In recent years, online salons have attracted a lot of attention in Japan. Currently, they are run by celebrities as well as by a wide range of people, including companies and individuals. Online salons have many advantages for both users and operators. Therefore, it’s important to know the benefits of setting up an online salon and where to start. In this article, we explain the basics of creating and managing online salons.

What’s in this article?

• Online salons explained
  
• Types of online salons
  
• Why online salons are popular
  
• Advantages of creating an online salon
  
• Disadvantages of creating an online salon
  
• How to create an online salon
  
• Tips for running an online salon
  
• Successful online salons in Japan
  
• Online salon frequently asked questions (FAQ)
  
• Running a successful online salon
  

Online salons explained

An online community – or “salon” in Japan – is a closed membership community that operates on the internet. Users looking for information and individuals who provide information gather and interact online in these salons.

Celebrities—well-known in a designated field or possessing special skills – organise and run events. The number of members in online salons varies from small groups of around 10 people to large groups of several thousand.

Types of online salons

A common feature of online salons is that they take place in a closed space on the internet. Different types of online salons offer different features, allowing members to interact with people who share their interests and receive exclusive information from organisers.

Here are four types of online salons:

Fan club

Fan club sites are online salons where fans of celebrities, actors, sports teams, and athletes gather and interact. There are various benefits, such as digital content provided only to members of the online community and advanced ticket sales for live events. Online salons in the form of fan clubs are popular with core fans who want to support their favorite celebrities and brighten their everyday lives.

Education

People with excellent skills and knowledge – such as experts and consultants in specific fields – hold online salons that focus on education. The salon owner will pass on their skills to the participants in online or offline sessions. Examples include online nail art, leather crafts, and language learning.

Community-based

In a community-based online salon, salon owners and members with the same interests and goals gather together to share their situations and motivate each other or teach special skills to other members.

These salons cover everything from business to hobbies. Some communities that focus on small groups require prospective members to earn an introduction from an existing member and are exclusive to join.

Project-based

Businesspeople, entrepreneurs, journalists, and others run project-based online salons, and there are often opportunities to directly interact with the organisers at offline meetings and study sessions. There is a lot of interaction among members and activities to carry out current projects. There are also many opportunities to meet people with common goals and learn from them.

Why online salons are popular

According to the ICT Research Institute, the number of users of online salons in Japan increases yearly. In addition, the number of users – which was 740,000 in 2021 – will likely reach 1,450,000 in 2025.

Here are some reasons why online salons are so popular:

Meeting people with shared interests and concerns

Most people have probably experienced becoming friends through a shared hobby or interest. However, as we grow up, we tend to have fewer such encounters in our daily lives. Since online salons are places where people with similar interests can easily gather, they have great potential for building new connections.

Finding a place to fit in

We all have a desire to belong to some kind of group. Workplaces and schools are typical community spaces, but the internet also makes online connections common. Being able to find a comfortable place in an online salon that suits you is a big draw for users.

Learning valuable information

In a closed, fee-based online salon, you can gain access to information and specialised knowledge you can’t get in a free community. Many people will feel that it’s worth paying to acquire new knowledge.

Paying reasonable monthly membership fees

One of the reasons online salons are so popular is that monthly fees are usually quite reasonable, making them easily accessible. In addition, free communities tend to be one-way interactions. Participation rates are often low, so they can lack excitement. The fact that online salons cost money means participants are highly motivated, and you can expect more active participation, which is an attractive feature.

Advantages of creating an online salon

There are a wide range of online salons, all supported by their members. Here are some advantages for those running these sites:

Expand globally

Because it is an online-based activity, members from all over the world can come together for international exchanges and activities. By responding to the needs of different languages and cultures, you can create international collaborations and expand your opportunities to increase brand recognition in new markets.

Promote your brand

By building deep connections with members, it is possible to generate long-term marketing effects in a way that differs from traditional advertising methods, as members share your company’s services and brand with others.

Increase your business’s societal impact

Setting a goal within the salon to tackle social issues, such as environmental problems, will generate empathy and attract new members. This can expand your revenue sources and enable you to further enhance your company’s mission and values.

Disadvantages of creating an online salon

There are many benefits for business owners in creating an online salon, but there are also disadvantages and issues to bear in mind. The best way to minimise risk is to plan ahead and make sure you understand any potential pitfalls. Here are some disadvantages of creating an online salon:

Member dissatisfaction and risk

If there are issues with the management of online salons, there is a risk that member dissatisfaction and negative feedback could spread throughout the salon.

Dedicated time to build trust

Trust between members is important in online salons and takes time to build. It can be difficult to see results in a short period of time, so a long-term approach is necessary.

Competition and differentiation

The number of online salons increases every year. If there are many salons in the same field, there is a risk that the competition might eclipse them if they can’t differentiate themselves. This is why it’s important to provide unique content and features.

How to create an online salon

Online salons have many advantages for business owners, but not everyone knows how to start one. Here are the specific steps for setting up an online salon:

Set the theme and purpose

First, clarify the concept behind starting your online salon. Define exactly what you want to do in the online salon and for what purpose. Also, choose the target audience, decide on the content and activities, and determine the features that differentiate your online salon from others.

