Esthetician Podcast; Business tips for Beauty professionals

082: The Hard Truths About Being an Esthetician: Money, Burnout & Building Real Wealth

• Kari Jo

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The aesthetics industry isn't all glamour and easy money – it's filled with financial challenges, unrealistic expectations, and competitive pressures that new estheticians rarely anticipate. Building real wealth requires developing multiple income streams beyond just providing services.

• The money isn't what you think – most estheticians only take home about 7% of their revenue
• Real financial freedom comes from developing assets outside your aesthetics services
• Social media creates unrealistic expectations with carefully selected before-and-after photos
• Not everyone should be a business owner – many would thrive more as employees with the right employer
• Find employers who invest in leadership training and employee development
• Industry competition is cutthroat, but collaboration is more valuable than going solo
• Building multiple income streams is essential for long-term financial success

If you're struggling with a business challenge and want free coaching, text me through the link in the show notes, DM me on Instagram @kerryjopatterson, or email me to be featured on an upcoming episode.


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Jana:

Hi Jana Nantell, owner and licensed esthetician of Unalom Aesthetics in Wisconsin. I have a solo practice that was really struggling when I first started out and I reached out to Kari Jo and did some coaching with her and I cannot begin to express how grateful I am for everything that she taught me. I have a 98% rebook right now and am incredibly busy. I am so grateful for her coaching and her tips.

Kari Jo:

All right, welcome back, guys. Today I'm so excited because I'm going to get real with you guys and this is something I am so excited to jump into. Listen, I love estheticians, but I got to be honest. There are just some things about our industry that make me want to scream. So this episode, I know it's probably going to ruffle some feathers, I probably am going to get some hate and probably people that disagree with me, but the truth is is I am done pretending like everything is fine. I don't want to pretend like this industry is all glam and easy money. You guys, I just want you to hear the hard truth.

Kari Jo:

I came up with this episode really because what I wanted it to be about is what I wish. Somebody told me earlier about being an esthetician and if I had known, I probably could have made some smarter decisions sooner, quicker, faster. So I want to jump in to you know one I love this industry. I don't. I mean, this industry has been really good for me personally. It has empowered me in many different ways.

Kari Jo:

But I also have this complete hate instinct for our industry. I have a love-hate relationship, and today I'm going to talk about the hates relationship, and today I'm going to talk about the hates, so let's jump into it First and foremost. My first number one hate that I hate about this industry is the money is not what you think it is. I seriously I wish somebody would have told me and not just told me. Actually, when I got into this industry, I was like so young and stupid I didn't think I'd be able to make it in college and so I had to just figure out something else. I went to beauty school. I wasn't even thinking money long-term or anything. But what I do hate now is I get so many people that stop me and they're like my daughter wants to be an esthetician and I'm so bad I would be like don't do it. Don't do it. Let me tell you the truth that nobody is telling you.

Kari Jo:

Okay, I feel like people think that there is so much money in this industry and they think like, oh my gosh, I could do a facial, like I'll open my own practice, I could do a facial and like why would I go work for someone and get paid like $15 an hour or whatever, when I could go do a facial for an hour and make a hundred dollars? And if that's you and you think like that. You're the problem. You're going to be. Let me pop your bubble because that's not the way that it works. But yes, so this is the thing is, first and foremost, you guys this is so statistically true across the board for our industry On average, you are only going to make 7%. That means your take-home is only going to be 7% of whatever you make. So let's say, if you did a facial for $100, your take home is going to be $7,000. Now think of all the hard work you had to put into that. You think it's just doing the facial. It's not doing the facial and it's not like you're having facials all the time. You have to build the clientele and that's going to be hours and you're not going to get paid for that hours, although you're like I'm going to be working for myself to build that. Guys, it is so hard and the money is not what you think it is.

