Employee vs independent contractor?

I'm looking into what the pros and cons would be to hire someone. I am primarily a stay at home mom who owns a co op and works a few days per week. A dream! However, I want another baby and don't want to stop making money while I get big and give birth ;) So I was considering hiring an Esthetician. We are a wellness co op and for right now I'm the only Esto. Does anyone know what is fair for commission for an IBO (I provide product & supply), and/ or an employee? I do not want to do commission and/or hourly for the purposes of down times and personal desire to retain clients. I feel as an employee thats getting hourly, that you may be less driven (could be a bad assumption but it makes sense if you're not relying on the commission.) I'd love to hear your TIPS & WISDOM!

Tags: Commission, Employee, IBO, Independent

Replies to This Discussion

Permalink Reply by Rachel Poissant on October 14, 2011 at 10:58am

Hi Deirdre,

I am an employee that gets hourly pay or commission, whichever is more. The idea behind this is that the motivation to sell remains high because I know my paycheck can increase due to hard work. My products and supplies are bought by the owner but I also receive a monthly check for commission on retail products sold. I find this works well and keeps a happy employee who, in turn, will be great for business.

Hope this helps from my point of view...

Rachel

Permalink Reply by Deirdre J. Boath on October 14, 2011 at 4:27pm

Thank you Rachel :)

Permalink Reply by Gladys Allen on December 22, 2012 at 1:03pm

Angela you always have great tips. Looking to Open my small spa in feb/mar. My idea is to rent to the nail tech and massage therapist. If I do this do you know if I have to pay taxes on their services? Thx