Determine monthly fees

Next, calculate the costs required to run the salon, and determine the monthly fee. There are various factors to consider before deciding on a final price, including how revenue from advertising and product sales will impact membership fees. You can also research the prices of existing online salons.

Select a platform and payment system

Choosing an online salon platform is an important step that will directly affect the success of your operation. There are social networking sites, chat tools, dedicated platforms, and platforms developed in-house. Choose a platform and payment system that suits the scale and purpose of your salon.

Depending on the online salon platform you choose, you might need to install a separate payment system. When using a salon-dedicated platform, expect included payment as standard. However, for social media-type services that do not have a payment function or platforms developed in-house, you will need to link to an external payment service.

Since online salons often operate on a subscription basis, a subscription-type billing function is important. You can use Stripe Billing to seamlessly manage recurring billing, such as setting up monthly billing and creating multiple plans. In addition, Billing is compatible with a variety of payment methods, including credit cards, mobile payments, bank transfers, and convenience store payments, making it possible to operate efficiently and flexibly.

Tips for running an online salon

If you want it to be a success, you need to actively manage your online salon. They can be tricky to run and need work to succeed. Here are some key points to keep in mind when managing your business:

High-quality content

Members of closed online salon communities expect to receive high-quality, attractive content they can’t get from open communities. Offer written posts, video streaming, live chat, and exclusive content to help people understand the value of being a member.

Regular content updates

Try to update your content as often as possible. Schedule events such as live broadcasts and offline meetings at predictable intervals (e.g., every Wednesday or the fourth Saturday of the month). This will make it easier for members to participate because they will be able to plan their schedules.

Appropriate pricing

Set a price that fits with the value you provide, while referring to the prices of competing salons. If the price is too high, you will struggle to attract members. If it is too low, potential members could perceive the salon as lacking value. If it doesn’t make a profit, the salon will become unprofitable and difficult to continue. Set the right price to bring out the value of your online salon. This will help to build a relationship of high satisfaction for both members and organisers.

Authentic communication with members

There are various types of members who join online salons, from users who actively post and send out information to users who prefer to watch without participating. You should try to respond to questions from members as often as possible and send messages of thanks and other reactions. You should also provide features that allow members to interact with each other. Don’t forget to provide content for users who are not good at actively participating, such as media they can watch or read that don’t require specific interaction.

Consistent promotion through social media

After setting up your online salon, use social media and other methods to attract customers. A new salon won’t attract members without promotion and getting the word out. Use social media and blogs to regularly publicise information about your salon and its activities.

Successful online salons in Japan

Online salons have the potential to increase business for business owners, so it’s important to know the kinds of online salons that are successful in Japan. Here are some examples:

• Libercity: With Libercity, you can develop five money-related skills through online and offline learning and interaction. This online salon shows you how to reduce spending, invest, increase income, manage risk, use money in a balanced way, and acquire financial literacy.

• PROGRESS: This online salon is run by Atsuhiko Nakata, a Japanese businessperson and comedian. It is run using Discord and a proprietary SNS. As a member, you can participate in projects launched by Nakata in real time and watch live broadcasts. It’s also a community where members can learn together and plan events.

• Life Escape Salon (Jinsei Nigekiri): This is a community for people who want to work a second job or improve their skills. You can learn programming, social media marketing (including for LINE and YouTube), video editing, web writing, advertising management, web production, and more. After improving your skills, you will be able to place and accept orders with other salon members.

Online salon frequently asked questions (FAQ)

What expenses are included with online salons?

Online salon expenses fall into the following categories:

• Membership: This can include admission fees, monthly fees, and more.

• Training: These expenses can include training, seminars, and more.

• Social: This can include joining an online salon to deepen exchanges with business partners, for example.

• Meetings: Holding business meetings in an online salon can include fees.

• Communication: This can include expenses such as internet service, mobile phones, tablets, phone lines, or long distance calls.

How much does it cost to set up an online salon?

The cost of setting up an online salon will vary greatly depending on which platform you use.

The following is a general guide:

• Building from scratch: The start-up cost is estimated to be approximately ¥10 million.

• Using social networking sites or chat tools: The start-up cost is basically free, but if you need to introduce a payment system, there will be additional costs.

• Using a salon-only platform: Many salon-only platforms do not charge an initial fee or monthly usage fee. However, they tend to charge a sales commission anywhere from an estimated 5%–30% of the sale price.

What are the advantages of joining an online salon?

Members can expect the following advantages from online salons:

• Receiving exclusive content or information

• Communicating closely with celebrities

• Meeting people with similar interests

• Improving skills faster than with self-study

Running a successful online salon

The popularity of online salons increased in the wake of the COVID-19 pandemic. People were unable to meet in person, so they sought connections and communication with others online. In addition, many members began to see online salons as places where people who want to do a side job or change jobs can improve their skills. Online salons will likely continue to grow in size, so business owners should keep the key points mentioned in this article in mind to achieve long-term success.