Kari Jo:

So a little bit of background. I'm going to tell you about my finances so that you have a clear. When I first started out, I ended up working at a medical would have been like I don't know, 2004, 2001. I don't know, early 2000s. I ended up working at a medical spot and they started me at $11 an hour in the state of Utah and I was so stinking excited because I've been making I don't know $9 before that, so like $11, I was like, woohoo, I am so rich. That job. I got paid $11 an hour. I did not get any health insurance, I did not get any PTO. There were no benefits to it at all other than I could do the laser hair removal on myself or do any of the treatments for cost, and if I did work overtime you got double, like time and a half. But I loved it because at the time I was dumb and naive and all I had was my car payment. That was back in the days. Car payments were like I don't know $200. Nowadays they're like 700. So that would suck. But I thought I was making great money and it was great. I stayed with them for almost eight, almost eight, seven years, maybe eight.

Kari Jo:

I ended up leaving that job and I was getting paid about $16 an hour and like I was the manager and that's how much I was getting paid at the medical spa and I thought I was doing really good. I then went and taught. I got paid $16 an hour to teach and then after that I moved to Virginia and then in Virginia I ended up working at a holistic spa and at the holistic spa that was life-changing for me because I learned so much about what this industry really is like. It's just when you're working at the medical spa, I think also because you're getting paid hourly, like you just don't care, you get a paycheck no matter what, and it's constant. I don't have to bill the clientele, I don't have to do anything.

Kari Jo:

When I was working for the Solistic Spa, it was a commission based and I had to build my own clientele and they did not help me. They did not talk to me about how to do it, they didn't give me any systems. I literally had to go from eight in the morning until whatever. My shift was like eight until five and I would have to sit there eight until five, whether or not I had a client or not, and I got paid commission. And to me, how I viewed that back then was I was like, oh my gosh, I'm sitting here and they're not even paying me to sit here. This is ridiculous. And you get paid like and they can do that because my facials that I was doing was covering the minimum wage.

Kari Jo:

So I sat there and I really I got a huge disdain. I don't even know if that's the right word. I hated my bosses. I thought they were greedy for making me stay when I didn't have any appointments. It was hard. I didn't know how to build a clientele. I didn't even try. Actually, now that I'm thinking about this because now I'm like when I'm working with business owners, I'm trying to teach them how to help their employees grow their schedule I don't even think that I realized when I got hired on that I was supposed to try to grow my schedule. I just thought that they would feed me and none of the clients were coming.

Kari Jo:

I learned so much about the truth of our industry in that environment and then I ended up quitting after I don't know. I think I was there for nine months, maybe a year, and then I ended up going and teaching in Virginia and they started me at $18 an hour and I was like, woohoo, $18 an hour, right, and that was really good. And still to this day, I would say I've talked to many different business owners. That pay range that I just gave you guys is still today the exact same pay range that estheticians are getting paid today. The truth is is the money is not what you think it is and even if you work on your own like, it's not what you think it is. I feel like nowadays, like and also let me tell you this like I feel like could I be part of the problem? Maybe I am part of the problem. I feel like could I be part of the problem? Maybe I am part of the problem.

Kari Jo:

So I talk a lot about how I built my business and sold it and was able to retire by the time I was 38, right. Here's the truth behind that that I want you guys to really understand, and this is the lesson that I wish somebody would have told me earlier, because I could have been so much further in my life. But all right. So the truth is I did not build. My real wealth does not come from my aesthetics business. It came from my Airbnb business. So when I say I built my business and sold it and was able to retire, the reason why I was able to do that is because I built a very successful, very profitable company. I was able to sell it and I was able to pay off my Airbnb properties.

Kari Jo:

And real estate is probably the only true, real passive income, besides maybe doing stocks and stuff like that. You put your money in it and the property appreciates. If you do property manager, you know what I mean. Then you don't have to do anything. But I do manage my own property and I learned the system, so it takes me less than five minutes a week, and I'm not even kidding about that. So the truth is is what I did was I built a company and then I was able to take that money and pay off a bunch of properties. Now what I want you to know is you can love this craft, but don't fool yourself into thinking that your aesthetic services alone will make you financially free, because it won't. So the lesson is is you need to build other streams of income early.

Kari Jo:

The reason why I was so successful, guys, is because I bought the building that I ran my business out of. I renovated, because your buildings are assets, guys, just like your business can be an asset too. But I had the building. I renovated it, so my asset was really, really desirable by so many people. I had other properties that were assets, and then my company. I built that up and that was an asset, so that when I was able to sell it, I could get top dollar.

