Is Beauty Counter a Scam? A Pyramid Scheme Possibly?
If you are looking to become a Beauty Counter consultant there are a few very important things you should be aware of first…. things that the company doesn’t want you to know. Things that other consultants might not tell you.
What am I getting at here… is Beauty Counter a scam or something? No, I wouldn’t go that far as to say that they are a scam. But what I would say is that their business opportunity is somewhat misrepresented and many of those that join in on the opportunity will be left discouraged and disappointed.
By the way, I am in no way affiliated with Beauty Counter. This review of the business opportunity that they offer is completely unbiased.
Beauty Counter Consultant Review
- Company: Beauty Counter
- Website: beautycounter.com
- Cost to Join: $85 enrollment fee + starter pack cost
- Recommended?: For a small number of people, more on this
Beauty Counter is a skin care and cosmetics company that was founded with the mission of getting more safe products out on the market. They sell a variety of products ranging from sunscreens, to soaps, to lipsticks, and more.
This company is based around a direct selling business model. This means that they don’t sell in stores. Instead, they have independent consultants that go around selling their products. Anyone can join as a consultant and start their own home-based Beauty Counter business.
The compensation plan that Beauty Counter uses is mlm in structure. I will get more into this but basically what this means is that consultants can make money by recruiting other members into the business and earn commissions off of them.
Cost to Join
The first thing you will have to buy is an enrollment kit. This is going to cost you $85. It is designed to get your business up off the ground and making money. In this kit you will get things like a personal website, backoffice access, training, marketing materials, and more.
In addition to this enrollment kit you will also have to purchase a starter sets of products. These are just a collection of products to start out with, because of course you are going to need products to sell.
These range in price from $218 to $729, they are not cheap. And just to give you an example of what you are looking at getting here, below is “The Skin Care Classics” for $218.
The Compensation Plan
There are 2 main ways that you can get paid as a Beauty Counter consultant. You can make direct sales and earn commissions off of them, or you can earn commissions from the sales that your recruits make, and their recruits, and so on.
The direct retail sales that come from clients and members that you have made. You will earn around 25% commissions from the products that you sell here when you start out but can earn up to 35% when you move up the ranks. These retail commissions are good, but the real money maker are the Override Commissions.
Override commissions is where the mlm structure comes into play. This is where the real money is at.
If you are able to move up the ranks at Beauty Counter, you can earn these commissions on as much as 4 levels beneath you. This means that you can earn commissions from the people that you directly recruit (level 1), from the people that they recruit (level 2), and so on… up to 4 levels down.
The amount of commissions you can earn is based on the “commissionable volume” of your downline, aka the people beneath you. The CV is 75% of all the retail sales as well as the wholesale purchases that the consultants make in your downline.
Pyramid Scheme Maybe?
The question is Beauty Counter a pyramid scheme is one that comes up often due to the mlm structure of this business.
The only way that you could consider this a product based pyramid scheme would be if its revenue were overly dependent on recruitment rather than on retail sales.
One of the red flags that I see is how you can earn commissions from recruiting alone. You see, when you bring a new consultant in, they have to purchase a starter pack, and that starter pack is considered “commissionable volume”, which you can make override commissions off of. And after initial recruitment obviously you can make money from the sales that your recruits make.
There is no doubt that the compensation structure is geared toward recruitment. There is much more incentive to go out and recruit than to make retail sales of your own.
HOWEVER, in order to stay an active consultant you must have a 1,200 QV (qualifying volume) per each 6 month period. The QV comes from your member and client sales, as well as your personal wholesale orders. This requirement forces consultants to make personal sales and is good to see.
On the flipside, it also leads to consultants purchasing products that they do not need in order to stay active.
When it comes to the difference between mlm’s and pyramid schemes there is definitely a grey line. But I have seen other mlm’s that are much more on the shady side than this one. So I wouldn’t worry about this being illegal or getting shut down by the FTC or anything like that.
It is true that recruitment is at the core of their compensation plan, but they also focus on retail sales to a good degree.
Its Harder Than You Think
Unfortunately Beauty Counter has not published an official income disclosure for public view. But what I can tell you is that it would look something like this…. the top 1-3% of consultants would be the ones making the large majority of the money while the people at the bottom of the mlm structure would be making very little.
That is just how MLM’s like this work. In order to make good money you have to take full advantage of the mlm compensation structure. Everyone that makes good money here knows that in order to do so you have to recruit, recruit, recruit. You have to build up your downlines and make money off of their efforts.
This is not easy to do and this is why over 95% of people fail in this industry.
Final Thoughts & What I Recommend
Beauty Counter is a legit company. They are not a scam and I don’t consider them a pyramid scheme. But I wouldn’t recommend this business opportunity to everyone. I would only recommend it if you 1) like their products, and 2) feel you would be able to recruit people into this business below you easily.
The people that generally succeed in mlm’s like this are the ones that have that salesperson type of personality, where they can bring other people in easily. Recruitment is key and if you don’t have that personality this probably isn’t going to be that great of fit for you, although I’m not saying it will be impossible to find success.
Personally, I don’t have anything even close to a salesperson type personality and there is no way I would make it in this mlm business. If you are like me then I would recommend you take a peek at how I make money online.
I make a living working for myself online, which I think is a pretty awesome job. You can learn more about it by clicking the link below that will take you to a post I wrote.
In the post I wrote I explain what it is that I do, how it all works, and how others can do the same.
Comments, questions, concerns??? Leave them below in the comment section and I’ll get back to you soon 🙂