When it comes to companies that work with an MLM structure, many things come to our minds. Some goods, others… not so good.
We have reviewed many companies this far, and if you’re here for Beautycounter in specific, it’s alright if you’re not familiar with the MLM term and how it works and why it makes us doubt so much.
Therefore, don’t worry. We won’t jump straight away and make you get lost in all the information you’ll have to process.
Instead, we’ve chosen to go over single detail of Beautycounter MLM and guarantee you’re able to learn about the company from a reliable source and better understand how this business structure works and why you should stay away from it or not.
What You Need to Know About Beautycounter
This MLM company was founded in 2013 by Gregg Renfrew, the current CEO.
It is based in Santa Monica, California. It focuses on selling skincare lines and cosmetic products that are safer and don’t use any harmful chemicals that are more common in those products than you think.
However, besides being a company that identities itself as an advocate to stop other businesses from using questionable ingredients, what attracts people aren’t the products or their mission in specific but rather the business opportunity offered.
They encourage people to sign up for their membership or commission program to be an independent distributor of the company.
According to them, you don’t have to work for a salary but instead, focus on earning money for your effort.
Here’s when the MLM term comes to play a significant role.
First, it stands for multi-level marketing, and you will find its structure familiar to something you are running from, pyramid schemes.
Before you decide to close this article and say “not today,” you must know MLM isn’t the same as those schemes despite sharing the same structure.
Differences Between Beautycounter & Pyramid Schemes
The most significant and only difference you will find between the two is that MLM companies offer real products.
In other words, you can buy and sell them to anyone you want. It is legal, and you won’t have to worry about working with fictional products in order to make money.
Pyramid schemes are business “opportunities” that only lure you into spending money in a program that doesn’t sell real products. Instead, the recruiter who offers you the chance is trying to make money based on your spending.
This structure of earning money for the members and distributors you bring into the company is the same, but with the difference that one is authentic and the other isn’t.
How does this MLM structure work in specific?
In order to avoid any confusion or misconceptions, let’s make it simple:
- You will join the company which is Beautycounter in this case.
- You have to purchase products under a base price to earn money based on a retail price.
- The main option (however) to make money is by making people sign up to Beautycounter as members and start distributing the products as well or connect with more people to add them to their teams.
- You will earn commissions and payments based on how many recruits you add every month, their sales, and the new recruits they bring as well.
Although you can earn money by selling products only, it is a fact that you won’t make too much every month.
Beautycounter itself has an income disclosure that shows how low your earnings are with this method alone.
What products Does the Company Offer?
If you’re thinking about giving it a chance, you have to make sure you know about their products, if they are good, and if it will be easy to sell them and recruit other people that want to bet on them just like you.
Right now, Beautycounter has over 100 different skincare and cosmetic products that can only be bought directly on their website or with a distributor.
The skin care products include moisturizers, sunscreen, cleansers, and more, while makeup brings foundation, powder, concealer, and other alternatives.
Finally, you have bath and body and counterman products like body balms, body scrub, shaving cream, and more for both women and men.
The product prices vary according to the line you choose. However, an estimated starting price is $35, which, believe it or not, is quite expensive for those types of items when compared to drugstore ones that are of high quality regardless of where you buy them.
However, the good thing about the company and how they justify their products’ prices is that they’re blueprint and entirely safe for human use without any risks.
At least, this is what they say.
When you look for reviews, you will face two situations: review websites with mixed opinions and blogs with amazing reviews about the products.
Which one should you trust, you ask? The first one sounds like a better idea.
It isn’t a lie that Beautycounter pays for the blog reviews and if you doubt us, just click on one. When you’re clicking one of the links the blogger has added to a phrase, you will see it has its name in it, which means the person is affiliated and earning a commission by convincing you to buy.
Or maybe the blogger just got paid to write the review, and you won’t know because they will never admit it.
However, does this mean Beautycounter is actually bad? As we mentioned, the first option comes with mixed reviews, so we can’t say it is bad either.
Make Money with Beautycounter Step by Step
Following the MLM structure, here’s how you make money with the company in specific.
- Join their membership program.
To access the products at a very good price that are worth selling, you will have to pay a consultant fee.
This fee is also required to earn your commissions in the plan that we will talk about later.
You have to $98 for joining, and this includes a replicate website to sell the products you acquire, access to a back office, access to a training platform to learn about the products, two products for sale, and the 25% discount that allows you to earn money if you sell at retail price.
- Buy a product pack.
Having two products included isn’t enough, and although you can wait for customers to request them and then ask for stock, you also need some to get started.
