Color Street Scam: MLM or Pyramid Scheme? [Review]

If you’re on the lookout for an online money-making opportunity, you may have come across Color Street. You might have seen social media posts about it, or maybe a friend or family member told you about it. Either way, you’re likely curious about what it is and whether it’s legit or just another online scam.

As someone who’s passionate about helping people find the best online money-making opportunities, I’ve reviewed numerous similar programs over the years. 

First things first: I want to clarify that I have no affiliation with Color Street. That means I’m not being paid to write this review, so you can trust that my words are unbiased.

In this review, I’ll cover everything from what it is, how it works, and most importantly, whether or not you can really make money with it. So, let’s get started.

What Is Color Street?

Color Street is a company that was founded by Fa Park in New Jersey in 2017. The company’s main product is nail polish strips, which are sold using a multi-level marketing scheme. These strips come in a variety of designs and styles, including glitter, patterns, and French manicure style, as well as special designs for holidays like Christmas, Halloween, and Valentine’s Day. The nail files/applicators, nail prep pads, and detailed instructions are included with each set, making it easy for anyone to achieve salon-quality nails from the comfort of their own home.

The idea for Color Street came about in 1988 when Fa Park saw a woman struggling to paint her nails on a bus. He then began experimenting with nail polishes on paper, thinking there must be an easier method. Eventually, he developed a formula that allowed the top to be dry, but the base to remain moist, allowing the polish to adhere to the nail. This innovation led to the creation of Color Street’s nail polish strips.

Color Street consultants, who are called Stylists, have the opportunity to open their own nail salons. In 2019, Color Street generated more than $120 million in revenue and employs over 6,000 consultants. The company employs around 1,100 full-time employees in the area, drawing inspiration from New York City, the “City that Never Sleeps.” It sits alongside sister brands Incoco and Coconut Nail Art.

While some may question the cost of Color Street’s nail polish strips, which retail for $11, it’s important to note that Color Street’s parent company, Innovative Cosmetics Concepts, sells the same strips for 4-6 USD in places like Walmart and Amazon. This discrepancy in price is due to the fact that MLM companies mark up their products to cover the commissions that reps receive, as well as the business’s overhead costs.

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What Products Does Color Street Offer?

Color Street’s one and only product is a game-changer when it comes to nail polish: nail polish strips. And they come in a vast array of styles, from solid colors to glitter styles, holiday-themed designs to French manicures, and many more.

Each pack of Color Street nail polish strips comes with a nail file/applicator, a nail prep pad, and clear instructions on how to apply them. And for those who need a little extra help, the company offers video tutorials on their website that make applying the strips a breeze. It’s easy to see why they’re so popular – Color Street strips are the ultimate solution for anyone looking to achieve a professional-looking manicure or pedicure without leaving the comfort of their own home.

Color Street Nails and Innovative Cosmetics Concepts: Are They Different?

If you’re an avid nail art enthusiast or someone who’s always on the lookout for the latest nail trends, you may have come across Color Street Nails and Innovative Cosmetics Concepts. While both companies offer nail strips that are easy to apply and come in a variety of designs, you might be wondering whether they’re the same company or not. Here’s what we found out.

Color Street Nails was founded by Mr. Fa Park and is the parent company of Innovative Cosmetics Concepts. However, despite being under the same parent company, the two brands have different business models. Innovative Cosmetics has been selling its nail strips in major retailers such as Walmart and Amazon for almost a decade. You can usually find them near the checkout counters, where they’re marketed as impulse purchases and typically sell for $4-$6. Reviews of the products are positive, with users saying they perform well under normal conditions.

On the other hand, Color Street products are exclusively available through distributors called stylists. These stylists earn money by promoting the products through social media or their own websites. As of now, Color Street has not made its products available through major retailers.

One concern that some may have is whether Color Street’s exclusivity will be affected if their products become available in stores like Walmart. According to some reports, Color Street is planning to phase out Innovative Concepts’ nail strips to focus more on their own brand. However, despite these claims, Innovative Concepts’ products are still available in stores.

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How to Make Money With Color Street?

