Is BeautyCounter A Pyramid Scheme

Is BeautyCounter A Pyramid Scheme?

You must have heard about BeautyCounter’s Compensation plan and wondered if it is a legitimate opportunity. Some of the questions which would have popped up in your head will be if BeautyCounter is an MLM opportunity or a pyramid scheme? Does the company sell beauty products and skincare essentials? Can you make an income out of the compensation plan? If yes, how much can you earn? Is it meriting putting in all the effort for the remuneration? 

You will find all the answers to the questions listed above and additional details of the company in this detailed review. We acknowledge that it can be quite overwhelming for you to research in-depth about a new company. We have made your work easy by conducting thorough research and determining if the opportunity is worth your time. 

If it turns out that BeautyCounter doesn’t provide adequate income and is not worth your time, then we have a better opportunity lined up for you. Make sure to check out the last section of this review for a beautiful alternative that can help you make a sustainable income. 

Summary 

Name: BeautyCounter 

Website: www.BeautyCounter.com

Legitimate: Yes

Founder: Gregg Renfrew

BeautyCounter is not a pyramid scheme. They are a legitimate company that follows the MLM model. They require you to first purchase the products before joining the company. As an MLM consultant, you will have to sell their products and recruit new people to sell products. MLM opportunities don’t guarantee a sustainable income and require tremendous amounts of hard work. 

Introduction to BeautyCounter

BeautyCounter sells a vast assortment of skincare and beauty products. They hire various consultants to drive sales, and these consultants further hire new people to perform the same task. The consultants receive a commission behind each sale they make. There is, however, a certain threshold of sales you have to achieve every month to receive commissions; otherwise, you will not receive any monetary compensation for that month. 

The working mechanism of BeautyCounter Compensation Plan 

To understand the compensation plan’s working, you have to follow the steps mentioned below in chronological order. 

  1. You cannot work at BeautyCounter without purchasing from them. You can get your hands on the enrollment kit for $98. Alternatively, you can purchase any of the starter sets. The price of starter sets varies between $132 and $735, and you will get the enrollment kit for free. 
  2. Plan a small gathering of family, friends and other acquaintances. You can host the gathering or party at your place or any venue of your choice. Familiarise them with the vast assortment of BeautyCounter products and encourage them to buy the product packages. 
  3. BeautyCounter will add each sale you make to your PV. PV stands for Personal Volume, and it will track all the sales figures. You will receive a 25% commission on each sale you make, provided you accomplish 300 PV in that month. 300 PV would be equivalent to sales worth $300. Additionally, you have to achieve 1,200 PV in six months. 
  4. If you want to rake in more money, you will have to hire consultants to sell the products of BeautyCounter. You will get commissions for the sales they make. It doesn’t guarantee an income because you cannot control how others will perform. 

BeautyCounter: A pyramid scheme? 

No. It is not a pyramid scheme and purely uses multi-level marketing to drive sales. It hires people to conduct promotion drives of their products to earn commissions, and these people have to first buy the products before enrolling in the program. 

Pyramid schemes are a hoax and illegal in many countries. The primary difference between pyramid schemes and multi-level marketing firms is that no real products are sold in pyramid schemes. It is just an endless loop where you pay some money to join and recruit others to do the same, and they will, in turn, recruit many others. 

BeautyCounter has value and quality products that you have to sell to earn commissions. You are free to invite others to join the firm, and if they are interested, they can sign up for it. If you recruit serious individuals with good marketing skills, you can earn a bountiful of 2nd tier commission on their sales. 

First, you have to be careful if the company is a pyramid scheme or a legitimate MLM firm. Secondly, not all MLM companies offer hefty compensation. Some of them have meagre rates of commission, which are not worth the time and effort. We have elaborated more on this in the next section. 

How much will you earn with the BeautyCounter compensation plan? 

The average senior consultant at BeautyCounter makes approximately $377 per month, and the average makes close to $684 per month. However, an average BeautyCounter consultant only makes $80 per month. Please consider the fact that these figures represent income and not profit. 

You will have to bear additional expenses to host parties, gatherings and make phone calls. BeautyCounter will not cover these expenses, and you have to pay from your pocket. You will probably have to buy more products to meet your monthly volume target to receive the commissions. 