Kari Jo:

If you are an esthetician, you're building a business and you want to get the top dollar for it. If you're not owning it, you're going to get pennies on the dollar if you don't own an asset like a building to sell with it and sell the entire thing, and so I wish more estheticians knew that earlier. In that I also want to say I love this craft so much, but when I was working, I was working when I was building my company, that I did. I also survived off of my husband. So it's not the type of an industry where you can just survive off of yourself.

Kari Jo:

Could I have done it eventually? Probably, yes, I could have eventually as a business owner towards the end, but in the beginning, when I was really in the like, I was having to invest every single dollar that I was making back into the company to build it to being what it was when I sold it. So I think, when it comes to money, I think, yes, you can make money in aesthetics, but you need to have a support system if you're going to open your own business where you can live off of somebody else while you're building, because to try to do that by yourself if you don't have someone that you can live off of it's going to pay for you to live. I don't know how you're going to do it. That's going to be so stressful, and it's not just me. My clients all feel the same way as well. And then my one advice to anyone who is in it, who has built a business start building your other streams of revenue right now. Sooner, quicker, faster. That's what you want to do, you guys. Studies show that people who own businesses, they don't make money necessarily when they're in doing the business. They make money on the sell. You're not going to make a crap ton of money while you're building your company, but you will make money when you sell it. If you build it so that it's sellable, all right.

Kari Jo:

So the truth number two that I can't stand about this industry is the photos are a lie. I hate it. I hate the before and after photos. I can't stand it. I feel like our industry is so fake. I feel like Instagram made our industry so fake, and I know I was a part of it. I was in that early stage too. But I also know I can't stand aesthetics posts anymore because I'm not stupid. I not stupid. I know, like if I see a picture and someone posted a picture of, like, someone's acne and it's like the right side of their face Okay, show me the left side of their face You're probably picking. I know I did it. You're probably picking this side that looks better to show proof, right Like, or all of a sudden you took a. Their skin actually might not look as great as you think, it's not flawless, perfect, but it turned out flawless, perfect in the photo.

Kari Jo:

You guys, photos are so not consistent. The same, even if you try to get the same. I'm sorry, I don't believe it is the same and I feel like it's all fake and I get why we do it because photos sell and so you're trying to show proof and show business and whatever but I feel like it's unrealistic and I feel like it hurts I don't know the clients long-term. I feel like it gives us all like a fake sense of what we're supposed to look like and what we're supposed to be like, and it wasn't like that until Instagram came about In the beginning. It was, I don't know, like it was more. I feel like it was more empowering the aesthetics industry, like it was, like you went and you got to relax and sure you, you know, did some things, but like now I feel like it's all just so fake and I I can't stand the fake, even like, and guys, I get it. I am so part of the problem.

Kari Jo:

When I was in business, I loved the glitz and the glam and the beauty and, like I idolized all these people on Instagram that look so professional and I would watch them every day and want to be like that. And now that I don't have to be, I like can't stand that Cause. I'm like that is just so fake, that's just like I don't know. So, yeah, that is, I don't know what the lesson is here. The lesson, actually I'll tell you what the lesson is on this is, guys, social media shows all the pretty parts, but it doesn't show the real thing, and so my advice would be to just build a business that is profitable in real life and not just pretty online, and also stay true to yourself.

Kari Jo:

I got really lost when I was building my company. I really got lost in. Success is very addicting and I was very addicted to it. Like, once you start getting it, I can't even tell you. It's like the best drug in the world and you want more and more and more. And then you like crave it and that's all you do and it's all you think about and you're chasing it and chasing it and the next success, the next success, and it's so addicting, but you just kind of lose yourself. And just don't lose yourself. Stay core to who you are and your values and what you really went into the industry for.

Kari Jo:

When I went into the industry, I did not go into it to like I don't know, be like this, I don't know Another image of myself. I just went into it because I wanted a little bit of money and I lost myself for a while and then, after I sold my company, I became who I really am. I care more about family time and my kids and being a mom than I care about my Gucci and Prada bag Although I do still, like you know, occasionally something cute but like I'm not all about that. Okay, anyways, that's my hard truth. Number two, and I feel like also, I feel like they paint this picture. Okay, with that, I also, with the whole glam thing, I feel like our industry paints this picture of like hardcore beauty and success and I just think we got to stay true to who we are. I think I just said that Okay, anyways, okay.

