If you’re wondering whether BeautyCounter is a good business opportunity or a pyramid scheme scam, then this BeautyCounter review is where you should be.
BeautyCounter in a nutshell
A few days ago, I received an email from someone who wanted to get my thoughts on the BeautyCounter business opportunity. They wanted to know their chances of being successful as a consultant of the company.
Even though I have a long list of companies I’m yet to review, I had to push this company all the way up because I did a simple Google search for info on the BeautyCounter business opportunity and nothing substantial turned up.
The whole point of this website is to provide detailed information to people looking at business opportunities and for companies like BeautyCounter that barely have any information online, I would be willing to reshuffle my review list.
At this point, I’d like to state that I’m not in any way affiliated to BeautyCounter. Also, I wouldn’t want you to misconstrue the decent score I’m giving this company to mean that it will be easy to make money. In fact, I can tell you for sure that it will not be easy. I’m giving the company this score because of the way they have structured the business opportunity.
If you’re reading this review because a BeautyCounter consultant came up to you to talk you into the opportunity, you’re smart and I must commend you for doing your homework first.
This review contains a lot about the company from a marketer’s perspective and I will be telling you a lot of things BeautyCounter consultants wouldn’t tell you.
I understand that some people might not want to sit through this long detailed review due to a lack of time or patience. If you’re one of such people, please sit tight for a minute and read through a point-form roundup of some important things to know about the company:
- BeautyCounter is a real company that sells beauty-related products
- The company operates a Multi-Level Marketing (MLM) business model
- To become a consultant of the company, you need to pay $85 for an enrolment kit
- After every 12 months, you will have to pay a $50 renewal fee to remain a consultant
- In order to remain an active consultant, you must achieve at least 1200 QV every six months, 250 of which must be new volume
- If you fail to meet this quota, they will “demote” you from consultant to a regular member
- Consultants can earn up to 35% commissions on product sales
- Consultants do not have to purchase inventory
- The company’s preferred method of making sales and/or recruiting is by organizing socials
- Based on the extent of training they offer, this is not a work-from-home opportunity.
Overall, I think BeautyCounter is a pretty decent MLM company. Though far from perfect, there are many things I admire about the business structure of the company.
One of the problems I have is the lack of in-depth training on how consultants can get leads to sell products to. It’s easily the biggest problem I have with most MLM companies actually.
My favourite system would teach you how to get leads when promoting absolutely anything, including BeautyCounter products if you want. It’s FREE to join too! 🙂
What is Beauty Counter?
Beauty Counter is an MLM-based company that sells beauty-related products. The company was founded in 2013 by Gregg Renfrew.
Beauty Counter has a variety of products which fall into the following categories:
- Bath & Body
- Family (baby, kids, etc)
Personally, I have problems with MLMs that offer health and beauty-related products.
These are products that people ingest or put on their body. These things get absorbed into your blood stream and they could cause some real damage to some people.
Anyone that has $85 to get an enrolment kit can actively promote these products that are capable of wrecking havoc in some people’s lives. This does not sit well with me and that’s why I have a problem with just any distributor promoting health and beauty-related products.
The company was inspired by the lack of regulation in the beauty industry. The company’s aim is to offer products that are safe for everyone to use.
Whether the company has managed to achieve this or not is up for debate but some consultants may have bought into this vision, while others have not and are only in to promote products to make money.
Consultants are not professionals but the biggest problem is that they promote the products as though they are professionals.
Another thing I don’t like is how many MLMs offer health and beauty-related products. Play around this website and read our reviews on Arbonne, Rodan and Fields, Avon and many others. They are within the same niche even though they claim to offer different things.
From a consultant’s perspective, you can expect to run into a few issues as well.
The lotion I always buy is the 725ml Vaseline Intensive Care and it goes for about $5 or less. Would a Beauty Counter consultant be able to persuade me that my lotion is dangerous and I should get Beauty Counter’s 130ml Body Butter lotion for $44 instead?
Not a chance!
The products might be great and their concerns about regulation might be valid, but would that be enough to make someone who spends $5 on a cream spend $44? I think not. Now, you might make a few sales here and there. But it’s a huge stretch to expect to make a substantial income from promoting these products.
Fortunately, it doesn’t cost a whole lot to become a consultant and they basically give you 6 months to get your business up and running. This way, you don’t lose a whole lot if you’re unable to make sales.
The truth is there are a lot of people that purchase expensive beauty products but it will be difficult to find them if you limit yourself to just organizing socials. Beyond the scope of what Beauty Counter teaches you, you could find countless targeted leads using the internet.