These numbers don’t look profitable because you cannot make a living by earning $80 per month. It is still alright if you choose to be a part-time consultant. The statistics above are applicable for the average employees. If you can drive more sales and get extremely skilled people on board to drive a huge sales volume, you can earn a lot. 

Compensation Plan for this year

As a beauty consultant, you have to make a minimum of 300 PV in sales every month, and you will get a commission of 25% on every sale. The minimum target goal is taken very seriously at BeautyCounter. If you make 299 PV in sales for a particular month, then you will not get any commissions, and all your efforts are going to go down the drain. These restrictions make it very hard to work because you never know what can happen in a month. 

Another very stringent condition is that you have to make 1200 PV in six months to get the title of “active consultant.” If you fail to meet this target, then you will not get paid. For instance, consider the example cited below. 

Your distribution across six months is: 300+300+300+100+50+50=1100 PV. In this circumstance, you will not obtain any compensation. Please make a note of the fact that you will not get paid for achieving monthly targets during the first three months. 

It is the biggest problem with MLM firms. If you want to work at your pace, not be worried about achieving such challenging targets and earn a lot more, then make sure to check out the alternative to MLMs towards the end of the article. The alternative is very flexible, and you will receive a commission for every sale you make without having to worry about a minimum sales volume. 

If you are determined to work for BeautyCounter and make a decent living, you should hire more consultants. It will help you get a promotion to the position of Senior Consultant. You will get higher commissions and also earn from the sales that the consultants you recruited make. 

How to Sell BeautyCounter Products? 

The most common methods that all MLM consultants follow are host parties at their place or any other venue of their choice and invite relatives, friends, acquaintances, and other prospective clients. The motive behind hosting these parties is to showcase the collection offered by BeautyCounter and encourage people to buy the products. 

If you are not profound with managing and hosting events, you can use the digital medium to sell the products. The alternative medium, which we will discuss later, uses digital platforms to sell products of different brands and companies to make more commissions. Remember to check out the last section of this piece for more inputs and details. 

Is the MLM opportunity at BeautyCounter worth it? 

You can haul in a decent compensation if you are an active consultant and if you have recruited a good number of consultants, but there are some key pointers and risks which you should be aware of, and we have listed them below for your reference:

  • Organizing events and gathering require skill, money and time. 
  • The majority of your sales will be from friends and family, and these are the people you can actively recruit. It is quite uncomfortable for a lot of people. 
  • You cannot predict your second-degree earnings because you cannot control the performance of the people you recruit. 
  • Skincare is a very fragile industry, and you might face the consequences if a client acquires a skin disease or an infection. It is vital to do a quality check before you promote such products. 
  • As we saw the stats before, an average consultant only earns $80 per month, which is not very rewarding. The average manager earns about $684 per month, and this value isn’t lucrative either. 
  • If you fail to achieve the monthly and bi-annual targets, then you will not earn anything. In such a situation, it is like you are working for free. 

Are the earnings from BeautyCounter sufficient to make a living? 

No. MLMs aren’t a sustainable source of income because you cannot always sell them to your friends and family. Acquiring new clients is very hard, and the income is going to fluctuate by leaps and bounds. Also, the $684 what the manager earns is the income, not profit. 

Many people opt out of MLM opportunities because they fail to meet the monthly targets and lose money. MLM opportunities are very profitable to the business owners but not for the consultants. 

The job requires you to hire new customers because you cannot sell the products to your family all the time. In a scenario where you cannot acquire any new customers, you will not earn anything. It is a performance-based job and preferable as an additional source of income. 

The solution? 

The most dependable way to maximize profits is through selling products of different brands that don’t require you to hire other people to complete the task. A detailed explanation of this opportunity is given towards the end of the article. 

How much will you have to invest in joining BeautyCounter?

As we have mentioned previously, you will have to buy a starter kit to join BeautyCounter. The starter kit costs around $132-$735, and you will get an enrollment kit for free. Additionally, you will have to pay $50 per year for the personalized website you will get to sell BeautyCounter products exclusively. 

There are secondary costs of organizing parties and paying for tools and advertisements if you opt to sell products via a digital interface. There is a high possibility that you don’t meet the monthly sales requirement, and you will have to buy some products to accomplish the target and receive the commissions. 

