Hey all, welcome to my Color Street review!
If you’ve heard about Color Street or been approached by their agents, you might be wondering “is Color Street an MLM” or “is Color Street a pyramid scheme?”
That was definitely my first few thoughts because the products didn’t seem like a typical MLM company’s products to me.
But as I see more people promoting the products on social media, I had taken an interest in doing more thorough research on the company and I’m going to share it here.
If you’re thinking of joining Color Street as an agent or as a stylist, as they call it, you need to read this post till the end and know whether you will actually make money with them, or not.
This review is being done by me, someone who’s not associated with Color Street by any means, therefore my opinion and review will be as honest as I can be.
Now, let’s get started with the review whether or not you can make legitimate money with Color Street.
Is Color Street an MLM? Is Color Street a pyramid scheme? Well, here’s the truth…
|Color Street Summary|
Product: Color Street
Founder: Fa Park
Product Type: Nail Polish Strips
Price: $129 Enrollment Fee + $9.95 monthly
Summary: Color Street is a beauty company that operates under an MLM structure to further promote their main product which is nail polish strips. The company, Innovative Cosmetic Concepts has also produced other similar if not the same products under different brands such as Coconut Nail Art and Incoco.
While the other two brands had been marketed in retail stores, Color Street took a different approach to grow the brand via network marketing.
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What Is Color Street?
Color Street is in the beauty industry selling nail polish strips that had claimed to last up to 14 days and have a very easy application process.
Inspired by the lights and vibrancy of New York City, Fa Park, the founder has come up with the brand. If you want to know more about how the company came about, you can watch the video below:
It does have a humble beginning..
And I do like that the founder actually persevered through with his product ideas and didn’t give up. But is it enough to convince me to join the company as a stylist..?
Well to me, I would need more information before jumping into any decision.
One reason why Fa Park has made Color Street as an MLM company that he did not mention in the video is because he used to have a brief experience in network marketing and thought it would be a “genius” idea to promote Color Street too.
Even though he had partnered up with many reputable companies such as Revlon, Avon, and Sephora for his other nail polish strip brands, the Color Street brand is different.
And that brings us to the next section.
Is Color Street A Scam?
Color Street, as far as I know it and can see, is not a scam.
They do have promising products, that I’m sure many women out there can love. You can see the products mainly get good reviews from users:
But not one company is perfect…
They have been getting some negative reviews as well – see below. One thing you need to know, they are NOT BBB accredited company. The company has been around for about 4 years now but still hasn’t gotten accredited nor get any ratings yet.
I, personally prefer a company that’s BBB accredited AND have very good ratings (A+). If a company is BBB accredited, it just means that they have a value in the company to resolve any complaints made by customers and uphold the “customer comes first” value.
You can see below some of the negative review they have gotten when it comes to their customer service AND they did not get any replies from Color Street:
It’s really up to you on how you see it.
I just have better faith in companies that actually replies to customer complaints and tries very hard to make sure customers not only love the products but their services as well.
Anyway, now that we know what Color Street is, let’s dive deeper into its MLM structure, and together figure out whether or not it’s a pyramid scheme.
Is Color Street A Pyramid Scheme?
First thing first, if you are not sure what pyramid scheme is or how to differentiate a pyramid scheme to an MLM, you can watch the video below:
In essence, a pyramid scheme is developed when a company is focusing on recruiting people. Its distributors or agents actually make money when people join the company and not necessarily buy its products.
I have been in this situation before and I want to tell you that the line between joining an “honest” MLM company and a pyramid scheme is REALLY vague.
A lot of companies are a pyramid scheme in disguise so you need to be very careful.
After doing the best research I can on Color Street, I can say that they are NOT a pyramid scheme. Since people are actually loving their products and you can make money with them without recruiting people (though it will be very little).
That being said, you need to know what you’re getting yourself into when you join any MLM companies. And if you have some time to spare, I really recommend watching the video below:
Below is a picture from Wikipedia that can illustrate how a pyramid scheme works – but that’s also how an MLM can be when you want to constantly build your legs or downlines in the company.
At some point, you will run out of people to recruit.
And that’s one reason why you always need to join an MLM company at the very early stage of the company (but risk having the company to shut down) to make “big” money.
Now let’s go deeper into this with Color Street.
Can You Really Make Money With Color Street?
First thing first, let’s start with how much you need to pay and do when you join as a stylist or an agent.
1. $129 Starter Kit
This can definitely help you to have products at hand to promote to others. Or you can also use them on yourself.
Usually, I’ll say $129 enrollment fees for MLM is expensive but for Color Street, as you’re getting an actual product when you join, it’s still okay.
2. You Set Up Your Website
This is pretty great as you will be going more digital to promote the products instead of always having to meet people in person.
Also good that you have one in this corona time.
3. Start Promoting
There are different ways you can promote, via your website or social media or you can also host a Nail Bar party as they call it.
4. Get Bonus Qualified
In order for you to be eligible for commission, like any other MLM, you have to be qualified as a stylist. And in order to be qualified, you need to get $300 PV (personal volume) or more in a month.
That means, it’s either you sell $300 worth of products (about 27 or more products) or you buy the products yourself.
And it’s not uncommon for stylists to actually keep buying products so that they can still be eligible for commission.
*This has been updated. Before this, you need to achieve $300 BQ for every 6 months but when I read the compensation plan, it’s clearly stated it’s for a calendar month.
