The sale of a saturated membership is the foundation of a diversity of online money-making schemes. What are they claiming? It is possible to earn money by reselling the pricey product kits of others.
Almost every distributor promotes it in hopes that they can recruit and make money off your sales. Yep, you read that right…
They want you to join so you can help make them more money.
It’s supposed to show you how to become a “6 figure network marketer,” but most members don’t make money promoting other products.
That’s just the truth…you won’t get rich off a small $6 commission.
And while I have to be honest for this review…
MLMs like BeautyCounter are a bit of a mixed bag. They CAN be a legitimate way to make money, but some have a reputation for literally ruining people’s lives – so it’s important to know what you’re getting since each one is unique.
Like most of my readers, you were probably introduced to this one via a friend or some influencer you trust online.
And it makes sense why so many people recommend them:
Making money outside of a 9-5 can be… life-changing, to say the least.
So in this article, I want to help you explore two things.
- If MLMs are actually a worthwhile business to pursue
- If BeautyCounter is a worthwhile MLM
Before that, I want to clear the air on something.
There are A LOT of people out there who bash all MLMs in any form. I am not one of those people.
Instead, I want to genuinely educate you about them so that you can make an informed decision on how to proceed.
If you’re unfamiliar with what MLMs actually do:
They’re businesses in which you pay money to a company for the ability to sell their products.
Sometimes the products are actually kind of decent (I still remember my mom throwing pampered-chef parties when I was younger).
Other times the products are really poorly made and come with a high price tag.
Typically, the only way to really make money is to get people (mostly friends & family) to sign up with you for a recurring subscription.
If the product is 100% legitimate & valuable, it’s entirely possible to get people to sign-up and continue paying you.
If the product is subpar, you’ll usually burn those bridges kinda quickly and end up with $0 coming in each month.
The biggest issue I’ve seen is that this puts significant stress on your personal relationships, as you’re reliant on selling to your “network.”
Think about it: if you KNEW that every time your friend Sally called, she’d be trying to sell you on one of her products… you’d eventually stop answering Sally’s calls.
Now, this doesn’t mean MLMs are outright bad… it means you need to know what type of MLM you’re getting yourself into before you sign up.
Again, some MLMs provide real value to people, but MOST don’t – and so in this article, I’m going to explore the case with BeautyCounter.
But before that, I want to ask you a question: what if there was a way to build actual recurring, semi-passive income?
- Doesn’t have inventory
- Doesn’t make you sell to your friends & family
- Doesn’t force you to recruit people onto your “team”
Something that you could make anywhere from $2,000 – $10,000 with consistently, month after month?
A stream of income that you can build as high (or low) as you feel like building it?
If that sounds interesting, you might want to think about becoming a Digital Landlord.
If you wanna see what BeautyCounter looks like on the inside, keep reading.
BeautyCounter MLM Review: What Is BeautyCounter?
BeautyCounter is a U.S.-based multi-level marketing organization that sells skincare and cosmetics.
It was founded by Gregg Renfrew in 2013.
BeautyCounter is a founding member of the Environmental Working Group’s verification program, aiming to make toxic-free consumer goods more easily identifiable. The company compiled a “never list” of allegedly harmful chemicals not included in their products.
BeautyCounter MLM Review: How Did BeautyCounter Start?
It all began with the film “An Inconvenient Truth.”
After seeing the video in 2006, Gregg Renfrew, CEO, and creator of BeautyCounter, was sure that her next company would be one that provided cleaner, less ecologically dangerous goods to the market.
In 2011, Gregg learned that only 30 ingredients are prohibited in personal-care products in the United States. (For comparison, the EU prohibits 1,400).
So she founded her BeautyCounter business to transform the beauty industry and develop clean, high-performing quality skincare and makeup beauty products while also fighting to change the laws governing what can and cannot be used in products so that everyone can enjoy safer beauty.
BeautyCounter MLM Review: What Are The BeautyCounter Products?
