Beauty/ Recent

Beautycounter Compensation Plan Explained

Wondering how the Beautycounter Compensation Plan works? This post explains it!

I’ve been a Beautycounter consultant for nearly 4 years now and I love it. I tried Beautycounter for the first time when I when I was looking for a better tinted moisturizer. I got hooked on the Dew Skin first. Then I got hooked on more beauty products and eventually skin care products. I loved the products so much, I wanted to share them with others. And now, I actively work the business. In short, I absolutely LOVE being a consultant. It’s fun and I like the variety and creativity involved.
One thing I was confused by when I started was the compensation plan so hopefully this post helps you understand it a bit better too. (And you may also like this post with an honest look at being a Beautycounter consultant.)

While I don’t know the structure of other direct sales companies’ compensation plans, I do think Beautycounter’s structure is a bit different from others in the beauty industry. First, there are very few requirements or “minimums” to maintain your consultant status. In fact, only one or two orders from customers a month will comfortably meet the expectations for Consultants. More on the sales minimums below!

Beautycounter Compensation Plan Explained

This post explains the basics of the compensation plan, but as you grow a business and promote, these numbers do change a little and allow for income growth. Okay, so let’s get to how you make a paycheck. In short, you can earn through two ways: generating your own sales to customers and building a team.

Selling to customers

The first way you earn money as a consultant is by selling product to customers. As a Beautycounter Consultant, you earn 25% on products you sell. This is the most basic way to earn a income. Then as your overall personal volume grows, you can earn up to 35% commission on sales.

For example: if I’m a brand new consultant and I have a friend who buys $500 (let’s say for herself and her mother as a gift), I would earn $125 in commissions from that order.

Developing a Team

The next way to earn money is by adding other consultants to your team, often called “recruiting,” but we also refer to it as “inviting.” This is because we don’t use the same high-pressure approach as some direct selling companies, and the choice is up to you! Recruiting people isn’t required at all, but you can earn overrides for supporting, coaching, and helping others sell. It’s also an additional way to make money. As your team grows (often called your downline) and sells product, you’ll get a small commission of those sales as well. It doesn’t reduce the amount that your downline consultant earns. You start out getting 5% commission of your team’s sales and that can grow to 9-12% as you promote to new “Paid-As” titles.

These are the titles with Beautycounter.

  • Consultant
  • Senior Consultant
  • Manager
  • Senior Manager
  • Director
  • Senior Director
  • Executive Director
  • Managing Director

Developing Other Leaders

While you make the most on your own sales (Personal Volume), as you build a team, the overrides can grow. As you mentor your team, you’ll help them grow their own business and promote to new Paid As titles as well. You earn a bonus as that happens and you make a higher commission on their sales. Essentially, as you help grow more leaders, you get paid more since it takes more work.

I’ll vouch for this – as my team has grown, I spend a LOT of time helping my team. I have 1:1 coaching calls, I host team calls, I help them trouble shoot, I answer questions on Voxer, etc. It makes sense that I earn a commission from my team because I help them grow their own business. (I addressed this in my Beautycounter Consultant FAQs post, but it’s similar to a manager in Corporate America getting a bigger bonus when his/her team hits their goals.)

As a Consultant, we focus on education – education around how their products are different and why personal care products in the U.S. need more safety regulation. They also are leaders in advocating for change in the entire beauty industry to get safer products into the hands of everyone. If we can change the industry and the requirements around what ingredients are and are not allowed, we can impact even more lives.

Beautycounter Business Opportunity

The primary business model for Beautycounter is direct to consumer, and most of the sales are person-to-person through Consultants. That means that as an independent consultant, you earn a commission on anything you sell (similar to a real estate agent getting a commission when they sell a house). You also have the option to grow and mentor a team and make a smaller commission on their sales. How much you earn can vary a lot, and there is great information about how much a typical Consultant makes at each level here: www.beautycounter.com/ids. Most Consultants spend only a few hours a week selling, but those who advance to higher Titles unlock more rewards as I shared.

