Is Color Street A Scam, Pyramid Scheme or Legit MLM?

Is Color Street a pyramid scheme? Color Street Review

Has someone introduced you to the Color Street opportunity? Are you wondering if Color Street is a pyramid scheme?

Most people would love to be able to work from home but have no idea how to do it.

Color Street promises to be an opportunity to do just that.

This honest Color Street review, with videos, will expose the truth about the company and explain why Color Street is not a pyramid scheme… but has signs of being one…

Color Street Review- The overview and rankings


  • Name: Color Street
  • Owners: Fa Park (70 out of 100)
  • Website URL: colorstreet.com
  • Type: Nail polish strips MLM
  • Products (Including Pricing): 70 out of 100
  • Success Stories: 30 out of 100
  • Price To Join MLM: $129 + 50-100 PV per month (50 out of 100)
  • Maketimeonline.com Rating: 55 out of 100 (check out my #1 recommendation, 97 out of 100)

What To Look For In An MLM:

  • Low start-up fee – ✅ (but expensive to stay active)
  • High-quality products – ✅
  • You don’t have to carry inventory – ❌(you need $50-$100 in sales each month to stay active!)
  • Generous compensation plan – ✅
  • An affiliate-like system – ✅
  • Company is in the early momentum phase – ✅

Color Street pros and cons


Pros

  • It still has momentum
  • Inexpensive to start
  • Memorable products with positive reviews
  • You get a website provided

Cons

  • 1,000% more expensive than similar products on Amazon
  • 99% of MLM recruits lose money
  • Low-income potential
  • Competitive market
  • Negative reviews online
  • You are dependant on your “mentor”

What is Color Street?


Color Street is a Multi-Level-Marketing company.

The main focus is on selling different types of nail polish strips and nail care items.

It offers an opportunity to regular people to make money by selling their products and recruiting more people into the MLM company.

Here is the founder, Fa Park, explaining more about the Color Street company…

You can see Mr Park has worked extremely hard to bring his vision to life.

But this still doesn’t answer the question…

Is Color Street a pyramid scheme?


Technically no, Color Street is not a pyramid scheme.

You can earn money by selling their products and without recruiting anyone into the MLM company.

However, if you’re interested in quitting your full-time job, here’s the honest truth…

You will have to recruit quite a lot of people into the MLM company to be able to earn over $2,000 a month.

Yes, it’s possible to earn over $2k a month from selling the products, but you’d need to sell over 568 items a month to make this happen.

What is a pyramid scheme?


A pyramid scheme is when a company recruits members by promising them payment for recruiting more members.

If the company doesn’t offer any products or services then it is a pyramid scheme and these are illegal in almost every country.

This is because it’s impossible for everyone to make money from the company. Just check out the diagram below…

Diagram from Wikipedia

If you needed to recruit 6 members each to make money then after 13 levels the world has run out of people.

Color Street does offer a product that anyone can buy without needing to become a “distributor”.

Therefore, it technically is not a pyramid scheme.

However, it certainly still has signs of one as you can see in the short video below…

Watch it on x2 speed if you are in a hurry!

How does Color Street work?


Color Street produces nail polish strips and sells them to customers.

They can reduce their advertising & marketing costs for one simple reason…

It is an MLM company.

This means they offer everyday people the chance to become a distributor to earn money.

  • Color Street saves marketing expenses
  • Everyday people can make money from the company

Aka… a win-win!

We’ll get into the details about this soon. But first, what are the…

Color Street products


Color Street offers a range of nail care products.

They have all kinds of designs and glitter patterns for your fingernails and toenails.

Without a doubt, their main product is their nail polish strips. You can see how these work in the 1-minute video below…

These strips cost around $11 for a pack of 16. They supposedly last for up to 14 days and takes no time to apply.

We’ll look into how this compares to other products out there a bit later.

But you have to agree they look pretty easy to use and cool right?

How to make money with Color Street


Ah, the section you have been waiting for!

How to make money from Color Street.

Like most MLM companies there are really only 2 ways you can make money as a distributor:

  1. Earn a commission for any direct sales you make of their products
  2. Recruit more people into the company and earn bonuses from the sales they make.

Note- you do NOT earn money for recruiting people into the company. You earn money from the sales these people make. Small change, big difference!

