Is BeautyCounter a Pyramid Scheme or a Legitimate MLM Company

Is BeautyCounter a Pyramid Scheme? BeautyCounter MLM Review 2020

Is BeautyCounter A Pyramid Scheme - MLM Review

Is BeautyCounter a Pyramid Scheme? Or is it a legitimate company that sells skincare and beauty products?

Can you really make money selling BeautyCounter products? If yes, then how much? Is it enough to make a living or is there a better business opportunity?

These questions and more, I will be answering in this BeautyCounter MLM Review so that you don’t need to look further in order to know whether to join the BeautyCounter business opportunity and become a consultant or not.

And if it is not worth it to sell BeautyCounter products, then in the last section of this review, I will tell you about a better alternative that allows you to make more money on consistent basis and on the long run.

Note: MLM Opportunities like BeautyCounter don’t make a lot on the long run because you need to recruit others to do the same and you can’t control their performance, in addition to the costs associated with hosting parties and buying products for yourself. You can check the last section in this review to learn about a business model that works better than MLM.

Otherwise, & without further ado, let’s begin with our review!

BeautyCounter MLM Review Summary


  • Name: BeautyCounter
  • Website: www.BeautyCounter.com
  • Founders: Gregg Renfrew
  • Price:
    • $132-$735 for the Starter kit in order to get enrolled. Setting up parties and travel costs needed to meet people in person, or online advertisement.
    • $50 Business-Builder renewal fee every year for the personalized website.
  • Legit/Scam: Legit
  • Recommended? Not by me. Keep reading to learn why.

Overall OnlinePassiveIncomeGuide.com Rating: 65 of 100 (Check my #1 Business Opportunity in the last section 97 of 100)

Summary: BeautyCounter is an MLM company and not a pyramid scheme. Joining them requires you to buy products for yourself ($132+), and meet people to promote to them the same products, in addition to recruit others to do the same and promote the same products.

MLM opportunities in general don’t work well for most of people on the short nor on the long run.

The average BeautyCounter consultant makes around $80/month (income and NOT profit!), which means the most people can’t break even and lose money.

Check the last section of this review for my recommended alternative method for making money.

 

What Is BeautyCounter?


BeautyCounter is a multi-level-company that sells skincare and beauty products through hiring people (consultants) to sell them for a commission (after letting them buy products for themselves starting from $132), and then, these same people would also recruit others (like their friends and family) to do the same.

What Is BeautyCounter

But as any MLM company, you need to meet a certain minimum sales volume every month in order to get the commission on what you sold, otherwise, you lose everything for that month.

 

How Does BeautyCounter MLM Opportunity Work?


How BeautyCounter MLM Works

Step 1: Buy the enrollment kit ($98) or buy any of the Starter Sets that cost anywhere from $132-$735, and with it, you get the enrollment kit for free.

Step 2: Arrange to host parties at your place or at someone else’s place, invite friends, family and people you don’t know and show them the products and try to sell them any of the available BeautyCounter products packages.

Step 3: If you make any sales, they will be accounted into your PV (Personal Volume), and you get a 25% commission on them provided that you achieve 300 PV ($300) in sales during that month, and you make at least 1,200 PV during a six-months period.

Step 4: If you want to make more money, then in addition to selling more products to people, you need also to hire others in order to become consultants and sell BeautyCounter products like you do, so that you make a commission on what they sold as well.

 

Is BeautyCounter a Pyramid Scheme?


No. BeautyCounter is not a pyramid scheme, but rather, it is an MLM (multi-level marketing) company that hire people to promote their products for a commission after requiring them to buy the products for themselves.

BeautyCounter Is Not A Pyramid SchemeThe main difference between BeautyCounter MLM company and pyramid schemes is that with pyramid schemes, there are no real valuable products to be sold, you only invite others to pay money and join, and they will invite others to pay and join the same scheme and do the same as well.

While with MLM opportunities like BeautyCounter, you sell real products for others to make a commission, and you can also invite them to promote the same products (but they don’t have to), and make a commission on their sales (2nd-tier commissions).

However, just because some MLM companies are legit it doesn’t mean that they represent lucrative opportunities to those who join them, as you will see in the next section.

 

How Much Can You Make Selling BeautyCounter?


The average BeautyCounter Consultant makes around $80/month in income and NOT in profit.

This is as per the BeautyCounter Income Disclosure Statement as shown here.

How Much A BeautyCounter Consultant Can Make

Also, the Average Senior Consultant makes around $337/month in income.

