Maybe you’ve been taking a look at Color Street and wondering if the opportunity is good? Perhaps you’re even wondering if Color Street is a scam? I’m going to help you answer that question in this article.
There is one interesting little secret about this company.
OK, it’s not exactly a secret, but it’s something you may be surprised to find out if you don’t already know.
I’m going to reveal what that is a little later. It may have you thinking twice about buying from Color Street.
For now, let’s get right into what this company is all about.
What is Color Street?
When I first heard of Chalk Couture and I realized there was an MLM for chalk, I thought, “there can’t be any more strange MLM than that, right?” Then along came Color Street! An MLM for nail strips. What will they think of next?
(By the way, I have heard of Jamberry, and I know they are a similar MLM. I was considering taking a look at Jamberry too, but I see they’re in trouble.)
Anyway, Color Street was founded in 2017 by Fa Park. The idea was born in 1984 when Fa saw a woman in a nearby cab trying to polish her nails and he thought that there had to be a better way!
Color Street’s nail strips set them apart from the competition because they use actual nail polish instead of vinyl.
Color Street’s products include:
- Solid colors
- French Manicures
- Glitter Designs
- Nail Art Designs
- Clear Nail Art
Plus, they have a range of collections such as Halloween, Fall, etc.
Prices range from $11 – $14.
How Much Does it Cost to Join Color Street?
To join Color Street, you will need to purchase a Starter Kit.
The Starter Kit is $129 and includes:
- 13 Full sets of nail strips
- 1 French, 2 Solid, 2 Glitter, 5 Design, 1 Pedicure, 2 Petite
- 72 Testers
- 40 remover pads (2 boxes)
- 100 Prep Pads (1 box)
- 2 Large Nail Files
- 2 Nail Buffers
- 60 Mini Files
- 50 Cuticle Sticks
- Tote bag
- 25 Catalogs
- 25 Colorful Opportunity Brochures
- Road to Success
In addition, you’ll need to make $300 in sales every month. This doesn’t mean that you need to buy that amount, but you do need to sell that amount in order to stay active. Independent Stylists sometimes end up buying a portion or all of this in order to remain active and be qualified for payments.
We’ll talk a little more about this later.
Color Street Compensation Plan
You can read the full, eye-popping 22-page Color Street compensation plan here. Here’s a video from YouTuber and Color Street Stylist, Jessica Capretto to help explain how to make money with Color Street. She doesn’t go into the compensation plan, but explains the basics well:
What she says at the beginning of the video is something interesting to note. She says that people often wonder how you make a good income selling a $11-$14 product. I saw someone mention something about this in a comment I read, and I’ll talk a little more about that later because it was pretty eye-opening.
From the video, there are 3 main ways to make commissions:
- Retail Sales = 25% – 35% commissions (depending on your sales volume)
- Earn free products = Earn 10% – 25% back in product credit (depending on sales volume) within a 60-day period. You can then resell these if you’d like
- Build a team = Earn 3% – 6% of your downline’s sales
Here’s another video that talks about a portion of the compensation plan and how to get promoted. I’ll try to break it down the best I can, but I seriously hate compensation plans (because they make no sense), so I’ll probably suck at it. Just a warning. 🙂
First, she mentions that you need to be bonus qualified. As I mentioned above, this means you need to sell (or buy) $300 in products each month in order to qualify for all payments and bonuses.
Now you can start moving up the ranks. Here’s how you qualify for each one:
- Sr. Stylist – $300 PV (personal volume) + 2 Stylists that are BQ (bonus qualified) + sell a minimum of $2000 GV (group volume) over the lifetime of the team + $1000 GV in that current month
- Team Leader – $300 PV (personal volume) + 2 Stylists and a Sr. Stylist on your team + sell a minimum of $5000 GV (group volume) over the lifetime of the team + $2500 GV in that current month
- Director – $300 PV (personal volume) + 1 Stylist, 1 Team Leader and 2 Sr. Stylists on your team + sell a minimum of $20,000 GV (group volume) over the lifetime of the team + $7,500 GV in that current month
- Sr. Director – $300 PV (personal volume) + 2 Team Leaders and 1 Director + sell a minimum of $50,000 GV (group volume) over the lifetime of the team + $25,500 GV in that current month
After Sr. Director, the ranks are in the Executive Phase, and there are different qualifications and rules for each rank. If you really want all the nitty-gritty details, I encourage you to read the full compensation plan.
For now, I’m going to just note the ranks:
- Executive Director
- Sr. Executive Director
- Natonal Executive Director
- Sapphire National Executive Director
- Ruby National Executive Director
- Emerald National Executive Director
- Diamond National Executive Director
Here are the percentage earnings on the different ranks:
Once you get to the Executive Phase, there are different generation bonuses, team bonuses and a lifestyle bonus.
