Beautycounter Review – Is Beautycounter A Pyramid Scheme & A Scam

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Beautycounter is about Clean Beauty.

The Clean Beauty movement is calling for tougher regulations on the personal care products industry.

When you meet the Beautycounter consultants, they will recruit you to join their movement, making the world a healthier place by promoting and selling safer products.

This sounds like a wonderful business opportunity.

Then, you discover Beautycounter is an mlm.

The words “scam” and “pyramid scheme” come into mind.

Is Beautycounter using the “living healthy lifestyle movement” to scam people?

Hello and welcome to our mlm review Coffee Talk.

It smarts for you to stop by and read this Beautycounter Review before joining the program.

In this review, you are going to find out the truth about the Beautycounter home-based mlm business opportunity.

I understand that you are looking for the opportunity to create a life dream of financial freedom.

But unsure if Beautycounter is a pyramid scheme or a legit opportunity.

Before signing up to become a Beautycounter Consultant, you might want to find out:

  • How to become a Beautycounter Consultant?
  • The cost to join Beautycounter.
  • What about Beautycounter compensations?
  • Can you make money promoting clean beauty products? And
  • Is Beautycounter a pyramid scheme and a scam?

After reading this Beautycounter review, you should be able to determine if Beautycounter a pyramid scheme or a legit profitable business opportunity for you to achieve your financial goals and dreams.

Please keep in mind that this business review is written based on my own experiences and opinions. I try to keep things fair and balanced in order to help you make the best investment decision.

I enjoy writing reviews of small business opportunities. I do not receive compensation or endorsement from the company that I review.

If you are looking for the best way to make money from home, check out the #1 home-based business opportunity which does not require recruiting or Face-to-Face selling.

Beautycounter Review Executive Summary

Name: Beautycounter

Competitors:
Younique, Mary Kay, Avon, Arbonne, Stella & Dot, Oriflame

Annual Revenue: 
$325 Million

Business Opportunity:
Multilevel-Marketing (MLM)

Initial Investments:
$98

Business Earnings Estimate: 
$961 Per Year.

Beautycounter Review and Analysis Summary:

  • Beautycounter is a privately held mlm company that manufactures, distributes, and sells clean beauty products. The company advocates for safer skincare and cosmetic
  • Beautycounter Consultants make money by promoting and advocating for safer skincare and cosmetic products as well as recruiting others to join their team.
  • According to the Beautycounter income disclosure statement (IDS), the company distributes its product through an mlm network of about 40,000 active independent consultants in the United States and Canada.
  • However, over 70% of consultants earned an average monthly income of $80 in 2018.
  • Based on the IDS, you can say that most Beautycounter consultants are not making money.
  • To become a successful Beautycounter consultant, you must have exceptional people and sales skills, especially Face-To-Face recruiting. This mlm opportunity is not suitable for people without such experiences.

There are other lucrative and inexpensive home-based business opportunities for you to compare and consider:
1 – My #1 Home Business Opportunity, or
2 – Affiliate Marketing.
Both do not require face-to-face recruiting and/or a monthly sales quota.

What Is Beautycounter?

Beautycounter is a multilevel marketing company that manufactures, distributes and sells safe skincare and cosmetic products which the company calls “Clean Beauty.”

Beautycounter was founded by Gregg Renfrew in 2011 with the mission to get safer products into the hands of everyone.

Beautycounter sells its products through an mlm network of over 40,000 active consultants operating in the US and Canada.

Beautycounter reported sales revenue of $325 million in 2018.

The company income disclosure statement (IDS) reported over 70% of consultants earned an average annual income of $961.

Your chance of making a good income with the Beautycounter business opportunity is low, less than 2%.

I strongly urge you to carefully consider and compare Beautycounter with other home-based business opportunities before investing.

You can use The Best MLM Opportunity to make a comparison.

How To Become A Beautycounter Consultant?

You will need a sponsor to become a Beautycounter Consultant.

If you don’t have a sponsor, you can visit the Beautycounter website to request for a local Consultant near you.

Your sponsor can submit your application with appropriate fees to launch your Beautycounter business.

Paying the registration fee is not enough. If you want to build a business and earn all commissions with Beautycounter, you must be an active and qualified consultant.

Active and qualified require a purchasing one Starter Set and meeting the monthly sales quota, which I’ll discuss in the next section of this Beautycounter review.

How Much Does It Cost To Join Beautycounter?

The cost to join Beautycounter is $98 for the Enrollment Kit, which includes sales materials, products, and a replicated Beautycounter website.

To earn higher commissions and start building a business with Beautycounter, you must purchase one of the Start Sets with the price ranging from $180 to $730.

Beautycounter review starter sets

Purchasing the most expensive starter set will entitle you to receive an additional 5% bonus commission on top of the retail commissions.

