Which Salon Model Is Best for You?

For years, the beauty industry has promoted the idea that becoming a hairstylist means you can "be your own boss." While that’s true for many, this mindset has also created challenges for new industry professionals. Fresh out of school, many stylists are eager to jump into independent careers—without fully understanding what it takes to build a successful, sustainable business. This has led to a disconnect between expectations and reality. New graduates often face financial struggles, lack of mentorship and an overwhelming amount of responsibility they weren’t prepared for. So, how do we fix this? It starts with understanding salon business models and choosing the right path for your needs.

Breaking Down Salon Business Models 

Before you dive headfirst into the industry, it's important to understand your options. Here’s a breakdown of the most common salon models:

1. W-2 Employee Based Salons 

Commission Salon 

• Well-organized, team-oriented setting
• Education and mentorship opportunities
• Well laid out growth plan to showcase income and growth
• Salon provides marketing strategy to attract new clients
• Guaranteed paycheck and benefits in some cases
• Structured schedule and job security

Best for: New hair pros who want guidance, stability and growth opportunities without the stress of running a business right away, as well as independent stylists who miss the sense of a salon community and support.

Before you dive headfirst into the industry, it's important to understand your options.Courtesy of Monkey Business via Adobe StockHourly Based Salon

An hourly-based salon pays stylists a guaranteed hourly wage, often with added benefits and bonuses. This model provides financial stability and structure, making it an attractive option for those who prefer consistency over commission-based earnings.

Best for: New hair pros who prefer a team-driven environment – Many hourly salons operate as team-based businesses, where teamwork and collaboration are prioritized. 

2. Chair Rental

• Independence in client scheduling and pricing
• In control of all business decisions
• More freedom and flexibility in your schedule
• Work alongside other like-minded hair stylists

Best for: Stylists who are booked and busy or confident in building their own clientele and managing business operations (marketing, inventory, finances, taxes, etc.).

3. Salon Suite Ownership 

• You are in control of all business decisions
• More freedom and flexibility in your schedule
• Private space for you and your clients to work 1-on-1

Best for: Stylists who are booked and busy or confident in building their own clientele and managing business operations (marketing, inventory, finances, taxes, etc.) Stylists who are ready to take on the full responsibilities of running a business.

4. Hybrid Salon Model: Commission to Rental 

The hybrid salon model offers a structured pathway for stylists to transition from a commission-based position into chair rental within the same salon. This model allows new or growing stylists to start with the security, mentorship and clientele support of a commission-based salon while they build confidence, refine their skills and establish their business foundation.

This model has become more popular over the years and offers the best of both worlds, as long as it is properly set up.

Which Salon Model Is Right for You?

Choosing the right salon model depends on your experience level, financial situation and long-term career goals. If you’re a new graduate, a commission-based salon or an hourly-based model is often the best fit. These models provide education, support, mentorship and financial stability, helping you build confidence behind the chair before taking on additional responsibilities.

TIP: I recommend choosing a commission salon with a well-structured assistant or co-artist program. This will provide you with the hands-on experience, guidance and confidence you need to grow and take your career to the next level.

Although some have been successful going into business on their own right out of school, jumping straight into a chair rental or salon suite too soon can be overwhelming. Without an established client base and a strong business foundation, many stylists struggle to make ends meet. The key? Give yourself time to grow before taking on full ownership of your career. Allow some time to learn who you are as an artist first before you dive in head first into ownership. 

Finding the Right Salon Home: What to Look For

Choosing the right salon home is about more than just a beautiful space—it’s about finding a place that supports your growth, values, vibe and helps you build a thriving career.

Here are key factors to consider: 

Education & Growth

• Does the salon offer continued education, mentorship or business guidance?
• Are there advanced training opportunities to keep you evolving as a stylist?
• Does the salon invest in your long-term success, not just your skills behind the chair?

Marketing & Support Choosing the right salon home is about more than just a beautiful space—it’s about finding a place that supports your growth, values, vibe and helps you build a thriving career.Courtesy of JEFFTAKESPICS2 via Adobe Stock

• Is the salon actively marketing their business to attract your ideal clients?
• Do they provide client-building support and help create a marketing plan geared toward your target client?
• How does their online presence, social media and advertising strategy help stylists grow?

Culture & Environment 

• Do you vibe with the team and feel a sense of community?
• Is the salon a supportive, community driven, and inclusive space?
• Are stylists collaborative or competitive? Does the salon encourage growth for all?

Leadership & Mentorship 

• Does the salon have strong, experienced leadership that invests in your career?
• Is there structured coaching, career planning, and hands-on mentorship?
• Will you have a clear path to growth with clear goals? 

Financial Structure & Growth Potential 

• How are stylists paid (commission, hourly)?
• Are there benefits like education allowance or paid time off?
• What does the growth plan look like? Are there opportunities to advance or earn more?
• Are there clear pricing structures and business tools to help you maximize your income?

The Bottom Line 

The beauty industry has long sold the dream of “being your own boss,” but the reality is that success in this industry isn’t one-size-fits-all.

The key to long-term success is understanding your options and choosing a salon model that aligns with your experience, goals, values and lifestyle. Whether you thrive in the structure of a commission salon, crave the flexibility of a rental model or want the balance of a hybrid model, the most important thing is finding a salon home that supports your growth and sets you up for long-term success.

A great salon supports your success—not just your paycheck. Ask the right questions, do your research and choose a salon that aligns with your goals, values and long-term career vision. 

About the Author: 

Nina Tulio (@ninatulio) is an industry-leading salon business consultant, speaker and educator.Courtesy of Nina TulioNina Tulio (@ninatulio) is an industry-leading salon business consultant, speaker and educator. Nina’s unique approach focuses on encouraging her clients to grow through personal development and self-care, all while offering the tools needed to build a thriving, sustainable salon business. She has served in all facets of the business: 20 years as a hairstylist, 8 years as a chain salon executive and 11 years as a successful salon owner. In 2016, Nina decided to sell her salon to fulfill her dream of creating her own consulting agency. This business was created to help owners and stylists grow their business and confidence. Combining her deep passion and care for people and her love for the industry, Nina has made it her mission to uplift the beauty industry and empower anyone that is a part of it.