How Do Salon Apps Make Money?

salon app In the digital era, salon apps have become necessary for beauty businesses to stay ahead in the market and get a competitive edge.

But the million-dollar question we are sure many investors have is “How will my salon app make money?”

Well, it’s valid too if you are spending a huge chunk of money, you need to know how you will earn it back. In this blog, we will learn about the different possible sources of revenue for salon apps and how they can be used to reap maximum gains.

We will also be exploring what strategies famous apps use to monetize their offering — from in-app purchases and advertising to many more.

What is Salon App Monetization?

Salon App Monetization is the art of making money, but not in a cynical way: it’s about every channel you can create as a salon on your mobile to generate money.

This involves identifying and nurturing multiple sources of revenue that can bring the wealth that a salon business needs.

Salon app monetization is all about how a salon maximizes its use of the app as an asset to help it attract, engage, and keep customers.

There are several ways to make money including advertising, premium version, and many others. Talking about that, let’s take a look at different salon mobile app monetization models that you can also integrate while creating a salon app.

How to Monetize a Salon App? Best Salon App Monetization Strategies in 2024

How to monetize a salon app?

Choose a salon app monetization strategy or multiple if you want to!

Well, there are numerous salon app monetization strategies available, and navigating them can be overwhelming, especially when you are new to the field.

To help clear things up, we’ll explore different salon app monetization strategies, including how to implement them, benefits, and more.

Let’s dive in!

♦ In-App Advertising

One of the most common app monetization models is where you offer ads to your users.

Did you know that in-app advertising can be a lucrative revenue stream for salon apps? Once your app has a significant user base, you can start displaying ads to generate income.

There are various third-party services that you can partner with to implement this strategy.

In-app ads also come in different types and formats appropriate for the onscreen, with developers given a choice of ad types to use in monetizing their apps. These can include in-app display ads, native advertising, interstitial display ads, rewarded videos, etc.

For users, this means a wide variety of benefits in-app advertising has to offer. Users can get more information about the products, services, or events they require with relevant ads. Ads may also sometimes include discounts, promotions, or other incentives.

One such app “Booksy”- Known for its user-friendly booking system, offers ads for complementary services & products to keep users engaged and aware.

♦ In-App Purchase

Even if you are not a pro, possibly “in-app purchases” is a term heard by you from some source. While Installing Apps from the app market (Google Play Store and Apple App Store) you might see “Offers in-app purchases” or something like that.

Today, many salon software and apps have this feature. In-app purchases emerged as the leading method for selling apps’ additional features and services to users.

So, the term ‘in-app purchases’ (sometimes shortened to IAP) refers to any kind of purchase being made by a user from within your app. Basically, the type of app affects what features or services you offer and expresses what purchases your user can make through it.

This type of offer also works in both a purchase or freemium app model. Such as, if users wish to download salon apps for free then there are a few level upgrades, Beauty Tools, and sometimes premium gift cards you can offer through In-app purchases.

One such salon booking app is Fresha also utilizes this salon app monetization model offering product purchases, and gift cards.

♦ Subscription App Model

Have you heard of subscription-based apps?

If not, they are basically apps that require users to pay a repeated fee, typically monthly or annually, to access the app’s full features or content.

This salon app monetization model offers a consistent revenue stream for the app developer and often provides users with ongoing benefits, updates, and support.

For salon apps, this is a beneficial case of subscription-based revenue models that work well both for them and the customers. It gives customers an easy way to subscribe to ongoing services or products without the headache associated with individual purchases.

Subscription models are good for salon apps; they offer a steady and predictable revenue stream that allows the developers to invest in growth or improvement.

With monthly recurring revenue (MRR), salons can simply concentrate on delivering value for customers month in and out. This kind of permanent attachment creates loyalty and leaves less space for desperate re-engagement tactics.

Mindbody is a salon app that offers a subscription-based app with features such as priority scheduling and exclusive discounts.

♦ Freemium Model

The Freemium Model comprises of Free and Premium Model. And, has become quite famous in the last few years.

Freemium is a business strategy in which initially the app is offered for free but asks for a fee for “premium” features.

