Dental Associate Compensation Models
- Spiro Leunes
- Dec 14, 2025
- 3 min read
Dental associate compensation models must be optimally designed for the practice type (private practice versus DSO) and to properly incentivize the dental associate, Dental associate compensation falls into one of these models:
Percentage of Collections
The associate is paid a percentage of what is collected, not produced. The typical range is 30 – 35% of collection This arrangement is seen in private practice. Owners like it because the associate isn’t paid until the money comes in, it is simple to understand and shifts insurance and billing risk to the associate.
Associates dislike this model for a number of reasons. If the front desk doesn’t collect, the associate doesn’t get paid. Insurance delays and write-offs reduce income, and this model feels unfair to the associate in PPO heavy practices.
Percentage of collection works best in well run private offices, with strong billing and collections systems and lower PPO dependence. DSOs tend to avoid collection-based compensation because it creates disputes.
Percentage of Production
The associate is paid based on a percentage of gross production typically in a range of 25 – 30%. This model is commonly used in DSOs and multi-location practices. Associates prefer this model because it is predictable, not impacted by billing or insurance delays and is based on cleaner performance metrics.
Owners are more at risk with this model because they absorb collection risks, absorb PPO write-offs, and require tighter cost controls. This model is best for DSO, practices with standardized systems and a controlled insurance mix.
Daily Guarantee with a True-Up
The associate receives daily minimum pay with a true-up if production or collection exceeds the guarantee. The typical guarantee is $600 - $800 per day. This model is used in DSOs and private practices recruiting associates. Practices and DSOs use this as a recruiting tool, and it provides income stability as the associates ramps up their production. The risk to the practice is that the guarantees become permanent and the practice subsidizes underperformance.
This model is the best fit during short-term onboarding, new grads and defined ramp up periods. After the associate ramps up and reaches the optimal level of production, the daily guarantee can be renegotiated.
Tiered or Graduated Compensation
Compensation in this model increases as the associates hit their production thresholds. An example this is 25% up to $80K per month, 27% from $80 k to $110 K per month and 30% above $110 k per month. This model will be used in DSOs and high-volume practices.
This model is most prevalent in DSOs, and high-volume practices. It incentivizes productivity, protects profit margins at lower volume and is the best fit for scalable systems and high performers.
Base Salary + Bonus
The associate receives a fixed salary plus performance-based bonuses tied to production, collection or KPIs. This model is used in DSOs, specialty practices and leadership or reginal roles among large DSOs.
DSOs prefer this model because it is predictable, easier budgeting and aligns with private equity reporting. Private practices do not prefer this model because it requires closer monitoring of metrics and it’s more complex to manage. This model is best fit for DSOs, specialists and large organizations.
DSO vs Private Practice Compensation Models – The Real Difference
Private practices design compensation models to optimize cash flow to the practice and increase the owner’s discretionary earnings, whereas DSO compensation models are designed for predictability, planning, budgeting, risk management and increasing EBITDA.
Associate Compensation, It Comes Down To Alignment
Associate compensation comes down to alignment. Private practices prioritize cash protection whereas DSO prioritize predictability and control A compensation model must match the practice’s insurance mix, specialty, operational discipline (monitoring practice metrics), and growth goals.
From your New Jersey Dental CPAs, New York Dental CPAs and America’s Dental CPAs.
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