How to Set Up Commission Splits for Tattoo Artists (Without Starting a War)
Commission splits are the #1 source of resentment between shop owners and artists. Get it wrong and you’ll have angry artists, high turnover, and Glassdoor reviews calling you exploitative. Get it right and you’ll have a loyal team that sticks around for years.
I’ve been on both sides — working on commission as an artist, and now running a shop with four artists on commission. Here’s how to structure it fairly.
The Standard Split Range
The tattoo industry has settled into a fairly standard range:
| Split | Artist Gets | Shop Gets | Typical Scenario |
|---|---|---|---|
| 40/60 | 40% | 60% | Apprentice or brand-new artist with no client base |
| 50/50 | 50% | 50% | Standard for newer artists (1-3 years post-apprenticeship) |
| 60/40 | 60% | 40% | Experienced artist with established client base |
| 70/30 | 70% | 30% | Senior artist, significant following, bringing heavy bookings |
Most shops operate in the 50/50 to 60/40 range. If you’re outside this range, you’d better have a good reason.
What the Shop’s Percentage Actually Covers
Artists who complain about “only getting 50%” often don’t realize what the shop’s cut pays for:
| Expense | Monthly Cost |
|---|---|
| Rent | $1,500-5,000 |
| Utilities (electric, water, internet) | $200-500 |
| Insurance (general liability, professional liability) | $150-400 |
| Supplies (shared: gloves, barriers, cleaning products) | $300-800 |
| Software (booking, accounting, marketing tools) | $100-300 |
| Marketing (Google ads, social media, photography) | $200-500 |
| Equipment maintenance | $50-200 |
| Accounting/legal services | $100-300 |
| Cleaning/maintenance | $100-400 |
| Miscellaneous | $100-300 |
| Total shop overhead | $2,800-8,700 |
For a 3-artist shop doing $25,000/month total, the shop’s 40-50% cut ($10,000-12,500) barely covers overhead with modest profit. Shop owners aren’t getting rich off commission — they’re covering the cost of maintaining a space and business that artists can work in.
Structuring the Split: Key Decisions
What Counts as Revenue?
This needs to be crystal clear in your agreement. Does the commission split apply to:
The tattoo price only? Most common. Tips belong 100% to the artist.
Tips? Some shops split tips (this is unusual and generally frowned upon). Most artists would walk immediately if you tried to take a cut of their tips.
Product sales? If the shop sells aftercare products, merch, or art prints, how is that revenue split? Usually separately from tattoo commissions.
Deposits? Deposits are typically applied to the tattoo total, so they’re part of the normal split. But what about forfeited deposits from no-shows? Many shops split forfeited deposits the same as tattoo revenue. Others give the full forfeited deposit to the artist whose time was wasted. Define this upfront.
Guest artist bookings? If your shop hosts guest artists, the shop typically takes 30-40% for providing the space, clients, and infrastructure.
Who Provides Supplies?
Shop provides everything (most common):
- Ink, needles, gloves, barriers, cleaning supplies
- The shop absorbs supply costs from their commission percentage
- Artists bring nothing except their machines and personal gear
Artist provides their own:
- Artist buys their own needles, ink, and consumables
- Shop provides the space and shared supplies (cleaning, disposal)
- Artist gets a higher commission split to offset supply costs (often 60-70%)
Hybrid:
- Shop provides basics (gloves, barriers, cleaning supplies)
- Artist provides specialty items (specific ink brands, preferred needle configurations)
- Commission split reflects this middle ground
Define this clearly. “Supplies” is vague — specify exactly what the shop provides and what the artist brings.
Commission on What Revenue Number?
Gross revenue: The total the client pays before any deductions. Most common and simplest.
Net revenue (after processing fees): The total minus credit card processing fees (2.6-3.5%). Some shops deduct processing fees before calculating the split. On a $500 tattoo, that’s $13-17.50 in fees — not huge, but it adds up.
My recommendation: Split on gross revenue before processing fees. It’s simpler, more transparent, and the processing fee amount is too small to fight about. The goodwill of simplicity is worth more than the $5-10 per session savings.
Payout Structure
Payment Frequency
| Frequency | Pros | Cons |
|---|---|---|
| Daily (cash out at end of each day) | Immediate, simple | No time to catch errors, cash-heavy |
| Weekly | Most common, good balance | Requires weekly accounting |
| Biweekly | Matches typical pay cycles | Artists may want money sooner |
| Monthly | Easiest for accounting | Too long for most artists to wait |
My recommendation: Weekly payouts, processed every Monday for the previous week’s work. This gives you the weekend to reconcile numbers and gives artists predictable pay.
Payment Method
- Direct deposit / ACH: Most professional, clear paper trail
- Check: Traditional, provides receipt
- Venmo / Zelle: Common in smaller shops, but creates messy accounting
- Cash: Some shops still do this. Makes tracking harder for both parties.
