Beautycounter MLM Review: Pyramid Scheme or Scam?

Today we will be reviewing a company called Beautycounter. Is Beautycounter a pyramid scheme or scam? Find out in this Beautycounter MLM review.

Here we are again with a review of another MLM beauty company.

If you are into cosmetics, makeup, and skincare, then you have probably heard of Beautycounter.

Another reason why you are currently reading this Beautycounter MLM review is that someone you know talked about it.

Maybe a friend, family member, acquaintance, or someone you haven’t talked to for years.

The reason they have told you about is they are probably recruiting you to it.

Unsurprising, since MLMs like these always force you to recruit.

I am not affiliated to Beautycounter in any way.

You probably have an idea what an MLM is by now.

Multi-level marketing companies resemble pyramid schemes, so people often mistake them as such.

The most obvious difference between MLMs and pyramid schemes are, well, MLMs have products.

Even though the products are mostly overpriced and falsely advertised, they are still products. Pyramid schemes do not have any products.

Pyramid schemes are illegal, so I advise staying miles away from such. Do not waste your money in a pyramid scheme, because if you invest in one, you will never see that money again.

To make sure that the companies you are dealing with are legitimate, do your own thorough research. Consult in-depth reviews, like this one.

In this Beautycounter MLM review, I will be providing information about the company, its products, and how you can make money with it.

Hopefully this Beautycounter MLM review can help you decide whether you want to sign up for the company or not.

Before we proceed with the Beautycounter MLM review, check out my #1 recommendation to making money online after reviewing 300+ MLM companies.

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What is Beautycounter?

Beautycounter is a multi-level marketing company founded in 2013 by Gregg Renfrew.

Beautycounter’s selling point is how safe and natural their products are. Along with that, they are promising a profitable money-making opportunity. Let’s find out if there is any weight in that promise.

The company sells its products through its group on independent sellers, which they refer to as Beautycounter consultants.

You can watch this video to find out more about the company’s vision.

The company sells the following products:

  • skin care products
  • makeup
  • bath & body products
  • men’s products
Beautycounter MLM Review - Beautycounter products

Beautycounter is currently based in California, United States.

Is Beautycounter a Pyramid Scheme?

Since Beautycounter representatives earn money both by selling services and recruiting new members, then it is safe to say that Beautycounter is not a pyramid scheme.

However, take note that one of the company’s main objectives are to recruit more members, which puts the company in a bad light as a ‘pyramid scheme in disguise’.

Even if the company is legitimate, I still do not recommend signing up for it. Pyramid scheme-like business models are destined to fail as soon as they are launched.

Pyramid scheme vs Multi-level Marketing

Like Avon, Usborne Books, and LegalShield, Beautycounter is not a pyramid scheme.

High Failure Ratio

You may read Beautycounter’s Income Disclosure Statement here.

Let us try to break down the data they have given us.

According to Beautycounter’s income disclosure statement, 82.2% of all their consultants are those in the lowest rank. Those consultants earned an average of $46 per month in 2019.

Now, just read that again. $46 per month is equivalent to $552 per year. That is not even enough to buy a decent smartphone.

Furthermore, the top 25% earners in that rank managed to earn $138, while the lowest 25% did not even make any commissions.

The question now is, why would you want to join a company that promises to help you make money when their own data states that majority of their company did not even earn enough to be considered minimum wage?

Think of all the effort you have to do just to make sales and hopefully earn commissions. You have to order products, ship them, recruit people, and travel just to market the brand. And for what? $552?

Also, take note that as a new consultant, you have additional expenses like the membership fee, and you also have to pay for your initial inventory.

You are lucky if you can even earn that money back.

Yeah, no thanks. If you plan to quit your job and do this full-time, you will be homeless.

Even as a side hustle, the efforts you have to do are worth more than $552.

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Is Beautycounter a Scam?

No, Beautycounter is not a scam. However, I recommend that you watch this video to find out more about Beautycounter, and the things they refuse to tell you.

