Here’s why that shouldn’t bother you.

“Beautycounter is totally an MLM…”

“Beautycounter is just another MLM pyramid scheme…”

“They are predatory…”

“They definitely target stay-at-home moms…”

“The only people making money at Beautycounter are the ones at the top…” 

-Taken from a Reddit discussion board

I would like to start with a full disclosure. I am a Beautycounter consultant. And, I would generally like to think my goal is not to harm other people, lose money, or prey on the weak. But, I also understand that it’s easy to become self-deceived and as one other Reddit user put it, “drink the koolaide.” 

Still, I think this is an important discussion to have, and one I will try my best to address and answer as honestly as possible. Whenever possible, I will link to Beautycounter’s disclosure statements, and other third party sources. And, I also GLADLY welcome RESPECTFUL responses, thoughts and opinions. But, please hold to Brene Brown’s posture of assuming we are all doing the best we can.

I don’t know about you, but I saw a distinct surge in friends and family joining new business ventures during Covid–many of them ones that could easily be worked from home. 

As a matter of fact, I was one of them–happily linking arms with Beautycounter just  about a year ago, and finally rebooting this blog. 

But with this surge in new business opportunities came a type of network marketing fatigue that has plagued social media, my inbox, and with the Lularich documentary, even Netflix. MLMs are everywhere. And, as brick and mortar stores are on pause, there seems to be no end in sight to the DMs arriving in your inbox. 

And yet…I am still proud to partner with Beautycounter. I am still convinced they are doing something unique and important. And, I still think that when it comes to their product, the MLM structure isn’t a bad model…as long as it isn’t being run by a bad company. 

Let’s be honest…some MLMs are scams.

And predatory…and worse. 

But, that doesn’t mean all of them are–or even have to be. According to the FTC, the basic structure of an MLM is simple: sell products directly to consumers often through person to person sales, and earn commissions on the sales of new recruits. 

What I want to address in this blog post are two large burrs that seem to be under Reddit’s saddle: 

  • The heavy emphasis on the “independent contractors” spending TONS of money each month and never earning it back. 
  • And, the need to convince all of your family and friends to join under you. 

So, how many people are ACTUALLY making money with Beautycounter’s MLM structure?

Reddit is all aflame on the multi-faceted issues associated with MLMs, and nothing makes them happier than sharing the statistic that 99% of people who join MLMs lose money. 

And, in full transparency, according to Beautycounter’s own salary disclosure from last year, 25% of consultants did not earn a salary, and only 25% of consultants earned more than $1,000 for the year. 

But, you have to remember, with Beautycounter MANY people join for the discount. 

And, PS–I’m okay with that. 

Here is quick reminder as to how “signing up as a consultant” works: 

 *It’s $50 to join Beautycounter as a consultant ($21 if you are already a member). 

*That comes with a 25% discount on EVERYTHING. 

*SO…if a customer spends over $200/year on products, they SAVE money by joining as a consultant…even though according to the income disclosure they are “losing” money. 

There is ZERO pressure to buy inventory (we actually have prepackaged samples, so there is actually very little reason to buy inventory).  AND, once you are a consultant, each product you buy for yourself, your team, or a friend is a tax write-off. 

So far, in my limited experience (on a fairly large and well-established team), no one has been encouraged to spend money they do not have. If anything, I have heard SO MANY stories of uplines buying products for new team members whose budgets are tight. 

(Note: I will say this–it matters what team you join. I have had VERY positive experiences with Beautycounter people so far, but because each team is “independently run” I am guessing there are some teams where there is more pressure on buying what you cannot afford. I would just say RUN from those people).

Okay, Allie. Fine. You aren’t bleeding people dry. But, you are recruiting, right? 

Yes. I am. ABSOLUTELY. But, neither Beautycounter nor the MLM structure require that I recruit. A few things to keep in mind: 

  • I actually make MUCH more money off of my own sales than I do off of my “downline.” Beautycounter has a VERY competitive commission rate of between 25-35% on everything I sell. 
  • My Downline commission bottoms out. There is not an endless number of people below me that I make money on…BUT, even if I am not “making money” off of them–I still offer resources, support, and time. 
  • Beautycounter has a 50% rule. This one is very important to understand–I CANNOT make a commission off of one “rock star” person if the rest of my business is not matching what they sell. If I recruit “Jenny” who sells $30,000 worth of products, but the rest of my business only sells $5,000, I only get a small commission on $5,000 of “Jenny’s” sales, whereas they will get ALL of their commission. That means it is VERY common for people “under” you to make more money than you do…and that is TOTALLY FINE. 
  • This structure means that consultants are highly encouraged to build real businesses where everyone is successful. 

In conclusion, Beautycounter is an MLM, and I am okay with that. 

Primarily because they are a good company run by good people, and I have joined a good team whose goal is to serve their customers. 

Finally, I want to finish with a quick note on the way marketing has shifted recently. Companies regularly use “Influencers” to sell their products on social media, and friends often share links from favorite companies with discount codes that give them a small kickback. 

The world is shifting towards micro influencing, friends giving referrals, and word of mouth via social media. I love Beautycounter, their mission and their products. So, I share about them. 

If you don’t love Beautycounter, then don’t share. If you do–I think it is time to let go of some of the shame associated with MLM’s and the assumption that people are going broke and preying on the weak. 

Love this post? Grab my newsletter for additional tips and information. And, keep your eye out for the follow-up to this post where I discuss Beautycounter’s social advocacy. It’s going to be good.