Beautycounter MLM Review – Yet Another Skin Care Opportunity Shut Down

Have you ever been given a sample of a product that worked really well for you? In fact, it worked so well you wanted to sell those products yourself. Suddenly, the idea of a home-based business was born! Selling products to make extra money is nothing new. In this Beautycounter MLM review, we'll look at the toxic-free products and the offer to see if this is a healthy investment. Read this before you make any rash decisions. 

Update: Beautycounter MLM has been Shutdown

Beautycounter, a prominent player in the clean beauty movement, recently encountered significant operational challenges. This section demystifies the reasons behind the brand's sudden hiatus and the sequence of events leading to its closure.

Gregg Renfrew, the brain behind Beautycounter, pioneered the brand with a visionary commitment to safer beauty product formulations. The situation unfolded when Beautycounter's parent entity, Counter Brands LLC, faced a financial impasse. The strategic path led to Renfrew forming a new company known as G2G, with intentions to preserve Beautycounter's ethos and product line.

In 2021, the renowned private equity firm Carlyle acquired a majority stake in Counter Brands LLC. Rapidly shifting market dynamics and channel headwinds exerted pressure on the company's capital requirements, forcing a reassessment of its omnichannel strategy. Facing increased marketing spend versus available capital, the decision was made for a strategic overhaul. Following Carlyle’s acquisition, Renfrew initially stepped away but later resumed the role of CEO. Upon her return, the financial straits were severe, with debt eclipsing resources, resulting in Carlyle opting against further investment.

Why did BeautyCounter Close?

A startling revelation to the public came through an update delivered by Renfrew on social media, pointing to a restart of operations planned for late 2024. The unforeseen suspension primarily affected direct sales advocates, leaving many in a precarious position regarding their association with Beautycounter.

Key changes following the hiatus:

• Venues: Select physical retail stores have closed, except a temporary spot in Nantucket existing through summer 2024.
• Retail Partnership: Products will be accessible at Ulta stores until July 2024, after which sales will shift exclusively to an online platform.
• Advocates: Continuity of Advocate roles in the restructured company has been assured, albeit with changes to contractual terms.

Beautycounter’s commitment to excluding harmful ingredients and promoting the clean beauty ethos remains unwavering, as the new entity seeks to retain the spirit of the brand while navigating through turbulent financial waters. Updates on the impending relaunch are anticipated to be shared via the founder’s and brand’s Instagram pages.

Marc Rey, with extensive experience in the beauty industry and leading major brands, now overlooks the bridging phase towards business continuity. The transition is marked by a focus on sustainable growth, scaling back to align product portfolio with core capital needs, and strengthening operational efficacy.

In summary:

• Beautycounter has paused operations due to financial challenges.
• Gregg Renfrew has taken strategic steps to acquire and eventually relaunch the brand.
• The company aims to adhere to its mission to provide safer beauty products amid its restructuring.

The restructuring lead by Renfrew and her team stands as a testimony to the resilience embodied in the brand’s mission, reflecting an enduring dedication to the cause of providing safer, cleaner beauty solutions.

What is Beautycounter MLM?

Beautycounter is a multi-level marketing (MLM) company that sells cosmetics and skincare products. The company was founded in 2013 by Gregg Renfrew. Its mission is to provide clean, high-performing products using the safest ingredients that are toxic-free. They have a list of over 1,800 ingredients they won't even use in their products.

All products, with the exception of eye pencils, are made in the USA. The eye pencils are made in Mexico. Products are sold through independent consultants who receive commissions on all product sales.

In 2021, The Carlyle Group became a major stakeholder in Beautycounter increasing its value to $1 billion.  

Are Beautycounter Products Worth Their Price? 

Beautycounter claims to set very high standards for their products with a long list of chemicals and ingredients they will not use in their formulations. Each ingredient is screened and assessed for any trace contaminants. 

With that in mind, let's take a look at the Glow First Priming Serum listed for $65 on the website. It comes in a one fluid-ounce bottle. This product is certified cruelty-free and vegan. The serum claims to hydrate the skin to provide powerful skincare for women. It also acts as a primer before foundation is applied.