Their products are categorized into 3 groups:
– treatments & masks
– toner & mists
– eye & lip care
– face oils
– sun protection
– men’s skincare
– makeup removers
Bath & Body
– body wash & scrubs
– hair care
– sun protection
– baby & kids
– hand care
– men’s care
BeautyCounter MLM Review: Where Are BeautyCounter Products Manufactured?
Except for the eye pencils made in Mexico, almost everything they offer is made in the United States.
BeautyCounter MLM Review: Are BeautyCounter Products GMO-Free?
No. The company claims that it cannot say with certainty that its products are altogether GMO-free.
BeautyCounter says that in many cases, they are unable to obtain a certification in any way, and in other cases, they may choose to use an ingredient that is not likely to be GMO-free.
BeautyCounter MLM Review: Are BeautyCounter Products Petrochemical Free?
These ingredients have been connected to health issues, including sodium Laureth sulfate and polyethylene glycol, propylene glycol, toluene, MEA, DEA, or TEA, which BeautyCounter claims to avoid.
However, some oil-derived ingredients are safer, and most plant-derived ingredients have been processed with oil-derived chemical ingredients at some point (though none are left in the final products).
This is why they don’t claim to be completely free of petrochemicals.
BeautyCounter MLM Review: Are BeautyCounter Products Preservative Free?
According to the MLM company, cosmetics containing water or aloe require preservatives to keep the product from being contaminated.
The company assures its customers that they tested a variety of preservatives (none of which were on their “Never List”) while developing their skincare line before settling on the ones they use now.
They said they chose preservatives that are effective at low concentrations, and they use different preservatives for different products based on their performance.
(For example, sodium may work well in one product but not in another so they may substitute phenoxyethanol or potassium sorbate).
BeautyCounter MLM Review: Are BeautyCounter Products Clean And Safe?
They aren’t the most natural product.
They may be more ecologically friendly, but BeautyCounter products still include chemicals. Their products include a wide range of synthetics, but only those demonstrated to have little or no impact on the human body.
A comparable BeautyCounter product to another clean brand can be found, but the ingredients of BeautyCounter products are twice as long.
I believe they use more synthetics to extend the shelf life of their products, which makes sense, but some people prefer products with fewer and fewer synthetics. This is purely a matter of personal preference, but it’s worth noting for this BeautyCounter review.
Dermatologists warn in a Reuters Health report that “clean” skincare products free of certain chemicals are not always safer than their traditional counterparts.
In a news editorial in JAMA Dermatology, the authors write that arbitrary descriptions of products as “clean” or “natural” are not regulated, and many of these products contain high concentrations of ingredients that can cause irritation and allergies.
Dr. Bruce Brod of the University of Pennsylvania in Philadelphia, who co-wrote the editorial, comments, “We wanted to shed light on the fact that the ‘clean beauty’ movement is more of a business model and marketing tool that plays on the trend of people wanting to use natural rather than synthetic products right now.”
In a phone conversation with an interviewer, Brod said, “Instead, we need to take a more balanced approach when choosing which products to use on our skin.”
Natural skincare sales increased by 23% to $1.6 billion between 2017 and 2018, accounting for about a quarter of the $5.6 billion in annual skincare sales, according to Brod and co-author Dr. Courtney Blair Rubin, a dermatologist in Philadelphia.
BeautyCounter MLM Review: Is BeautyCounter A Legit Company?
So, time for the $1,000,000 question: is BeautyCounter a scam?
No, not technically. They aren’t going to run off with your money and not give you what you paid for. It’s 100% possible to make money with this program.
That being said, it’s not nearly as simple as they want you to think it is.
There’s A LOT of work to be done upfront and no guarantee that you’ll be successful. The commissions are also fairly small.
Don’t get me wrong; I’m all for doing hard work now so that I can reap the benefits later.
But if you’re going to work really hard for 3 months, and your reward is a $100 check… it’s not really a great opportunity.