Pros and Cons of BeautyCounter Compensation Plan 

Weighing out advantages and disadvantages is by far the most effective way to determine if an opportunity is productive for you.

Pros

  • BeautyCounter is a legitimate MLM opportunity and not a pyramid scheme. You get to sell the real products which have some value and purpose. 
  • The compensation offered is decent, and if you get promoted to higher ranks, you can earn a lot more. 
  • There is no need to buy the products for yourself unless you fail to achieve the goals for a particular month. 
  • BeautyCounter has physical stores as well. If you are looking to buy the products for yourself, you can drop by and shop anytime. You don’t have to enroll in the MLM opportunity to buy the products. 

Cons 

  • If you don’t achieve 300PV in a month, you will not get any compensation. Additionally, if you fail to achieve 1200PV in six months, you will miss out on everything. It is like you are working for free if you don’t meet the requisite amounts. 
  • There is no way in which you can control the performance of the people you recruit. 
  • Due to the additional expenses of parties, it becomes nearly impossible to profit from the compensation received.
  • If you carefully observe the income statement of the top 10% of employees of BeautyCounter, you will notice that they make $1,727 a month. This value is again not the profit, and they will also have to bear the associated costs. 
  • Selling products of one company is not a sustainable business option in the long run because you never know when the company is going to shut down. In a scenario where the company closes abruptly, you will lose your source of income. Diversifying the products you sell is a sustainable business option because you always have a backup available. 
  • If you are an introvert, MLM will be very challenging for you because a majority portion of your job involves face-to-face communication. 
  • Selling products associated with beauty and skincare is always a risky business because you never know what type of repercussions it will have on customers’ skin. There are chances that clients will sue you if the quality of the product is low and they contract a skin disease or an infection. 

From the above points, we can conclude that there are more disadvantages than advantages in working for BeautyCounter. 

Who is the perfect fit for BeautyCounter’s consultant position? 

If you are comfortable interacting with new people and selling the products to your friends and family, then this opportunity is a fantastic fit for you. There are a few fundamental requisites which we have pointed out below:

  • You have to be super active and cannot afford to take breaks. 
  • Your communication skills should be looking good, and you should have a knack for socializing at any event or gathering. 
  • The work involves a lot of travelling, so you should have the liquid cash to bear these expenses. 
  • You have to ensure that the people you hire are very active and work to their fullest potential. 
  • You should be okay with the fact that the products you sell might harm others’ health. 

Support Team at BeautyCounter

In most MLM firms, you will get adequate support from the consultant who hired you. If they cannot process your request, you can reach out to the superiors via email or phone. 

Conclusion for BeautyCounter

After a thorough review of BeautyCounter, we can conclude that it is a legitimate MLM opportunity and not a pyramid scheme. However, we do not recommend this opportunity to our readers because of the following reasons:

  • It is not a sustainable and long-term business option. 
  • The commission rates aren’t very generous to make a living. 
  • There are instances where you will end up working for free if you don’t meet the month’s target. 
  • You will lose more capital than you earn because of buying products, travel and organizing parties. 

A reliable, sustainable and better alternative to BeautyCounter? 

The next section will give you a detailed insight into the alternative for BeautyCounter, where you can earn more by working less!

The Sustainable Alternative 

Promoting other products and making commissions out of them is an excellent way of earning money, but you have to follow the right approach. MLM is not the most lucrative approach; instead, you should start affiliate marketing. Some of the key advantages of promoting others’ products are:

  • You don’t have to worry about developing the product, manufacturing and storage. 
  • You are not responsible for customer support, refunds, exchange or any other assistance. 
  • You can work at your pace. 

Affiliate marketing is promoting products of different brands and companies. If the prospective clients buy the products or book the service from your unique affiliate link, you will get a commission. You don’t have to worry about one company closing overnight because you always have many other options open. 