And the Average Manager makes around $684/month in income.

Remember that these numbers are not profit as you need to pay for travel, phone calls, internet plans, host parties, travel, …etc.

And you pay for all of these expenses from your own money.

Add to that, the fact that you might need to buy products for yourself in order to meet the minimum monthly volume and get credited for the commissions!

This means that even the Managers might not be profiting.

And even if you consider all the above numbers as profit, is it really enough to make a living with $80/month, $337/month or even $684/month?

How much you make with BeautyCounter depends on how much you sell in products to clients you bring, members you recruit to become consultants, and how much every consultant you hired will bring in sales and new members.

BeautyCounter Compensation Plan 2020 (Commission Rates)

If you are a BeautyCounter consultant, you get a 25% commission on what you sell during a month, provided that you make at lease 300 PV in sales in that month.

If you make less than 300 PV ($300) in sales in a month, even if 299 PV, you lose all your effort and you don’t get anything for that month and the sales don’t get added to your next month!.

Also, you need to make at least 1,200 PV in the period of six months in order to be an “active consultant”, otherwise, you don’t get paid for any of the money.

That means, if you bring in six months the following volume:

300+300+300+100+100+50 = 1150 PV

You don’t get paid anything at all. Not only for the latter three months, but also for the first three months in which you made 300 PV each.

That’s the problem with MLM companies.

That’s like working for free, while with the alternative I recommend in the last section of this BeautyCounter MLM review, you will get a commission on every sale you bring with no minimum sales volume to worry about.

And if you want to make more money with BeautyCounter, then you need to hire others as consultants and increase your rank to Senior Consultant, Manager and so on, and get a higher commission on what you sell, in addition to a commission on the sales that the consultants you hired will make.

Here’s a summary of the BeautyCounter compensation plan.

BeautyCounter Compensation Plan

And if you think that this is better, then remember that you can’t control how others perform and how much in sales volume they bring.

 

How to Sell BeautyCounter Products Successfully?


The typical method of selling MLM products is through hosting parties at your place, or arranging parties at other peoples’ places and invite your family, friends, and others where you show them the products and invite them to buy these products, face to face.

However, you could also promote BeautyCounter products online like it is with the alternative method in the last section of this review, which could open a much wider opportunity for you if you decide to sell other products from different companies and make more commissions.

Is Selling BeautyCounter Worth it in 2020?

You can make some money selling BeautyCounter if you were very active, along with the consultants you recruit, but there are some important facts and risks that you need to know before you join BeautyCounter as a consultant:

  • You need to host or organize parties, which costs money and lots of time.
  • Big part depends on selling to friends and family, and worse, recruiting them to do the same and become consultants, which is uncomfortable to many people.
  • Big part of your income will be reliant on the performance of people you recruit, which is something you cannot control.
  • Products related to skin care might hold liability in case someone gets health issues when using them, make sure to promote only what you trust that is quality tested.
  • As per income statement, the average consultant makes $80/month and the average manager makes $684/month in income and not profit, that’s not lucrative in my opinion.
  • You need to meet a minimum monthly sales volume or you won’t get paid (working for free!)

And the most important question is:

Can You Make a Living Selling BeautyCounter Products?

If $684/month as a manager is enough for you to make a living (assuming this is all profit), then go ahead.

Because of the nature of MLM companies that require you to sell a minimum volume per month, and require you to recruit others to sell products, which is something you cannot control to a large extent, most people (�-�) fail with MLM business and only lose money.

MLM businesses work better for their owners and not for the members.

The solution to this problem?

Selling more products from different companies that pay you for every single sale, and the ones that don’t require hiring others to sell products.

This is explained in the last section of this review of the BeautyCounter opportunity.

 

Cost to Join BeautyCounter Business Opportunity


The cost of joining BeautyCounter MLM business opportunity is by buying one of the starter sets that cost anywhere from $132 and $735 As explained earlier, which will give you the Enrollment Kit for free!

Also, there’s a $50 Business-Builder renewal fee paid every year for the personalized website they give you that can be used just to sell BeautyCounter’s products.

BeautyCounter MLM Cost

Add to that, the continuous cost of traveling and hosting parties, and if you want to promote BeautyCounter products online, you need to pay for ads and tools.

On top of that, if you don’t meet the minimum PV limit for a certain month, you won’t get paid for that month, which will lead you to buy products and pay for them in order to meet the limit! (paying more to get the commission!)