This will mean that an additional expense is added, and it won’t be cheap.
Product packs range from $132 to $735, and those worth your investment will usually cost $500+. At least, this is according to the company.
- You must meet a minimum.
Beautycounter will say this isn’t true, and every distributor you meet will do just the same.
This is “technically” true since you don’t have to pay a monthly fee to remain an active member nor handle a specific volume every month.
However, here’s the catch: they don’t say monthly but rather every six months, which is the exact SAME THING.
In their FAQs section, you will find one that addresses the need of selling a certain amount in which they establish that: “you do have to sell $1.200 every six months, with $250 of that being New Volume (people who haven’t purchased from you before). This includes your own purchases except for the New Volume requirement.”
- You have to sell products AND recruit people.
If you want to earn your commissions and enjoy the compensation plan they offer, you need to bring in new members who have to pay the $98 fee and buy a pack to sell.
In this way, you will build your sales team in order to start having your MLM structure in which each member earns you a payment based on a percentage.
Compensation Plan: How Much You Get Paid
After knowing how you can start making money, this is how much you will earn: almost nothing.
We wish we were joking, but the truth is that MLM companies are always the same, but to reach the point, we needed to explain all of the above.
Now, where do things start to go wrong? Since the beginning.
Although MLM companies are legal and real, the commissions and plans they structure to bring you in are only to sell you the idea and continuously make people sign for the “opportunity.”
In other words, they’re trying to trick you but without recurring illegal practices.
We might be going a bit far by saying this since you CAN make money with Beautycounter, but it isn’t worth your time nor money.
You will earn money in 4 ways:
- 25% in retail commissions, which is what we were mentioning about selling the products.
- If you sell over $750 monthly, you earn a 5-10% bonus.
- Override commissions based on your “downline” sales, which are those from your recruits (yes, you make money thanks to their sales).
- Frontline business builder means you access bonuses based on your downline promotions, which is basically if they move onto a better level thanks to the personal team they’re building.
What you need to understand about this business structure is that you make money (primary) by making sure you continuously recruit people, that those members recruit more people and sell, and that this downline continues growing.
In this way, you climb ladders in the company’s structure and earn more percentages of compensation or are able to handle your minimum sales and contributions easily.
Why You Shouldn’t Invest in Beautycounter
We want to set the record that this company does have its pros:
- Their products work despite not being of the best quality (though they will tell you otherwise like every other company).
- They stick to their promises in the compensation plan.
- It isn’t a pyramid scheme since you can make money with real products.
However, the number of cons is much more than the pros, and even if they were similar or the same, you will notice their weight is more than the previous benefits:
- The products are expensive. Thus, hard to sell.
- You will barely make money by selling products.
- Even if you focus on recruiting, you have to bring dozens to actually see some good income.
- It can be considered a pyramid scheme in disguise since it is based on a structure, not authentic product sales.
- Only 1% of people have success in the business.
- If you don’t meet the minimum requirements every month, you get demoted from an active member/distributor.
We want to believe there’s something we can save about Beautycounter, but there actually isn’t.
It is hard to deny these facts when the company itself discloses the information but continues to tell you, “you can be independent and earn a lot of money by doing this…” just because they want you to, at least, pay the initial $98 to clear your doubts about the company and opportunity they offer.
Well, we want to save you money and time, so don’t do it.
This Is How You Can Make Money
“If you don’t want me to invest in this, what can I do then?” We’re sure this is what is on your mind right now, and to be honest, we respect that.
If we’re telling you or more like helping you know if something works or not, the least we can do is also provide a solution or alternative, and we do have it.
Overall, we prefer business opportunities that don’t require much money, can be done from home or anywhere without struggles, and need zero physical products.
To this date, renting websites is the most viable method we’ve been using, and although we had to invest a lot of time and put quite the effort in the beginning, it started to pay off and still does even more.
This business opportunity is simply creating websites for clients you will find in a specific niche.
You have to build those sites and rank them on Google to start generating leads.
What are leads? The future customers of your clients will earn you money passively since you don’t have to do anything else after ranking the sites and relying on organic traffic.
Organic means free in this case, and to put you into context, it is all about not paying for ads in order to attract people to a website and have them take action in it.
The goal is for you to handle the process for the client, and every lead means a percentage or commission for you by the business or individual you’re working with.
Sounds way too good? It is as long as you learn how to do things.
A training program or course to know how things work is needed, and if you want to get started and enjoy this passive income, you’ll have to take the time to learn.
We know we pinched your curiosity, and you can satisfy by just reading the information here…
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