Kari Jo:

The fourth truth that I think about being a business owner, or the fourth truth about being in this industry that I hate, is not everyone should be a business owner, guys, I have seen so many talented estheticians fail because they thought that opening a business was the only way to make money. I don't know what this is. The times that I made the most money as an esthetician was when I was working for somebody else. Truly and honestly, when I was a business owner working for myself, I didn't pay myself for years, right, and I didn't make money really until this sell, and that was only because I invested in different, multiple streams of revenue once I got to that point. But not everyone should be a business owner. I think everybody thinks nowadays that you'll make more money and you'll have more time freedom, if you go out and start your own thing. That is the biggest lie, the biggest lie. I wish every esthetician knew this. That is a lie.

Kari Jo:

If you want to make money, I will say you can't just go work for anybody, because there are business owners out there that aren't invested in mentors and learning how to do things the right way. And so, yeah, you could go work for a person, just like I did, where they don't really care and they're going to make you sit there and they're not going to help you, or anything like that. Or you could work for someone who wants to be a great leader, invest in themselves and invest in leadership and guys. These are the things. If I was an esthetician and I was going to go work for someone, that would probably be when you go to an interview, how they are interviewing you. No, I would swap that, switch around. I'm going to interview the person and I'm going to decide if you are worth me working at your place.

Kari Jo:

I think the problem is estheticians they go to these jobs and they think they want the job so bad that they don't realize their own value. Girl, if you're applying for a job, you have value, right, and so I would go in and I'm going to tell you guys right now, like if I was to start over, to be honest, like I would probably go work for someone. That's so much easier. But, with that being said, I would literally go in and when I'm getting interviewed by them, is I would ask them, just like they're interviewing me. I'd want to interview them to see if they're the type of person that's going to be a good leader. But basically, what I would want to know is I would want to know do they invest in leadership training? Are you out there taking courses? How do you feel about mentorships? Do you do mentorships? Do you believe in mentors? Like, how much are you? Like, are you putting in money for education, not just for me, but like are you investing education in yourself? Like, do you read leadership books? Like? These are the things that I would want to know, because if they don't have that, they are going to be the suckiest boss in the entire world, like my estheticians that have great, big, beautiful businesses and great teams and everything like that. You guys, they're investing thousands of dollars into coaching. They read thousands of books, right? They are constantly working on themselves.

Kari Jo:

The person I would not choose to work for is. I would not choose to work for someone who is. I would work for someone who's working behind the chair if their goal was to get out of behind the chair and, like, my goal could be to come in and help them get out from behind the chair if their goal was to get out of behind the chair, and my goal could be to come in and help them get out from behind the chair. But if you're wanting to stay behind the chair, you don't have the time to train me and teach me everything that I need to know, and you're going to care more about you and your clients than helping build me, and I'm not going to do that. So I would want to know what is her goal for the future. Does she want to get out from behind the chair? If she's like, no, I really like it. I want to stay behind the chair. No, I don't want to work for you because I'm just starting out. I need help building, I need help growing, and you're not going to have time for that and you're not going to have time for that. And then there are the estheticians that they want to, and so my question to them would be like okay, if you're going to work behind the chair, tell me about my training. How are you going to help me grow? How are you going to help me build my schedule? How many hours do you expect that you're going to be putting in to training with me? How many hours do you expect that you're going to be putting in helping me grow my schedule. If they aren't planning to, then I don't want to work for them, but okay, anyways. So I just think that you can be highly paid and very respected as an employee.

Kari Jo:

For example, guys, I had a girl that was working for me. I actually talked her in. Let me tell you this story. So I talked her into going to school. She was actually a friend of mine and I wanted to bring in permanent makeup, but I was scared to do it. But I just knew that she was the type of person that was not gonna be scared to do it. And she was like making I don't know minimum wage before and I was like, hey, and I wanted somebody to work with me. I don't like to work alone ever. Still, to this day, I have a virtual receptionist because I don't like to work alone. Still, to this day, I have a virtual receptionist because I don't like to work alone. And so I talked her into getting her permanent makeup license and doing that while she went to school to be an esthetician and whatnot. Okay, so she did and, guys, she was with me for a very long time. This girl was making $100,000 take home. That is her half.

