Some food for thought for you.
Years ago I knew a talented beauty therapist who moved to Bath, knowing no-one and she rented a room in a hair salon where she persuaded the owner to accept 20% commission instead of a fixed rent. In return, the owner booked her treatments with his team and took payments. She liked the convenience of the arrangement although there were occasional misunderstandings and booking errors.
Within 18 months she was earning £40k per year and therefore paying £8k a year to the salon owner - much more than the rent deal he’d offered her. The owner said he’d never had such a successful beauty therapist. There were times when she had queuing clients whilst the hair stylists stood around idle.
Then she asked if she could stop paying commission and just pay the room rate he’d originally offered her. He refused, saying that they had built up her column together and for 6 months he’d supported her, taking a lot less in commission than he wanted to earn in rent.
So she left and set up 200yards away, thinking all her beauty clients would follow her.
The first thing she discovered was how expensive it is to fit out premises to a high standard. She spent £5k and the place still looked like an office room, with poor lighting and flooring. She didn’t have a receptionist and often had to interrupt a treatment to deal with walk-in enquiries or to grab the phone. Clients were supportive but they didn’t like feeling that they only deserved a very modest, shoestring experience and they drifted away. She saved on rent but never again earned £40k working on her own.
Things got a bit desperate for her and as I wanted to work with her, I took the place over and offered her a room for 2 days a week rent free for 6 months. At the end of the free rent period I offered her a room rental and she asked instead for a 20% commission deal. I pointed out that this would be more expensive but she insisted saying she really appreciated the bookings and referrals I took for her. So on her days I worked as her receptionist for 20% of her takings. I built up her column until she was averaging £4-5k treatments a month just working her 2 days.
I thought it worked very well. I was building up my own client base offering beauty basics whilst she concentrated on high end services. We cross referred business to each other and had many clients in common.
After 18 months together she ended the arrangement and rented a much nicer room, next door to me in the same building! I tried not to mind but I must admit I was hurt.
I concentrated on building my business and within a year I was taking over £100k and of course that wouldn’t have been possible if I’d carried on sharing my room. So I was much better off.
Unfortunately she wasn’t so fortunate. She went bust.
The morale of my story is to consider how you build up a niche business without the marketing funnel of a thriving salon creating enquiries for you. There are benefits in return for paying 20% commission.
You can always try it for a while and If it doesn’t feel fair you can leave.
, does this sound right? 
