Compensation Model

Each industry uses a compensation model to determine the amount of pay for an employee. This is commonly found in the commission based industries to include: hair salons, fishing, auto sales, shoe sales, some retail and the insurance/real estate brokerage.

Hair Stylist Compensation Model

Salon Compensation Model

One of the most fascinating business models is the hair salon industry.  Many salons are poorly managed and rarely generate adequate profits.  To make matters worse, the stylists are like professional sports players.  One week they are playing for this team, and next week they are on a new team.  In effect, they switch salons.

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