5. Pay For Monthly Charge of $9.95
Let’s try to calculate how much you will probably be spending in a year time:
– Best case scenario: $129 + ($9.95 X 11) = $238.45 per year or $19.87 per month
– Worst case scenario: $129 + ($300 X 12) + ($9.95 X 11) = $3,838.45 per year or $319.87 per month
*This does not include your time, energy and other miscellaneous expenses you might incur like travel expenses, training, bills etc!
Now that you have a better idea of how much you have to “invest” in Color Street, let’s see just how much money you can earn 😊
Below is their latest income disclosure. 2020’s hasn’t been published just yet.
Let’s just go through this in a bullet form.
– 54% are actually LOSING money when they join Color street.
– Only 1.9% of stylists made more than $1,000 a month (not taking into account their expenses!)
Say that you’re lucky and made more than $1,000 a month, you will need to remember that you need to work hard for and consistent. It’s very typical that MLM agents work the minute they wake up till they actually go to bed.
And even if you’re earning $1,000 a month, you need to take into account your expenses, your energy and most importantly your TIME – time that you can never get back.
As I have stated above, it’s not that sustainable to be in an MLM company.
You need to work hard to sell the products and build your team. Because that’s the only way you can earn more.
Yes, you can make money by solely selling the products but in order for you to make more money with Color Street or any MLM company is by recruiting more people under you.
Let’s take a look at their compensation plan.
Can you see that you will be only making more once you rank higher? And for you to rank higher, you need to get more downlines?
They have ~10 ways on how you can earn from them:
1. Jump Start Bonus (3 different bonuses. 2 of them you need to get downlines)
2. Base Retail Commission (25% of your PV)
3. Enhanced Retail Commission (the more you sell, the higher commission percentage you’ll get)
4. Enroller Matching Jump Start Bonuses (recruit people)
5. Enroller Bonuses (recruit people)
6. Leadership Level Bonuses (recruit people)
7. Leadership Depth Bonus (recruit people)
8. Team Bonus (recruit people)
9. Generation Bonuses (recruit people)
10. Car/Lifestyle Bonuses (recruit people)
If you like their products but you hate recruiting people or just shy to approach people, I don’t think you should join Color Street. Because you can clearly see that there are only 3 ways for you to make (small) money if you want to join without recruiting people.
It’s okay to be just a customer.
There is another way where you can become a customer and make money by promoting them without having to recruit people. And that’s the system that I use to make money.
What I Like About Color Street?
1. Good Returns & Exchanges Policy
They offer a pretty generous return policy that you can take advantage of.
They did have some problems with customer service as you can see from the BBB customer complaint but it’s not as high as some other MLM companies that I’ve seen.
2. Earn Perks As A Host
Apparently Color Street throws a big party to promote the products. And on their compensation plan, you can get some perks if you become a host and invite your friends to the party.
3. I Actually Like The Product
The products are actually nicely designed and work very well.
Comparing the design with the company’s (Innovative Cosmetics Concept) other brands such as Coconut Nail Art, Color Street’s design is definitely better looking.
5. Get A Website…BUT
If you join the company as an agent, you will also get a replicated website. This is nice since now that we’re under a pandemic, hosting an in-person party or meeting someone face to face might not be very easy.
Even though you get a website, I don’t see it as something sustainable because the minute you quit becoming a stylist, you will lose whatever that you’ve created on the website.
Plus, since it’s a Done For You website, you won’t really get to learn the technical stuffs that can really help your website to go further.
For someone who’s been building websites after another, I can tell you that it’s much safer and enjoyable to have your own website and grow it as far as you’d want.
What I DON’T Like About Color Street?
1. Expensive Products
Even though Color Street and Incoco are basically from the same company, their pricing differs. Color Street is more expensive despite them being manufactured and produced by the same company and place.
Why it’s more expensive? In my opinion it’s to pay the people 😊
If you go to Amazon, you can find much cheaper options!
2. Success Is Rare In MLM
As I’ve said before, FTC has come up with a study showing 99% of people who join MLM never actually makes money.
Even if you do, you have to pour your energy so much every day to make very little money. It’s LOWER than the average living wage.
3. Low Commissions
If you’re only making 25% off $13 product, you’re only making $3.25.
You gotta sell that to 100 people to be able to make $300 and actually be eligible to get that commission.
Will you be able to sell it to 100 people every single month? Well, it’s something that you gotta ask yourself 😊
If you want to earn more, you gotta recruit people. And this will bring me to the next point.
4. Recruiting People
I don’t like recruiting people. No matter what people told me on facing my fears or brainwashing MLM companies tell, I can say that I really hate recruiting people.
I’m saying this based on my own experience of doing an MLM before.
Now that I know of a way that I can still promote the products that I LOVE and make money without recruiting people, I no longer see why people need to join MLM.
You can do this too.
If you want to learn how to promote the products and companies that you trust while making a passive income, you can click here.
I’m saying passive income because it’s sustainable in the long run, unlike any MLMs because at one point, you’re either going to be broke, out of people to recruit or the company went under.
How To Make Better Passive Income
If you want to promote the product that you really love and trust – and get users to come to you instead, you will want to learn how to do so with affiliate marketing.
This is what I’m doing to earn money online and it’s sustainable. I’ve been doing this for 3 years part-time and all of my online assets are still generating money for me.
And in these 3 years, I don’t need to recruit people to become my downline or having to constantly make sales to be eligible for commissions.
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