Discover free eBooks, guides and med spa templates on our new resources page

Book a demo
☰
Why us

Blog / How to choose the right commission structure for your med spa

Compliance and security

How to choose the right commission structure for your med spa

Tijana Kargovska
August 13, 2025
Reviewed by: Teodor Jurukovski

Every owner wants their aesthetic business to be the talk of the town, and outstanding customer service is the way to get there.

But there’s a catch: it only happens when your team members truly enjoy what they do and genuinely care about helping clients. And we all know, a little incentive goes a long way.

The reality is, hitting the right balance between fair pay, team motivation, and protecting your profits is easier said than done.

Choosing a compensation structure only the first step. As a business owner, you’ll also need to jump through the hoops of legal regulations, where most get stuck.

If you’re trying to find the perfect compensation structure for your med spa, this article is for you.

Key considerations for choosing the commission structure for your med spa

Before finalizing the commission plan for your med spa, it’s best to think through a few key details. 

First, check the rules and laws: Some states are stricter about paying commissions on medical services, and you don’t want to find that out the hard way as soon as you start. 

Then, aim for a structure that both keeps your team motivated and doesn’t mess up your payroll. 

factors for med spa commissions

Source: Pabau

1. Check if you can legally offer commission-based compensation

Before you implement commissions, make sure everything is by the book. At the federal level, the Anti-kickback Statute prohibits offering or receiving anything of value in return for patient referrals for services covered by federal healthcare programs. 

Many states have fee-splitting laws that ban sharing medical service revenue with non-physicians: California, New York, and Illinois are well-known examples. 

The bottom line is that learning how commissions work in med spas might not be the simplest task, but once you understand all the laws and regulations, you’ll be able to implement your commissions while staying compliant! 

💡A tip: If you’re in a restricted state, consider alternatives like base salaries, flat bonuses, profit-sharing, or commissions on retail products and memberships.

2. Ensure compliance with labor laws

Let’s say your state allows commissions to be implemented in your business model, but now you need to follow other employment laws. 

That means making sure employees still earn at least the minimum wage after commissions are calculated, paying overtime hourly rates correctly for eligible staff, and classifying workers properly as employees or independent contractors. Missteps here can lead to fines or even lawsuits. 

Our best advice is to partner with an HR specialist or a healthcare attorney who knows your state’s labor rules by heart to keep your med spa safe.

3. Consider the size of your practice and the services you offer

Your commission plan should fit your med spa’s size and service mix. A smaller practice with just a few providers might thrive with one simple compensation model. 

However, a larger team, especially one offering a mix of injectables, facials, laser treatments, and retail, may need a more customized approach with different commission rates by role or service type. 

Make sure to match the new commission structure to your size and menu, so everything stays fair, motivating, and manageable as you grow.

4. Examine the effect of your commission structure on team morale

A well-designed commission plan can be a powerful motivator and inspire your team to perform at their best. When the structure is fair, transparent, and clearly communicated, staff are more likely to feel valued and confident that their hard work will be rewarded. This creates a positive, collaborative atmosphere where people support each other’s success.

On the other hand, a poorly designed system can quickly undermine morale. If commissions are perceived as unfair or overly competitive, it can lead to resentment toward management or even between team members. 

Over time, this tension can diminish trust, damage collaboration, and make the workplace feel hostile. Finding the right balance is crucial here; your commission strategy should encourage healthy motivation without sacrificing the supportive culture your business needs to thrive.

5. Align your commission structure with financial targets

When designing your commission plan, it’s important to tie incentives directly to your med spa’s financial goals. Consider the cost of delivering each service, as well as the profit margin it generates, before setting rates. 

For instance, you might offer higher commissions on high-margin treatments like injectables or chemical peels, as they contribute more to your bottom line. 

Meanwhile, services with higher operating costs and smaller profit margins, such as certain laser treatments, might have a lower commission percentage to maintain healthy profit levels. 

6. Consider alternative compensation structures to remain compliant

If your med spa can’t legally offer commissions on medical services, there are plenty of other ways to reward your team. 

Source: Pabau

The commission on product sales motivates your team to boost retail revenue, which can be a significant profit driver. 

Performance-based bonuses encourage employees to hit targets beyond sales, like client satisfaction or punctuality. 

Profit or revenue sharing aligns everyone’s success with the spa’s financial health, which makes your team feel like they’re shareholders – a win-win on both ends.

7. Track performance from a single platform

Manually tracking commissions through spreadsheets, or worse, paper records, can quickly become a headache. Errors are ever-present, calculations get delayed, and you end up spending more time fixing mistakes than actually managing your team. 

You need instant, reliable access to sales and performance data to make your commission structure truly effective. A centralized system like Pabau puts all your staff management tools in one place, giving you real-time insights and automating the entire process. 

Source: Pabau

No need to keep writing numbers down across apps and notebooks, and no more guesswork, just a clear, accurate view of your team’s performance so you can keep them motivated and focused without drowning in admin, or sending out paychecks filled with errors.

If you’re looking for a bit of inspiration, here are some of the most common commission structures med spas use, each with its benefits depending on your team and goals:

Source: Pabau

  • Flat commission per service
    A fixed dollar amount is paid for each procedure or treatment completed, making it easy to understand and manage.
  • Percentage-based commission structure
    The company pays a percentage of the revenue from each service. In a recent Reddit discussion among estheticians, several contributors shared that service commission often falls between 35% and 50%, with higher rates for more complex treatments, while retail commission typically sits around 20%.
  • Tiered commission structure
    Increases commission rates once sales targets are met, rewarding employees who exceed goals.

Tiered commission examples:

0–$10,000 monthly service revenue → 35% commission

$10,001–$20,000 → 40% commission

Over $20,000 → 45% commission

  • Hybrid: Base salary + commission
    Offers a steady base pay plus commissions to balance financial security with motivation.
  • Team-based commission structure
    Shares commissions across the team based on overall performance, fostering cooperation and teamwork.

The right commission structure can motivate your team. When done thoughtfully, it can also help your med spa run better and grow stronger.

Automate commission tracking with Pabau

Choosing the right commission structure is key to keeping your team motivated and your business profitable. With Pabau, commission tracking and staff management become effortless, freeing you from spreadsheets and manual calculations so you can focus on growing your business and keeping top talent happy. 

No matter if you’re managing aestheticians, front desk staff, or medical professionals offering Botox and facials, Pabau makes it simple to track sales, product sales, and commission-based pay. This means fewer errors, faster payouts, and better visibility into key metrics like retail sales, upselling, and overall profit margins. 

Plus, with Pabau’s commission tools, you can build a fair, motivating pay structure that aligns with your business goals while staying compliant with anti-kickback and fee-splitting regulations.

Because your med spa’s health matters just as much as your clients’.

Ready to boost your spa’s performance and keep your team motivated? Book a demo with Pabau today and see how easy practice and staff management can be.