Besides the initial investment, there are expenses to stay in business and receive the commissions.

Beautycounter requires all Consultants to maintain an active and qualified status.

Active Beautycounter consultants are required to order at least $1,200 QV (Qualifying Volume) every 6 months, about $200 each month.

To qualified for downline commissions, Beautycounter consultants are required to generate at least $300 BV (Business Volume).

As you can see, the cost to join Beautycounter is not $98. You must also include the cost to become active and qualified.

You must pay attention to the monthly Active and Qualified Expenses.

Beautycounter is a Pay and Play business opportunity. If you want to earn, you have to pay.

Any consultant that fails to order the minimum amount required to remain active and qualified is not allowed to receive the bonuses and commissions from Beautycounter.

Remember, the expenses above do not include your time, the marketing costs, travel expenses, and gas.

The active and qualified expenses can destroy your business profit if you cannot resell the products. They become business losses.

Other home-based businesses, such as Affiliate Marketing, you earn the commission on every sale, no need to be active and qualified.

Do you know why Beautycounter requires consultants to be active and qualified?

Two reasons, to sell products and to avoid being classified as a pyramid scheme under the FTC guideline. (Check our MLM vs Affiliate Marketing for the discussion on the FTC MLM Guideline.)

Beautycounter Compensation Plan

The Beautycounter compensation plan is the document that outlines all the options for consultants to make money with Beautycounter.

I’ll provide a quick analysis of the Beautycounter compensation plan. To see it in detail, just download a copy.

As an mlm opportunity, Beautycounter offers you two ways to earn: Sell Products and/or build a team.

Make Money Selling Beautycounter Products

Beautycounter consultants can either purchase products at a 25% discount price to resell, or they can direct customers to purchase from the replicated website to earn a retail commission.

Beautycounter consultants also earn a Sale Bonus from 5% to 10% based on the Starter Set that they have purchased at the time of enrollment.

The consultant can potentially make up to 35% of the commission on each sale.

This sounds simple to make money, right?

Well, I did a quick search online and found a Nourishing Rosewater Mist selling for $9.

This item sells on the Beautycounter website for $30.00.

Beautycounter products review

Can you make a retail profit selling Beautycounter products on the market?

It will be a challenge.

Overprice is the reason why consultants have a hard time to make money selling Beautycounter products.

Make Money Recruiting Consultants

When you cannot sell products, the only option to make money is recruiting others to join as a Beautycounter consultant.

As long as you are active and qualified, here are your options to make money with Beautycounter.

Team Override Commissions

You can earn between 5% to 9% of your team Business Volume (BV) up to 4 levels. Below is the breakdown of the commissions.

Beautycounter pyramid team commissions

However, to receive the team override commissions, you must place an order of at least $150 PV, $250 PV, or $500 PV each month based on your leadership rank.

Frontline Business-Builder’s Bonus

You earn a frontline business builder’s bonus every time your new recruits get promoted to Senior Consultant, Manager, and Senior Manager.

  • The bonus is earned as follows:
  • Senior Consultant $25
  • Manager $50
  • Senior Manager $100

The way to earn this bonus is by encouraging your new recruits to increase their order from $100 PV to $250 PV each month.

Director Generation Override

Beautycounter offers 3% to 5% of generation override commission when you become a Director and one of your team members get promoted to Director.

However, to receive this commission, your team must generate at least $10,000 BV each month. Below is the schedule for Director Generation Override commission qualifications.

Beautycounter pyramid scheme director commissions

There are other leadership bonuses and incentives which require more purchasing of Beautycounter overpriced products to qualify. You can refer to the compensation plan
for more information.

As you can see, there are multiple ways to earn with Beautycounter. But to get paid, you must order more every month to remain active and qualified.

This is how mlm works. Ways to earn is not the same as qualifying to receive the money.

You can potentially earn nothing under the Beautycounter compensation plan because the costs to remain active and qualified might exceed the commissions received.

Can You Make Money Selling Beautycounter?

You cannot rely on the compensation plan to determine the Beautycounter consultants’ income.

Here’s what I mean,

The Beautycounter compensation plan offers POTENTIAL EARNINGS, not real income.

To determine Beautycounter Consultants’ actual income, you need a copy of the Beautycounter Income Disclosure Statement (IDS). This financial document provides ACTUAL INCOMES that consultants received from Beautycounter.

But, where can you get a copy of the IDS?

You can request one at the time of enrollment. The law requires Beautycounter to provide you a copy together with the compensation plan.

As a business review writer, I look to the actual incomes to advise clients on an investment.

If Beautycounter refuses to provide you a copy of the income disclosure statement, don’t join. This is a sign of a scam.

Here’s a copy of the Beautycounter income disclosure statement for us to use with this Beautycounter review.

