Understanding How Salon Apps Make Money

Ever wondered how salon apps make money while offering seamless booking and beauty services? 

Salon businesses are making great profits with smart technology. Whether you own a salon or want to create a salon app, knowing the best salon app revenue models is the key to increasing your earnings.

Salon apps make money through various methods, such as appointment booking fees and exclusive membership plans. They turn every beauty session into a business opportunity, helping salons grow their revenue. The key to their financial success lies in smart monetization strategies and customer engagement.

Let’s dive into the top salon app monetization strategies that help salon apps generate steady revenue and thrive in the competitive beauty industry.

Salon App Market: Key Statistics at a Glance

The salon industry has experienced significant growth in recent years, driven by technological advancements and a growing emphasis on personal grooming. Here are some key statistics highlighting this trend:

• According to Grand View Research, in 2022, the global beauty salon market was valued at approximately $155.60 billion and is projected to grow at a compound annual growth rate (CAGR) of 8.0% from 2023 to 2030.

• Global Market Insights highlights that the global hair salon service market size was valued at $71.5 billion in 2023 and is anticipated to register a CAGR of 6% between 2024 and 2032.

• As per the findings of Business Research Insights, the global salon software market was valued at $0.95 billion in 2024 and is projected to reach $3.16 billion by 2033, growing at a CAGR of 14.31% during the forecast period.

The salon industry is growing fast, and technology is helping businesses improve customer experiences and run smoothly. To benefit from this growth, salon apps use different business models to make money. Let’s look at the common business models and how they work.

Most Commonly Used Business Models of Salon App

To succeed in this competitive market, businesses use various salon app monetization models to maximize their profits. Let’s explore the best salon app revenue models and how they work.

1. Commission-Based Model

One of the most popular salon app monetization models is the commission-based system. In this model, the app charges a percentage of the total booking amount for every appointment made through the platform.

How it works: Salons list their services on the app, and customers book appointments. Each time a booking is completed, the salon pays a small commission to the app owner.

2. Subscription Model

A subscription-based model with monthly or yearly fees is used in a lot of successful salon apps for salon owners or professionals to utilize the platform.

Salons would be able to benefit from features such as booking appointments, managing clients, and marketing activities within the platform. With this model, the app provider will be assured of a steady and predictable income.

• How it works: Salons or independent stylists pay a fixed amount to access the app’s features, such as appointment scheduling, customer management, and marketing tools.

3. Freemium Model

The freemium model allows users basic features free of charge, while advanced tools and premium services attract additional cost to build a salon app. Offering features that are free to users to attract large patronage constitutes the merit of this model. 

The merit of this model is that it offers something at no charge to users to gain a large customer base. When users learn the benefits, they are more likely to upgrade to paid features with greater capabilities and higher service quality.

• How it works: Salons can register and use essential booking and management features for free. However, to unlock premium tools like advanced marketing, analytics, or priority listing, they must upgrade to a paid version.

4. Advertisement-Based Model

If you are searching for an effective way on how salon apps make money, an advertisement-based model can be your savior. Brands related to beauty, skincare, and wellness pay to display their ads on the app. 

This can include banner ads, sponsored listings, or promotional offers targeted at app users. It allows salon apps to generate revenue without directly charging salons or customers.

• How it works: The app owner collaborates with beauty brands, product manufacturers, or other businesses to showcase their ads within the app. These ads can be in the form of banners, pop-ups, or sponsored listings.

5. Product Sales & E-commerce Integration

A lot of salon apps do more than just set appointments: they feature in-app stores that sell beauty products, so customers can easily buy hair, skin, or grooming products right in the app. This added feature enhances user convenience and boosts engagement, making the platform more than just a booking tool.

For each sale, the app either takes a commission or charges companies for the chance to feature products on its app. If you plan to create a salon app, integrating an e-commerce store can be a great way to increase revenue while providing customers with a seamless shopping experience.

• How it works: The app offers a marketplace where salons or beauty brands can sell haircare, skincare, and grooming products directly to customers. The app either takes a commission on each sale or charges listing fees to vendors.

6. Pay-Per-Lead Model

There are salon apps that bill salons for each new customer obtained through the app. This model suits apps that concentrate on lead generation and customer referrals.

Salons gain more visibility with no initial investment, a low-risk move for business expansion. The app provides a continuous flow of new customers while earning money from each successful referral. This model comes in handy when salons wish to expand their customer base rapidly.

• How it works: When a client makes a reservation for the very first time from the app, the salon sends a one-time fixed fee to the app owner. This pays the app developer only when new customers are received by the salons.

7. Loyalty & Rewards Program

A reward program assists salon apps in maintaining customers along with creating revenue from partnerships and paid membership levels. Reward points, discounts, or special benefits make salons offer repeat bookings and extended customer interaction.

Some apps charge salons a membership fee to be part of these loyalty programs, while others have premium membership levels for customers to gain exclusive rewards. This not only increases customer retention but also provides an additional source of revenue for the app.

• How it works: Customers accumulate points for each booking, which can be used to get discounts or free services. Salons or brands also have the option of paying the app to include their special offers in the rewards category.

8. On-Demand Service Fees

Some salon apps offer home-based or on-demand beauty services, and they add an extra convenience fee for in-home visits. This model caters to customers who prefer salon services at home, offering flexibility and convenience.

The app charges a percentage of the service fee or a fixed fee per home visit. This approach not only brings in more revenue but also extends the app's reach beyond salon visits.

