I work at a med spa that recently decided to rent out one of our treatment rooms to an esthetician. It will be a monthly rate, the esthetician has the option to use the backbar product the business has been using on clients and retailing, or bring in her own. Our question is...we have an established database of clients which have been seen by our on-staff esthetician who is an employee, and they will mainly continue to see her. However, if they decide to schedule with our booth renter, the Dr. wants a commission split on the treatment rate. Does this sound reasonable? I've never worked in this capacity before so I am unfamiliar with how it should work. Any suggestions/ideas?

Thank you!

Tags: booth, contract, med, renter, spa

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When someone rents out a room inside a clinical setting, automaticly it is a separate business. Price and services would be nice to discuss them with clinic manager or Dr that way its an understanding of quality and work done to keep the whole patients / clients treated with a standard.

If you are going to rent a treatment room do no use the back bar product form the salon even if it is the same product. Invest in a small cabinet you can lock your products in when you are not in the salon.

You should only have one form of payment to the salon owner, what if your clients went to the on-staff employee? It will just make things too confusing and complicated for you.

Annette Costello

Philadelphia

This is an article from the American Massage Therapy Association.  It helps with classifying the differences.

When deciding whether a worker is an employee or an independent contractor, this 20-part test is one way - but not the only way - the IRS and many state agencies try to determine who controls the work. It's reprinted here as it appears in the newly revised Independent Contractors Guide from the National Federation of Independent Business.

1 Instructions
Employee: Provided with instructions from the business regarding when, where and how to perform the work.
Independent Contractor: Decides when, where and how to accomplish the services he or she is providing.

2 Training
Employee: Receives training directly from the employer, demonstrating that the business wants the services performed in a particular manner.
Independent Contractor:Receives little or no training from the business, but rather hiring is based on pre-existing proficiency or expertise in a particular line of work.

3 Services rendered by the worker personally
Employee: Personally performs any assigned duties.
Independent Contractor: Free to hire employees or subcontract tasks.

4 Set hours of work
Employee: Works hours established by the employer.
Independent Contractor: Retains the ability to set own hours.

5 Realization of profit or loss
Employee: Receives pay for time and labor only without realizing any additional gain or sharing in the risk of loss realized by the company based on the worker's services.
Independent Contractor: Personally stands to gain or to lose economically based on performance of his or her services.

6 Time required
Employee: Usually devotes their employment to the business; full-time employment could prevent the worker from engaging in other gainful employment.
Independent Contractor: Does not necessarily work solely for one business and remains free to pursue other projects.

7 Doing work on employer's premises
Employee: Performs services on the premises of the employer to the extent to which the nature of the services requires the work to be done on the employer's premises. If the business has the right to compel the worker to perform services at an alternative specified location, then the level of control remains the same.
Independent Contractor: Chooses where to perform the services.

8 Order or sequence of the work
Employee: Required to perform services in the order set by the employer.
Independent Contractor: Retains the option of deciding the sequence in which the work is performed.

9 Continuing relationship
Employee: There exists a continuing, non-sporadic relationship between the business and the worker.
Independent Contractor: Free to perform a service and then move on to other projects.

10 Hiring, supervising and paying assistants
Employee: May hire assistants only under the direction of the employer.
Independent Contractor: Free to hire, supervise and pay additional assistants or subcontractors as necessary.

11 Integration of the Worker's Services
Employee: Services are integrated into the daily success and operation of the business.
Independent Contractor: Services provided do not substantially affect the overall success of the business.

12 Oral or written reports
Employee: Submits regular reports to the employer for whom the services are being performed.
Independent Contractor: Accountable for end results only and not necessarily required to provide regular reports.

13 Payment method
Employee: Paid by the hour, week or month.
Independent Contractor: Paid by the project or on a straight commission.

14 Payment of business expenses
Employee: The business usually pays expenses for the worker.
Independent Contractor: Pays for own business and traveling expenses.

15 Furnishing of tools and materials
Employee: Receives tools and equipment from the employer.
Independent Contractor: Provides tools, equipment and materials.

16 Significant investment
Employee: Depends on the continued success of the business without taking on any investment in the working facilities or equipment.
Independent Contractor: Invests in facilities or equipment used to perform any services, showing that the worker is in business for himself/herself.

17 Working for more than one business
Employee: Restricted, either explicitly or effectively, from providing services to several businesses at once.
Independent Contractor: Free to provide services to multiple, unrelated businesses at the same time.

18 Availability of service to the general publIc
Employee: Provides services to only one business.
Independent Contractor: Offers services openly to the general public.

19 Right to fire the worker
Employee: Employer maintains the discretion to discharge a worker.
Independent Contractor: May not be terminated as long as the performance proceeds according to the agreed upon terms.

20 Worker's right to quit
Employee: Generally has the right to terminate the relationship with the business at any time.
Independent Contractor: Must fulfill any contractual obligations or else risk liability for breach.

Fines and back taxes owed when a worker is misclassified can be significant. Since classification standards can change, it may be a sensible precaution to seek advice from an accountant or

I currently have had my own small office for massage/skin care for 11 years.  I've often thought about renting space from a salon to use their massage room.  I love the fact that my office is in a non-salon setting and it quiet so I would really need to consider.  However, I think If I was the only massage therapist then I could get a lot of their hair clients as massage clients.  I would have a safe place with other people around at all times.  I could do online booking etc. (I am funny about new male clients but if there were people around I could be adding a lot more clients with the males) I just wasn't sure how it worked with like you guys mentioned on top of the rent should I be giving the salon additional for their clients or just pay more for the space and that be part of the package?  Also, how do gift certificate sales go??  I could not imagine a salon just having renters that could come and go and have gift certificates sold out of their salon when the therapist may not be there to redeem.  Any thoughts would be great!

I brought in 2 renters (nail techs) and our agreement was that between them, they needed to cover 95% of the spa's open hours. Then, one left, and for a few weeks the other one took on more hours. She didn't take up to 95% of our open hours (that would have been an excessive workweek), but she did expand her openings so as not to lose clients. Subsequently I brought on an independent contractor who has agreed to the hours that the departing manicurist used to cover, and the manicurist who stayed was able to go back to her preferred schedule. This is just to illustrate that generally, if people are serious about getting clients, making money, etc., then things will work out, but I am glad that we had that agreement about the coverage because I think that it helped reinforce her responsibility to the spa and make sure that clients (many of whom saw other massage therapists and estheticians at our spa) stayed within our establishment.

 I have worked on commission 50/50 where the owner supplies the backbar, retail & paid for training. I would never work lower! commission is very confusing and time consuming. do not lowball estheticians in our industry like franchises do. if you do-- you will have to keep rehiring as esthi's won't feel appreciated by rent & comm or straight comm. Going on my own and renting my own room is the best for me and many esthi's because we are worth it!

 I have worked on commission 50/50 where the owner supplies the backbar, retail & paid for training. I would never work lower!

This is exactly what is wrong with how people think about compensation.

50% is a relative concept, not an absolute concept.

I can pretty much guarantee you that the approximately 30% I pay my technicians is more than you made at 50%, but you would recommend everyone turn down such a job because such low pay is insulting and will result in high turnover.

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