Check out the 3-minute video below to learn more about the MLM opportunity…

How much does it cost to join Color Street?


It costs $129 to start as a distributor and get the starter kit with Color Street.

Here’s what included in your starter pack:

Click here to see the up to date starter kit pack (it can change over time).

But this is not the only cost to “remain active” as a distributor.

You need to make $50 in retail sales per month.

This ultimately means that most distributors will need to buy $50 of products every month just to make sure they “remain active”.

Note the amount increases as you move up the ranks, but realistically you will be selling more if you “rank up”.

Color Street compensation plan


MLM compensation plans are always silly hard to understand.

Just remember you make money from 2 ways:

  • Sell products
  • Recruit more people (to sell products)
Is Color Street a pyramid scheme? Color Street Compensation plan

Here are the retail commissions you can earn…

Retail commissions

  • 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

There are actually 12 “ways” that you can earn money from Color Street, but really they all fall under one of the 2 methods already described:

  1. Jumpstart incentives (bonus for hitting some easyish goals)
  2. Base retail commission (25%)
  3. Enhanced retail commission (added per cent over $600 sales a month)
  4. Preferred client (bonus from people that order again)
  5. Enroller matching jump start bonus (leadership phase)
  6. Enroller bonuses
  7. Leadership level bonuses
  8. Leadership depth bonuses
  9. Team bonus
  10. Generational bonuses
  11. Car/ lifestyle bonuses
  12. National leadership bonus

You can find the full compensation plan here, or watch the 20-minute video for a walk through…

Is Color Street a scam?


Absolutely not.

You can earn money from Color Street and they provide legit products that many people want.

Some people think all MLM programs are pyramid schemes or scams.

Whilst there is some truth in the fact that you can only make good money from recruiting more people into the MLM program, there are certainly better MLM opportunities than others.

The rest of this Color Street review will expose the hidden truths so you can make an informed decision if it’s right for you or not.

Just to be fully transparent with you, I am not a distributor myself and I do not endorse it in any way.

I have researched the website, testimonials and information on the Internet to get to the bottom of what this program genuinely does. This is because I have been burnt from programs just like this in the past and I want to prevent others from making the same mistakes. If you’d like to learn more “Ways to Spot an Online Marketing Scam” then click the highlighted text.

Related content:

Color Street: The good


Here are some of the things I like about Color Street…

Key Terms:

  • Black Hat Methods – Using lies and unethical methods to make someone buy something
  • White Hat Methods – Being honest and genuine to help people make informed decisions about purchases
  • Pyramid Scheme – recruits members via a promise for payment from referring others to the service rather than providing a product
  • Affiliate Marketing- Connecting a customer to a product they are looking for and receiving a commission for doing so
  • Red Flag – A warning sign

#1 Still got momentum


This is a biggy!

I, personally, wouldn’t even consider joining a more “established” MLM program as this basically means the great money has already been made.

There’s an element of risk in joining a new company, but if you can get in early it’s where the serious money can be made.

Color Street was launched in 2017 and you can see it is still increasing in the number of people searching for it on Google.

This is a great sign that an MLM company is doing well.

As you can see, MONAT global has been through its momentum phase and another beauty MLM, Farmasi, is even newer than Color Street. You can check out my Farmasi review here.

#2 Relatively inexpensive to join


$129 to start a “business” is not bad.

Spending an extra $50 a month to stay active is acceptable for most people, but if you make enough sales then you won’t need to spend a penny more!

Note- you do not own the business. If it was to disappear tomorrow, you would lose all the income you were making.

#3 Memorable products


Once you know about these nail polish strips you won’t forget.

Many MLM companies don’t have a unique selling point, but Color Street certainly does!

Is Color Street a pyramid scheme? Color Street Products

This leads nicely onto…

#4 Positive reviews


People do seem to enjoy the products.

This is great because it means it’s possible to get repeat customers.

Is Color Street a pyramid scheme? Color Street Review

Like anything, there are negative reviews (as you’re about to learn) but it’s a good sign that there are a lot of positive reviews online.

#5 You get a website, which you will need to make money


If you want to make any money from an MLM company, you will have to use the internet to help you sell 24/7/365.

The great thing is that Color Street provides you with a website that you can send people from social media to.

Is Color Street a pyramid scheme? Color Street Website

The bad thing about this generic website is that there will be lots of identical ones that exist.