Color Street Income Disclosure
Color Street has an Income Disclosure, which you can fully view here. Here is the chart that they include:
One interesting note that they included in their disclaimers is that the average annual income for all Color Street Stylists in 2018 was $178.06. For an entire year. And this is before expenses!
If you can get to Senior Director status, it starts to become a little more worth it. But again, that’s not even taking into consideration your business expenses.
And being in an MLM is HARD work, I don’t care what anyone tries to tell you. For something like Color Street, you will constantly have to have home parties or go to craft fairs to make sales.
I’m not trying to discourage you, but…
OK, fine. I am.
MLMs just aren’t a great way to earn an income.
Positive Reviews and Complaints
Here’s someone reviewing the Color Street nail strips who is not an Independent Stylist and doesn’t sell the strips:
She had both positive and negative comments about them.
I saw a couple of other positive reviews that said:
- They’re easy to use
- They won’t ruin your nails
- Customer service was extremely helpful
As far as complaints go, there were some, of course. In fact, Color Street gets a solid F rating from the BBB website. This is due to the fact that they don’t respond to their complaints.
Some Color Street complaints include:
- Received a defective product and customer service hasn’t gotten back to me
- My product was supposed to last 2 weeks, but it didn’t last a day
- I made a large order and it never got to me and I couldn’t contact anyone at Color Street
You can see this person became irate:
Let’s figure out if Color Street is a scam.
Is Color Street a Scam or a Pyramid Scheme?
Is Color Street a scam? In my opinion, it’s not a scam. And it’s not a pyramid scheme, although MLMs almost always border on being pyramid schemes because of the compensation plan structure. If you make most of your money through recruiting, that’s where that pyramid scheme line gets a little blurry.
It does seem like there’s a bigger emphasis on selling Color Street to “regular” people not in the business.
In a minute, we’re going to take a look at a comment I saw about Color Street that made me raise an eyebrow. First, let’s talk about some pros and cons.
- Fairly inexpensive start up cost
- Products are inexpensive and therefore may be easier to sell
- Decent amount of emphasis on selling products retail vs recruiting
- Terrible BBB rating
- Customer service seems to be very hard to get a hold of
- People say that the product doesn’t last very long
- Very hard to make money, as shown in the Income Disclosure
- Because the products are cheap, you’ll really have to hustle to make a lot of sales
- $300 PV is quite a lot per month
- Best to sell these via home parties, which can be a time and monetary expense
The $300 PV Issue
Here’s part of the comment that I mentioned above:
and another part:
This comment makes me raise an eyebrow for a couple of reasons:
- Selling $300 is a LOT per month, especially considering the cost of the products (and this is where distributors get into trouble because they end up buying this themselves, which the commenter clearly has done)
- This makes me think that, just like almost every other MLM, there really aren’t that many retail sales happening. The sales that people are making are from distributors themselves.
That Little Secret I Mentioned?
Another issue people may have with trying to sell Color Street is that you can get the same exact product at Walmart and Ulta for less!
Fa Park owns the companies Incoco Nails and Coconut Nail Art.
Why deal with buying nail wraps through an Independent Stylist and having the hassle of paying and waiting for shipping when you can just run down to your local Walmart and get them when you need them – for less?
An Alternative to Color Street
I love the idea of being a boss babe and running my own business. I was sucked into the MLM life with these promises too! However, it just doesn’t work out well with these companies because you’re so unlikely to make money.
That’s why I decided to go to affiliate marketing instead.
You still get to earn a commission, but it’s much easier than dealing with all the ups and downs of an MLM.
You can read my article about MLM vs Affiliate Marketing and see all the ways why affiliate marketing wins, hands down!
With affiliate marketing, you promote other people’s products for a commission. But there isn’t any recruiting, or uplines or downlines or confusing compensation plans.
In fact, it’s so easy to get started and you don’t need to buy any starter kits or inventory.
Let me show you exactly how affiliate marketing works, and then you’ll see why it’s awesome.
You can even promote nail wraps, nail polish and other beauty supplies if that’s what you’re into. But you won’t be begging your friends and family for sales. Instead, you learn how to attract people to you.
To me, Color Street is not a scam. But, they do have too many issues and I wouldn’t recommend that anyone join them (or any MLM). Two of the biggest issues are:
- Their F rating at the BBB for not dealing with customer issues
- The fact that you can get the same product at WalMart for less
If you love the idea of promoting products that you enjoy and earning a commission, why not try out affiliate marketing instead? It’s much easier to get started and you’ll never have to do a home party!