Salary vs Commission The Best Compensation Strategy for Your Chiropractic Associate

Introduction

Have you ever wondered whether a salary or a percentage split compensation model is better for an associate in your chiropractic office? Dr. Tom Preston here, sharing my 30 years of experience to help you make the best decision. Ensuring a fair and effective compensation model is crucial for the success of your practice.

Benefits of a Salary-Based Model

Starting with a salary can provide associates with a solid foothold in the community and help them feel appreciated. A small base salary of $1,500 to $2,500 a month can be a good starting point, showing goodwill while allowing them to establish themselves.

Challenges of a Percentage Split Model

While a percentage split can motivate associates, it's important to structure it so that the senior doctor doesn't incur losses. A balanced split, such as 60-70% to the senior doctor initially, ensures that the practice remains financially stable. Avoid associates demanding a high percentage split their way, as they may not understand the business intricacies.

Blending Salary and Percentage Split

Combining both salary and percentage split models can offer the best of both worlds. For instance, with a $1,500 salary and $2,500 monthly costs, a 65-35 split on the first $6,000 of billings allows both parties to benefit. The associate earns a reasonable income while the senior doctor breaks even or profits slightly.

Conclusion

A blended compensation model, combining salary and percentage split, can be highly effective for chiropractic practices. It ensures fair compensation, motivates associates, and maintains practice stability. For personalized advice, consider booking a consultation with Full Circle Coaching.