This is probably the most common question we get asked.
In this booming and ever-changing industry there are new and exciting technologies coming out every year. The more well-rounded you are in your skill set, the more attractive you are in this marketplace. Remember that though Laser Hair Reduction is the most sought after procedure, if your prospective employer knows you are proficient in Photofacials, Wrinkle Reduction, Tattoo Removal, etc. you are a far more valuable employee, thus your potential for salary will be much higher.
A few examples of different pay structures we see in this industry:
Working for a Medical Spa, Day Spa or Physicians Office
These are possible scenarios that we commonly see:
• The 1st and most common is a “blend” of an hourly rate plus a commission. We have seen the hourly rates range from $12hr to $25hr and in addition pay a commission ranging from 10%-25%.
• The 2nd one is a commission only rate which could range from as low as 20% to as high as 40%.
• The 3rd is negotiating a fixed hourly rate.
So now you ask yourself, “Well this is great, but what does that mean to me on a dollars and cents basis?”
Assumptions To Determine Your Earning Power:
• Average hour of laser hair reduction is about $150+.
• Average hour of IPL photo facial is about $350.
• If in a 8 hour day you did 5 “laser” hours and 3 photo facial hours based on above rates your “revenue” for that day would be 5 x 150(750) + 3 x 350(1050) = $1800 per day.
• If your “rate” was a fixed 25% commission with no base salary you would make $1800 times 25% or $450 day x 5 days week = $2250x 4.2 weeks per month $ 9450 month or 113, 400 a year.
• If your rate was $15hr plus 10% commission $1800 times 10% = $180 day plus 15hr x 8hours = $120 for total of $300 day or $1500 week times 4.2 weeks = $6300 month or $75,600 a year.
Self Employed Scenario
If one is a little more entrepreneurial spirited and chooses to either open their own location or rent a room in someone else’s location or negotiate a partnership deal with a physician.
There are medical spas across the country doing anything up to a million dollars in gross revenues but of course their bottom line is a function of what their overhead is.
If one rents a room at a hair salon, doctor’s office or elsewhere they will be able to have the same upside as #1 above and actually much less overhead, a good option to consider.
Our favorite option to consider is finding a busy doctors office (family practice, dermatology, OBGYN or other) and create a partnership deal where they lease a laser, you do all the treatments, and you put together a program to market to their existing customer base. The cost of the laser lease and marketing is “taken out of the revenues,” allowing you request a 40% payout on remaining dollars. Just look at these numbers! Average package sold in this business is approx $1000. If you can sell JUST ONE new package per day that’s 5k week times 4.2 weeks or 21k month in business. If laser costs $1500 month and marketing costs $2500 month your expenses is $4000 month. Subtract that from the 21k in revenue and you have $17k. 40% of 17k = $6800 month or $81,600 year.
* The above assumptions are based on laser averaging $150 hr, photofacials averaging $350hr. Package assumptions are $1000 per package. Assumptions are based on above estimated commission percentages and base rates which will vary. Estimates are based on an 8 hour day full day of clients every hour.