The plan here is to capture as many users on the free product and then convert a percentage of those into paying customers.

For salon apps, it can be a freemium model where basic features like appointment booking and profile creation are offered for free; On the other hand, premium features (like priority scheduling, or unlimited bookings) or exclusive discounts could be offered as part of a fee.

This method gives users a chance to test their app before they download any paid version, which can boost revenue as free members become paying clients!

There are several apps including Booksy, Fresha, Vagaro, and Mindbody that leverage the power of the Freemium Model.

♦ Transaction Fees

As the name implies, transaction fees are a common salon app monetization model.

If you didn’t understand it simply means when a customer books an appointment or purchase through the app, the app can charge a percentage of the total transaction amount.

For example, a salon app might charge a 5% fee on every appointment booked or product purchased through the platform.

While transaction fees can generate significant revenue, it’s important to balance them with user experience to avoid putting off customers.

One such example is Vagaro which charges a transaction fee for bookings & purchases. You can use this as an inspiration and use this model for your app.

♦ Premium Monetization Model

Have you heard of Premium apps?

The Premium Monetization Model in salon apps involves offering users access to exclusive features or benefits.

You can utilize several development trends such as AI-based recommendations to attract users to your app and make them feel the investment is worth it.

You can enhance your salon app features and offer better benefits compared to the free or basic version.

Premium apps may offer features not available in the free version, such as priority scheduling, unlimited booking, or ad-free experience. It can be a great revenue-generating salon app revenue model, but make sure you understand your target audience before you integrate features as per that.

♦ Affiliate Marketing

Another top salon app monetization model is Affiliate Marketing.

With this model, the salon’s app shows products or services from partner businesses to its users. If a user buys something via the affiliate link, then some revenue will be given for each purchase to the salon app.

This helps the salon app and its partners in a win-win manner to gain more revenue and reach out nationally.

If this is a salon app, then it will offer hair care products that are of one brand and you can earn a commission on each sale made through the app’s affiliate link.

Integrating such a model into your app will not only help you recover your development cost for a salon app but also make a lot of money.

Popular Salon Apps and Their Revenue Models

There are several salon booking apps and software present in the market, they all went with some salon app revenue models depending on their target audience.

Examining these popular apps and their monetization model will give you a glance at what works best for you, so without much ado let’s get to know them.

1. Booksy

Booksy —All-in-one salon booking app that lets users search and book appointments at local salons. It offers many amazing features such as online booking, loyalty programs, and marketing tools for salons. Its popularity often attracts investors to develop an app like Booksy and imitate its success.

Monetization Models:

• Transaction fees: Booksy takes a small commission from each booking processed via the app.
• In-app ad: The app shows ads on any products & services that are relevant to you.
• Premium subscriptions: Booksy offers premium subscriptions which are just about superior capabilities such as top scheduling for high ones etc.

2. Fresha

Fresha is a global beauty booking platform that allows customers to book services from salons and spas around the world. It has an easy-to-navigate interface, book online, and a plethora of services.

Monetization Models:

• Transaction fee: Fresha charges you some percentage from every appointment booked on their app.
• In-app ads: The application itself shows the relevant advertisements of products and services.
• Premium memberships: Fresha presents plans for premium memberships giving features such as early wings with offers.

3. Vagaro

Vagaro is salon management software with a client booking app. It offers many top salon app features like online scheduling and business management tools — as well as marketing features for salons.

Monetization Models:

• Charged subscription fees: Vagaro has a variety of salon subscriptions depending on the size & needs.
• In-app advertising: The app includes ads for appropriate products and services.
• Transaction fees: For some bookings or purchases serviced by Vagaro and performed through the app, a transaction fee may be charged.

4. Mindbody

A booking platform solution for pretty much anything wellness-related, including all kinds of salons. It provides online bookings, customer management, and marketing tools.

Monetization Models:

• Subscription Fees: Mindbody provides different subscription plans basis the size & needs of businesses.
• Transaction fees: This app may levy a transaction fee on some bookings often through the app or payment received.
• In-app advertising: The app serves ads for relevant products and services.