Best practice: Direct deposit or check for 1099 documentation. You’ll need to provide 1099 forms at tax time for any artist earning over $600/year.
The Employee vs. Contractor Question
This is a legal landmine. The IRS has specific criteria for whether someone is an employee or an independent contractor:
Independent Contractor (1099):
- Sets their own schedule
- Controls how work is performed
- Uses their own equipment
- Can work for multiple shops
- Sets their own prices (within reason)
- No employee benefits
Employee (W-2):
- Shop sets the schedule
- Shop controls methods and procedures
- Shop provides equipment
- Full-time at one shop
- Shop sets pricing
- Entitled to benefits, minimum wage, overtime
Most tattoo artists are classified as independent contractors, but many arrangements actually look more like employment. The “I work here full-time, use their equipment, follow their rules, but I’m a 1099 contractor” situation is technically misclassification.
The risk of misclassification: Back taxes, penalties, lawsuits from artists who should have received benefits and employment protections. This isn’t theoretical — the IRS and state labor departments audit service businesses regularly.
My strong recommendation: Consult an employment attorney in your state. Spend $500 now to set up the correct structure rather than $50,000 later defending against misclassification claims.
Alternative Compensation Models
Chair Rental (Booth Rent)
Instead of commission, the artist pays a flat monthly fee to rent their station.
Typical rates: $800-2,500/month depending on location and what’s included
Artist perspective: Keep 100% of what you earn (minus the chair rent). If you’re busy, you make more than on commission. If you’re slow, the rent hurts.
Shop owner perspective: Guaranteed income regardless of how much artists earn. No commission tracking headaches. But you lose the upside of taking a percentage from high-performing artists.
Best for: Established artists with strong, independent client bases who want maximum earning potential and independence.
Guaranteed Minimum + Commission
The artist gets a guaranteed weekly minimum (like a salary) plus commission on revenue above a threshold.
Example: $800/week guaranteed. Commission of 50% on anything earned above $1,600/week (the amount the shop needs to cover the guarantee).
Best for: Newer artists who need income stability while building their client base.
Tiered Commission
The commission split improves as the artist hits revenue milestones:
| Monthly Revenue | Artist Split |
|---|---|
| $0-5,000 | 50% |
| $5,001-10,000 | 55% |
| $10,001-15,000 | 60% |
| $15,001+ | 65% |
Best for: Motivating artists to increase their revenue. High performers earn more per dollar.
Tracking and Transparency
Nothing breeds resentment like opaque commission calculations. Artists should be able to verify their earnings.
Set up transparent tracking:
- Use shop management software (Porter, TattooPro) that tracks revenue per artist automatically
- Provide artists with a weekly/biweekly statement showing: total revenue, commission percentage, calculated payout, tips, and any deductions
- Keep all records for tax purposes
Porter ($149+ Studio plan) handles commission tracking automatically — revenue attribution, split calculation, and payout reports. If you’re managing 3+ artists, this feature alone justifies the subscription cost.
For smaller operations, a shared Google Sheet works:
| Date | Client | Service | Total | Artist Share (60%) | Shop Share (40%) | Tips |
|---|
Update after each session. Both parties can verify at any time.
The Written Agreement
Get it in writing. Every commission arrangement should be documented in a signed agreement that includes:
- Commission split percentage
- What revenue is included (tattoos, products, deposits)
- What the shop provides (space, supplies, marketing, software)
- What the artist provides (machines, specific supplies)
- Payout schedule and method
- Tip policy (100% to artist, or shared)
- Cancellation/no-show deposit handling
- Guest artist policy and rates
- Non-compete terms (if applicable)
- Termination terms (notice period, client ownership)
- Employee vs. contractor classification
- Duration and review schedule
Have an attorney draft this. A $500 contract now prevents a $50,000 dispute later.
My Setup
Four artists, structured as follows:
- Two experienced artists (5+ years): 60/40 split (artist 60%)
- One mid-level artist (3 years): 55/45 split
- One newer artist (1 year post-apprenticeship): 50/50 split
All classified as independent contractors (verified with employment attorney). Shop provides: space, shared supplies, booking software, marketing, insurance. Artists provide: their own machines, personal supplies, and are responsible for their own taxes.
Weekly payouts via direct deposit. Commission tracked through Porter. Tips go 100% to the artist.
Annual review of commission splits — if an artist’s revenue has grown significantly, they earn a better split.
Frequently Asked Questions
What is a typical commission split for tattoo artists?
The standard is 50/50 to 60/40 (60% to artist, 40% to shop). Highly experienced or in-demand artists may negotiate 70/30. The shop’s percentage covers rent, utilities, supplies, insurance, marketing, and admin.
Should tattoo artists be employees or independent contractors?
Depends on the working relationship. If you set the schedule and control how work is done, they should be employees. If artists set their own hours and control their client relationships, they may qualify as contractors. Consult an employment attorney — misclassification has serious consequences.