Is Color Street a Scam?- Is it just another Pyramid Scheme?

Here we are again with another MLM that sells beauty products. Color Street is an MLM company that sells nail products such as nail polish.

If someone has approached you, maybe a close friend or a family member, promoting this product to you, then it is most likely that they are part of the MLM business and are not truly into the products. 

There are some nail products from Color Street that some customers like and you might do as well. But if you are looking into it as a business opportunity, I will tell you right away that it is not what you think it is.

No, it is not a scam, Color Street is an MLM company which means that it is a legit business. But it does not offer you that much potential for your business growth.

If you are still not convinced, then this review will explain further how Color Street functions and how their members make money. Spoiler alert! It is not from selling the products.

So let’s get started!

 

What is Color Street?

Color Street was founded by Fa Park in 1984 in New York City. The story of the founding goes like this, Mr. Park saw a lady one day in traffic trying to color her nails.

Suddenly, the cab that the lady was in started moving and therefore giving the lady a hard time finishing up her nails. This is where Fa Park got the idea to make nail polishes and other products that can be used with ease.

It is an MLM company which means that they sell products but they earn money in recruiting people. The goal of the company, as per their website, is to make everyone attain their goals no matter how big that is.

This is a common wording of MLM companies. They tell people that they can start their own business with them and that they can start by becoming a member of the company and sell their products.

Beauty and wellness products are very common in this arena. It is easy to sell since people look for them almost all of the time.

MLM companies have a way of convincing people that they are legit. Yes, this may be true but MLMs have a little bit of a pyramid scheme in them which I will discuss further as we continue this review.

 

Color Street Product Line

The nail products of Color Street are pretty amazing if you ask me. The strips take up less time and effort to apply.

Imagine stickers that you just paste on your nails. Instead of having the hassle to apply and dry nail polish, you just stick the nail strips on your nails and you’re good to go.

You can cut the strips to your desired size and easily apply them to your nails. The strips contain patterns that are rather hard when making them with nail polish.

The Color Street nail strips can last for as long as two weeks after applying them. This is usually too long for nail polish to stay on your nails.

The nail strips cost from $11 to $15  per set. The set contains 16 strips with different patterns per strip.

They also offer promos such as a buy 1 get 1 free on their French manicures and a buy 3 get 1 free on everything else. They charge a $3 delivery fee for your entire order.

 

Color Street Compensation Plan

So just like other MLM companies, there are usually two ways for you to make money with Color Street. The first is to sell their products, and the other is to recruit people.

 

Retail Commissions

This is the first and obvious way to make money with MLMs. This is the commission you get by selling products to your customers.

For Color Street, it depends on how many sales you make per week. You can earn around 25% to 35% commission.

If your total sales for a week is less than $600, then Color Street will give you a 25% commission. If you go over $2400 in a week, you earn the 35% weekly commission.

 

Residual Commissions

This is where you earn money by recruiting other people into the company under your downline. So basically, you recruit people and you earn a percentage from their sales.

Depending on your affiliate rank, you get higher commissions from your downline. I will discuss Color Street’s Affiliate Ranks briefly after this.

There are 12 ways to earn commissions which all fall under the two commissions discussed above. These are:

 

1. Jumpstart incentives 
2. Base retail commission 

• This is the initial 25% commission for 600$ sales.

Enhanced retail commission 

• This is where you will earn an additional 3% for $600 sales and up to 10% commission if you reach the $2400 mark of sales.

Preferred client 

• You can earn his commission by selling products to a previous client.

1. Enroller matching jump start bonus 
2. Enroller bonuses
3. Leadership level bonuses
4. Leadership depth bonuses
5. Team bonus
6. Generational bonuses
7. Car/ lifestyle bonuses
8. National leadership bonus

 

Affiliate Ranks

These ranks are attained by hitting certain goals. For every goal that you accomplish, you rank up higher and get bigger commissions as well.

You have to maintain PVs in order to rank up as well as recruit other people in your downline.

For example, the first rank is to be a Stylist. You have to generate and maintain 300 personal volumes a month to attain this rank.

Once you get past that, you have to recruit and maintain two stylists under each leg of your downline. You also have to generate and maintain a 1000 PV per month to rank up and become a Senior Stylist.

This process goes on and on until you reach the highest rank – the Diamond National Executive Director. But to be honest with you, most people fail to get past the second or even the first rank.

