What Is Color Street?
Even though Color Street started way back in 1984, they seem to have exploded on the scene just a couple of years ago. Offering a unique nail polish strip product, the company has become popular and word of their products has spread like wildfire across social media. By utilizing a multi-level marketing sales model, the company has seen sales increase dramatically through social channels. Just how long the hype will last is yet to be seen.
History Of Color Street
Color Street got its start in a somewhat interesting way. Founder Fa Park was stuck on a bus in traffic in New York City. As he was observing his surroundings, he noticed a lady in a cab beside the bus attempting to paint her nails. She was struggling to paint her nails in the back of the cab, and Mr. Park thought that there had to be a better way than liquid nail polish.
He went right out and bought some nail polish and began to experiment with it. After countless attempts, he finally was able to create a polish strip where the top of the strip was dry, but the bottom was still wet enough to adhere to the nail. His creation was finally complete!
Mr. Park continued to tweak his product until it was perfect, and he was able to obtain a patent on his design. He began to create strips in many different colors and patterns, and all the company’s products are made in the USA. While sales were doing quite well, Park realized that in order to truly realize his dream, he needed to employ a sales model that would allow his product to be demonstrated, explained, and admired by potential customers. Hence, the start of using the direct selling model within the company.
The company’s revenue in 2018 was approximately $120 million. That was around an 800% increase from the prior year. Color Street also has around 1,100 full-time employees and many representatives, or Stylists, as they are called.
Color Street has remained surprisingly free of scandals and investigations throughout its history. There are no easily found lawsuits or investigations against the company. There are only a handful of scandals surrounding the company if you can even call them scandals. One is simply customer complaints stating that the strips do not last as long as advertised. However, many customers seem completely happy with the products.
Another issue that is shared among all MLM’s is Stylists complaining that they did not make as much money selling the product as promised. Lastly, there is some concern about the fact that Color Street can only be ordered through a Stylist; however, even though Color Street holds the patent on this product, nearly identical products can be found on store shelves. A little research helps determine the reason for this.
Color Street is owned by a parent company called Incoco. Color Street is one brand from Incoco, and the parent company also has the Incoco brand and Coconut brand that both sell similar nail polish strips. The latter brands can be found on some store shelves for a cheaper price than Color Street, and some customers felt deceived about this.
Current Company Structure
Color Street’s headquarters are located in Clifton, NJ. Since the company’s inspiration comes from New York City, the “City that Never Sleeps,” it maintains a strong presence in the area. It employs around 1,100 full-time workers and sits together with its sister brands Incoco and Coconut Nail Art. Color Street also has many Stylists around the world who sell its products, but it is difficult to find an exact number of Stylists.
Color Street Product Lines
At its core, Color Street’s product line is simple. It simply offers one product – nail polish strips. This one product though is available in hundreds of different styles and variations. They offer solid colors, patterns, glitter styles, holiday styles, French manicure, pedicure strips, and various other styles.
Also included with the strips is a nail file / applicator, nail prep pad, and full instructions for application. The company touts the ease of application, and they also provide video tutorials for properly applying the strips to your nails. Once the package is opened, the strips need to be used within a reasonable amount of time (within a week or two) or they will dry out and become unusable.
Company Marketing Practices
Social media is the company’s largest marketing channel today. Found Fa Park insisted that the company find a way to let potential customers see demonstrations and explanations of the product, and social media is the perfect way to do this. In some cases, the company also encourages the use of parties to demonstrate and sell the products. This allows customers to get hands-on experience with the products and makes them more likely to buy.
Making Money With Color Street
Color Street is considered part of the beauty industry which is a huge market across the globe. However, can Stylists make money by selling only one product? Of course, that product is available in hundreds of different styles and variations. As with most all MLM’s, the average Stylist makes little to no income by selling with the company.
According to the company’s own Income Disclosure Statement, the average annual income for all Stylists in 2018 was $178.06. In 2018, just over 70% of Stylists received a commission or rebate while about 30% received nothing. On the high end, there are stylists earning more than $500,000 per year, but this accounts for only 0.03% of Stylists.
How To Enroll
Enrollment as a Stylist is easy; however, it is on the expensive side. You can enroll as a Stylist by going through the Color Street website and ordering the starter kit. The starter kit costs $129, and it includes an assortment of nail strips, files, accessories, and e-tools such as a website and other things. Upon joining, you are required to pay a monthly charge of $9.95 to keep your eSuite subscription active.
The Color Street compensation plan is easy to follow as its basic level, but gets more complicated when it starts discussing bonuses and recruitment incentives. Stylists earn a 25% commission on their personal sales, which can be bumped up to 35% if a Stylist reaches a certain sales level. As you begin to recruit other Stylists, your earning potential goes up.
At the highest level, a Senior Director earns commissions up to 5 levels deep in their downline. Once a Stylist reaches Executive Director status, they begin earning a Lifestyle Bonus that can be used to enhance their quality of life by purchasing a car, home, etc. This bonus can be as much as $1,000 per month on top of their other qualifying bonuses.
Sales And Marketing Techniques
The most successful Stylists have a large social media following where they can demonstrate the products and sell to their audience. Hosting parties is another common thing that Stylists do to increase sales, and some host virtual parties through their social media channels. Allowing customers to see the products in action is the best thing that Stylists can do to increase their chances of making the sale.
Comparison To Other MLM’s
There are tons of MLM companies out there, from It Works to Young Living. So where does Color Street stack up? Color Street has a good reputation and a unique product that customers seem to really love. The company has had virtually no scandals or investigations that would tarnish their image. However, the cost to enroll is relatively high and there is an on-going monthly fee required.
The earning potential with Color Street is quite low. With average earnings around $15 per month, there are other MLM’s out there with higher averages. Even on the upper end, annual earnings of $500,000 are lower than some other MLM’s who have reps earning over $1 million per year.
Conclusions For Color Street
Color Street has exploded in the beauty industry in the last two or three years by having a unique product that is well liked by their customers. They have a healthy compensation plan for their Stylists; however, their average earnings are incredibly low. The company offers fun products and some Stylists sell the products simply because they enjoy it. If you fall into this category, then this would probably be a good opportunity. However, if you are looking to make a decent income, then you should pass on Color Street.