Beyond earning money, there are a lot of benefits to being a consultant:
  • Getting a discount on safer and high performing products – my wallet and skin is thankful for this! 🙂 I’m especially grateful for safe skin care since I got pregnant!
  • Getting involved in clean beauty advocacy efforts – I had a very cool experience on Capitol Hill in D.C. thanks to Beautycounter!
  • Being a part of a community and developing relationships other consultants – some of my very closest friends are women I met through Beautycounter!
  • Schedule flexibility – I LOVE this aspect!! I value schedule flexibility a LOT after being in Corporate America for over 13 years.
  • Become a leader – This has been so much more fulfilling than I anticipated. I love helping other consultants reach their goals.
  • Developing skills – The skills I learn through Beautycounter benefit other aspects of my business and personal life.

I will personally vouch for ALL of those things as perks. And I honestly don’t think I could pick a favorite since I’m so grateful for each aspect of this business! I also like working for a company that is recognized for its leadership and innovation by Fast Company and others. They also get recognized by the press for their high performing products (e.g. WWD, Mind Body Green, Elle, Zoe Report, I could go on!) Beautycounter is also a certified B-Corp.

And it’s pretty cool that the company is seen as such a leader in safer beauty, that Beautycounter CEO was invited to testify before Congress on the need for regulatory change in the personal care safety industry.

When you’re deciding to join as a Consultant, I think it’s important to think about all the aspects and what you’d enjoy most! It’s different for everyone.

Beautycounter Compensation Plan

Beautycounter Compensation Plan

First, keep in mind that earnings with Beautycounter may vary significantly. Earnings depend on many factors and not all Consultants will earn money. Relevant factors include each Consultant’s time dedicated to selling/mentoring and their unique circumstances. To see more about the earnings and costs of Beautycounter Consultants, check out the 2019 Income Disclosure Statement at www.beautycounter.com/ids. In 2019, the average Beautycounter Consultant earned $2060 in the U.S. before expenses. In Canada, the typical Consultant earned between 0-$1000, excluding income from the retail sales of products.

These figures include all Consultants affiliate with Beautycounter at any point in 2019, including those who had zero sales in any given month (and earned no income as a result). It also includes any Consultants who became a Band of Beauty Member as a result of not hitting the sales minimums. (More on that in the FAQs below!)

Here are a few terms that you may read or hear about the compensation plan, along with what they mean.

Retail Commission

As I mentioned above, the #1 way to earn a paycheck from Beautycounter is by selling products to others. This is called your Personal Volume (PV). Every consultant starts by earning a base retail commission of 25% on products sold at retail price. That commission percentage grows as you sell more products. As that percentages increases above 25%, it’s called a personal sales bonus.

Personal Sales Bonus

This works just like a sales rep for medical devices, cars, or apparel. The “more you sell the more you make” concept is almost universal, because it rewards those that excel at sharing Beautycounter with customers.

As you begin to sell more products, you earn a personal sales bonus. The first jump is to earn an additional 5% on your PV. Then you can earn an additional 7%. The highest tier is an additional 10% above base commission. So, the total commission you can earn on your orders goes from 25 to 30 to 32 to 35 percent. And it’s important to note that if you hit the next tier, you get the personal sales bonus on ALL your orders for the month, not just the ones after the point you get the bonus.

Override Commissions

As I mentioned earlier in this post, as you grow a team, you make a small commission on their sales. You earn 5-9% on Commissional Volume (CV) which is typically about 75% of the downline Consultant’s PV.

Beautycounter Compensation Plan FAQs

Do you need a large social media following to be successful with Beautycounter?

Not at all! Most of the consultants on my team only have a few hundred followers. I even took a month-ish off of social media this summer and still had great sales since I had laid the groundwork to support my business in other ways.

Can you only make purchases through a consultant?