 

Other Bonuses

These bonuses include Team Bonus, Generational Bonus, and Lifestyle Bonus. These are bonuses that you get depending on how your team performed at a certain period of time.

 

How to Join Color Street?

Some MLM companies require you to buy their products to join them. Color Street also does this but in a cheaper way.

The Color Street Starter Kit costs $129 – lower than most MLM companies. The starter kit includes:

 

1. 13 sets of nail strips
2. 1 French, 2 Solid, 2 Glitter, 5 Design, 1 Pedicure, and 2 Petite
3. 72 Testers
4. 2 boxes of remover pads containing 20 pads each
5. 1 box of Prep Pads with 100 pads
6. 2 Large Nail Files
7. 2 Nail Buffers
8. 60 Mini Files
9. 50 Cuticle Sticks
10. 25 Catalogs
11. 25 Colorful Opportunity Brochures
12. Tote Bag

Most MLM companies try to convince you to buy more expensive starter packs and try to convince you that it is better for starting a business.

In Color Street, they have a Starter Pack and say that you can use them or sell them to others or use the items to demo.

Pros

1. Inexpensive to Join

• The Color Street Starter Kit is relatively cheaper than most MLMs.
• It only costs $129 to join and you can get started with your business.

2. A startup company

• Color Street is one of the newer MLM companies that started last 2017.
• The earlier you get into the business, the better as MLMs tend to fail quickly after opening. 
• There are downsides to new companies but you have a better chance of succeeding in newer ones than the more established companies.

3. Iconic Products

• Color Street’s products are memorable and you cannot find them anywhere.
• Nail polish is a pretty common product but their approach of applying one with ease is definitely a plus.

4. Positive customer reviews

• This proves that they sell quality products and are not a scam
• The positive reviews of their customers mean that Color Street really focused on their target and they hit it pretty well.

Cons

1. Relatively expensive products

• When researching an MLM company, make sure to not only see if their products are legit, and are not pricey compared to other businesses. The worst is that you get scammed while paying large amounts of money.
• You can find the same products in online shops at lower prices.

2. Low commissions

• You might think that because their products are expensive, then you will get a bigger commission than other companies right? Well, it is not enough.
• You are still forced to recruit more people in order to make a living out of Color Street.

 

Would I recommend Color Street to you?

Absolutely not. I believe that you can make more money in other ways. Color Street is not a pyramid scheme but it has features of one.

For example, you are required to recruit people for your downline and that is where you make money. That is a pattern that you will see in all pyramid schemes, the more people you recruit, the more money you make.

Statistics-wise, MLM companies make the higher person earn while making the people on the lower level lose money. It also says that 99% of people who venture into this kind of business end up in the gutters and lose all their investments.

 

Conclusion

Color Street is a great company with great products. You see, there are a lot of positive reviews about their nail products – and you rarely see positive reviews on an MLM company.

However, this does not mean that you are going to earn money. You are more likely to lose money than earn.

MLM companies have a way of convincing you to invest more in for you to avail commissions. But the truth is, you are risking your investments, money, effort and even your family by joining MLMs.

The thing is, you end up recruiting your closest friends and your family to join which may ruin the relationships between you. Now, who would like that?

So if you are really determined to make money online, at the comforts of your home, then I suggest finding another way. I recommend affiliate marketing to you.

Affiliate marketing teaches you the basics of the internet so you can handle the targeted traffic on your website. Unfamiliar with what ‘targeted traffic’ means?

Wealthy Affiliate, a kind of affiliate marketing, gives you the lessons to learn what targeted traffic is and many more. MLM companies fail to do this.

See, they give you websites to sell your products but you wonder why people do not visit your website. The thing is you have no idea about the website and what to do with it because you were not taught.

Wealthy Affiliate offers you a step-by-step guide to direct your business to success. You can learn all the lessons that you need and it is very affordable.

Wealthy affiliate costs $19 a month. Do you think that is expensive? Well, let me tell you, it is not. Of course, we need to put some investments into our business but $19 is nothing compared to what you will earn after taking up the lessons with Wealthy Affiliate.

I will personally guide you with your website as we move on from one lesson to another. See the benefits? You will have my personal comments and suggestions for your business.

If you start with Wealthy Affiliate today, you can get a seven-day trial for FREE and I can assure you that you will start earning money from your online business in just 3-6 months!

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