If I’m gonna do that, I want the rewards to be HIGH and virtually guaranteed.
I’d rather put in that same 3 months of work (in my spare time) & build a handful of Digital Rental Properties that each product produces $500-$2,000 checks every single month afterward (AKA recurring income).
And the cool part is that you can do it in a lot less time than 3-months (I personally did it in my first 2 weeks of being a Digital Landlord).
Unlike with MLMs, you can do it from anywhere in the world, so it’s a genuine “laptop-lifestyle” business.
All you need is an internet connection.
Some of my friends are Digital Landlords that run their 6-figure businesses from:
- Camping trips at national parks
- Beachfront in Hawaii
- On the road in a camper van (with a pet pig!)
They focus on living an enjoyable life first, and focus on income second. All thanks to this program.
They can take weeks or months off, and money keeps rolling in.
Living happily is the top priority.
If the thought of living perpetually at your dream vacation spot interests you, being a Digital Landlord might be for you!
BeautyCounter MLM Review: Is BeautyCounter MLM A Pyramid Scheme?
What Is A Pyramid Scheme?
Participants in the classic pyramid scheme try to make money solely by recruiting new members, usually where:
- The promoter guarantees a high rate of return in a short amount of time.
- No genuine product or service is being sold.
- The main focus is on recruiting new participants.
A pyramid scheme frequently advertises on social media, the Internet, company websites, group presentations, conference calls, YouTube videos, and other platforms.
Promoters of a pyramid scheme may go to great lengths to make the scheme appear to be legitimate multi-level marketing (MLM) opportunity.
On the other hand, the fraudsters use money from new recruits to pay off earlier-stage investors.
The schemes grow too big at some point, and the promoter cannot raise enough money from new investors to pay earlier investors.
Below are some of the characteristics of a pyramid scheme:
- Emphasis On Recruiting – A pyramid scheme focuses solely on recruiting others to join the opportunity for a fee. This is a red flag if you are paid more for recruiting others than selling products.
- No Genuine Product Or Service Sold – If what is being sold as part of the business opportunity is difficult to value, such as so-called “tech” services or products like mass-licensed e-books or online advertising on little-used websites, proceed with caution. To make it more difficult to prove that a company is a bogus pyramid scheme, some fraudsters choose fancy-sounding “products.”
- Promises Of High Returns In A Short Period – Be wary of promises of quick cash. It could mean that commissions are paid from new recruit funds rather than revenue generated from product sales.
- Easy Money Or Passive Income Online – There is no such thing as a free meal. You may be involved in an illegal pyramid scheme if you are offered money in exchange for doing little work, such as making payments, recruiting others, or placing online advertisements on obscure websites.
- No Demonstrated Revenue From Retail Sales – Request documents, such as financial statements audited by a certified public accountant (CPA), demonstrating that the company earns money from sales of its products or services to people outside the business. In general, legitimate MLM companies make money by selling products rather than recruiting new members.
- Complex Commission Structure – If commissions are based on products or services that you or your recruits sell to people outside the MLM business, you should not be concerned.
Is BeautyCounter A Pyramid Scheme?
To give you an idea of what a pyramid scheme looks like, I used information from Investor.gov (the official website of the U.S. Securities and Exchange Commission).
So, by definition, it isn’t one.
Can You Really Make Money As A BeautyCounter Consultant With Their Compensation Plan Model?
You start as a consultant with a 25% commission, but that proportion rises to 35% based on how much product you sell each month.
But let’s make the compensation plan even simpler to comprehend. You can earn money through:
- Retail Commissions
- Personal Sales Bonus
- Override Commissions
- Frontline Business Builder Bonus
There’s a lot that comes along with Network Marketing that many people struggle with.
In fact, check out my Top 5 Reason Why Most Network Marketers Fail.
The bottom line is that the only way to get paid more is to recruit people, build a team, and assist them in selling.