This means getting your website ranking on Google and getting passive income from people searching for certain keywords every month won’t be possible.

It’s also something that MLM companies simply don’t teach unless you get a great mentor!

Color Street: The hidden truths


Here are some of the bad parts of Color Street that you should be aware of before diving in…

#1 Expensive Products


This is always my first check when I review an MLM program.

If the products are much cheaper elsewhere it is a big red flag for me.

Is Color Street products
$11 per pack on Color Street (~1,000% mark up compared to Amazon!)
Between $0.6-$1.6 per pack on Amazon

Typically, it means the company will focus on recruiting more distributors than selling their own products.

Why?

Because nobody in their right mind would buy products that are much more expensive and are very similar.

Apart from…

Do you remember that distributors need to sell $50 a month to remain active?

If they can’t sell that amount, they need to purchase the products themselves. In reality, that means the distributors become the companies biggest customers!

This is the main reason that…

#2 99% of MLM Recruits Lose Money


The FTC revealed that 99% of distributors lose money from a study of 350 MLM companies.

MLM FTC Fact Stat

If you read the #1 hidden truth again, it will start to become clear why!

#3 Low income


Even if you can sell and recruit more distributors into the MLM here’s another hidden truth about Color Street…

Your profit margins are pretty low!

You’re getting 25% commission from an $11 product.

That is less than $3 per sale.

You can make over $3.50 per sale if you sell enough in the month.

But, if you need $2,000 a month to quit your job (most people want more than that!) then you need to sell 568 packs every month!

burning money

In reality, if you want to hit the numbers you want you are going to have to recruit a lot of people into the company so that your “downline” can help make sales that you get bonuses for!

And that my friend, is a pyramid scheme in disguise!

#4 Competitive market


There are so many MLM companies that exist in the personal care and beauty niche.

For example here are just some other MLM companies I have personally reviewed:

Make Up

Color Street does have an edge that they have a relatively unique product, but the lack of other makeup and skincare products does make it quite a limited market of people that will be interested in it.

Not to mention you can get the same thing on Amazon for a fraction of the price!

#5 Negative product reviews


Yes, there are positive reviews but there are similar negative reviews in between them.

Also, the BBB is a platform that people have to go out of their way to complain or leave a review.

People tend to only do that if they had a very bad experience, and out of 16 complaints on the website, 11 were about the products…

Is Color Street a pyramid scheme? Color Street BBB Review
Color Street Review

It seems to be a similar complaint too! The nail strips don’t last anywhere near 14 days.

So you may as well just buy the cheap ones on Amazon anyway!

#6 Depends on your mentor


This is true for all MLM’s but especially ones in the beauty industry.

If you are going to see any success, you have to use online marketing to help you.

FACT.

If you are passionate about the products and genuinely use them yourself that that helps.

But without knowing how to market your business online, you may as well not even start!

Mentor

This is something not taught at Color Street. So the person you join through is so important!

Or you need to find a way to learn it outside of Color Street!

Related content:

My opinion – Color Street


If you love your nails and love these nail strips then you may be thinking this is a great opportunity for you.

That helps but…

You also need to learn how to market this business online.

Without it, you really don’t have a business because you certainly won’t be able to sell 568 packs each month to your friends and family on Facebook to earn $2,000 a month!

Is there a better opportunity?


I was looking for a way to earn passive income online in 2018.

I had no idea how people did it but I was finding more and more people that did it!

That was when I stumbled across Wealthy Affiliate.

In September 2019 I had all the proof I needed to quit my $45,000 a year full-time job.

The best thing about it is:

  • It’s free to start
  • It has step-by-step training walking you through how to set up an online business from scratch
  • The support is amazing (there are hundreds of thousands of online entrepreneurs ready to help!)

Once you get the skills taught in this training you will be able to set up an online business in ANYTHING you want.

So even if you did want to come back to an MLM opportunity, these skills will help you be in the 1% of recruits that makes money!

Color Street Review: The “MakeTimeOnline” final word


So is Color Street a pyramid scheme?

Technically no.

But if you want to make good money from it, you better be prepared to recruit a lot of people into the business.

When you consider the expensive products and low income from selling them, you have an opportunity that really is not as good as it first looked.

Keep changing for the better,

Mike

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