The income disclosure statement that I linked above is crystal clear in telling us how much their consultants earn. Take note, however, that this company is quite new, so I am not sure of how stable it is.

That aside, I do not think that it is a good idea to sign up for it.

How to Make Money from Beautycounter

There are two primary ways to make money with Beautycounter.

  1. Sell products for a profit
  2. Recruit new consultants to earn commissions

Recruiting is more emphasized than sales in this company. If you want to succeed, you have to recruit people. You also need to maintain your active status by purchasing products every month.

How Does Beautycounter Work?

Beautycounter’s main selling point is how safe their products are. It seems like they are throwing shade at some other beauty companies out there who do not use natural materials.

To be honest, that is a pretty good selling point. People believe that chemical-based products are bad for you, so when you drop terms like ‘all-natural’, they go crazy.

Beautycounter’s products are sold exclusively by consultants, which gives customers that feeling of getting exclusive products.

It is a good marketing tactic, because when customers feel like they are getting something exclusive, they feel special, hence making them want to buy more.

Consultants have their own personal websites where customers can look at their inventory and shop.

The website also helps the consultants keep track of their business, and essentially help them make their business 100% online.

Products can also be sold through other means, like through online pop-ups and livestreams. Beautycounter also advertises that customers can consult their consultants anytime about their inquiries on products, and beauty concerns in general.

How to Join Beautycounter

To join Beautycounter, click this link.

The process of joining is pretty straightforward. All you have to do is to fill out the form with your personal information. If you do not have a sponsor yet, then the website will help you find one.

Beautycounter has the following starter packs to choose from:

  • Skin Care Basics – $285 (worth $473 in value)
  • Skin Care Best Sellers – $535 (worth $924 in value)
  • Deluxe Skin Care – $715 (worth $1,281 in value)
  • Complete Counterman Collection – $132 (worth $221 in value)
  • Counter+ Booster – $157 (worth $253 in value)
  • Flawless in Five – $135 (worth $190 in value)

Judging from the prices of these starter packs, Beautycounter assures you that you will definitely earn back your initial investment, along with making profit.

Those deals look pretty good, but why will you choose to spend money to earn money? That is the part that does not make sense.

Things I Like in Beautycounter

Safe Products

It seems like Beautycounter is not all-talk when they say this.

The company employs strict procedures when it comes to their manufacturing process, so you can be confident that your products are made of materials deemed safe by various agencies.

Aside from being a good marketing tactic and selling point, you can be assured that your customers will keep coming back for more.

Things I Dislike in Beautycounter

Overpriced Products

It seems like Beautycounter has some ugly secrets, after all.

Beautycounter may be using their ‘safe products’ tactic as an excuse to jack up their prices.

Take this concealer, for example. It costs $31 on Beautycounter’s website.

Beautycounter MLM Review - Beautycounter concealer

Now, look at this concealer I found in my favorite makeup brand, Colourpop.

Beautycounter MLM Review - Colourpop concealer

Take note of the ingredients used, and they are almost the same.

Now this is the reason why I do not believe most of what MLMs say about their products. They go around claiming that theirs are better than mainstream brands but in reality, they are just trying to find an excuse to make money.

Why would I pay $31 for a concealer when I can pay $9 for a brand that is more recognizable and has better customer reviews?

Emphasis on Recruitment

This is the main concern you should look at when you plan to join an MLM. In this Beautycounter MLM review, well, the company is no different.

Sure, all MLMs always emphasize on recruitment, but if the company does not care about their products and pushes you to recruit more than sell, then run as far away as you can.

Since this company is fairly new, I think they are doing this to get more members and hopefully milk money from them. Either way, even if it is old or new, I do not recommend joining this one.

Lots of Competition

Beauty brands

When you say makeup, Beautycounter is not the first one that your potential customer has on their mind.

Sure, people are always open to trying new brands, but it is always hard to break free from a brand that you trust for this new one that you do not even know existed until a hunbot told you about it.

