As the name implies, Beautycounter is another MLM selling products in the beauty industry such as makeup and creams. However, their products are all toxin-free and the company takes a strong approach to advocating for legislation in the industry. Unlike many MLM’s, you can find Beautycounter products available in some stores, not just from their consultants. Even though it is a relatively young company, sales have grown quickly and continue to show upward trends.
Still, there are a lot of well-known beauty industry MLM companies out there, such as Mary Kay and Avon. So how does Beautycounter really measure up? We’ll look at this MLM company, their products, their marketing practices and more in this review of Beautycounter.
Beautycounter Company Overview
History Of Beautycounter
Beautycounter was founded in 2013 by Gregg Renfrow. Renfrow had a history in the industry having worked for big names such as Martha Stewart and Susie Hilfiger. The company started with just 9 products at its initial launch. Today, that number has grown to over 150.
Even though the company did not start until 2013, the wheels started turning all the way back in 2006. After watching the documentary, An Inconvenient Truth, Renfrow started to realize how product ingredients could have a detrimental effect on both the earth and our health. She began to make drastic changes inside her home such as switching from plastic to glass and using natural cleaning products.
However, she hit a wall when she began searching for cosmetics with natural ingredients. She was able to find some products that were made with safer ingredients, but the quality was not up to her expectations. This became her inspiration in creating a beauty line that was safe and performed as well or better than any other product on the market.
The very first products that she launched were face oils made with coconut oil. Renfrow states that those face oils are still a customer favorite even today. Since launching that product, the company has gone on to grow to approximately $350 million in annual revenue and has a network of around 44,000 independent consultants.
Beautycounter Company Investigations
Contrary to the way that many MLMs operate, Beautycounter typically leads the way in investigations and testing of its own products. It has issued a couple of voluntary recalls of products in the past based on the results of its internal testing. The company is highly committed to selling products that are safe and good for customers, and there seem to have been no instances where they were caught doing otherwise.
The company is also extremely active in pushing for legislation around cosmetic reform. They also encourage their consultants and customers to send emails, write letters, and make phone calls to government representatives. The company states that the current laws written in 1938 are outdated and more needs to be done to protect consumers from unsafe cosmetic products.
Current Company Structure
The company is still headquartered in Santa Monica, California, and Gregg Renfrow serves as the CEO. The company has a small board of directors, although little information is available about additional leadership within the company. They employee around 150 full-time employees and have a network of approximately 44,000 independent consultants.
While the company sources products from all over the globe, they primarily sell their products in the The United States. These sales account for roughly $350 million in annual revenue for the company. Beautycounter has also created what it calls The Never List. This is a list of 1,800 harmful ingredients that they will never use in any of their products. Interestingly enough, only about 80 of those ingredients are currently banned by the FDA in the United States.
Beautycounter Product Lines
Beautycounter’s product lineup consists of natural, safe beauty products. Today, they have over 150 products in their catalog ranging from creams and moisturizers to mascara and eye shadow. The company is not, however, just limited to cosmetic products.
They sell additional products like makeup removers, sunscreen, bath and body wash, and hair care products. In addition, they have expanded their lineup to include products for men and children. Company founder Renfrow states that their Overnight Resurfacing Peel is one of their most popular products. All their products maintain their commitment to safe and natural ingredients.
Company Marketing Practices
Like many direct selling companies, Beautycounter has taken to social media heavily to sale and market its products. In fact, the company has somewhat of a cult-like following on social media. They also encourage consultants to host parties in their home so that customers can see and try different products.
One aspect of their parties is a little different from traditional homes sales though. Consultants are encouraged to include a lobbying aspect to their parties. This way, the attendees can learn more about current legislation efforts for safer cosmetics. In some cased, attendees are given the opportunity to write letters or send emails to their representative to encourage them to support legislation promoting safe and healthy cosmetic ingredients. This is unlike any other MLM that has been observed.
Making Money with Beautycounter It is well known that the beauty industry is a giant money maker, and Beautycounter has grown quickly reaching close to half a billion dollars in annual revenue. The number of consultants within the company is also relatively low at only 44,000. This seems like a great combination for a real opportunity to make some decent money.
Sadly, the income numbers tell a different story. According to the company’s Income Disclosure Statement, the average consultant earned a mere $2,060 in 2019. The average monthly earnings forover 82% of consultants in 2019 were only $46. Obviously nowhere near worth the time and effort spent selling the products.
How To Enroll With Beautycounter
To enroll with Beautycounter, a new consultant must purchase a $98 enrollment kit which includes sales materials, products, and a personal website for one year. This is on the high end of cost for enrollment with an MLM. In addition, new consultants are encouraged to purchase an additional starter kit with more products for testing and demonstration.
On average in 2019, new consultants spend $440 at the time of their enrollment on fees and products. As you can see, this is much more than they can expect to make during the course of a year! The annual renewal fee for their website and business tools is $50. Compensation Plan
The compensation plan with Beautycounter is straightforward. Consultants earn a 25% commission on personal sales made to customers. They can also earn personal bonuses if they achieve sales above a certain threshold.
As they recruit new consultants to join their team, they begin to earn additional commission and bonuses from their downline. However, minimum order volumes are required to earn those payments as a higher-ranking consultant. Payments will be made up to 4 levels deep in your downline once you reach the status of Sr Manager.
Beautycounter Sales And Marketing Techniques
As previously stated, the company has a large and committed social media following. This is one of the best ways for consultants to become successful is by taking advantage of the company’s social media presence. Hosting virtual parties to demonstrate and highlight products encourages potential customers to make purchases.
Consultants who are active in lobbying efforts also seem to do quite well. They find like-minded individuals to recruit as consultants to join their team, and they also find potential customers this way. Since the company encourages these lobbying efforts, the audience already exists for consultants to tap into.
Beautycounter Compared To Other MLMs
Beautycounter is one of the few MLMs who seem to have no blemishes on their record. Customers are very happy with the products and it is nearly impossible to find any complaints about the company or its practices. However, the potential to earn money is roughly the same as other MLMs and even lower than some. Beautycounter seems like a great overall company, but the income you can expect will not be worth your time in marketing and selling products.
Conclusions For Beautycounter
Beautycounter has an image that is as clean as its safe and natural products. Their mission and movement are great causes because they are trying to help make the cosmetics industry safer for consumers. However, if you are looking for a way to earn good money, the data shows that this is likely not the way to go. There are a handful of consultants who make over six figures with the company, but this accounts for only about 0.1% of all consultants out there.