 

Pro’s & Con’s of BeautyCounter MLM Opportunity:


Pro’s:

  • You sell actual products, unlike illegal pyramid schemes where you sell nothing other than the membership itself.
  • BeautyCounter has physical stores, in addition to the online store where people can actually buy the products directly without having to buy through a consultant, and you don’t have to become a member to buy their products if you are looking for the product itself and not the money making opportunity.
  • The commission of % is good, and you can increase it if you go higher in ranks.
  • You don’t have to buy for yourself every month, but you might need if you don’t reach the monthly PV.

Con’s:

  • If you don’t meet 300PV in a month, you don’t get paid at all for that month’s sales, and if you make less than 1,200 PV in a span of six months, you don’t get paid for any of those months even if you made more than 300 PV in some of those months!
  • You need to recruit others to do the same if you want to make more money, and you cannot control their performance.
  • Costs related to travelling and hosting parties add up and make it difficult to make any profit, let alone making a living!
  • The income statement, as with any MLM company, shows that the top 10% of BeautyCounter members make on average $1,727/month in income (not profit). Even these might be losing money because of the costs associated.
  • You don’t build a long-term business because you are totally focused on selling one company’s products, if they close their doors, you are completely out of income. You are an underpaid salesman and not a business owner.
  • The nature of MLM models requires lots of face-to-face interaction, which is not easy for most people.
  • Like it is with Scentsy MLM opportunity and Monat Opportunity, products that are used with human body are risky and could lead to getting sued if you sell poor quality products that harm people. Make sure you sell something of high quality.

Just to emphasize on my last point above, here’s a screenshot from customeraffairs.com showing one of the many negative reviews of BeautyCounter products. (Overall rating 2.5 of 5 from 52 reviews)

BeautyCounter Product Complaints

You don’t want this to happen to anyone and potentially get sued!

 

Who Is BeautyCounter Opportunity for?


If you like selling face-to-face, and you don’t mind selling to your family and friends and recruiting others to do the same, then this could be for you, but you need to be very active and travel a lot, in addition to make sure that people you hired are working their butt off in order to make money.

And of course, you should not mind selling something that might have a negative impact on others’ health.

Otherwise, check out the last section below.

 

BeautyCounter Support


Like with MLM businesses in general, BeautyCounter support is available through the consultant that hired you in the first place, in addition to the phone and email support from the company team.

 

Conclusion – Is BeautyCounter a Scam or Legit?


BeautyCounter is not a scam, it is a legitimate MLM company that allows you to make money by selling their products and hiring others to do the same.

However, just because it is legit, it doesn’t mean that you can make lots of money with it, like it is with most MLM opportunities, as I explained earlier.

  • Name: BeautyCounter
  • Website: www.BeautyCounter.com
  • Founders: Gregg Renfrew
  • Price:
    • $132-$735 for the Starter kit in order to get enrolled. Setting up parties and travel costs needed to meet people in person, or online advertisement.
    • $50 Business-Builder renewal fee every year for the personalized website.
  • Legit/Scam: Legit
  • Recommended? Not by me. Keep reading to learn why.

Overall OnlinePassiveIncomeGuide.com Rating: 65 of 100 (Check my #1 Business Opportunity in the next section 97 of 100)

MLM opportunities take money from most people instead of giving them money due to the terms and conditions that are difficult to meet, and because you need to keep hiring people and travel a lot.

More than 95% people with most MLM opportunity actually lose money, and the ones that make few bucks in profit, find it difficult to make a living with them.

MLM is NOT a long-term thing. It is highly risky, and if the company closes its doors, you lose everything overnight.

 

The solution to this problem?

This is explained in the following section.

 

The 100% Legit Alternative to BeautyCounter MLM Opportunity That I Personally Generate Income with (Tools & Training Included)


Making commissions through promoting others’ products is a great way of making money remotely and my favorite way.

However, the right way to make money with commissions on the long run is through another model that is different from the MLM model, although people seem to confuse them sometimes.

And this model is called affiliate marketing, which is a 100% legit model.

One of the most important differences between MLM and affiliate marketing is that with MLM, you work for a company as an underpaid salesman/employee and you need to keep putting more hours in order to maintain a certain same salary “compensation”.

And you are fully reliant on one company that might close its doors overnight or get shut down by the FTC, which happened to many MLM companies, and you lose everything.

While with the affiliate marketing model, you build an evergreen business because you can promote products in different industries and from different companies.

BeautyCounter MLM Vs. Affiliate Marketing

If one company closes its doors, no problem, you have many other options.

