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Commission Rates. . .

Hello!

I would like to discuss what a reasonable split for commission is. In past experiences I've always done a 30/70 split. In my current position at a medi spa, after just a few months they basically forced me to change to a 40/60 split, unless I could afford to pay them 10% off all their marketing for all spa services (they do radio, tv, mailers etc and it was clear I didnt even make enough to cover that expense).

They do take care of scheduling appointments for me during business hours. But... There have been no campaigns focused on massage marketing wise, I take care of my linens and ALL supplies, and also credit card terminal expenses.

Am I crazy for expecting more when turning over so much of my income? Is it time to move on to another venue where I can make a decent income? I tried to talk with them about the matter they informed me I was actually "lucky" that theyve been told it should be a 50/50 split.

Thanks in advance for any input.

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Permalink Reply by Kay Warren on December 10, 2014 at 11:13pm

Asking you to cover 10% of their marketing budget when they aren't marketing what you do is not right. Hiring you at one rate then forcing you into another one is also not right. Did you have a contract? They cannot change the terms arbitrarily.

Personally, these people sound very high handed, and I'd give serious consideration to getting the heck out of dodge. (OK, I have a temper, and I'd already be gone) If you're handling all your linens and treatment supplies, I would in no way take less than 70/30, and if you're bringing in most of your own clients, and using your own table, I'd push for 80/20. If you're using specialized equipment or supplies that they provide, that changes things. Money is important, don't get me wrong. It lets us afford things that we've grown accustomed to, like living indoors, and eating. But what's more important for me, is who these people are. Working for people who don't respect you, and are only going to beat you up, wring you out, and hang out out to dry does you no good. It's emotionally draining, and over time it will affect what you're capable of giving to your clients. Good luck!

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Permalink Reply by Neal Lyons on February 1, 2015 at 1:51pm

why don't you instead determine a rate that works for you and back into it. we each have a minimum rate - the value we place on our time - and as long as that is being met, it should not matter how things are divided.