Is Beautycounter a Scam? Read This Beautycounter Review Before You Sign Up
It's review time once again, and today, a company called Beautycounter is up on the hot seat.
Maybe you saw Beautycounter's advertisement while scrolling through your Facebook newsfeed. Or maybe your friend back in high school just up and called you to introduce you to this "new and exciting opportunity."
No matter how you came across this opportunity, you can trust us to give you some info about Beautycounter's background, its products, its compensation plan, and more.
You'll also learn whether Beautycounter is a legit company or just another scam.
Ready? Let's start!
Price to join: $29 for members; $98 for consultants
Do I recommend? No
Summary: Beautycounter is a new cosmetics and personal care products company based in Santa Monica, California. It has an MLM business model (no surprise there), but what makes it different is its claim that it only uses safe and non-toxic ingredients in its products.
As mentioned, its business model is network marketing or MLM. The income is pretty decent, but the majority of its consultants do not earn much. Read our Beautycounter review below to learn if this is the right opportunity for you.
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What Is Beautycounter?
Beautycounter offers a diverse selection of beauty and personal hygiene products. These include skin care products, makeup, and bath and body products. This company also offers personal care products for men.
It's just another makeup and personal hygiene products, you might say. But what sets Beautycounter apart from its rivals is the ingredients of the products it offers. The company was created thanks to its founder, Gregg Renfrew's advocacy. Ms. Renfrew discovered that the products she was using contained harmful ingredients.
According to its website, Beautycounter products are safer because they do not contain toxic chemicals. It came up with its own Never List™, a list where all harmful or questionable ingredients are compiled. This list includes an assortment of chemicals restricted by the European Union, and are therefore banned by Beautycounter.
Some of the ingredients include benzalkonium chloride, butylated hydroxy anisole (BHA), butylated hydroxytoluene (BHT), EDTA, formaldehyde, and hydroquinone.
Other chemicals banned by Beautycounter also include oxybenzone, parabens, phthalates, retinyl palmitate, toluene, triclosan, and triclocarban.
You can read the list of ingredients deemed safe by Beautycounter here.
Beautycounter was founded in 2013, but it was only in 2016 that the business began its operation. It is headquartered in Santa Monica, California. Founder Gregg Renfrew serves as its CEO. Bryan Wolf, Candice Kislack, and Margot Brunelle Fooshee are part of its management team.
The Better Business Bureau granted it an A+ rating.
Customers can purchase its products online, or through a registered independent consultant. As of the moment, Beautycounter is open to Canadian and US consultants only.
Is Beautycounter A Pyramid Scheme?
The good news is Beautycounter is not a pyramid scheme. The line between MLM and pyramid scheme is sometimes blurred, but let me reassure you that Beautycounter is 100% legit.
So, why is Beautycounter a legit business opportunity and not a pyramid scheme?
First, it has a wide selection of beauty and personal care products that consultants can sell. Moreover, the products seem to be of high quality and are safe.
Although Beautycounter encourages consultants to build their team, it is not the consultants' priority and recruitment on its own is not incentivized. Consultants earn commissions only when their team members hit a certain sales quota.
Further, Beautycounter has an A+ rating with the Better Business Bureau. That stellar rating is one of the indications that a business opportunity is not a pyramid scheme.
One of the best indicators that an opportunity is not a pyramid scheme or a scam is the presence of an income disclosure statement. But that doesn't mean that success is guaranteed in this type of business venture.
Take a look at Beautycounter's income disclosure statement below.
You'll see that 70% of Beautycounter's resellers belong to the consultant rank. Their average monthly income is $80, while the maximum monthly income can reach up to $760. If you're lucky, you can earn an average of $961 every year.
There are consultants lucky enough to reach the rank of executive director and managing director. They had an average annual income of $101,455 and $280,766 respectively. But the catch is there are only a handful of people who managed to hit that number.
But not everyone is lucky, so you can't make Beautycounter your main source of just yet. If you're just starting out as a consultant, you can only rely on your Beautycounter gig as a secondary source of income only.
How Much to Join Beautycounter?
You can join Beautycounter either as a member or as a consultant.
To become a Beautycounter Band of Beauty member, you need to pay a one-time fee of $29. Band of Beauty members enjoy free shipping on orders worth $100 and 10% credits on all applicable orders.
You will also get a welcome gift when you order $50 worth of products upon enrollment. You'll also get member-only offers from Beautycounter.
To join Beautycounter as a consultant, you must pay $98 as an initial investment. This comes with a Beautycounter consultant enrollment kit which includes your personalized Beautycounter website, back office, training materials, and marketing collaterals.
You will be billed a $50 Business-Builder renewal fee billed every year on the day you signed up as a Beautycounter consultant. It will be the payment for the maintenance of your Beautycounter website and other tools, such as tracking, business reports, and more.
Becoming a Beautycounter consultant allows you to purchase products at wholesale price (25% off the retail price). You can also earn commissions on retail sales (up to 35%) and earn other commissions and bonuses. Other incentives include paid vacations and an invitation to exclusive company events.
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What is Beautycounter's Compensation Plan?
Make money by selling Beautycounter products, and earn up to 35% commission on every skincare, makeup, or hygiene products you sell. Build your downline to earn override commissions from sales made by your team.
Beautycounter consultants are ranked as follows.
Take a look at Beautycounter's compensation plan below. Note that unlike other MLMs that offer five or more ways for you to get paid, Beautycounter only has four.