There are numerous perks of affiliate marketing, and you can know all about these perks from the list below:

  • Affiliate marketing is a part of the digital industry, and you can work from home. It doesn’t require you to travel or interact with people face-to-face. 
  • Your income could boost over subsequent months even if you put in the same number of hours for work, whereas with MLM, your income isn’t going to increase much even if you work extra-hard. 
  • Affiliate marketing doesn’t require you to sell the products to your friends, family and acquaintances. Additionally, you don’t have to recruit people to carry out the sales. 
  • You will receive a commission on every sale you generate, and there are no fixed targets you should achieve. 
  • Affiliate marketing gives you the independence to choose the products and brands which you want to promote. 
  • Since you have to work digitally, you have the potential to reach millions of people online. 
  • It is a sustainable business approach that is very rewarding in the long term. 
  • You don’t have to be an industry-expert to start affiliate marketing. It is extremely friendly to newbies. 

Let us move on to the next relevant part, which is starting your affiliate marketing journey. Before you start promoting products, you should have a digital space to carry out the promotions to see the products. A website/blog is the most viable option since it will help you in the long run. You can build a website within seconds thanks to the advancement in technology, and you don’t require any technical skills to do it. 

What are the skills which a successful affiliate requires? 

There are three main areas where you have to direct your focus as a beginner in the industry, and they are as follows:

  • You require comprehensive, step-by-step training in affiliate marketing. 
  • Your website should be charming, easy to navigate and straightforward. 
  • Your connections are incredibly crucial, and you should network with like-minded individuals from the affiliate marketing industry. 

You can learn all of these skills in a single place and become well-endowed in affiliate marketing. Wealthy Affiliate is a one-stop solution to cater to all your requirements on affiliate marketing training. 

Wealthy Affiliates 

Wealthy Affiliates is a training platform for beginners, and advanced affiliate marketers to learn all about affiliate marketing, form a strong network, get access to tools, and stay updated with the current industry trends. Kyle and Carson are the founders. Both of them are experienced affiliate marketers with a vast knowledge base and skillset. 

The first level of membership is the starter membership, and it is available for free of cost. You will undergo level one training, which comprises ten video lectures. You will learn the following things during your starter core training at Wealthy Affiliates:

  • Understanding the A-Z of affiliate marketing and discovering the niche of your choice. A niche can be anything, from a professional skill to anything you which fascinates you. It could be about cooking, technology, or art!
  • Learn to use long-tail keywords that are less competitive so that you can rank higher on the search engine’s result page (SERP). 
  • Build your website on WordPress and set it up. You can opt from different plans based on your preference and choose a catchy theme for the site. 
  • After you have set up your website’s main page, you will work on the other pages and link them. Linking relevant pages helps Google understand the structure of your website better. 
  • Last and the most vital part, joining lucrative and well-paying affiliate marketing programs suited for your niche. 

You will get a 60% discount if you choose to enrol as a premium member within a week of the starter membership. The premium membership has a nominal fee of $49 per month if you wish to bill monthly and $495 a year if you choose to bill annually. 

Should you choose to continue the training after the free trial, you can opt for the premium membership. As a premium member, you will learn the following things during your core training:

  • How to write well-researched and keyword-rich articles, and how to use the keyword search tool. 
  • How to write grammatically correct and plagiarism free articles. 
  • How to use graphs and other visuals for maximum conversion rates. 
  • Attracting readers organically through SEO instead of having to pay for advertisements. 
  • Using social media to spur more traffic to your website and build a brand name online. 
  • How to use different analytics tools to track the statistics of your website and analyze your progress. You will learn to utilize tools such as google analytics and google search console. 
  • An insight into the millions of products you can promote online and earn lucrative commissions. 
  • How to scale your business and boost your income by hiring other people to complete your tasks. You can finally enjoy the moment of being a boss. 

Additional Tools and Services 

As a premium member, you will get a host of other services at no extra cost. These include:

  • A registered domain with privacy protection.
  • A well-optimized web-hosting solution that can hold up to ten websites. 
  • SSL certification so your readers are assured of data security and aren’t afraid of sharing their credentials with your website. 
  • Setting up a business email for a professional look.
  • Tools to improve your landing page speed and protect your website from spam. 

Conclusion 

MLM opportunities at BeautyCounter are legitimate but starting your affiliate marketing journey is a more profitable, sustainable, and smart option. We hope this article was resourceful in highlighting both the industries’ key points and aided you in making decisions. Without further ado, go ahead and enroll for the world’s best affiliate program at Wealthy Affiliate and get your affiliate marketing journey going!

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