Nice! A nail color I could do right from home. I get my nails done every 3 weeks. I head to a nail salon and sit for an hour while they fix me right up. But I’m a busy girl, and it seems like a waste of an hour, although I do like the way my nails look. I wonder if I could do my nails from home and use the Color Street MLM part of this business to make some money in the process. Sounds like a good idea? Right?
But first, before I put my money on the line, I need to review the Color Street MLM portion to see if I can make money, or is it a scam, or even worse, is it a Pyramid scheme. A girl can’t be too cautious in this world today.
So let’s take a look at all of the inner and outer workings of color Street MLM company for you and me to make a well-informed decision.
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Today we will dive into the MLM portion of Color Street nails.
Who Is Color Street?
Color Street is a nail polish company founded by Fa Parks in 1988 in New York City’s style capital of the world. The beginning of Color Street is a story for all American dreams. Fa Park was in traffic on a busy NYC street. He looked over and saw a lady in a cab attempting to polish her nails. His mind went to work, to develop a better way. He worked hard, long hours to design a nail polish that was dry on the top but would stick to the nail on the bottom. Thus Color Street was formed with the “100% nail polish strip.”
But the MLM selling model was started in 2017, long after the invention of Color Street nails. One important bit of information that will come in handy later in this review is the company Incoco is the parent company of Color Street. Keep this in mind as we near the end of our review.
What Products Does Color Street Offer?
Unlike a lot of MLM companies, Color Street only has one product, stick-on nail polish. When I looked at the website, there were way too many styles to count. But you can find a color and style to fit every need.
Color street nails are manufactured in the USA in New Jersey, in the Clifton, NJ facility. Each nail is patented with a base coat, a color coat, and a topcoat and has a sticky back that adheres to your own nail. Color Street boasts nails in minutes, and when you want to change the color, just remove them with nail polish. Now, how cool is that?
When you stick the nail polish on your nail it is said to last about 10 days before you have to replace them. But your choices of colors are phenomenal. Every thing a person could think of you will find in the Color Street design.
How Can You Become A Color Street Independent Stylist?
Not only can you buy Color Street nails, but the company is set up on an MLM selling model. This means you can become a Color Street Independent Stylist. You can sell the product and build a downline of people who also sell the product and make money. But just how does this all work? We will go into the compensation plan in just a moment.
For now, you can go to the Color Street website and click join and become a stylist. Or maybe someone has approached you and asked you to join. If so, you can join under that person to become a stylist.
Price To Join
The initial cost to join Color Street is $129, and you will receive a starter kit of supplies worth $250. You get 2 months of website free, and after that, it is a $10 monthly charge.
$129 is a pretty good chunk of money if you are raising a family and putting food on the table. Remember that you will have to purchase more items to promote the product when your kit is depleted.
Color Street Compensation Plan
There are 10 ways to make money as Color Street Stylist. There are 3 phases that each of these 10 ways fall under.
Marketing Phase-Money you make for what you sell only
- 1. Jumpstart bonus-it doesn’t say what this is other than for the stylist to check their website for the rewards and goals. I am assuming you get rewarded when you achieve a goal.
- 2. Commission on base retail-this is a weekly payout of 25% of everything you sell or your personal volume. It appears to me that you have to maintain a personal volume of $300 a month to be eligible to earn any other bonuses.
- 3. Commission on an enhanced scale-when you sell $600 to $2400, your commission increases 3% to 10% based on which amount of products you sell.
Leadership Phase-money you make on what your downline sells
- 4. Jump start bonus enroller match-looks like you earn 100% of what your downline earns. (this is hard to believe for me)
- 5. Bonus for enroller
- 6. Level bonus for leadership
- 7. Depth bonus for leadership
Executive Phase-pays you for training other Stylists. Which simply means you are building a large downline.
- 8. Bonus for your team
- 9. Bonus for Generations of your team
- 10. Bonus including car/lifestyle
I got lost in all of the bonus jargon. It is like any other MLM. The compensation plan becomes so complicated that all you see are dollar signs and never really consider what it all means. MLM companies do this on purpose. The more complicated it is, the less you can figure it out, the more likely you won’t see that only 0.04% make top dollar.
Video Of The Compensation Plan (honestly she doesn’t explain it much better)
Color Street nails have some pretty bad reviews on BBB. Most of the talk about the company support and how they don’t stand behind their product. A few talk about the chemical burn sand damage the nail strips cause to the nail. One speaks of the MLM part of the company and how they are only out to make money and not stand behind their product. Yet, many are completely happy with the Color Street product.
Remember earlier when I said that Incoco is the parent company of Color Street? It is the soul truth. And for 3 years now, it is rumored that Incoco is phasing out, and Color Street Stylists will be the only ones selling the patented sticky nail polish. NOT TRUE! Incoco is not phasing out and is now selling the exact same nails at Walmart at greatly discounted prices.
Video On Incoco Vs. Color Street Stylists
- You only have one product to sell and worry about
- The MLM model of Color Street is only 4 years old
- Only 0.04% of the stylists make top dollar.
- The product, sticky nails, is sold at Walmart and Ulta Beauty at a greatly discounted rate.
- The compensation plan is complicated.
- The nail strips are known to cause chemical damage to your real nails
- If you don’t keep a personal volume of $300 per month, you can’t make bonuses
- 86% of the stylists make less than $2000 a year and potentially spend $3629 per year
Color Street Income Disclosure
Here is a screenshot of the percentage of what the different MLM levels make with Color Street. This is an income disclosure from 2020. Keep in mind that you pay $129 to join, $10 a month for a website, and if you don’t sell $300 worth of products a month, you either do not get paid or buy that much in products yourself each month. You could be spending $3629 a year be one of the 86% that make $1993.49 or less per year.
Only 25% of MLM participants turn a profit. Please note that this says “turn a profit.” It does not say that 25% make money. After you take out expenses, very few make money.
Is Color Street A Pyramid Scheme?
Before I can answer this question, I need to help you understand better what a pyramid scheme is. A Pyramid scheme is a model where you get paid from people you recruit. No products are sold, and you pay money upfront with no guarantee of a return on your investment. A pyramid scheme is illegal in the US.
In light of this definition, then-No Color Street is not a pyramid scheme because you have products that you sell and promote.
Is Color Street A Scam?
Well, what is a scam? A scam is a fraudulent business where the company is dishonest in what they offer.
Although Color Street is called a scam by some, I have to say No, it is not a scam. Although Color Street does sell the exact same product of nails in department stores, it is not a secret. Anyone can find out this information.
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 a ”product-based pyramid scheme” and 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.”
My Recommendations Regarding Color Street MLM
I do not recommend Color Street MLM as a way to make an income from home. The Cons clearly out weight the Pros.
You will most likely be the 86% who will lose money in a year. The statistics are against you earning a lucrative income.
Color Street may not be a scam by definition, but they do run a dishonest business, in my opinion. They recruit stylists to sell the same product at parties that the parent company sells at huge discounts at Walmart and Ulta Beauty.
The percentage of Stylists that make the top dollar is only 0.04% which is below statistics for most MLM companies.
The compensation plan is confusing and complicated to keep you guessing and see only high numbers. You then believe you can make this kind of money which is rarely the case.
Other MLM reviews you may want to look at are:
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