So, yes, you can certainly make money with network marketing, but if you’re gonna put in the amount of grueling work to become do this business (which, trust me, isn’t easy), you might as well bring in some REAL money.
The program that helped skyrocket my online business to $40,000+ per month teaches some of the same marketing skills but shows you how to monetize them in a much, MUCH more profitable way.
BeautyCounter MLM Review: How Much Does It Cost To Become A BeautyCounter Consultant?
You start as a consultant with a 25% commission, but that proportion rises to 35% based on how much product you sell each month.
This includes a Personalized Website available to the public for accepting orders and enrollments and access to a full-featured mobile app and Behind the Counter functionality (which allows Consultants to manage their sales and team members, take advantage of training and tools, and more).
Consultants also have access to onboarding and development training and coaching and mentoring from BeautyCounter.
Digital Enrollment Kit (Required)
- Price: $50
- Personalized Website
- You’ll have access to all of the selling tools you’ll need (Behind the Counter)
- A platform for Customized Training
Purchase A Starter Kit.
Starter Kit Options are:
- Flawless In Five – $135
- Counter+ Booster – $158
- Skin Care Basics – $290
- Skin Care Best Sellers – $545
- Deluxe Skin Care – $730
BeautyCounter MLM Review: Do BeautyCounter Consultants Have To Pay An Annual Fee?
Accounts have to be renewed annually. The Consultant platform, which includes a Personal Website, mobile app access, and Behind the Counter, among other features, is included in this renewal.
Do I Have To Keep An Inventory Of BeautyCounter Products As A BeautyCounter Consultant?
For BeautyCounter Consultants, there are no inventory or purchasing minimums to be aware of. Customers and members may make purchases directly with BeautyCounter and have them dispatched straight from the warehouse.
When Clients and Members shop directly with BeautyCounter online or in their retail stores, a BeautyCounter Consultant may be eligible for sales credit (they must specify you as their Consultant at checkout).
You can choose to purchase an assortment of their products to gain first-hand experience and share them with others.
At the time of your enrollment, you can purchase specially curated Starter Kits at a significant discount. A risk-free return policy also covers all purchases at BeautyCounter.
Do I Have A Monthly Sales Quota To Sell As A BeautyCounter Consultant?
Selling to Clients and Members is required to advance to Consultant leadership and earn overrides, sales bonuses, and monthly volume targets.
To maintain active status, one must accumulate at least 1,200 in Qualifying Volume (QV) every six months.
Personal orders, as well as sales to Clients and Members, are included in this figure. Consultants who do not meet the Consultant activity requirement will receive a one-year membership in the Band of Beauty program.
Band of Beauty membership is a program that rewards loyal customers. For the amount of $29 a year, you get a lot of benefits. Free shipping on orders of $100 or more is one of them.
BeautyCounter MLM Review: Pros And Cons
I like the fact that they don’t have an auto-ship system, unlike other MLM companies.
And unlike other MLM companies, Consultants are not required to maintain a physical inventory of products.
Customers can just place their orders online and have the products shipped directly to them from the company warehouse.
BeautyCounter boasts “stricter guidelines and regulations to shift the personal-care industry away from using harmful and questionable ingredients.”
But problems arise when BeautyCounter and its distributors link such statements to the MLM’s business opportunity. According to the 2019 BeautyCounter income disclosure statement of the MLM company, the vast majority of BeautyCounter consultants make little to no money or lose money in their business.
BeautyCounter prides itself on its commitment to honesty and transparency.
But it seems that neither the company nor its consultants are honest or transparent when it comes to its business opportunities. If BeautyCounter truly wanted to be transparent, it would reveal how much the average BeautyCounter consultant makes in their marketing pitches.
According to BeautyCounter’s 2019 income disclosure statement, new consultants spent an average of $440 last year to join the business opportunity. A mandatory $98 enrollment kit (or $50 for a digital kit) is required, as is a starter set of BeautyCounter skincare ranging in price from $135 to $730, which the income disclosure statement states are optional (but the BeautyCounter website suggests it is required as STEP 2 in joining the MLM); and an annual $50 renewal fee.