And there are many other differences that make affiliate marketing a more viable option to make money, such as:

  • You can do it online and from almost anywhere without meeting anyone in-person or even calling them.
  • Your monthly income could increase overtime even when keeping the same hours of work, while with MLM companies, there’s a limit you can’t exceed unless you work longer hours. (Business owner vs. employee)
  • With affiliate marketing, you don’t need to sell to your family and friends, nor to “recruit” others to sell anything.
  • You make money on every sale that you bring without worrying about a minimum sales volume (PV) to meet every month. (Much more secure)
  • You can choose what to promote in any industry and from any company you choose.
  • You can reach tens of millions of people online.
  • You actually build a long-term income generating business that no one can take from you.
  • Most newbie-friendly method for making money remotely.

And many other advantages.

And the right way to build affiliate marketing for the long-term income is through having a home for your business, which is a simple website or blog (no coding or technical knowledge required), where you get people to see the products you promote.

And you can promote whatever you want on your affiliate marketing website, unlike the website BeautyCounter will give you to sell only their products.

And the more helpful pages you add to your website or blog, the more potential clients you can get every month that could buy what you promote.

And to be successful as an affiliate, you need three main things that I will provide you with in few minutes:

  • You need a step-by-step training for beginners. (Solved!)
  • You need a simple website that doesn’t require technical knowledge or coding at all. (Solved!)
  • You need the help of a great community of like-minded people who are already succeeding with this model. (Solved!)

All these three requirements are provided at one place, which is the same place where I learned this great model, and it is called Wealthy Affiliate.

Here’s a small comparison about the difference between Wealthy Affiliate and BeautyCounter and most other MLM opportunities in general.

Most important to realize is that when you join Wealthy Affiliate, you don’t have to promote them, and better, they have a free Starter membership for you to try it.

Wealthy Affiliate is NOT an MLM nor a pyramid scheme.

Instead, you will learn how to build and affiliate marketing business and promote products in almost any industry you want (niche) such as: Yoga, cooking & recipes, fitness, playing guitar, singing, knitting and crochet, …etc.), and you promote almost any product that is sold online (all products listed on Amazon, eBay, Walmart, Etsy, ..etc.).

Affiliate marketing is more fun that MLM because you choose what to promote.

That’s the right way of making commissions by selling others’ products.

Once you add pages on your website or blog recommending useful products to people, you keep getting targeted visitors from Google to those pages and you keep making new sales without contacting anyone in person.

Affiliate marketing is scalable, MLM is not!

In case that you are interested in learning this model, then you can visit my Wealthy Affiliate review and see how you can get the FREE starter plan that gives you a free website and 10 lessons that would explain the model for you, step-by-step.

BeautyCounter MLM Alternative

It’s up to you if you want to continue from there and grow your business further.

 

And if you have questions about anything in this BeautyCounter MLM review, or you still think that BeautyCounter is a pyramid scheme, then please, tell me in the comments’ section below and I will be happy to answer you asap 🙂

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2 thoughts on “Is BeautyCounter a Pyramid Scheme? BeautyCounter MLM Review 2020”

  1. Thank you for your research and opinion about Beautycounter and it’s business model. However, I think you’re also missing a HUGE part of what makes Beautycounter different and that is their mission. It’s more than selling great skin care and make-up. It’s about changing an industry that hasn’t had any sort of law to protect it’s consumers passed in over 80 years. Moreover, I really just wanted to share that Beautycounter is more than an “MLM.” In fact, did you know you can actually purchase Beautycounter products online directly from the website without a consultant? Or at one of the many brick and moartar stores around the country? So if you aren’t looking to support your friend in her “side biz” you can still support the mission of getting safer products into the hands of everyone by purchasing directly from the website or at a store. Again, thank you for sharing your opinion. Social selling isn’t a “get rich quick” type of gig anyway. If you’re looking to start a successful business, it takes time, effort and consistency no matter type of business it is.

    Reply
    • Thank you Clare for the very important note.

      It is true that they have different physical stores and people can buy online without a consultant, that’s different from many companies that adopt the MLM model to sell their products.

      I totally agree with you that no business whatsoever can make anyone rich quick, and BeautyCounter didn’t promote their opportunity as a get-rich-quick scheme.
      I’m just mentioning the risks of relying on one company trying to make a full income.

      Of course, anyone can start their own business where they can promote BeautyCounter products and promote other products from other companies at the same time depending on their target audience.

      Thanks again for your opinion and help in letting people know more about BeautyCounter!
      Amjad

      Reply

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