We got a lot of traffic on our review of the Beautycounter business opportunity, so we thought we come back take a detailed look at their income disclosure

We started our journey at the official homepage of the Beautycounter Income Disclosure. We were not surprised to see that like many MLMs we’ve been checking back on, the most current version of their income disclosure contains less information than the previous ones. It seems that by following the current trend, Beautycounter gave as little information as possible for a legal income disclosure.

After looking through all the hype about what rewards are available, they gave us a table of commissions earned. We used the information in their table to create the our own version shown below:

We simplified the information a bit so that we can just look at the annual average commissions paid at each rank. Beautycounter tells us that this table includes all consultants who were part of the business opportunity during the year. This includes those who earned nothing, and those who dropped out because they didn’t spend enough on product.

Starting at the bottom of the table, we can see that 82.20% of huns never make it off the bottom of the pyramid. Let’s not forget that this table only includes those still in the ‘business opportunity’. It would be more accurate if we also showed all those who have dropped out but they won’t do that because that would likely show that most consultants quit Beautycounter within their first year.

Looking at the average annual incomes, we can see that the people who probably started at the top of the scheme are making a lot of money. As we go down the ranks, it gets rapidly worse. In fact based on this table we can see that only 1.1% of Beautycounter consultants earn more than minimum wage.

Let’s not forget that there is a difference between income and profit. The income disclosure only shows commissions paid, it does not include any of the expenses incurred. If we were to include expenses we’d expect to find that most Beautycounter consultants are losing money.

If you are considering joining Beautycounter, or any other MLM, we strongly suggest that you consider all your options before making a final decision.

For posts like this check out our list of MLM Income Disclosure Statements. If you notice one that you think should be added to the list, let us know and we’ll do our best.