There are so many people trying to find new business and work opportunities that others are trying to make income as well take advantage of them, and pretty badly.
We are confident you know what we are referring to Scams, illegal pyramid schemes, and misleading offers that don’t work at all.
So many people promise you the world nowadays, and none of them delivers half of it, and those who do are very limited to a bunch we usually know.
As a result, you will see many falling into scams, losing their money but also a time in the process, and if you are wondering if we were ever some of those “many,” yes, you are right, we were.
Let’s be honest. We have fallen into a scam at least one, small or not, so we know you understand where we are trying to come from here. However, what is important is to determine which one of the offers available is not one of the many.
This is why we take our time to review several work opportunities, especially for those that offer an online income like Color Street.
This MLM company has been around for years, and since then, people have heard about it from time to time. Since you are here, this only proves our point.
However, is it all rosy like the make you look at it? This can be a tough question to answer since many factors are involved.
Thus, stay with us to review this MLM company and determine if it is another pyramid scheme or an MLM option you can trust.
Knowing the Business: What Is Color Street?
Well, you might not believe it, but this “color” word on the name doesn’t mean hair dyes or similar items. Instead, we will focus on nail polish strops and nail care items.
Color Street is a beauty company that focuses on selling the previous products, which it mentions to be high-quality and top in terms of durability and effectiveness.
However, what you must know about the business or company isn’t the fact of it selling products but the business opportunity it offers to others: An MLM system.
Making it simple, Color Street is an MLM (Multi-Level Marketing) company that sells the previous items but by allowing others to be their independent sales agents.
The company was founded by Fa Park, an immigrant from South Korea who arrived in the USA in the 1980s, in New Jersey, 2017.
According to his words, the idea of starting the company came from seeing a woman putting nail polish while being in the back of a cab due to the traffic. All this when he was also stuck in it when traveling by bus in Manhattan.
The company’s top product based on the idea he had is Color Street’s nail polish strips that don’t require blowing or any type of waiting for them to dry and can last for over nine days.
Something to keep in mind is that he filed his first patent in 1988, which means his idea came during his time in Manhattan when he moved to the country.
However, it took him all these decades until he finally developed the final product and company.
How Does It Work? Behind Color Street MLM System
Going back to what we were mentioning about MLM being the main structure of the company, this is how the business will actually work.
It is simple to understand for those who aren’t familiar with the mention, and we’re confident you are familiar with it.
MLM or multi-level marketing works in a way that you have to turn yourself into a member or distributor for the company. In this case, Color Street.
For this, you need to pay a membership to access the products, benefits, and sell.
The system is that you earn commissions for selling the products, but that isn’t really how MLM companies or structures allow you to make money (nor how they make it).
You will primary earn income by recruiting more people that will join as distributors or members as well.
Based on the new members you bring, you have to build a team and earn commissions based on the people they recruit and their sales products.
Each MLM company sets different commissions, fees, and income rates, so it depends, and you need to look at the plan and offer of the specific business.
To summarize all this, Color Street works with this system, and we are sure you associated it with a pyramid scheme already.
However, there’s a big difference between the two: MLM focus on selling real products and services, while pyramid schemes don’t involve any of that.
The question is, are those services and products worth your time for selling and following the structure implemented?
This is what we will answer soon.
Joining the Team – How Much Do You Need to Pay?
This is the big question that makes many people skip this opportunity or binge it to generate new revenue.
As we previously mentioned, you need to pay to become part of the team, and that can either be expensive or just a cheap opportunity you can afford. What’s the case for Color Street?
The company offers you two options: You can be a host or an independent stylist.
Depending on which one you choose, you might not need to pay to join.
The host option is the free alternative you have available; the issue with it lies in the benefits it offers:
- Free products.
But this is only when “host” a nail bar party, as the business likes to call it.
In our opinion, this is only a way to boost existing members since you need a ZIP code from one of them to host the parties, and the option isn’t that successful.
However, when it comes to being an independent stylist, which is how Color Streets calls its members, you will dive into the usual MLM company and structure.
You need to join this to earn commissions with your sales and be able to recruit more people, and the price is set for a starter kit the company has established.
This kit includes what you can sell as a beginner:
- 12 Sets of Manicure Strips.
- 1 Set of Pedicure Strips.
- 72 Testers.
- 40 Remover Pads.
- 100 Prep Pads.
- 2 Large Nail Files.
- 2 Nail Buffers.
- 60 Mini Nail Files.
- 50 Cuticle Sticks.
- 25 Catalogs.
- 25 Opportunity Brochures.
- Road to Success Booklet.
- Tote Bag.
The content of the kit can change whatsoever. This means that for the time you sign up, you might receive less for the same price or different products based on what the company establishes for the first business supplies.
That being said, the kit is worth $129 by the time of writing this, and according to the website, the products are valued at $250 in total as regular items for clients.
This is all you need to pay directly to join, but the company’s trick lies here: You need to sell about $300 in a month, but this is every six months. Does it make sense?
Basically, two times a year, you need to sell $300 worth of products in 30 days.
