Is BeautyCounter a Pyramid Scheme? Honest Review

Beautycounter Review

Welcome to EvenInsight.com, this time we are here with another review on the direct selling company Beautycounter.

By the end of this post, you will know whether Beautycounter is the right MLM to join or another pyramid scheme. Here we will share details about BeautyCounter, its products, and MLM compensation plan.

With all possible haste, let’s jump into it.

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Beautycounter
FounderGregg Renfrew
When Started2013
Head OfficeCalifornia, US
Opportunity TypeMLM
ProductsCosmetics and Skincare
Websitebeautycounter.com
Joining Cost$50

What is BeautyCounter?

Beautycounter was founded in 2013 by Gregg Renfrew.

Gregg Renfrew

It is based in California, US. Beautycounter is a cosmetics & skincare company with a focus on ‘clean’ beauty, with no harm caused to the environment.

As per Similarweb statistics, the site receives its maximum traffic from the United States (92.55%), Canada (5.19%) and Guam (0.22%).

Gregg Renfrew once said in an interview:

We are creating economic opportunities for women, where they have the opportunity to sell a product that they believe in and get paid for the sale of that product. We pay our consultants on the sale of products and they are also able to build a team to monetize other people's time but they only get paid a very small amount on their team.

The company influentially highlight on their website Beautycounter.com that the company is on a mission to get safer products into the hands of everyone and stated that “over 18,000 ingredients are never used in our formulations” company call this “The Never List” of Ingredients.

When this post was written, the company claimed to have 150 products with over 74,472 independent consultants, and with national retailers.

As per Beautycounter’s 50 Percent Rule, they distribute 50% of the retail price of products via different incomes to its consultant.

Read: Atomy Review

 Joining Beautycounter

Any person can join Beautycounter as a consultant by following steps:

  • Step 1: First, enroll by paying $50.
  • Step 2: Show your products to your friends, family and unknown people and promote them to buy.
  • Step 3: If you make any sales, they will be accounted into your PV (Personal Volume), and you get a 25% commission on them.
  • Step 4: If you want to make more money, then you have to hire people (consultants) to do the same work.

Beautycounter Products

Beautycounter tends to provide customers with skin and beauty products such as moisturizers, body washes & scrubs, haircare, sun protection, handcare, all makeups, cleansers, mists, toner, face oils, essence and many more.

Beautycounter Products

According to some customers’ opinions, most products are natural and safe for the skin.

Beautycounter features a list of materials they will not use and named it “The Never List” of Ingredients.

They are definitely on the expensive side, cause its moisturizer costs $89 and a Highlighter costs $130. It’s not a new thing as we know most MLM products tend to be too expensive.

However, the customer’s reviews on the products seem pretty good when it comes to the quality of the products.

Beautycounter provides 60 days return policy, where you can get a full refund on unused products.

Read: IM Mastery Academy Review

Beautycounter Compensation Plan

Now let us check out the MLM compensation plan of Beautycounter, where we will find how Beautycounter consultants earn the commission.

Consultant Rank

Beautycounter consultant has some rank based on personal and downline’s sales amount. To maintain these ranks, consultants need to make monthly some minimum sales.

RankMinimum Total SalesMinimum New Sales
Consultant$150
Senior Consultant$250
Manager and Above$500$250

You can see in the above table, to be on Manager and above rank, a person needs to make $500 minimum sales and extra $250 sales to new customers.

Beautycounter mainly has three types of income.

1. Retail Commission and Personal Sales Bonus

As per the company, consultants get a 25% retail commission on what they sell during a month.

This commission increase will the total sales amount. For the maximum $500 sales, consultants get 25% retail commission, while after that personal sales bonus is added and the total commission is described in the below table.

Sales AmountTotal Sales Commission
$500-$99930%
$1,000-$1,99932%
$2,000+35%

2. Team Override Commission

This commission is derived from the 4 levels deep downline. Whenever your downline (till 4 levels) makes any purchase, a certain commission is given to the upline.

Here your consultant rank is important, as commission percentage is fixed on rank.

Here BV and CV are main units to understand. BV (Business Volume) is the total amount of product purchased by you and your downline, while CV (Commissionable Volume) is 75% of BV.

So first of all, BV of each downline (till 4 levels) is calculated and 75% of that i.e. CV is taken, then Team Override commission is counted on the respective CV as per the below table.

Your RankLEVEL 1LEVEL 2LEVEL 3LEVEL 4
Consultant5% –– – 
Senior Consultant7%5% – –
Manager9%7%5% –
Senior Manager9%9%7%5%
Director9%9%9%7%

3. Frontline Business Builder Bonus

Whenever the rank of any of your direct downlines (level 1) is increased, you get a fixed amount as Frontline Business Builder Bonus.

For this income, you should be at the same or higher level than your direct downline.

  • Senior Consultant: $25
  • Manager: $50
  • Senior Manager: $100

Read: doTERRA Review

Final Thoughts

Beautycounter isn’t a scam, it’s a legitimate MLM company that permits you to create money by retailing its product and hiring others to try the same for commission.

Just because this is a genuine products-based MLM company, it does not mean that you can become overnight rich from it, you need to have essential MLM skills to succeed.

Should I Join Beautycounter?

This decision should be completely on you and not on someone’s influence.

Beautycounter has a wide range of products, but these products are expensive so individuals need to put extra effort to sell them. Moreover one will need a large downline network to earn a decent regular income. It takes a minimum of 2 to 3 years to establish the network.

Moreover, 67% of Beautycounter consultants earn only an average of $71 every month. While 0.2% of consultants who are top of the pyramid earn $25,502 every month. This is evidence of the low success rate of network marketing.

PAID-AS TITLEMONTHLY AVERAGE EARNINGS% OF CONSULTANTS AT TITLE (COMPOSITE OF ALL MONTHS)
Managing Director$25,5020.2%
Executive Director$9,1620.4%
Senior Director$4,5610.8%
Director$2,1772.3%
Senior Manager$1,1143.5%
Manager$6936.8%
Senior Consultant$35118.4%
Consultant$7167.6%

After understanding all these facts and Beautycounter’s business model, one must take the decision of joining it. It will take lots of time & money to succeed and always remember most people fail in MLM so choose wisely.

Read: Crowd1 Review

Beautycounter

$50
5.3

Company Profile

6.0/10

Compensation Plan

5.0/10

Products

5.0/10

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