Retail commissions are paid based on the personal volume from sales made by clients and members. You'll get 25% of retail commissions from sales from your members in your downline and your clients.
Personal Sales Bonus
This bonus is also based on personal volume from your member and client sales. Earn 5% sales bonus when you get 750 to 1,499 total personal volume.
Earn 7% sales bonus when you get 1,500 to 2,999 total personal volume.
Earn 10% sales bonus when you get more than 3,000 total personal volume.
Starter sets are not counter as PV.
Earn a commission every time a member of your downline makes a sale. For example, managers earn 9% commission for every 250 qualifying volume and 1,250 minimum business volume made by their team member.
Frontline Business Builder Bonus
Help your team members reach their target to earn the frontline business builder bonus.
Keep in mind that you need to reach 1,200 Qualifying Volume every six months to keep your consultant status active. You will be assigned as a Band of Beauty member if you do not meet this criterion.
What Products Does Beautycounter Offer?
You'll be overwhelmed with the sheer number of skincare products offered by Beautycounter. It offers moisturizers, sunscreen, exfoliant, cleansers, and makeup remover. If you want to sell something more unique, Beautycounter also offers lip conditioner, facial mask, and mist. It also sells day and night creams to complete your regimen.
The price of these skincare products ranges from $17 (the cheapest) to $188 for a complete skincare regimen.
Go for an all-natural no-makeup daytime look or glam up for an evening date with Beautycounter's diverse line of makeup products. Get an even and flawless skin tone with Beautycounter's range of face makeup, including tinted moisturizer, foundation, powder, and concealer.
If your customers like a little color, then you can offer them Beautycounter's eyeshadow palette, lipstick, blush, and bronzer. Complete your makeup kit with the company's range of makeup brushes and makeup removers.
Bath and Body
Beautycounter offers different bath and body products for different types of customers. These products include moisturizers, body balms, body scrub, and body butter. You and your customers can also purchase cleansing bars, sunscreen lotions, lotion, body wash, and hand creams.
Price ranges from $15.30 for a single hand cream to $188 for a complete set.
Who says good personal hygiene and great skincare and body products are just for women? Beautycounter has released its hygiene products for men. These products include exfoliating cleansers, face lotions, toner pads, and shaving cream. It also offers conditioning beard oil, body bar, and body wash.
Price ranges from $16.15 for a single charcoal body bar to $30.60 for clarifying toner pads. Packaged in utilitarian gray.
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What I Like About Beautycounter
Here are the things I like about Beautycounter.
The company only uses safe ingredients
One of the best things about this particular company is its use of safe ingredients to protect their consumers. In fact, it has compiled a list of banned ingredients in its handy The Never List™ so you know you're in good hands.
You can use Beautycounter's use of safe and non-toxic ingredients as a unique selling point when you pitch the products to your customer
Cosmetics and personal care products will always remain popular among consumers
During the Great Depression (1929-1939), everyone was forced to forego high-ticket items such as furniture, appliances, and automobiles. But one group of items that seem to defy the economic downturn was cosmetics. This is called the "lipstick effect."
No matter the economic conditions, people will still buy cosmetics and personal care items. And why not? These products are affordable, and consumers can feel good about themselves even when times are hard. Who doesn't need a bottle of lotion or moisturizer or body wash? What woman resist a new foundation or eyeshadow palette or the allure of a new red lipstick?
So, you see, you can still profit from these products no matter the economic conditions.
One of the things that makes Beautycounter a trustworthy company is its transparency. It has released an income disclosure statement which you can read here.
Although the results are not that stellar, they are not dismal either. Beautycounter is still a young company, so it has a long way to go.
What I Don't Like About Beautycounter
But it's also important to look at something objectively no matter how good they seem to be. So, here are some of the things that I don't like about Beautycounter.
Opportunity is open for residents of Canada and the US only
If you live in Australia or New Zealand or any other country, then I'm sorry because this opportunity is open for Americans and Canadians only. But don't lose hope! Maybe one of these days Beautycounter will go worldwide like Avon and Mary Kay.
It's MLM business model
Beautycounter has fantastic cosmetics, skincare, and personal care products. But its business model makes many potential consultants and members uneasy thanks to MLM's sullied reputation.
Is Beautycounter A Scam?
No, Beautycounter is not a scam, a Ponzi scheme, or a pyramid scheme. It is a legitimate business based in Santa Monica, California that offers a diverse array of cosmetics, skincare, and personal care products. There's something for you here if you want to glam up your look or you just want an even skin tone.
One of the good things about Beautycounter is that it doesn't use dangerous chemicals that can be harmful to the health of its consumers. Not a lot of companies can boast that they use non-toxic ingredients, and this is one thing that sets Beautycounter apart. Plus, you can see all the ingredients that have been banned by the company on its website.
Other good things about this company are its transparency. Beautycounter has published its income disclosure statement online, so you have an idea how much its consultants are earning and whether it will be enough for you to live on should you decide to join as a reseller.
But that doesn't mean Beautycounter is the right opportunity for everyone. The majority of its consultants stay at the bottom tier and do not earn enough so they can make this opportunity their main source of income.
Beautycounter is also limited to US and Canada residents only. If you've been dying to try that lipstick or get your hands on that moisturizer but you live in another country, then it's best to stick to your favorite brands for now.
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