Most compensation models in aesthetic practices are built to attract employees, not sustain the business. The result is a structure that looks competitive on paper but quietly erodes profitability, leaving practice owners paying more than a provider actually produces.
In this episode of Shorr Solutions: The Podcast, Cristian Devoz breaks down how to build a compensation model that aligns pay with performance, protects your margins, and creates a clear path for team growth without sacrificing financial stability.
What Practice Owners Will Learn
How to build a compensation model that aligns pay with performance, protects your profitability, and creates a clear path for team growth without overpaying or relying on guesswork.
Key Takeaways:
Most compensation models fail because they are built to compete, not to sustain profitability
A provider should generate at least 3 to 3.5 times what they are paid to remain financially viable
Total compensation should typically stay within 28% to 35% of the revenue a provider produces
Compensation decisions should be based on your financial data, not competitor benchmarks
Revenue thresholds are essential to ensure pay increases are tied to performance
Tiered commission structures create motivation while maintaining control over costs
Incentives should be tied to measurable performance metrics, not just time or tenure
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