The Business Model That Finally Made Sense

When I first opened my salon, I followed the same path most of us did: 50/50 commission splits. That’s just “how grooming was done.” Later, I thought switching to hourly pay would fix things. And while it solved some problems, it still wasn’t the final answer.

Neither commission nor hourly pay created the stability I wanted or needed as an owner or the independence my groomers were looking for. It wasn’t until I started learning about station rental and setting it up correctly that things finally began to make sense.

Why the industry is outgrowing 50% commission
The 50/50 commission split has been the default pay model in grooming salons for decades. But lately, I am seeing more and more business owners who are questioning whether it still works. Rising costs, tighter regulations, and an industry that’s pushing toward higher standards have made the commission model feel less like a solution and more like a limitation.

For most salon owners, commission makes it nearly impossible to cover overhead and still profit. For groomers, it creates burnout; the only way to earn more is to push through more pets, faster. And for clients, it often means inconsistent service and high turnover.

That’s why we’re seeing a shift. Across the industry, I see you all asking: “What’s next?” 

Why hourly pay wasn’t the final answer
For a time, I thought hourly pay was the answer. It felt like progress: the groomers had steady paychecks, and I had more control over scheduling and costs. But over time, I again started to see the cracks. Hourly didn’t create long-term happiness for many of the groomers, and it didn’t solve all the financial strain.

More importantly, I could feel the frustration building in my team. They were ready for their next steps, their next growth, and instead, they felt confined. Hourly pay gave them stability, but it also left them feeling financially held back. You can only pay so much you can only groom so many dogs in a day. They wanted independence, but the structure didn’t give them room to spread their wings.

That’s when I turned my attention to station rental,  and realized it was more than just another pay model. 

Station rental as the modern alternative
Station rental is gaining momentum in grooming, and for good reason. Owners gain predictable rental revenue, while groomers run their own micro-businesses within the salon. Instead of fighting over percentages, both sides get clarity: owners act as landlords, and renters act as tenants.

But here’s where most people go wrong: they confuse booth renting with independent contracting. A booth renter is not an independent contractor. A renter is a tenant with a lease, their own business license, tax ID, and insurance. An independent contractor, by contrast, is someone you hire for short-term work, like an electrician fixing your wiring or a plumber repairing your tubs.

Too often, salon owners blur those lines. They collect rent or part of the grooming fee, but still set hours or control pricing. That’s not legal,  and it’s why some groomers think the rental itself is “illegal.” It isn’t illegal. It’s just that it's done more often incorrectly. And if you, as a business owner, are renting, your landlord's and lease needs to be written and structured for this type of business model. There is more to this picture, a lot more to the proper structure and setup of this business model. 

When structured properly, station rental offers clarity, professionalism, and sustainability in ways commission and hourly pay never could.

Building sustainability with legal structure
Here’s where the real opportunity lies: using rental as a way to professionalize grooming salons and move away from outdated practices. The key is setting it up with compliance from the start:

• Verify your state and local laws on station rental

• Require renters to carry their own licenses, insurance, and tax registration

• Use a formal lease agreement with clear terms and responsibilities

• Define house rules for sanitation, safety, and professional standards

• Keep finances, scheduling, and marketing separate between salon and renters

Once I started checking these boxes, everything changed. My business became more stable, my groomers felt happier and more independent, and my clients had greater confidence in the professionalism of our salon.

Commission got us here, but it won’t take us forward. Hourly helped, but it wasn’t the final answer. Station rental, when done properly, is the business model that finally made sense, at least to me and my team. I see it as a nice, modern approach for the future of grooming.

If you’re curious about how to make the transition the right way, I’ve put together a free resource to help you get started.

👉 Download the Salon Station Rental Pre-Launch Checklist

👉 Join me in the Scholar Lounge to keep this conversation going.