After that, BeautyCounter muddles the data by only providing distributors’ average monthly earnings.
The problem with averages is that if 99 consultants earn nothing and one earns $1 million, the average earnings for those 100 consultants are $10,000, even though the typical earnings for consultants would be zero (though your chances of earning $1 million in any MLM are far worse than 1 in a million).
What Is My Top Recommendation For Making Money Online In 2022?
I’ve personally tried all of the major online business models:
- I’ve sold fidget spinners through Amazon FBA
- I’ve drop-shipped a toilet bowl putting green on Shopify
- I’ve sold women’s health supplements via Clickbank affiliate marketing
And I made money with all of them, so trust me when I say: there is no “perfect” business model.
I’ve also been on the other side of old friends trying to sell me their fancy new MLM products.
That being said, my #1 recommendation for making real money online is, hands-down: being a Digital Landlord.
Whether you’re a complete newbie or you’ve been around the block before but have never had that “big win” to propel you forward, becoming a Digital Landlord is for you.
Time: If you’ve got a spare hour or two each day, you can do this. If you want to drop everything and go all-in, you can do this. More time obviously means faster results, but even putting in a few hours per day is enough to see real success.
And because of that flexibility, you don’t need to trade your time for money. Once the income starts, it’s recurring.
That means you can take a month off, travel the country, pursue a passion project, chill on the beach, or charter a boat across the world.
But you can only do that once you’ve created an income stream that doesn’t require YOU to be there all day, every day.
Ownership & Control: With MLMs, you don’t really “own” anything – everything belongs to the MLM.
If you read the contracts, they can kick you out at any time or change your commission at any time (it’s happened in a few high-profile MLM cases recently).
Why pour your soul into a business that could be taken away from you at the drop of a dime?
When you’re a Digital Landlord, you literally own all of the assets, which means you have ultimate control.
Big Margins: With MLMs, you’re often going to have really slim margins. That means you need to have a VERY large network to make serious money. This usually entails spending A LOT of money on ads and other methods for recruiting members.
Being a Digital Landlord, your profit margin is nearly 100%. Watch here to learn how.
These Digital Rental Properties are worth (at a minimum) $500/mo in semi-passive income. And each time you create another one, your income increases, and the effort put into creating the next property decreases.
Best case scenario, you have properties bringing in over $3,000+/mo on auto-pilot.
It’s Effectively Copy-Paste: Here’s my favorite part: once you have your first Digital Rental Property up, you can literally copy-paste another version of it and find another willing “renter” in a few days. DOUBLING your income doesn’t get much easier than that…
If you wanted to double your income with an MLM, you would need to sell twice as much inventory. And I can guarantee you that’s a lot harder than a few clicks & a phone call.
You’re Helping REAL People: My biggest gripe with MLMs is that you’re likely going to ruin your personal relationships.
The MLM may have convinced you that you’re actually helping people, but it’s often not really true.
But when you’re a Digital Landlord, you’re helping solve REAL problems that people are ASKING for help with:
Small local businesses around the world need one thing: customers. Without them, their business would fall apart. If you can provide those customers, they’re going to be really happy – and they’re going to pay you for it.
You’re helping a struggling mother or father put food on the table for their families, put their kids through college, or simply live life a little bit more comfortably.
Having this type of impact on the world is what will help you sleep soundly at night.
So, the rest is up to you. You could keep looking at other MLM programs like BeautyCounter, which might make you money 12 months from now.
You could keep researching and researching for the next few months (or few years), never making a concrete decision.
OR, you can look deep inside, think about those dreams, hopes, & desires, and make the decision to ACTUALLY make it happen, just like it has for thousands of other students before you.
Making a fortune while actually helping real people that need it.
If this sounds like you, click here to see how it all works.