5. StyleSeat

StyleSeat is a popular online booking platform that connects users with beauty professionals in their respective areas. Nonetheless, it serves its purpose in a wide variety of offering services from haircuts to manicures and massage treatments.

Monetization Models:

• Transaction fees: StyleSeat charges a per-booking transaction fee for bookings made through the app.
• Display ads in apps: The app will display advertisements for products and/or services relevant to users.
• Premium subscriptions: StyleSeat may offer premium subscriptions with extra options for customers and pros.

6. Treatwell

Treatwell is a European beauty booking site covering everything in hair & beauty and wellness. It enables users to look up salons on the internet and then make appointments.

Monetization Models:

• Transaction fees: Treatwell earns revenue for each booking made via the app.
• In-app ads: The application shows relevant product and service advertisements.
• Premium subscriptions: Treatwell may offer premium memberships with benefits such as priority access, exclusive offers, etc.

7. Salonify

Salonify is a salon reservation application that allows users to look for nearby salons and book an appointment. This includes things like online booking, reviews, and loyalty programs.

Monetization Models:

• Transaction fee: Salonify charges a percentage of each transaction made via the app.
• In-app advertising: The app shows ads for products and services based on user preferences.
• Premium Subscriptions: Salonify might have premium subscriptions along with additional features for customers and salons as well.

With that being said, it’s time that we understand the factors to consider when selecting the best salon app monetization strategies.

How to Choose the Right Salon App Monetization Models?

To make your salon app a huge success, it’s important to choose the right salon app revenue model. But, how to do this? This is what we will get to know through this section:

► Identify Your Target Demographic

For the most effective monetization strategy, know who you are dealing with.

Think about who they are, what they want, and how much they’ll pay for premium features. This will help you decide which monetization models may benefit your users the most.

► Value Proposition Of Your App

Analyze what unique services your salon app is giving to users.

Having a great app with exclusive features, perfect UI/UX experience and content will allow you to justify the price of your subscription plan or premium feature.

► Keep An Eye For Market Trends And Competitors

Know what the salon app trends are and how competitions influence your app development from its experiences.

Check what the other successful apps are monetizing their services and if they have issues in gap or opportunity.

► Compare Costs of Implementing Strategies

Last but certainly not least, think about the price tag to you for weaving different forms of monetization into your app experience.

Analyze the return on investment for all possible options to ascertain which is more prudent financially.

► Test and Iterate

Feel free to try out some monetization strategies and tweak them based on how users react or if the performance metrics are reliable.

You can find out which one works best for your app using A/B tests. This will help you get clarity.

► Balance User Experience and Revenue

Monetize your Salon app.

But, don’t bombard users with dozens of ads or in-app purchases that would risk the reputation your app just spent so long building.

► Hybrid It Up

Much more often than likely, the best monetization strategies for salon apps will be a combination of certain things.

For example, you can provide a free app with limited features and a premium subscription for additional functionalities. This method might appeal to a larger audience as well, all while pulling in money from interested consumers who want the extra value.

How Can Nimble AppGenie Help You With the Salon App Monetization Model?

To address the development challenges of salon app and select the most effective monetization strategy, partnering with a skilled team is essential. Their expertise will guide you through the process and introduce innovative solutions tailored to your specific needs.

Nimble AppGenie is an experienced salon app development company, often proven strategies to help you monetize your salon app effectively.

Don’t miss out! Contact our team today to explore some innovative salon app monetization models and turn your app into a profitable venture.

Conclusion

In the realm of salon apps, monetization is the key to success. By understanding and implementing the various strategies discussed in this blog, you can turn your app into a profitable venture.

Remember to carefully consider your target audience, app’s value proposition, and market trends when choosing the right monetization model.

By thinking through these factors and implementing effective salon app monetization strategies, you can turn your salon app into a thriving business.

FAQs

Niketan Sharma

Niketan Sharma is the CTO of Nimble AppGenie, a prominent website and mobile app development company in the USA that is delivering excellence with a commitment to boosting business growth & maximizing customer satisfaction. He is a highly motivated individual who helps SMEs and startups grow in this dynamic market with the latest technology and innovation.