While every effort is made to ensure that the products are made with the "cleanest" ingredients, they are not the most natural and they are not chemical-free. 

There are other products on the market that are less expensive but this all comes down to personal preference and each person's skin responds differently to certain ingredients.

The price for this product seems higher than other comparable products.

Beautycounter Product Reviews 

According to the website, 91% of users said their skin was smoother and brighter and made a big difference in how their skin feels. Overall, customer reviews have given this product 4.8/5 stars. So there's a lot of happy customers using this product.

The Beautycounter Opportunity 

To get started, you need to purchase an enrollment kit. The kit contains sample products, sales materials, and a personal webpage on the website portal for one year. As a Consultant, you receive training on how to market and sell beauty products. You also get access to tools such as videos, eBooks, and webinars.

Once you complete this training, you can start selling products and recruiting new Consultants.  Each time you recruit a new Consultant, you earn a commission from each sale they make.

How Much Does It Cost To Join Beautycounter?

At the very least, you need to buy the Digital Kit. This is your business kit and sells for $98. It includes your own personal website on the company's website portal, digital marketing tools, business analysis, tracking, and training. 

There's also a $50 annual fee to access the Consultant portal, mobile app, and eCommerce space where orders are accepted.

Starter kits include the kits below ranging from $126 to $776. The kits below are the least expensive starter kits you can buy.

The kits below contain a wider range of products and cost a lot more.

Consultants must sell at least 1,200 QV ($1,200) every six (6) months to maintain their accounts. That works out to $200 per month. This also includes products you purchase for yourself.

Can You Make Money With Beautycounter?

Making money is strictly by commission. Consultants make money from product sales and recruitment.  There's no base salary. Consultants receive 25% commission on the Personal Volume (PV) and 10% commission if sales are over 3,000 PV. (One PV equals $1)

In addition to the commission, you can also receive bonuses for reaching certain goals. For example, once you have 25 active Consultants, you qualify for a bonus of $100. Any sales made by your team earn you between 3-9% commission.

Income Disclosure Statement

Products can be sold through your online web store link. Products are also available at some retail stores.

But can you actually make money selling these products? According to their own Income Disclosure Statement, 67.6% of consultants only make an average of $71 per month. And that's before expenses are factored in. 

Pros 

Discounts: Consultants get a 25% discount on products they order for their own use.

No Inventory: Consultants are not required to keep any inventory on hand.

Full Refund: Consultants can receive a full refund up to 60 days after signup. You can return your enrollment kit and starter kit even after it has been opened and partially used. A 90% refund is available between 61 and 365 days for any business supplies shipped.

Be A Member of Another MLM: Beautycounter Consultants can also be members of other MLMs without conflict. But they cannot recruit Beautycounter Consultants to join other MLM programs they are affiliated with.  

Cons 

Measly Bonuses: You have to have 25 Consultants in your team before you qualify for a $100 bonus.

Exaggerated Income Claims: According to TINA (Truth in Advertising) consultants exaggerated the income they make in order to recruit more people to join.

Customer Complaints: According to the BBB (Better Business Bureau) some customers complained about the quality of the products, no refund when returning products, and shipping issues among other problems.

Is Beautycounter a Scam? 

Beautycounter isn't a scam. It's a direct selling company that uses the multi-level marketing business model. The problem with these business models is that there's no base salary. It's all commission. So if you don't sell products, you don't make any money. 

Final Thoughts 

So here's my theory on why it's so hard to make money selling products for an MLM. My theory is that you are taught only to sell the products. Not everyone who sell these products actually uses them in their daily life. Their only interest is in selling because that's how they make money. 

These MLM offers have always been appealing to people looking to make extra money in their spare time. It's the flexibility that makes it seem easy. If you would like to have your own business with a flexible schedule, check out my #1 recommendation. You'll get everything you need including a website, 24/7 support, training, hosting, and awesome tools. Plus, I'll help you!