We are all looking for that perfect makeup to cover all the flaws in the hope that we look beautiful, vibrant, and youthful. Will the Beautycounter products do the trick? To find the answer, we will do a Beautycounter MLM review to determine if one can make money while looking great in the perfect makeup.
The first thing to remember is that we are reviewing the MLM model of business and briefly talking about the products. The main focus here is, can you make money selling Beautycounter products?
Who Is Beautycounter MLM
Beautycounter is a company that embraces the MLM model of business. They produce and sell cosmetic and skincare items.
Founded by Gregg Renfrew in 2013, Beautycounter adopted the MLM business model from the get-go. At this present time, they have over 150 products but began with only nine products just eight short years ago. Before starting Beautycounter, Renfrew worked with well-known names such as Martha Stewart.
Beautycounter is known for its natural beauty care with the launch of the “never list” naming non-toxic ingredients; as a result, they were “named to Fast Company’s Most Innovative Companies.”
What Is MLM (Multilevel Marketing)?
An MLM, or Multilevel Marketing company, is a type of business that relies on its sales force to recruit additional salespeople below them, thus creating a “downline.” The Salespeople then receive commissions on sales, as well as another downline they’ve recruited.
While some people view MLMs as pyramid schemes or get-rich-quick opportunities that make up for their low pay with quick money from one’s downline, other people use MLMs to actually make an active income.
While others work hard at their MLM business and never break even, so to be on the safe side, it’s important to do your research before deciding whether or not an MLM is right for you.
What Products Does Beautycounter MLM Offer?
Beautycounter is a skincare company, and at the present time, they offer:
- Skincare – everything to take care of your face and protection from the sun. They also offer an extensive line of products for men
- Bath and body – neverything for the body includng, hand care, hair care and an array of moisturizers
- Makeup – everything needed to apply he perfect makeup and take it off; not to mention all makeup to cover flaws on the face.
Beautycounter MLM Review
Without further delay, let’s dive into our Beautycounter MLM review.
In 2014, Renfrew, and Lindsay Dahl, became environmental advocates to make our government aware of harmful chemicals in makeup.
In the income disclosure below, it is clear that most consultants do not make money yet; Beautycounter encourages their consultants to promote the business to replace your job and pay the mortgage.
Not to mention Beautycounter uses its clean environment statements to draw in consultants. They lead the consultants to believe their products are pure and clean. The mission statement is all about the products, yet they write a disclaimer on the same page. It states that Beautycounter cannot remove all the trace minerals in their makeup.
So, in other words, Beautycounter is fighting on capital hill to clean up makeup, publishing on their website how important it is to them and placing a wordy disclaimer to protect themselves. Not to mention Beautycounter does not claim their products are GMO or preservative-free.
Here is a smoothly worded disclaimer with attention to the highlighted areas.
The bottom line is; can this company be trusted. It appears they are using their makeup with claims of environmental safety issues to promote consultants. Also, they encourage their consultants to use sketchy tactics to recruit consultants while making money for themselves.
Beautycounter has an A+ rating on the BBB; however, the actual rating is a 1 out of 5. I’m not sure how this is possible.
Out of 9 reviews, eight were a one-star rating. Almost all of them were upset with the customer service. Hackers got into some accounts, others talked about the poor customer service, yet one stated the company does not honor their discounts.
Beautycounter has opened physical stores, which will take away from the money consultants can make. People will go into these stores instead of ordering from a consultant. Granted, this changed with COVID, but shoppers are returning to the stores with the improvements in the pandemic.
How Can You Become A Beautycounter Consultant?
You can join on the website or under another consultant who may have introduced you to this opportunity.
Price To Join
The lowest kit to join is $98 up to $727 if you upgrade. To qualify for commission payouts, a consultant needs to sell (purchase) $1200 in products every six months.
Beautycounter MLM Compensation Plan
The compensation plan is complicated, as seen in the video. All MLM payout plans are like this, with the intention to hook representatives into thinking they can live the American dream.
There are eight different levels of ranking with the Beautycounter MLM program. With each level, you can make a higher commission percentage.
It appears there are four ways to make money:
- Retail Commission
- Personal sales bonus
- Override commissions
I will refer you to the video for a deeper explanation of the compensation plan. Jana gives definitions and a deeper look into each potential income.
Video Of The Beautycounter MLM Compensation Plan
While the compensation plan is complicated, as are all MLM plans, Jana does a good job telling us about how you can make money.
Pros And Cons
Beautycounter MLM has a few pros as well as cons. We will list a few pros on the positive side, and on the negative side, we’ll talk about some cons.
- Young company, only 8 years old
- Clean makeup activists on capital hill
- Over 150 products to sell
- Only 3.7% of the top consultants make money
- The MLM portion is misleading –
- Customer service, according to BBB, is very poor
- Consultants promote the MLM as a way to quit you job and pay the mortage
- The cost to join can be quite expensive
Beautycounter MLM Income Disclosure
Beautycounter website goes into detail regarding these numbers; with this in mind, I have included a screenshot of the detail.
In a nutshell, 96.3% of all Beautycounter Consultants make $852 to $13,300 a year before expenses. To put it differently, as seen in the image above, 30% of Consultants didn’t make a thing. They paid $98 and spent $1200 every six months but never made a dime. They actually lost $2498.00 or more per month.
One point often overlooked is the expenses to run a business. Although the kit and products are obvious, what about mileage, supplies, gas, and meals; in effect, the list goes on and on.
Is Beautycounter MLM A Scam?
A scam is a fraudulent business that is dishonest in what they offer; in light of this, I don’t think the products produced by Beautycounter are a scam; in addition, I do not believe the MLM portion is a scam, but they do border a scam.
Is Beautycounter MLM A Pyramid Scheme?
To answer this, I have to go off of the definition of a pyramid scheme, and with this in mind, I have to say Beautycounter MLM is not a pyramid scheme, be as it may, it does closely resemble one as do all MLM companies.
Video Overview Of Beautycounter MLM Review
The Problem With MLM Companies In General
According to an FTC Government file, an MLM operation does not have a clearly defined definition. It calls MLM’s “product-based pyramid schemes” not to mention it compares it to an illegal chain letter. You know the letters you receive in the mail, it says to put a dollar in an envelope with a copy of the letter and send one to 10 people. Then if you do this, you will make a ridiculous amount of money.
The FTC Government document also states that MLM “is inherently flawed, unfair, and deceptive.”
Only 25% of MLM participants turn a profit. Please note this says “turn a profit,” rather than make money. After you take out expenses, very few make money.
My Recommendations Regarding Beautycounter MLM
I so wanted to like this MLM company because of Greg’s work on capitol hill with the legislature. I love it when someone goes to bat for the welfare of the American people. Under the circumstances, I believe Beautycounter tries to follow the “never list,“ but I feel they use the clean beauty talk as a selling point rather than a fact.
The compensation plan is complicated, to say the least, and very few ever make money as a consultant. The price to join can get pricey if one upgrades.
The choice to join is ultimately yours, although I do not recommend that anyone join an MLM model of business. The statistics are stacked against success.