Like an athlete, a hairdresser’s body may not be built for the long-term. So planning for retirement – or when you’re no longer behind the chair – is not only wise, it’s crucial. One way to do it: put those retail commissions to work.
Look, few of us want to talk about retirement. Partly that’s because many of us may never be able to afford to do it, and partly because it may be an outmoded way of thinking: when you love your work, you want to keep doing it as long as you can, and people are working longer and longer into their “golden” years. Some want to; others have to.
As colorist Beth Minardi said in an interview, “I hate the word “retire.” I prefer “working differently.”
Mind & Body
But when you depend on your trusty body to do your job, there’s risk involved. What happens when your shears are sharp but those eyes aren’t? What happens when you sit clients down but you can’t stand up? You need some shrewd investments, a side hustle, or both. And you need them now, no matter how old you are.
The human brain is really good at solving immediate and urgent challenges, but not so good at the long-term ones. (An excellent example: our climate crisis.) The key is to turn the fear of an uncertain future into positive action, and envision that future a little more clearly. Here is a way to think about it:
Social Security – contrary to the alarmists and the anti-entitlement crowd – is fully funded for the next 15 years and 93% funded for the next 25 years. Receiving your maximum benefits, however, entails working (or waiting) until you are at least 67 years old, even better if you can hold out until age 70.
First, figure out how much you will need to live comfortably (or reasonably so). Then, discover how much you can expect from Social Security. Use their online estimator to see your benefits based on actual and projected earnings. Now, of course, you’ll need to figure out how to bridge the gap that savings will have to fill.
The next step is figuring out how to start saving. Promise yourself to always put a chunk of your service revenues aside every month or week, or some or all of your tips. Make it consistent and make it a priority. Alternatively, find a way to create a future annuity stream for yourself – something that keeps money coming in even when you aren’t actively working.
Sell While You Sleep
That’s where the Hairstory business model comes in. Wouldn’t it be nice to make money while you sleep? You can snooze at night under a cozy quilt and wake up the next morning knowing you made a sale. That’s a good feeling, and Hairstory can make it happen every morning.
Our model is designed to ensure that you don’t have to be in the salon or even interact with clients to make money on product sales. Once you introduce clients to the products best suited to their needs, they can continue to purchase them online from us (and some on Amazon). As long as they have an account with us and keep buying – and as long as their name is associated with yours – you earn a 25% commission, for the lifetime of that client.
And, not only can commissions be your current source of savings, but they can potentially roll in even after you’ve hung up your shears forever. In other words, it’s both a dependable income stream while you’re earning service dollars (which, of course, you’ll squirrel away; we’ll even deposit it directly into your account) and supplemental income once you’re not earning. Many Hairstory Hairdressers earn north of $1,000 per month and have done for years.
So keep selling, and keep saving. We’ll see you at Bingo.