As Color Street explains on its website, becoming a distributor means that you can earn money by sharing the product with others. This can be done through in-person events, social media, or other marketing channels. Distributors can earn a commission on the products they sell, as well as on the sales made by other distributors they recruit into the program.

At first glance, this may seem like a win-win situation. Customers can enjoy high-quality nail designs, while distributors have the opportunity to earn extra income. However, it’s important to note that MLM businesses can also be associated with some risks.

For example, some people may feel pressured to recruit new distributors in order to earn more money, which can lead to a focus on recruiting rather than product sales. Additionally, some MLMs have faced criticism for making unrealistic income claims or for requiring distributors to purchase large amounts of inventory upfront.

Overall, Color Street’s MLM model offers a unique opportunity for people to earn money while promoting a product they enjoy. However, as with any MLM business, it’s important to do your research and consider the potential risks before deciding whether to become a distributor.

You may also want to read our article on the top MLM companies.

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Is Color Street A Pyramid Scheme?

No, Color Street is not a pyramid scheme.

Firstly, let’s clarify what a pyramid scheme is. A pyramid scheme is a fraudulent business model that lures members with the promise of payments or services in exchange for enrolling others. The scheme is unsustainable as members are unable to make money as the number of recruits grows, and most of the profits go to those at the top of the pyramid. In contrast, MLMs involve selling a product or service with some inherent value, and allowing members to profit from the retail sales of the product or service.

So, Color Street is a legal MLM company that sells nail polish strips that are claimed to be easy to apply and long-lasting. As a Color Street stylist, you can make money by selling the products directly to the consumer, without having to recruit other salespeople. However, you may also choose to recruit other salespeople, and earn a percentage of their retail sales as a commission.

While Color Street may seem like a pyramid scheme because of the emphasis on recruiting new salespeople, it’s important to note that this is a common practice in MLMs. To earn a higher income, you need to sell more products and recruit more salespeople. 

However, the key difference between a legitimate MLM and a pyramid scheme is the value of the product or service being sold. In a pyramid scheme, the product or service has little or no value on its own, and the only way to make money is by recruiting more people.

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Is Color Street a Scam?

No, Color Street is not a scam. They offer products that people love, and you may make some money from them.

Now, I know some folks think MLM programs are sketchy or even pyramid schemes. But let me tell you, MLMs can be successful and profitable. Of course, there are other ways to build a business, but MLMs aren’t inherently bad.

That being said, some people do end up leaving money on the table with MLMs. But don’t worry, there are plenty of other business-building options out there. In fact, I’ll share a great alternative for making passive income online a little later in this review.

Color Street Compensation Plan

Color Street offers Independent Stylists the opportunity to earn commission through ten different ways with their Compensation Plan. And the best part is, these commissions are cumulative, so you can earn money through one, some, or all ten ways.

Let’s take a closer look at the retail commissions you can earn based on your monthly sales:

  • Generate up to $599 in monthly retail sales and get a 25% commission rate.
  • Generate $600 to $1199 in monthly retail sales and get a 28% retail commission rate.
  • Make $1200 to $1799 in monthly retail sales and get a 30% retail commission rate.
  • Generate $1800 to $2399 in monthly retail sales and get a 32% retail commission rate.
  • Generate $2400 or more in monthly retail sales and get a 35% retail commission rate.

But that’s not all! There are actually 12 different ways you can earn money from Color Street, including Jumpstart incentives, Preferred client bonuses, Enroller matching jump start bonus, Leadership level bonuses, Team bonus, and more.

It’s worth noting that 9 out of the 12 methods involve recruiting people. So, if you’re interested in building a team, Color Street’s compensation plan might be just what you’re looking for.

If you want to learn more about the Color Street Compensation Plan, check out this 10-minute video that walks you through all the details.

How to Join Color Street as an Independent Stylist?

Here’s how to join the MLM company and get started.

Joining Color Street as a Stylist

There are two ways to become a Color Street Independent Stylist. You can either sign up on the Color Street website or join under someone who invites you. Keep in mind that when you sign up under someone, they become your sponsor and will earn a commission on your sales.

Membership Fees and Starter Kit

To join Color Street, you’ll need to pay a membership fee of $129. This fee includes a starter kit of supplies worth $250. While $129 may seem like a lot, it’s important to remember that you’re investing in starting your own business.