People might make one purchase to try something out, but if their go-to brand has something that is cheaper and better, then they will easily abandon this one.

In a world where millions of beauty companies exist, why would you go for this when you have better, more respectable options?

Buy Your Way to the Ranks

Like I mentioned before, you have to keep purchasing products to maintain your active status in the company.

You need to sell a certain amount of products every 6 months to keep active. How are you supposed to meet that amount when you are finding it difficult to sell your products?

By buying them yourself, of course!

Paradoxical, but yeah. Keep buying to make money. Doesn’t matter if you can sell them, but you have to keep buying.

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Beautycounter Compensation Plan

You can view Beautycounter’s compensation plan here.

From what I understand, here are the ways you can make money with the company:

  1. Retail Commissions (from your sales)
  2. Personal Sales Bonus (bonuses you can earn by meeting sales requirements)
  3. Override Commission (from your downline’s sales)
  4. Frontline Business Builder Bonus (for reaching high ranks in the company)

For more information about the compensation plan, then I recommend this video.

Beautycounter Ranks

There are 8 total ranks that you can reach in Beautycounter.

  1. Consultant
  2. Sr. Consultant
  3. Manager
  4. Sr. Manager
  5. Director
  6. Sr. Director
  7. Executive Director
  8. Managing Director

10 Shocking MLM Statistics That You Need To Know!

MLM stats
  • Almost 99% participants of all multi-level marketing companies lose money, according to the FTC.
  • There are 38% more chances of you profiting from your own any kind of small business than joining these MLMs.
  • Success rate of an online business, which will give you financial and time freedom, is 20% more than joining MLMs for making money.
  • The odds of you winning a lottery worth $10k among 10,000 people is 300 times higher than actually making money from MLMs.
  • According to the AARP foundation, 47% distributors of all MLMs lose their money. Apart from this, 27% do not make a single penny.
  • In the remaining 26% that actually make money, 53% of them make less than $5000/year.
  • 39% of those 53%, who are making $5000/year quit because recruiting and selling crappy products to friends and family members jeopardized their relationships.
  • Forget about building a long term business with MLMs, because 50% of all MLMs participants quit within one year.
  • 75% people that joined MLMs say that they will never again join any kind of MLM.
  • A poll was conducted in 2018 among 1050 MLM distributors and it was concluded that most of them made 70 cents an hour and 20% of them did not make a sale. 60% of them made less than $500 in sales over the past 5 years and 32% of them acquired credit card debt to finance their MLM involvements.


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Final Verdict – Beautycounter

Before you enter a business, you must know the risks first.

I would like to reiterate this again: I strongly advise against joining this company. In this Beautycounter MLM review, I think I stressed that point enough.

The company has nothing new to offer in the beauty business. Beautycounter is merely a drop of water in the ocean of beauty companies out there.

You will find this business difficult to market because, let’s face it, the brand is not recognized by people. Most of us are not even aware that it exists, at least before someone tried to recruit you to it.

Yes, their products are ‘safe’, but aren’t all beauty companies advertising their products the same way? If big brand companies do not say that their products are safe, then they are in for big trouble.

Also, not everyone is suited for the beauty business. This company wants you to recruit people like that. It is not easy to find people willing to invest to a company that has a lot of competitors.

The competition will eat you alive before you can even make your move. A lot of beauty companies are not MLMs, which means that their products are readily available and accessible to anyone wanting to buy them?

Why would I choose to buy from you, a mere ‘consultant’, when I can walk in to a mall or get my makeup online?

Anyway, if you are still insisting of joining this company, then I guess it’s your choice. Prepare for the challenges ahead, and hope that you can at least earn your initial investment back.

That?s it for my Beautycounter MLM review. Hopefully this Beautycounter MLM review can help you decide.

I do not recommend MLMs. but if you want to make money online, you should check out my #1 recommendation to making money online after reviewing 300+ MLM companies.

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