In addition, you also have to pay $9.95 per month to maintain the website the company provides open (to sell your products and recruit members) and stay active on the platform along with the previous condition.
If you don’t have your website, you cannot earn commissions or sell the products in the first place.
Finally, it is necessary to sell about $50 every month to stay active.
What happens if you don’t meet the terms? You will need to buy the products you weren’t able to sell.
When you consider this and do the math, you will notice that $129 for the starter kit is affordable, but you need to pay $50 each month, which takes the number to $729, AND you need to deal with the $300.
“You Can Make Money with Us!” – Can You…?
With all the money you need to spend and conditions, we can move on with every MLM company’s compensation plan.
As we mentioned before, all plans change based on the company, but they work around some principles: The marketing phase that compensates your sales and for helping others do the same; the leadership phase that pays bonuses for the sales team you have built, and the executive phase that rewards for mentoring emerging leaders.
Keep in mind this structure also works with ranks, and the higher you are, you receive compensation (a better one) and the fewer conditions you have to meet:
- Senior Stylist.
- Team Leader.
- Senior Director (SD).
- Executive Director (ED).
- Senior Executive (SE).
- National Executive (NE).
That being said, this is the compensation plan.
Retail commissions and income:
- If you generate or sell up to $599 in a month, you get a 25% commission rate.
- From $600 to $1.199 in retail sales per month, the commission goes up to 28%.
- From $1.200 to $1.799, it gets to 30%.
- Next, from $1.800 to $2.399, the commission rate is 32%.
- Finally, from $2.400 and more in monthly retail sales, you get a 35% commission rate.
Now, some changes have been done that focus lately on the retail commissions ranging from 25% to 35% for all ranks depending on the sales. However, there isn’t any explanation about this yet, so we have decided to stick to the regular plan so far.
Recruitment & Leadership Bonuses
The commissions and bonuses you receive are all based on the people you recruit, how much they sell as part of your team, and how many people they also recruit.
This is why the bonuses vary depending on the affiliated level and how much they sell every month.
Most of the enrolled bonuses involve 3% of what they make, and the same for leadership level bonuses based on a scale and the new distributors you bring.
Pros & Cons: Should You Invest or Not?
We know it is a lot of information to digest, so we will set this table so you can have a look at the benefits or disadvantages of joining this business opportunity.
- It isn’t a scam or pyramid scheme.
- It offers the website and products to get started without much initial investment compared to other businesses.
- The business is new but legal.
- Products are expensive and not high-quality at all (you can see the prices of the company’s products on the website).
- Many people consider it a bad business, and 80% of those sources are reliable, mentioning only 3% of the members make money (and we confirm this).
- Payments and commissions are low based on the amount of work involved.
- The fees and conditions make no sense.
- Unless you recruit members, you can’t climb in ranks for better benefits.
With this, you can see that some companies might be legal, but that doesn’t make them a good option due to the business model they follow.
In our opinion, Color Street isn’t a scam or pyramid scheme, but an MLM structure is the same but just with approval.
There are very few companies following this structure that actually work and offer fair conditions as well as compensations for the members, which isn’t necessarily based on recruiting others.
Therefore, we suggest you consider carefully joining this company since we don’t really recommend it.
It isn’t easy to make money, and most people end up buying the products to make ends with the company.
Thus, don’t expect this to be a reliable source of revenue most of the time.
Stop Thinking About Multi-Level Marketing Plans & Businesses
If you ask us what businesses are all about, we would definitely say collaboration, building relationships, and connecting with people. However, MLM companies or structures are not the right way to go, even when they look similar to what we mentioned.
It is not a good idea to rely on others for income or spend a large portion of your revenue just to be active and meet a specific line to make money.
You will also need to spend a lot of your time convincing people and making sure that the products are being sold.
It’s exhausting, and there are other options. So why choose Color Street when you can do better?
Suppose you don’t know what you should do and are willing to spend $300+ just because you don’t know where to start. Let us give you a great idea.
Local lead generation is an investment opportunity, but it doesn’t require a fortune. You don’t need to convince others to make it work and, the best thing is that you don’t have to work as hard later since it does require time initially, but you can enjoy passive income later.
Besides, you can do this online as well, and it is quick. But what’s the deal?
This idea is to build or create websites for clients (which you will contact directly or bring to your attention) and ensure that they rank well on Google so that organic traffic (free) can be generated.
This traffic will generate leads that are relevant to your interests and can be converted into potential customers/clients.
These leads must take action on the websites of the companies and often end up becoming clients.
It’s easy to understand: you bring customers for your clients and get paid for each lead that you generate.
It is hard work mixed with being able to relax. You do need to invest energy, time, and money at the beginning, but there are no membership fees or rates to pay, and the investment is not as large as you might think.
It’s not expensive to maintain the websites. You don’t need to do extra work, but you only have to check once or twice per month, and if you find clients, you can create as many sites as you like.
It is not easy, however, to acquire the knowledge and skills you require.
It takes effort and time, but a proper training course can deal with this.
This #1 training has been a success for us. You can view the outline and find out what local lead generation can do to you by clicking here…
Here’s Our #1 Recommended Online Business Model: