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Med Spa Compensation Plan

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Purchase this digital product and receive a download link from Durocher Enterprises within 1-3 business days.

A medical spa cannot pay medical professionals commissions other than on retail product sales as it is fee splitting. A medical spa though does need to be run more like a retail business than a doctor’s office since it is cash based. With that being the case we need all people within the practice to be accountable to productivity goals tied to an hourly wage. Make productivity goals part of a job description. Pay higher hourly wages when they reach the goals. This method is acceptable because it is an hourly pay not commission incentive for medical service.

It is not enough for a provider to just to come in and perform service without:
  • making retail recommendations for the patient to take home to use (patients who take home at least 2 products from you are 40% more likely to come back)
  • pre-booking their next service before they leave to guarantee future business, (pre-book 75% or more of your patients before you leave and you can forecast your numbers and keep consistent in revenue)
  • packaging as many of our services into bundles and selling series of appointments so that you collect the money up front and get them in more frequently, and
  • retain their patients, as it is not how many patients you give a provider, it’s how many they keep.

In your materials is the concept of how to pay, the percentages where the productivity goals should be, (you can modify your hourly rate to your market place, I recommend an hourly rate for when they are providing service and a lower one when they are not performing services), and the excel spreadsheet where you can take the productivity numbers from your software program and put them into the sheet and it will automatically calculate their pay.

Rules of thumb to stay profitable with service:
  • I wouldn’t offer any medical service I couldn’t charge at least $4 a minute for
  • Your providers need to generate at least 4 to preferably 6 (ROI) times what you pay them for you to make any money because of consumables and the cost of doing business
  • Labor cost for a provider should never exceed 25% of the service revenue
  • Medical professionals in an aesthetic environment do not make as much as say one who works in an emergency room on Sundays at 2AM as it is a much less stressful and more enjoyable environment to be in.

Learn the minimum rate per minute medical services must generate.

Learn the ROI multiple service providers must generate in relationship to their pay.

Understand your labor cost percentage in relationship to service pricing.

Example compensation plans for PAs, RNs, Medical Estheticians, Massage and Skin Therapists are included. In addition, included on the disc is an excel program that allows you to calculate your team member's pay with ease. This is a MUST HAVE for any medical spa business. This is not an automated software payroll program.

Bryan Durocher is the author of Wakeup Live the Life You Love in Beauty, and is the founder of Essentials Spa Consulting and Durocher Enterprises. Durocher was named one of the “Top 20 People to Know in the Beauty Industry” by Global Cosmetic Industry magazine, and provides coaching, consulting, global industry trends, and marketing solutions for medical spa, spa and industry professionals internationally. He has published many articles and has provided business education internationally at a variety of national and international industry events including AmSpa’s Medical Spa & Aesthetic Boot Camps and The Medical Spa Show.
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AmSpa provides legal, compliance, and business resources for medical spas and medical aesthetic practices.

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