Are you being offered an opportunity with the multi-level marketing (MLM) Beauty Society? Let’s review their compensation plan to give you the facts to decide if this is an opportunity you’d like to explore.
As a reminder, I have an MBA, I am a Certified Public Accountant (CPA), and have almost 15 years working in finance and accounting. These are my opinions based on researched facts and my understanding of those facts. However, this is not legal, financial, or tax advice. If you need legal, financial, or tax advice, you should reach out to a professional for a 1:1 chat! All opinions are my own.
To jump directly to the PDF of the compensation plan click here.
What is Beauty Society?
Beauty Society is a multi-level marketing (MLM) company. Beauty Society was started in 2004 by Jeannie Lorin. The company sells skincare and makeup.
This long-standing MLM does not publish an income disclosure statement, I did reach out to the company to request a copy of the income disclosure, but did not receive one.
What is Multi-Level Marketing?
Multi-level marketing (MLM) also known as network marketing, social selling, pyramid selling, direct sales, and more, is a specific business structure. This business structure uses independent salespeople/consultants to sell their products instead of traditional methods (like selling in a store).
However, they also encourage those that are selling the product to build teams of people under them selling the product. MLMs don’t take into consideration how many salespeople they already have, and what geographic locations or social media platforms are being used. There are generally no qualifications to join. Most MLMs will accept anybody over the age of 18 who is willing to pay to join.
Top Takeaways After Reviewing the Comp Plan
- To unlock the max amount of bonuses and compensation, you will need to build a team
- Those that successfully build teams will be eligible for many bonuses that will create a large amount of income
- If you’re looking to earn significant commissions from joining Beauty Society, it is my opinion from my understanding of their compensation and the network marketing industry – you will need to recruit a large time. Your primary focus will need to be recruiting, not selling.
How to Rank up in Beauty Society
To rank up in Beauty Society – you will need to recruit a team. The first few ranks don’t require any team building – which is typical. However, to reach the rank of “Select Advisor” at least one leg is required. Each “rank up” from then on requires a larger and larger team. I have reviewed many income disclosure statements and can tell you it is my opinion based upon that research that those in the bottom ranks will make almost no money, and may even be losing money.
The only way to make money in these MLMs is to rank up to be eligible for the additional bonuses. To rank up, you must recruit.
Beauty Society Compensation Plan Commission Types
There are several different bonuses as part of the Beauty Society Compensation Plan:
Personal Volume Bonus
This is a bonus based on the volume of personal volume sales. This can be earned at the lowest tiers of the compensation plan. The bonus pays as follows:
- 500-1,999 PV = 5% Bonus Commission
- 2,000 – 3,499 PV = 10% Bonus Commission
- 3,499 – 5,000 PV = 15% Bonus Commission
- 5,000PV and Above = 20% Bonus Commission
Leadership/Life Style Bonus
A monthly fixed lifestyle bonus unlocks at the Ultimate Advisor Tier (so the first tier is required to team build). This amount starts at $300 and reaches $7,000 a month at the top tiers! This is a huge incentive to build and recruit a team.
A level bonus is a commission percentage paid on an Advisor’s downline based upon their rank. Once again – the higher the rank and the bigger the downline is when these bonuses start to add up.
If at the rank Legacy Advisor or higher, the Advisor will receive a Generational Bonus based on their Downline’s generation and their own Personal Team. Higher the rank, the bigger the bonus gets.
Can You Make Money Selling Beauty Society?
Yes, it is possible to earn money in a network marketing company. However, it is unlikely you will make a significant income, especially in a well-established network marketing company. The primary way to earn money in multi-level marketing is by recruiting others to join the company. Selling products alone is very unlikely to earn you a significant income.
Why You Should be Skeptical of Network Marketing/MLMs
Network marketing also known as multi-level marketing (MLM) is something you should have a healthy skepticism of (and in my opinion avoid). Let’s talk about some of those things:
The majority of people who get involved with MLMs lose money.
This has been proven time and time again by reviewing income disclosure statements and this study that was published by the FTC.
This study is a little dated, however, I have reviewed many Income Disclosure Statements and find that the results are still valid. See all the Income Disclosure Statements I’ve reviewed here.
Lack of Transparency In Where Sales Come From
Currently, MLMs are not required to produce any reporting that identifies how much of their sales come from customers or from those involved with the “business”. This makes it very difficult to establish where the line falls between MLMs and Pyramid Schemes
The FTC warns that MLMs and Pyramid Schemes can look very similar.
The FTC has an entire article (click here to read) on its website that has a lot of great resources, including questions to ask someone who is looking to recruit you.
Many network marketers will argue their MLM isn’t a pyramid scheme because pyramid schemes are illegal. However, illegal things happen every day until people are caught. I would not give this any merit.
Network Marketers Not Clear in Expectations
In my opinion, from what I’ve seen pitched to me and others, is that when most people in network marketing try to recruit others to join, they are not upfront about what that means. When you join a network marketing company, the primary way to make money will be to recruit others. It is not sharing products, it’s not posting things on social media and it is not purely selling products. Sure, you can earn some money by selling products alone, but you won’t earn car bonuses, trips, etc. from product sales alone. Also, you will be in direct competition with many other people selling the same product.
Beauty Society is a long-standing MLM. This means it will be ever more challenging to build a team. It has been shown that most people in MLMs don’t earn a significant amount of money. You may spend time trying to generate sales and recruit others and never see any income. Joining an MLM, you need to know you are risking your money, and time and you may come across an upline that will manipulate you into staying and losing more money. You need to fully understand all of these risks.