The Business Opportunity
We have established that, based on the training and resources the company provides you with, it would be difficult to make anything substantial just by promoting the products.
If you are having a hard time promoting the products, that leaves you with the other option you get in all MLMs: Recruiting! This is where the real business opportunity lies.
The cycle is typical: Host a social and invite family and friends. Do a presentation describing the vision of the company and how they could change their lives by becoming consultants. Keep your fingers crossed and hope that those that do sign up still go on to recruit other people. These other people now recruit others and so on.
For those that do not sign up, you could get them to host socials at their place. For every sale or recruitment that takes place during the social, the consultant gets the credit while the host gets some nice rewards. A win-win for both the consultant and the host.
If you choose to follow the path of recruiting people, here are some of the problems I reckon you would face:
- If your family and friends join and they are able to get others to join and so on, that would be great for you and you wouldn’t have to do anything else. But the reality is it hardly ever works so smoothly. You are going to need a real system of finding regular leads.
- Recruiting is necessary to make a huge buck in this business but unfortunately, it is not sufficient. You have to recruit people and make sure those recruits remain with company. How do you keep them? By making sure they either recruit more people themselves or they make retail sales.
The Cost of being a Beauty Counter Consultant
To become a consultant, you need to invest $85 on an enrolment kit. There is a $50 renewal fee after every 12 months. These are the only mandatory costs to being a consultant.
However, the company’s preferred method of promotion is via socials/parties. Since the enrolment kit does not contain product samples, you might have to purchase a starter set. Your chances of making a sale at a social without products are close to non-existent. These starter sets range from $249 to $749.
Therefore, the real cost of getting your Beauty Counter business up and running is at least $334.
The Compensation Plan
**I do NOT endorse this video. I am sharing this solely for educational purposes.
Let’s get past the semantics and learn some hard truths:
- None of numbers in this video would matter if you are not able to get leads to your business
- To remain an active consultant, you must achieve 1200 QV within every 6-month period, with 250 of those being to new people
- Your rank and earnings are dependent on the sales volume of your downline
What I liked
- The company sells real quality beauty products
- You can choose to run your business web-based if you know how
- They basically give a 6-month grace period to run their business without any real pressure
- Customers could purchase products directly from the company’s website. This shows they are not entirely reliant on consultants (good for the company, not so good for consultants)
- The owner of the company is actively involved in trying to regulate the beauty industry
What I didn’t like
- The products are expensive and this is never good for face-to-face marketing
- You could make customers aware of the products but they could simply bypass you and purchase directly from the website. If this happens, you don’t get any credit
- There is no in-depth training on how to get leads
- To get your business up and running could be quite pricey if you choose to purchase a starter set
- To give yourself the best chance of being successful, you might have to invest on things like paid advertising and proper marketing training and these things make the opportunity even more expensive
- As generous as the 6-month grace period is, if you fail to meet the requirements, you will have to purchase 1200 QV worth of products to remain active
- I couldn’t find an income disclosure statement for the company
Is Beauty Counter a Pyramid Scheme?
I wouldn’t go as far as calling Beauty Counter a pyramid scheme because they offer real products and there are a lot of things I admire about the company’s structure. However, there are many flaws in the opportunity as well.
The company does not exploit consultants by forcing them to purchase products monthly and the 6-month grace period to achieve 1200 QV is among the most generous among MLM companies. At first glance, I was pleased to see that 250 QV must be new volume but a sale to a recruited consultant would count as new volume, and this is one flaw for me.
In my opinion, you are very likely to find yourself recruiting more than making sales due to the price of the products. This almost always indicates a pyramid scheme.
Since the company did not publish an income disclosure statement and I do not know how much of their revenue comes directly from customers, I am willing to give them the benefit of the doubt and say Beauty Counter is not a pyramid scheme.
Could you make money as a Beauty Counter consultant? My answer is yes. Would I recommend it? No, because for all the great products and good vision of the company, there are a lot of flaws that bother me and will bother you if you become a consultant.
The fact that Beauty Counter is a fairly new company might be good from a recruiting point of view, but it also comes with a lot more uncertainty than other MLM companies that have been around for a lot of years.
Anyway, if you know what you are doing as a consultant and you know how to reach out to people, the structure is set at Beauty Counter to let you succeed.
If you would love to build a successful online business without having to recruit, hard-sell or even leave the comfort of your home, check out the system that allows me to do just that.
Product Name: Beauty Counter
Price: $85 for an enrolment kit
Founder: Gregg Renfrew
Overall Ranking: 55/100