Junior stylists on commission (building skills and clientele)
• Senior stylists on rental (rewarding their experience and independence)

This creates a natural progression: come in as an employee, grow into a renter.

Another hybrid: rental with shared services. Stylists rent chairs but the salon handles centralized booking, marketing, or reception for an additional fee.

Making the Transition

From Commission to Rental

If you're switching an existing team:

1. Communicate early: Give at least 3-6 months notice
2. Offer choice: Some may prefer to stay employees at reduced rate
3. Provide support: Help them set up as self-employed
4. Set clear contracts: Rental terms, rules, what's included
5. Maintain community: Don't let the salon become a ghost town of strangers

From Rental to Commission

Rarer, but sometimes necessary to regain control:

1. Understand why: What's not working with the current model?
2. Expect turnover: Some renters won't want to become employees
3. Offer incentives: Make the switch attractive for your best people
4. Plan the transition: You can't switch overnight

The Technology Factor

Whichever model you choose, the right systems matter:

For commission salons:

• Centralized booking and scheduling
• Performance tracking and analytics
• Client management and history
• Commission calculation tools

For rental salons:

• Flexible booking (each stylist may manage their own)
• Rent tracking and payment
• Shared resource scheduling
• Clear separation of business data

The Bottom Line

There's no universally right answer.

Commission works when you want to build a team, maintain standards, and invest in developing talent.

Rental works when you want predictable income, reduced management burden, and a space for established professionals.

The best salon owners choose based on their goals, their market, and their strengths—not based on what's trendy or what the salon down the street does.

Know what you want to build. Choose the model that gets you there.