Red Seal Cosmetology Practice Exam

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What is a commission in the context of a salon or spa?

  1. A fixed salary

  2. A percentage of the revenue from services performed

  3. A bonus for outstanding performance

  4. A monthly rental fee

The correct answer is: A percentage of the revenue from services performed

In a salon or spa, a commission refers to a percentage of the revenue from services that a stylist or therapist earns for each client they serve. This option is different from a fixed salary, which would be a set amount that the employee receives regardless of the amount of revenue they bring in. Similarly, a bonus for outstanding performance would be a one-time incentive, whereas a commission is an ongoing source of income. A monthly rental fee would also not be considered a commission, as it is a set fee for renting a space in the salon instead of a percentage of revenue earned from services.

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