Beautycounter Consultant Income

According to the Beautycounter income disclosure statement, over 70.5% of distributors earned an average monthly income of $80.

Before you get excited and concluded, “Yes, I can make money with Beautycounter!” I like to point out that this is the gross commissions, before taking out taxes and expenses.

What happens if you deduct the business expenses from this commission?

70.5% of Beautycounter distributors made no money.

What about the remaining 25.5%?

How many consultants really make money with Beautycounter?

We know that a consultant must order at least $200 a month to remain active and $300 a month to qualify for downline commissions.

Looking at the earnings table, only 5.3% of consultants earned enough to cover the $500 expenses above.

This financial report tells us 94.7% of Beautycounter consultants lost money operating their business. This number is higher if we deduct other business expenses and taxes.

After reviewing the income disclosure statement, I can tell your chance of making money selling Beautycounter is near zero.

Why I am so confident?

Because only a small group of consultants made money with Beautycounter.

How can you possibly achieve the top income group in the first few years?

Beautycounter business opportunity is not profitable.

Is Beautycounter A Scam?

Yes, it’s competitive to make money selling Beautycounter products. But Beautycounter is not a scam.

Beautycounter is a business opportunity. Every business has risks.

You are responsible to carefully research, study, and investigate Beautycounter before becoming a consultant.

If you join Beautycounter without doing the proper researches, then you cannot call Beautycounter a scam.

Reading this Beautycounter Review is a good way to learn the risks and rewards associated with this mlm business opportunity.

Many entrepreneurs hire professional financial analysts to evaluate business profitability and loss before investing.

As the owner of an Online Business Review, I have evaluated hundreds of mlm businesses to help investors identified and managed the risks.

As a business opportunity, Beautycounter is not a scam.

It is not easy to make a good living selling Beautycounter. This is not a profitable business opportunity.

Is Beautycounter A Pyramid Scheme?

Mlm companies are legit if they follow the FTC guideline.

Beautycounter might be legit under the law, but I don’t invest based on the laws.

I look at the compensation plan to determine if an mlm is a pyramid scheme.

I say Beautycounter is a pyramid scheme.

If you look at the Beautycounter compensation plan, Consultants are forced to purchase overpriced products to earn the commission.

The only way to sell Beautycounter products is by recruiting others to become a Consultant. The more people that you recruit, the more money you earn.

Consultants are the primary customers purchasing Beautycounter products.

Isn’t Beautycounter as a pyramid scheme?

Well, you don’t have to agree with me.

But, based on this Beautycounter Review, you must agree that the Beautycounter compensation plan was designed to sell the company products, not for you to make money.

You will not get rich selling Beautycounter.

Is Beautycounter Worth It?

If you join Beautycounter to make the world healthier with safer products, then it’s worth it.

But if you are joining to make money, then Beautycounter is not worth it.

However, the decision to become a Beautycounter Consultant is yours to make.

I like to ask you this question,

Do you know why you want to start a business?

To make money, right?

And to make money, we invest in a PROFITABLE business!

There are much better and less risky home-based business opportunities compared to mlm opportunities.

I recommend you look at Affiliate Marketing.

As an affiliate marketer, there’s

  • No need to purchase a starter kit,
  • No Personal Volume (PV) requirement,
  • No face-to-face sales,
  • No recruiting, and
  • The best part, you are working on the computer in your own home or anywhere you like.

Affiliate marketing is one of the most powerful methods to promote and build your mlm team. I recommend you read, The New MLM Affiliate Marketing to learn more.

One business risk that many online Beautycounter reviews rarely discuss is “Business Control”.

As a Beautycounter consultant, you have no control over your business.

You must obey Beautycounter rules and policies to remain in business.

What happens if Beautycounter goes out of business?

All consultants are out of business!

You can lose everything and nothing you can do about it. You have zero control over the mlm business.

You build a business to create long-term incomes. You want to build a system that generates money far into the future. Isn’t this the #1 reason you want to build a successful business?

If you want to be an owner of a lucrative and profitable business that generates six-figure passive income, then…

You should read my #1 recommended online business opportunity.

Can you write?

If your answer is “YES”, then why not use this skill to start your own highly lucrative online writing business, TODAY!

Let assume that Beautycounter is not a pyramid scheme or a scam.

Why you want to start a business when the chance of making money is so small, less than 1%.

It is almost impossible to achieve your financial dream with Beautycounter business opportunity. This is a fact!

There are much better home-based business opportunities compared to Beautycounter.

But the final investment decision is yours to make.

Thank you for participating in our Beautycounter review discussion.

Until next time.

You can share your own Beautycounter review here.

Coffee TalkI create OnlineBzDog to share my fascinating life, “The Writer Lifestyle,”… The care-free-drop-everything-travel-the-world lifestyle!
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