The Only Four Revenue Streams You Need as a Hairstylist

In the business of beauty, hairstylists play a central role, and mastering the art of hairstyling is just one part of the equation. To enjoy a thriving career in the hairstyling industry, understanding the business aspect is equally crucial. That includes identifying and leveraging potential revenue streams to maintain profitability and growth.

For hairstylists looking to increase their income and ensure their business's sustainability, I’m outlining three essential revenue streams. The adoption of these will not only boost your bottom line but also ensure you've got a diversified, resilient business model.

Let's get right into them.

#1. Client Appointments and Services

Okay, okay… this one is a no-brainer but let’s dissect this one a little more cause you may have missed something here if you haven’t brought in your first 100K as a hairstylist.

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Your primary revenue stream as a hairstylist is, of course, the income you generate from client appointments and services. This category includes every single service you provide, from haircuts, coloring, and styling, to treatments like deep conditioning or keratin smoothing.

The most profitable miss here is add-on services and I’m not just talking about conditioning treatments. While treatments can add a ton of value to your current services what I’m really talking about is adding on services that your client maybe hasn’t thought about yet.

For example: let’s say your client is booked for the same old root touch-up and haircut. A great way to add on value to her service is to offer a gloss, treatment, maybe suggest a few foils, or how about an express blowout smoothing service? You know the biggest complaint from clients is frizzy, dry hair!

The bottom line, clients are seeking guidance on what they should do with their hair. This is WHY you should always be offering something new no matter how long they have been coming to you!

Why You Need This Revenue Stream:

First and foremost, these services are your bread and butter. It's what you have trained for, and what clients primarily seek from you. Perfecting your craft will help you establish a loyal client base and attract new customers. High-quality services can encourage clients to return more frequently and potentially spend more on each visit, leading to higher revenue. This is why you should always consider advanced education to not only know what’s new in the industry but to keep you excited about your job. When you are excited about what you do, the add-on service offerings start to become natural.

However, relying solely on service income can be challenging. Factors such as economic downturns or personal emergencies can impact the frequency of client visits. That's where the next three revenue streams come into play.

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#2. Product Sales

The second crucial revenue stream is retail product sales. I get it, you’re “not a salesman”.

But actually, you are!

You are in the service industry and our role is to educate (ahem, sell) the customer on how they should care for their hair at home.

As a hairstylist, you use professional-grade products that can transform your client's hair health and appearance. Many clients will want to replicate the look you achieve in the salon at home, so selling products like shampoos, conditioners, styling tools, and hair treatments can supplement your income significantly. Plus there is some statistical data that proves the more items you sell to your client, the more likely they are to return to you.

Why You Need This Revenue Stream:

Product sales can provide a reliable and steady secondary source of income. It's a revenue stream that works for you even when you're not physically servicing a client. Moreover, as a professional, you can provide tailored advice about the best products for your client's specific hair needs, enhancing their trust in your expertise and willingness to purchase from you.

Lastly, stocking products and selling them provides a convenience to your clients that online or big-box retailers cannot match - instant access to the products they need post-appointment and expert advice on how to use them.

Basically, stop using the excuse that Amazon or Ulta is stealing your clients! Even if you’re still complaining about that, what’s stopping you from opening your own online store? Remember! You are providing education that is unmatched, instant gratification, and guaranteed hair care from an expert, YOU!

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#3. Online Platforms: Social Media and Virtual Consultations

The third essential revenue stream comes from leveraging online platforms, including social media and paid virtual consultations. Social media platforms like Instagram, Facebook, and YouTube allow you to showcase your work, connect with a broader audience, and even monetize through sponsored posts, collaborations, and sell your products online!

In addition to social media, offering virtual consultations can provide another significant income source. With this paid service, clients can gain professional advice about haircare routines, styling tips, or troubleshooting hair issues from the comfort of their homes.

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Why You Need This Revenue Stream:

In today's digital age, an online presence is critical. It helps you reach potential clients far beyond your geographical location and operate even when physical appointments are not possible. This is the number one reason why my salon thrived during the three pandemic closures in California. I offered virtual consultations, opened my online hair shop, promoted it through a viral TikTok video, and sold out our root touch-up kits twice!

Through sponsorships, ad revenues, and partnerships with beauty brands on social media, you can create an additional, sometimes passive, income stream. This does not happen overnight, however. Branding yourself and learning how to market on social media does take time but you don’t need thousands of followers to make it happen. Micro influencership is going strong. You’d be surprised how many brands love social pages of 5K or less!

Virtual consultations, on the other hand, allow you to extend your expertise and services in a flexible, convenient manner that respects increasingly busy lifestyles.

#4. Affiliate Marketing

Finally, consider joining affiliate programs related to hair care and beauty. When you recommend a product or service and a client purchases it via your affiliate link, you earn a commission. Generally, the commission is 3 to 11% but it adds up. And you don’t even need to front the cost to stock the product on your shelf.

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Why You Need This Revenue Stream:

Affiliate marketing can generate a steady flow of passive income. It’s particularly effective if you have a robust online presence, including a blog or a substantial social media following. It allows you to monetize the trust and authority you've built with your audience. No matter where you are in your social media presence, it doesn’t hurt to start an Amazon storefront, or online shop, and sign up for affiliate marketing with some of your favorite hair brands.

In conclusion, diversifying your income as a hairstylist is crucial for long-term financial stability and growth. By leveraging these four revenue streams, you can create a resilient business model that thrives in various market conditions and stages of business growth.

If you found value in this newsletter, be sure to share it with a friend or hair bestie 🥰 

Cheers to you for taking the right step in elevating your beauty biz 🥂

Mirella Manelli - ^{_{Founder of HairB&B}}

_{^{https://mirellamanelli.com}}

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