Kari Jo:

After I took my commission part, because she was on a commission base, she came to work, showed up at work and when she was off she was off. She was not having to do all the business stuff, carry all the risk, she was off. She was not having to do all the business stuff, carry all the risk, worry about anything. She had her cake and she was an employee. You can have that too if you find a boss that is willing to invest and grow you and cares more about growing you than themselves. And you got to find, like I said, the right one. But she also was like my lead esthetician and she became my supervisor and she led my team. My team absolutely loved her and she loved that role. And you can do that as an employee. You can grow as an employee.

Kari Jo:

I wish that this industry would highlight that more than go out and start by yourself, because what they don't understand is when you're starting by yourself, you're going to be broke for years, broke for years, and it is so hard and it was hard for me a long time ago, but now, with the competition, it's like 10 times harder, right? So, yeah, I just think, find the right setup, find the right boss, and I would, personally, that's what I would do if I was to start all over again, because I just want to clock in and clock out, get my paycheck and get paid what I'm worth, and if I'm on a commission based, I can get paid what I'm worth and I don't have to worry about all of the other crap. Ultimately, I wish that I had the life of what my employees did Like give me that. So the lesson is is don't chase the title owner if you're like not ready to be broke for a long time and you're not ready to, you know, run payroll marketing, lead a team, all those different things that go into it. And then I will say the hard truth number three that I wish that somebody would have told me is competition is cutthroat.

Kari Jo:

Estheticians they make backhanded comments and they guard their technique and nobody wants to share, and so because nobody's willing to share information anymore and they guard everything because they're so afraid, like you have no community and it's like the scarcity of mindset and because of that, like you don't have any collaboration. But two people go further than one, and I just wish I was lucky. I did start off with a massage therapist and that collaboration is what made it for me. And so, again, I would tell everybody, if you are starting off solo, don't start off solo by yourself. Go start off with somebody. Like collaboration, I promise, is going to be better than going alone. Just find your guys' own lanes. Focus on your numbers. Don't compare yourself to other people.

Kari Jo:

So, guys, if you hate parts of this industry, well let me say this. I know that you guys are probably listening to me and you're like why do you hate? If you hate, all these different parts of our industry, why are you even here? Why are you still teaching? The truth is, ultimately, I love helping estheticians. I love helping them cut through the BS and actually build the career that gives them the freedom and the profit and something to be proud of. That was probably the best part about I would never be an esthetician again, but I would because that freedom, the pride, the knowledge that I got from doing it was worth all the other stuff. If that makes sense, I don't know. So listen, basically, I'm not anti-aesthetics, but I am anti the burnout, the misleading advice in the group, advice in the group, and I am the false hope. I am anti the false hope that people are giving. So the hard truth is in aesthetics it's hard, it's really hard, but if you know the game that you're playing, you can win it, and I'm proof of that, and I'm here to help you do it without losing your mind and still loving the craft in the end.

Kari Jo:

Hey guys, and I want to invite you to come on this podcast with me. If you have a question, if you have a struggle that you're struggling with, I want to have you on my podcast. I will coach you through it for free. Ask me whatever you want and get real free advice that you're not getting, that you really deserve to get. So how you can apply is there is a text me here link in the show notes and click that show note and leave your name and your number or your email so I can reach out. You can find me, dm me on Instagram, kerryjoepatterson. Send me an email, text me, dm me whatever. Come be on my show. Let me give you the advice that you need to grow your business so that it is profitable. Today. I'll see you guys later. Bye.

Kari Jo:

Thank you for listening to the Esthetician Podcast with Kari Jo Patterson. Each week, Kari brings you real-world lessons on how to grow your empire. To learn more about Kari Jo's fearless prosperity mastermind group, one-on-one VIP coaching karjopatterson. com That's www. karijopatterson. com. See you next week for more insights and strategies on the Esthetician Podcast.

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