Nope. While many people think that you must purchase your products through a Consultant, that actually isn’t true. (Again, I believe this is different from other direct sales companies where you can ONLY buy products from a consultant or rep. – they make you choose somebody when you check out!)

Beautycounter allows anyone to purchase product online without ever having to attribute your sale to a Consultant. (But hey, if a consultant took time to help you choose products or educate you, I vote you should support them with your order.) The way I like to explain it to friends when they ask about selling Beautycounter is this: If I loved a new restaurant that I tried in town, I would tell my friends about it, explain why I love it and encourage them to try it. That’s how Beautycounter works for me too. I love the products (it’s completely changed my skin) and so I like to talk about them and encourage my friends to try them as well. Simple as that! Except with Beautycounter, I make a commission for any sale that is made because of my recommendations, and at a restaurant, I don’t. 🙂

Where can you buy Beautycounter?

Aside from shopping with a consultant, Beautycounter also has brick and mortar stores in SoHo New York City, Nantucket, and Denver. They also do limited time pop-up locations, including one in Boston last year and once in Los Angeles this year. And you can currently buy 11 Beautycounter products at Sephora and a select group of products, usually around 20-25, from Goop’s website. Below is a photo of me in the NYC store on Prince Street.

Beautycounter Compensation Plan

Is there a fee for signing up?

Yes, it costs $50-$98, depending on what enrollment kit you choose. The $50 enrollment is a digital-only kit and comes with your personal website that you can share with others to shop. The $98 kit also comes with your website, but you also get some Beautycounter swag, like totes, products, and flyers and brochures. And all consultants get access to product training, business education, business analysis and tracking, and digital marketing tools.

After that, the only other fee is a $50 renewal fee. (Honestly, this is a GREAT deal when I compare it to the costs of maintaining this website!!!)

Do I have to buy products when I enroll as a consultant?

Nope! There are no required product purchases, ever. (But, of course, when you have product, it certainly helps you make sales since you can share your experience!!) You do have the option to buy a starter kit, which is a set of products, discounted 40-45%. That’s a deeper discount than the usual 25% consultant discount, and depending on your situation, it may make sense to purchase one. It’s a great deal, but it’s not mandatory.

Most consultants do choose to purchase products at enrollment, so a typical consultant spends about $400 when you sign up (in both the US and Canada).

What are the minimums? 

The only minimum is to sell $1,200 in products every six months. Our average order is well over $100, so one really good customer or just a few typical customers will generate enough volume to exceed this minimum. If you’re interested in buying products, you can still get 10% back in Product Credit as a Band of Beauty Member – and you are supporting a Consultant by purchasing from him or her.

What happens if you don’t hit the minimum?

You’ll be switched from a Consultant to a Band of Beauty member. That means you no longer earn a commission or paycheck. You also no longer get a 25% discount on your own orders, but rather earn 10% product credit on your purchases. Band of Beauty is explained more in this post.

What if I don’t know anything about the products or how to make recommendations?

There is training on everything!! There’s training on the products, how to use them, and how to make recommendations. There’s training on how to grow your own business. And there’s training on how to mentor and support your team, if you go that route.

How much time does it take?

This really varies and is up to each consultant. Some women spend just a few hours a week or month on their business. Others spend 10 hours a week. And some women spend 20-30+ hours a week, making it focus in their lives. (And you get to decide what “full time” means to you!)

Bottom line

I love being a Beautycounter Consultant.

If you’re interested in learning more about the business side of Beautycounter, fill this out for me and I’ll be in touch! I would love to talk to you to help figure out if this would be a good fit for you. If you have more questions, be sure to read through these Beautycounter Consultant FAQs.

 

I <3 Beautycounter

Sign up for my Beautycounter newsletter to learn more about their products and to hear about specials and giveaways!

As a thank you, I'll send you a FREEBIE with my 10 tips for clean living!

Click that pretty pink button! Powered by ConvertKit

Rate This Post

1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

No Comments

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.