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054: Your Pay Structure Is Keeping You Broke, and Here's How to Fix It
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Money conversations in the esthetics industry are often shrouded in secrecy, leaving spa owners struggling with unsustainable pay structures that keep them perpetually broke. Drawing from painful personal experience, this raw and honest episode exposes the harsh reality many esthetician business owners face: working tirelessly while being unable to pay themselves.
Remember the sinking feeling when payday arrives and your employee takes home a hefty check while you haven't paid yourself in months? That was my reality. After copying the "standard" 65% commission model used by others in my town, I found myself trapped in a financial nightmare. While covering rent, utilities, insurance, marketing, and all other business expenses, there was simply nothing left for me – the person who took all the risks and built the business from scratch.
Beyond commission pitfalls, we dive into the dangerous misconception around 1099 workers in our industry. Unless your estheticians are truly working at multiple locations independently, they're legally W-2 employees – and misclassification can lead to serious consequences. Many spa owners unwittingly set themselves up for failure before they've even begun.
The transformation came when I completely restructured my compensation system, capping commission rates, implementing performance bonuses, and ensuring business profitability came first. The results were astounding – my business thrived, my estheticians earned exceptional income (some making six figures working reasonable hours), and I finally paid myself appropriately for my role.
Ready to break free from the broken pay structures keeping you trapped? Access my free training "Three Steps to Fixing Your Pay Structure" through the link below, and discover how to create a sustainable business model where everyone – including you – can genuinely prosper. Because you didn't start your business to work for free.
To learn more about coaching please visit: https://www.karijopatterson.com
Connect with me on your fav social platform:
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Facebook: https://www.facebook.com/karijopattersonestheticiancoach
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Links You May Want to Check out:
Join the Client Building for Estheticians group to go deep in learning all the latest tips and strategies https://www.facebook.com/groups/clientbuildingforestheticians
Check out Kari Jo’s courses here https://esthelaunchacademy.com
Chapters
1. Introduction to the Esthetician Podcast (00:00:00)
2. Working Hard But Still Broke (00:00:32)
3. Common Pay Structure Mistakes (00:01:45)
4. When Your Business Starts Failing (00:04:17)
5. Fixing Your Pay Structure (00:05:46)
6. Three Biggest Pay Structure Lies (00:11:26)
7. Resources to Fix Your Pay Structure (00:12:23)
8. Episode Closing and Contact Information (00:13:24)
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