Beauty Counter – Scam or not? Many people are quick to label all MLM companies as scams, but is that an accurate definition, or a bit too harsh?
Let’s take a look and find out….
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Company Name: Beauty Counter
Founder: Gregg Renfrew
Price To Join: $85 Joining Fee
My Rating: 5.5/10
~ Beauty Counter Reviews ~
What Is Beauty Counter?
Beauty Counter is a MLM company that started fairly recently in 2013. It was founded by Gregg Renfrew and primarily deals in skincare products and women’s beauty products, as the name suggests.
So far they sell over 100 different skincare and cosmetic products and have more than 25,000 active distributors promoting the business. Similar MLM companies would be Avon and Mary Kay.
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Beauty Counter Products
I won’t go deep into the products here for two reasons. There are way too many products to talk about for one thing, and this review is more focused on the Beauty Counter business opportunity and whether it’s a viable way to make money.
We’ll take a brief snap shot of what’s on offer at Beauty Counter.
Their 4 main categories are:
- Skincare
- Makeup
- Bath & Body
- Family
Beneath each of these categories are numerous subcategories and products, way too many to list here. Refer to their website for more product details.
There’s not really anything extra special about these products or the ingredients used to set Beauty Counter apart from the competition, and as is the case with just about all MLM companies, the prices are pretty well up there. It’s the very nature of the MLM compensation plan that makes the prices explode.
The MLM Business Opportunity
Regular readers of my site will know I’m not a huge fan of the MLM way of doing business, and this is because the structure is designed in such a way to fully favour the company while taking away many benefits from its workforce – the army of distributors.
MLM is by design meant to favour a select few at the very top, while the majority do all the work and get paid the least. For example, Beauty Counter doesn’t have to pay wages to this giant army of distributors, nor any other benefits and perks. They say it’s because distributors own their own business, but they don’t really. Beauty Counter control everything, make all the rules and call all the shots.
A major component of MLM is constant recruitment to have a chance of making decent money and earning bonuses, but this is the hardest part of all, and where the majority of people who try MLM fail miserably.
Because of the firm focus on recruitment in the MLM plan, this means companies like Beauty Counter have their business expanded exponentially without them even having to pay for advertising or employees. The distributors handle all the promotion, expansion, buying and selling, and all for the promise of commissions and bonuses.
MLM is a deal that rorts the majority and only favours a select few.
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The Beauty Counter Compensation Plan
This is a typical MLM compensation plan where there are two main ways to earn money:
- Direct selling
- Recruiting
To remain an active consultant for Beauty Counter you need to purchase and/or sell approximately $1200 worth of product every 6 months.
You purchase products at either a 25% or 35% discount and then sell them to others and pocket the profit. However, this isn’t the best way to make MLM profitable. That all comes down to recruitment and establishing active downlines.
To really achieve you need to climb the ranks within the company, and recruitment is the only way you can do this. Beauty Counter has 8 different ranks you can aim for, and they are:
- Consultant (where you start)
- Senior Consultant
- Manager
- Senior Manager
- Director
- Senior Director
- Executive Director
- Managing Director
You can read the full compensation plan here.
Also, watch the video below for a full definition.
Is Beauty Counter an Illegal Pyramid Scheme?
An illegal pyramid scheme is a business that operates on a pyramid compensation structure and relies entirely on new recruits and investment to continue to function. An illegal scheme also has no products of any real value.
Beauty Counter has loads of products, and products that can be sold at retail, so it can’t be classified as an illegal pyramid scheme despite it’s style of compensation plan.
Target Audience
This one definitely targets the ladies who love buying, selling and discussing beauty products. Many people are also attracted to MLM as a way to make money because everything is already set up for them and ready to go.
What I Like
- At least it’s not in the way overdone health and wellness niche
- The products seem to be well received and quite good quality
- They have a lot of products on offer
- It’s a new company, so possibly some room for advancement within the ranks
What I Don’t Like
- It’s a typical MLM compensation plan
- You will need to focus heavily on recruitment to have a chance of making any decent income with this
- 95% of all people involved in MLM fail to make any money
- All the benefits go to the company while being stripped from the consultants
- The prices are expensive
- Membership to be a consultant is expensive
- You are paying Beauty Counter for the right to be a sales rep for them, which is ridiculous
- MLM is a hell of a lot harder than what most people think when they first get into it
How Much Does Beauty Counter Cost?
For starters you have to pay an $85 enrolment fee to become a consultant for Beauty Counter. Each year after that you will pay $50 to remain eligible. On top of enrolment, you will need to purchase a Starter Kit, valued at $218 minimum. You also need to buy and sell around $1200 worth of product every 6 months to maintain active status.
It’s not a cheap MLM to get started in and, like I mentioned earlier, you’re technically paying them for the right to sell their products and promote their business. In my opinion it should be the other way around.
Is Beauty Counter a Scam?
It’s not a scam at all. The company has lots of products to choose from and people seem to like them well enough.
The business opportunity is a typical MLM setup, where mass recruitment is required to move up the ranks and have a sniff at earning decent money and residual commissions from your recruits. It’s no better or worse than any other MLM venture out there. At least it’s not in the health and wellness niche, which has seriously been done to death.
One positive I will say about this company is that it’s still fairly new, which means not everyone is going to be sick and tired of hearing about it, so you may have a chance to recruit more people and build downlines. However, that’s still only a slim chance, but a chance nonetheless.
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Try Affiliate Marketing Instead of MLM
I’ve done both and now I make a fulltime living out of my affiliate marketing business. It’s so much better than multi level marketing. There really is no comparison. Affiliate marketing has it all over MLM in every way.
Let’s list just a few of them:
-
You can promote practically any product you like to a worldwide audience
- You don’t have to buy and sell products
- There are no mandatory joining fees
- Affiliate programs are everywhere
- Work for yourself from home and be your own boss
- Travel or move around whenever you like as your business doesn’t rely on a location
- It’s cheap to get started and run an AM business
- Get to spend more time with loved ones
- Make residual, passive and multiple income streams
- You won’t annoy the living hell out of friends and relatives trying to recruit them
This list could go on and on, but you get the general idea.
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Darren Burton
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