If you decide to join, you’ll receive a kit that contains everything you need to start selling Color Street’s products. This includes a range of nail polish strips, tools, and promotional materials.

Website Fees

As a Color Street Independent Stylist, you’ll have the option to create your own website to promote and sell the products. The website is free for the first two months, and then a monthly fee of $10 is charged. This fee covers the cost of hosting and maintaining your website.

Ongoing Costs

While the starter kit contains a range of supplies, you’ll eventually need to purchase more items to promote the product. It’s important to keep this in mind when budgeting for your new business. The good news is that as you sell more products and build your downline, you’ll earn commissions that can help offset these costs.

How Much Money Can You Really Make with Color Street MLM?

Well, I did some research for you and looked at their Income Disclosure Statement (IDS) to find out.

First things first, let me explain what an Income Disclosure Statement is. It’s a document that shows how many Stylists work for the company and how much money they make. Keep in mind that the numbers I’m about to share with you are based on the year 2020.

The Color Street IDS consists of two statements: one that shows the average earnings before subtracting the money spent on sign-up fees and website fees, and the other that shows the average earnings after subtracting those expenses. I’ll be focusing on the latter since it’s a more accurate representation.

Here’s what the IDS revealed:

  • 49.31% of Stylists earned an average of $67 in 2020
  • 36.95% of Stylists earned an average of $1933 in 2020
  • 1.3% of Stylists earned an average of $17,198 in 2020
  • 0.51% of Stylists earned an average of $35,278 in 2020
  • 0.08% of Stylists earned an average of $260,443 in 2020
  • 0.04% of Stylists earned an average of $781,322 in 2020

As you can see, there’s a huge range in earnings. While the top 0.08% of Stylists earned close to a million dollars, the majority of them (93.91%) earned between $5.69 and $358.86 per month, on average. So, while it’s possible to make a lot of money with Color Street, it’s definitely not a guarantee.

It’s important to note that the IDS only accounts for Starter Kits and website fees, but there are likely other expenses that Stylists will incur. This means that the bottom 49.31% of Stylists who earned $67 in 2020 probably lost money.

In summary, while Color Street MLM could be a fun and potentially profitable side gig, it’s unlikely that it could replace a regular job. Just keep in mind that there are expenses to consider and earnings are not guaranteed.

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Pros of Joining Color Street MLM

Joining a New MLM Program Can Be Beneficial

One of the best things about Color Street MLM is that it is a relatively new MLM program that was launched in 2017. Getting involved in a new MLM program can be a great opportunity to make a lot of money, as the earlier you get involved, the better. 

While there is some risk involved in joining a new company, Color Street MLM has been gaining popularity and has many people searching for it on Google, which is a good sign.

Offers Unique Selling Points

Color Street MLM has a unique selling point that sets it apart from other MLM companies. Their nail polish strips are a hit with consumers, and the positive reviews online are a testament to that. The unique product line also makes it easier to get repeat customers, which is essential for success in MLM.

Provides a Replica Website

Color Street MLM provides a website that you can use to sell their products, which is a huge advantage in the world of MLM. However, it’s important to note that having a generic website may not be the best option since it will be identical to others. To maximize your income potential, it’s important to customize your website and optimize it for search engines.

Low-Cost Entry

Joining Color Street MLM is relatively inexpensive, with a cost of around $129, and there are no monthly costs since there is no autoshipment. This makes it easier to get started and start making money.

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Cons of Joining Color Street MLM

Success is Rare with Color Street

It’s no secret that MLMs are challenging to make a profit from. Unfortunately, Color Street is no exception. According to their income disclosure, most stylists make an average of just $178.06 per year in 2018. That means at least $50 worth of products should be sold by stylists each month, or they will need to buy that much themselves. As a result, a stylist will have at least $729 in expenses in their first year, and on average lose over $550.94 a year.

Products are Expensive

One red flag when evaluating MLMs is expensive products. And in the case of Color Street, their nail polish strips are pricey compared to similar products available elsewhere. Unfortunately, the company seems to focus more on recruiting new distributors rather than selling their products, which is a major concern.

