So, you’ve been approached by a Color Street Stylist who has suggested that you join their team and start selling Color Street nail strips.
It sounds like a great opportunity, right?
Get discounted nail strips, recommend them to your family and friends and receive commissions when they buy something – who wouldn’t want some extra cash, especially the kind of ‘passive income’ that Color Street claim to offer?
However, you want to know more before you take the plunge.
It costs $129 just to sign up as a Color Street Stylist, and that’s without factoring in monthly website costs ($9.95), any products that you buy, as well as other expenses such as hosting nail bar parties.
So then, can you really make money with Color Street? Is Color Street an MLM? (Spoiler alert – yes, Color Street is an MLM company).
More to the point, how much money can you make selling Color Street, and is joining Color Street really worth it?
Let’s find out.
How Much Money Can You Make Selling Color Street?
What is Color Street?
Color Street is an MLM company that was founded in 2017 in New Jersey by Fa Park. Unlike other MLM companies, Color Street only has one 1 product – nail polish strips.
Color Street nail strips come in a wide variety of designs, and each set comes with a nail file/applicator, a nail prep pad and in-depth instructions.
The selling point of Color Street nail strips is that they’re easy to use and last for up to 2 weeks, with a set costing 11-13 USD.
Considering the strips are supposed to stay on for 2 weeks, $11 seems like a reasonable price.
However, an interesting thing to note is that Color Street’s parent company, Innovative Cosmetics’ Concepts, sells the exact same strips for 4-6 USD in places like Walmart and Amazon.
This is obviously bad news for Color Street Stylists, who have to sell the more expensive version to their customers.
The reason for Color Street nail strips being more expensive than their identical counterparts is that in an MLM, distributors receive their commissions directly from the price of the product.
The products have to be marked up significantly because a portion of that cost is used to pay whoever sold it (as well as their upline).
Pyramid Scheme Allegations
MLM companies like Color Street frequently come under fire for functioning like illegal pyramid schemes.
I actually provided a more in-depth analysis of the Color Street MLM opportunity and found that Color Street do indeed resemble a pyramid scheme in many ways, including the fact that you have to pay in order to be able to sell Color Street products, and also that 8 out of 10 ways of making money with Color Street involve recruiting others into the company, which is a big red flag of a pyramid scheme.
However, that’s not what this article is about.
This article is about whether you can actually make money selling Color Street, and how much money you can expect to earn if you sign up as a Color Street Stylist.
How Do You Make Money with Color Street?
I took a look at the Color Street Compensation Plan to see the various ways in which you can make money with Color Street.
There are 10 main ways to make money with Color Street:
- Jump Start Bonus – You will receive a bonus for hitting some goals when you sign up to the company.
- Base retail commission – You will earn 25% on every product sale you make. These can be sales to the public, sales to members of your ‘team’ or even ‘sales’ to yourself.
- Enhanced retail commission – If you sell more than 600 USD worth of products in a month, you will receive up to 10% extra commission.
- Enroller matching Jump Start bonuses – For everyone you recruit who gets a Jump Start bonus, you will also receive a bonus.
- Enroller bonuses – You will earn a 3% commission on the Personal Volume (number of sales) that your recruits make.
- Leadership Level Bonuses – You will earn a 3% commission from the sales of the person that your recruit recruited (the person 2 levels below you in the company).
- Leadership Depth Bonus – You will earn a 1.5% commission from the sales of people 4 levels or more below you in the scheme.
- Team Bonus – An extra 1.5% commission from the total sales of your downline.
- Generation Bonuses – You receive higher commissions from your downline the further you rank up in the company.
- Car/Lifestyle Bonuses – Like many MLMs, Color Street has a ‘car bonus’ incentive. You can read my articles about the Arbonne Mercedes and the Monat Cadillac to see that this is not all it seems.
As you can see from the above, most of the ways that you can earn money in Color Street involve actively growing a team, or benefiting from your past efforts of growing one.
Rather than the main product that you sell being the nail strips, most of your focus will inevitably be on selling the business opportunity, because the more people that sign up under you, the more commissions you will receive and the more passive income you will make.
How Much Money Can You Make Selling Color Street?
While there are lots of ways to make money with Color Street, it isn’t actually as easy as you might think to make a decent income with them.
The vast majority of people selling Color Street are not actually making a liveable income, or even an amount that could be seen as a ‘side hustle’ kind of income.
To see how much money Color Street Stylists are making, I checked out their Income Disclosure Statement (IDS) from the year 2020.
An Income Disclosure Statement is a document which outlines exactly how much money people in the company are earning, according to where they rank in the business.
Now, the interesting thing about Color Street’s Income Disclosure Statement is that it is actually comprised of two statements.
One of them shows the average earnings without subtracting the money spent by Stylists on sign-up fees and monthly e-suite fees, and one shows the average earnings after subtracting the money spent by Stylists on these things.
In this article, we are going to be looking at the typical Color Street earnings after the sign-up fee and e-suite fees have been subtracted, because these numbers will paint a more accurate picture of the amount of profit that Color Street Stylists are taking away each year.
With that being said, it is very important to know that sign-up fees and e-suite fees are by no means the only expenses that Color Street Stylists will incur, and so we can’t take these numbers as final profit.
However, they do give us a slightly more accurate representation of the facts.
The numbers show us that, in the year 2020:
- 49.31% of Stylists earned an average of $67
- 36.95% of Stylists earned an average of $1933
- 1.3% of Stylists earned an average of $17,198
- 0.51% of Stylists earned an average of $35,278
- 0.08% of Stylists earned an average of $260,443
- 0.04% of Stylists earned an average of $781,322
The first thing we can see here is that these numbers vary massively, with the top 0.04% of individuals earning close to a million dollars, while 93.91% of all Color Street Stylists earn between $5.69 and $358.86 per month, on average.
Taking the top 0.12% of the Color Street Stylists out of the equation (the top 2 ranks combined), we can see that the majority of Color Street reps aren’t earning anywhere near enough to replace a regular job.
We should also remember that most Color Street Stylists will spend more than $67 in promoting their business throughout the year, and so when we take that into account, it seems as though the bottom 49.31% of Stylists likely lost money.
How Much Money Can You Make With Color Street? Final Thoughts
The numbers on Color Street’s Income Disclosure statement don’t lie, but they are not surprising either – no matter which network marketing company you look at, the average earnings of participants are always the same.
This is because, on average, 99.6% of people in MLM companies lose money or make no money due to the way that the business model is structured.
If you read the income disclosure statements for other MLM companies like Isagenix, Monat or Scentsy, you will see very similar figures.
This is why Not Your Boss Babe does NOT recommend joining Color Street, or any MLM company for that matter.
An Alternative to Color Street
If you’re looking for a side hustle or a work from home job, you may find these articles helpful:
Advantages and Disadvantages of Blogging
Easy Freelance Jobs for Beginners
Best Side Hustles for Single Moms
How to Sell Feet Pics Online
Secrets to Selling on Poshmark
Profitable Digital Products to Sell on Etsy
How to Become a Micro Influencer
That’s about it for today, but as always, if you have any questions then don’t hesitate to leave them in the comments section below and I will get back to you!
Until next time,