• How it works: Customers book a professional to visit their home instead of visiting a salon. The app makes a service fee for providing this service, which is part of its revenue stream.

9. AI-Powered Consultations

With the advancements in AI, salon apps today provide virtual consultations for haircare, skincare, and styling tips, generating a new revenue channel. Users can receive customized beauty tips through AI-powered analysis, enhancing the experience and making it more interactive and customized to their requirements. 

Partnering with a mobile app development company can help salon businesses integrate these AI-driven features seamlessly, ensuring a more personalized and engaging user experience.

• How it works: Consumers remit a modest fee for AI-based customized beauty consultations, which guide them to select the optimum services and products according to their tastes.

10. Premium Listings & Promotions – Boosting Visibility for Salons

Some salon applications allow businesses to pay for premium visibility, giving them an advantage over their competitors. Thus, salons might be paid to be at the top of a search result or in a special section of the application. 

This way salon app monetization model using more visibility allows them to attract additional customers from more money the app earns from these promotional placements. Everybody wins-the salons earn more exposure and the app makes some income more consistently.

• How it Works: Salons pay to appear at the top of search results. Featured listings come with additional benefits like promotional banners and exclusive discounts.

By implementing the right best salon app revenue models, businesses can not only grow their customer base but also create a sustainable income stream in the competitive beauty industry. Let's understand how best salon apps generate revenue from a salon app.

How Top Salon Apps Make Money?

Surrendering to digitalization, the salon industry is opening its gates through several salon apps to clear the way for easy accessibility to beauty services. Their online facilities not only support appointment booking but also cash-in through smart monetization policies. 

By leveraging effective mobile app monetization strategies, these apps generate revenue through commissions, subscriptions, advertisements, and in-app product sales. 

Let's see some of the best salon apps and how they actually work to make money.

► Booksy

Booksy helps users book appointments for salons, spas, and wellness services while offering business tools for professionals. It provides features like automated reminders, payment processing, and marketing tools to help salon owners grow their business. 

If you're looking to create an app like Booksy, integrating advanced booking features and business management tools can help attract both salon owners and customers.

• How it makes money: Booksy follows a subscription-based model where salon owners pay a monthly fee to use the platform. It also makes money through in-app product promotions and premium listing features.

► Mindbody

Mindbody is a wellness and salon booking app that helps users find and book services like massages, haircuts, and spa treatments. It also offers business management tools, including scheduling, payment processing, and client engagement features.

With the rising salon app trend, Mindbody continues to innovate, making salon management easier and more efficient.

• How it makes money: Mindbody primarily earns through software subscription plans. It also charges transaction fees on bookings and offers premium marketing features for businesses.

► StyleSeat

StyleSeat is an established salon appointment scheduling application, which allows customers to book appointments with stylists, barbers, and beauty professionals. The professionals set their own prices, manage appointments, and they can even charge clients for no-shows. 

StyleSeat also provides marketing tools to assist beauty professionals in growing their business.

• How it makes money: StyleSeat has a commission-based model, so they take a percentage of each appointment. They do have a paid subscription for professionals who might want to unlock premium marketing tools and business insights.

► Fresha

Fresha is a top-rated salon and spa management app that provides booking, POS, and client management services. It operates on a commission-based model, charging salons a fee per transaction rather than a subscription. 

• How it makes money: Unlike many other apps, Fresha doesn’t charge a subscription fee. Instead, it earns through payment processing fees, product sales, and a marketplace where beauty professionals can buy salon supplies.

► Vagaro

Vagaro is a comprehensive salon and spa software offering appointment scheduling, marketing, and payment solutions. It follows a subscription-based model, where businesses pay a monthly fee to access advanced features. 

• How it makes money: Vagaro uses multiple salon app business models, including monthly subscriptions for businesses, marketplace commissions, and payment processing fees.

Each of these apps follows unique business models of salon apps to maximize revenue. Whether through subscriptions, commissions, or product sales, salon apps are transforming the way beauty professionals and customers connect.

Launch A Successful Salon App with JPLoft’s Expertise

Are you searching to develop a salon app or want to upgrade your salon business to the next level?

JPLoft, a leading salon app development company can be your ultimate partner. We build potent user-centric salon apps, packed with features, tailor-made for your unique business requirements. 

Such innovative solutions enable smooth appointment scheduling, in-app payments, loyalty programs, video consultations, etc., all under one platform. 

Our assistance relies on the most actual technology in order to enhance customer experiences, increase the efficiency of operations, and maximize your revenue. 

From salon owners to entrepreneurs, we ensure seamless development aligning with your objectives.

Connect with JPLoft to make your salon app idea into a successful solution.

Final Wrap Up

Salon apps have made the beauty sector easily accessible while introducing lots of new revenue options. 

Salon programs optionally use subscription plans, commission-based booking, in-app stores, and advertising to make money and achieve profitability. 

Even free salon apps can make money through premium features, partnerships with brands, or paid promotions. 

If you are looking into developing a salon app, the monetization strategy you choose greatly determines the long-term success of the new app. From providing on-demand beauty services, to smart AI-driven recommendations, and rewarding loyalty programs-there are infinite possibilities. 

An effective salon app succeeds in operational streamlining and customer loyalty, which drives repeat bookings. With the beauty industry moving toward the digital solution, it is the right opportunity to invest in a salon app before everyone else.