Hidden Monthly Expenses

In order to remain an active distributor, you need to sell $50 worth of product every month. If you cannot sell that much, you must buy the products yourself. As a result, distributors are the biggest customers of the company, which can be a financial burden.

Profit Margins are Low

One of the biggest drawbacks of Color Street is the low profit margins for your business. As a seller, you’ll earn 25% commission on an $11 product, which amounts to less than $3 per sale. To earn a decent income, you’ll need to sell a lot of products. For example, if you need $2,000 a month to quit your job, you’ll need to sell 568 packs a month. According to the Color Street income disclosure, only 0.34% of all “Color Street Stylists” earned over $2,314.73 per month in 2018. This means that only one member out of 294 made more than $28k that year. So, while it’s possible to make money with Color Street, it’s not easy.

Negative Reviews

While there are some positive reviews, there are also many negative ones. The Better Business Bureau (BBB) has 16 complaints on its website, with 11 of them related to products. Many customers complain about the company’s support and how it doesn’t stand behind its products. 

Some also claim that the nails cause chemical burns and damage to nails. Additionally, some people are unhappy with Color Street’s MLM aspect, saying that the company is only out to make money and doesn’t care about its products. While some customers are satisfied with Color Street, the negative reviews are something to consider.

Recruiting is Required to Succeed

If you want to make a decent income with Color Street, you’ll need to recruit new members to join your team. Eight out of ten ways to earn money with Color Street require recruiting. MLMs can be challenging because they require a lot of effort into recruiting. Additionally, MLMs often teach you to recruit only your family and friends, which can limit your potential to earn a decent income.

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Final Verdict

If you’re looking for a way to make money through Color Street MLM, I have to be honest – it’s not the best option out there. When you first start, it can be challenging to find recruiters and make sales, which can be discouraging. Plus, while Color Street’s nail strips are eye-catching, they are expensive and not always effective.

Instead of relying on MLM models like Color Street, there are other ways to build a successful online business. I’ve personally been able to make a full-time income in just a year by taking a different approach. And the best part? It’s 100% legit and sustainable.

So if you’re interested in learning more, let me tell you about the steps I took to build my online business. With a little bit of effort and time, you can create a successful online business that provides passive income for years to come.

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Is There a Better Way to Make Money Online?

If you’re just starting your journey to building an online business, there are a lot of options out there, but not all of them are created equal. That’s why I wanted to share my top recommendation with you: Wealthy Affiliate.

Wealthy Affiliate is an all-in-one platform that provides everything you need to build your affiliate marketing business from the ground up. When you sign up, you’ll get access to first-class web hosting, keyword research tools, a supportive community, comprehensive training, writing tools, and other software to help you succeed step-by-step.

The best part? You can register for a free account with Wealthy Affiliate to get started with affiliate marketing right away, without paying a dime. If you like what you see, you can upgrade to the premium membership to unlock even more resources and support. And there are no hidden upsells or surprises along the way.

You may read our article about the difference between MLM and affiliate marketing.

But you’re probably wondering: how much can you really earn with Wealthy Affiliate? Well, let me tell you about a 21-year-old student who earned an impressive $7,395 in just one week using what he learned inside Wealthy Affiliate. That’s over $1,000 a day!

You can read our full review of Wealthy Affiliate here.

Wealthy Affiliate Testimonial

Wealthy Affiliate has been around for 15 years and has a proven track record of success. With over a million members, it’s clear that this platform is popular for a reason. There are countless inspiring success stories from Wealthy Affiliate members who have built thriving businesses using the tools and training provided.

If you’re interested in joining Wealthy Affiliate, the pricing scheme is straightforward. You can sign up for a free starter membership, which gives you instant access to the community, live chat, over 500 training modules, 2 classrooms, networking, commenting, 1 free website, and access to the keyword tool – all without ever having to enter your credit card information. If you decide to upgrade to premium membership, it only costs $49/month or $395/year.

Overall, I strongly recommend that you give Wealthy Affiliate a try. Registering for a free account is quick and easy, and it’s a great way to get started building your online business without any financial risk. So what are you waiting for? Sign up now and see for yourself!

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