Q. Is Beautycounter a MLM?
This is a common question I get about Beautycounter. People feel a little wary of MLMs and I get it, because I was too. So here’s the skinny on Beautycounter’s business model.
No. Beautycounter is not technically a “Multi-Level Marketing” company. They are considered a direct sales company. This means that Beautycounter, relies on consultants to help their client base. Beautycounter has been growing tremendously in the last 5 years and their growing team of consultants helps curious customers find the products that best fit their needs.
What is the difference between “MLM” and “Direct Sales” companies?
An MLM requires you to build a team in order to grow your business, where as a Direct Sales model allows you to run your business by just selling, however you can grow a team to build a stream of residual income.
Beautycounter offers a peer-to-peer sales model which is currently changing the industry. As Beautycounter Founder and CEO, Gregg Renfrew always says:
“Our story is best told person to person”
How do Beautycounter consultants make money?
Beautycounter consultants make money through facilitating sales between clients and the company. They can do this in person through “Pop-ups” or online through their personal website (kind of line an affiliate link). Consultants earn 25%-35% on the product they sell (the more they sell, the larger the commission).
Beautycounter is similar to (and sometime mistaken as) an MLM because consultants do earn money when their team starts selling products as well. Consultants can earn 5%-9% off their team’s sales.
The idea is that when you build a team, you are also mentoring them and helping your team member’s be successful. I personally spend half the time on my business coaching my team members so they have the tools they need to succeed, and I spend the other half of my time growing my personal business through selling and helping my clients get what they need.