July 6


Is Color Street A Scam? (Another Pyramid Scheme Exposed?!) (2020)

Anis Founder of Fulltimehomebusiness.com

By Anis Chity

July 6, 2020

Is Color Street A Scam

Hello! Welcome to my "Is Color Street A Scam?" review!

Did you just encounter Color Street and found out that other than providing products, it actually has a work from home opportunity for you? However, you are hesitant to join because you don't know what it is.

Is Color Street A Scam? Or is it legit? Well, you have landed on the right review because I will cover all the things you need to know about this company.

So before making decisions, finish reading this Color Street Review to have a better understanding of this MLM company. Let's get started, shall we?

Color Street Review Quick Summary

Name: Color Street

Website: https://www.colorstreet.com/

Founder: Fa Park

Type: Nail polish strips MLM company

Price: $129, 50 to100 PV = ~$50+ per month

Rating: 1/5

Recommended? No

Is Color Street A Scam logo


What is Color Street?

Is Color Street A Scam website homepage

Let's begin this Color Street Review by getting to know it. Color Street is an MLM company in the beauty industry. More specifically, it provides nail care and nail polish strip products.

It was created by its founder, Fa Park in 1984. Below is a video of him explaining his company.

Apart from providing products, Color Street also has an opportunity for you wherein you can earn money from home. Read on to learn more about it.

Color Street Products

Color Street has huge variety of nail care products. You can check them out here. Its nail polish strips are available in different styles and designs that people would love to purchase.

If you are curious as to how these nail polish strips work, watch the video below.

Although Color Street has unique products, it is worth noting that it is not the only MLM company in the beauty niche. There are others such as Ariix, Farmasi and Arbonne.

However, Color Street stands out indeed in providing nail care products. The nail polish strips are priced around $11 for pack with 16 pieces. Moreover, they last for up to 14 days and are easy to apply.

How does Color Street work?

Color Street is an MLM company which means that it follows a similar business model as the other MLM companies.

It provides products and at the same time, can compensate people who will join its MLM program for selling their products and recruiting people.

In this way, Color Street can save money on marketing and advertising since these people can do the selling for them. Basically, both parties can benefit from the MLM model.

How to earn money with Color Street?

Like I said earlier, there are two main ways to earn money with Color Street.

  1. Sell their products and earn commissions
  2. Recruit people

However, it is important to take note that you can only earn money from your recruit's sales.

You can't be compensated by simply recruiting people because it is illegal. If this was the case, Color Street would be labeled as a pyramid scheme that could lead to being shut down by the FTC.

How to join Color Street?

It is quite easy to join Color Street and start earning money with it. All you have to do is to purchase the starter kit which costs $129. You can see below what you will get from the kit.

Also, you can click here to make check out the up-to-date kit since it can change from time to time.

Is Color Street A Scam Starter Kit

However, do not celebrate yet. That is not the only expense that you need to do! Proceed to the next section to see your monthly costs.

Color Street Monthly Costs

Is Color Street A Scam Remain Active

As you can see in the picture above, as a distributor, you need to make retail sales or personal order worth $50 per month to be "Active". Being active is a requirement to be eligible to earn commissions.

If you managed to sell products worth $50, then you don't need to buy them. However, it is likely that you would buy them yourself! Moreover, the amount will increase the higher the rank!

So if you want to join Color Street, your total expenses for the first year is...

  • $129 (Starter Kit)
  • $50 x 12 months

Total costs is $729. This does not include the additional costs for your training, packaging, postage, etc.

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Color Street Compensation Plan

Since most of the time, compensation plans are difficult to comprehend, I will simplify Color Street's compensation plan. Like we discussed earlier, you can earn money by selling or recruiting.

Basically, you can get 25% commission from the products that you sell. However, if you managed to have a Personal Volume beginning in $600, you will earn more commissions, as indicated in the picture below.

Is Color Street A Scam Retail Commissions

Apart from that, there are other ways of earning money with Color Street. 12 ways, to be exact. Here are they.

Is Color Street A Scam Ways to earn money

If you did not notice, 9 of these 12 ways actually involve recruiting people. This is a red flag of being a pyramid scheme in disguise! I will emphasize this in the next section.

You can check out the full Color Street compensation plan here.

Is Color Street a pyramid scheme?

A pyramid scheme is an illegal and unsustainable business model wherein the only way to earn money is by recruiting people. There are no products or selling involved, unlike MLMs.

It is almost impossible to earn money from pyramid schemes. Only the ones at the top, especially the owners or founders, make money.

Now the question is, "Is Color Street a pyramid scheme?" Technically, it is not a pyramid scheme. You can earn money through selling its products and from the sales of the people you recruit.

However, there are times wherein MLM companies are actually pyramid schemes in disguise. This happens when majority of its ways to earn money in the compensation plan involves recruiting people, same as Color Street!

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Is Color Street a scam?

This is another common question regarding the company. Is Color Street a scam? No, it is not a scam. It has legit products that people love. Moreover, they do pay you as they claimed to do. However, this does not mean that you will fully treat it as a source of income.

Is Color Street A Scam 2018 Income Disclosure Statement

You see, MLMs naturally have low income potential. In fact, based on Color Street's 2018 Income Disclosure Statement, the average annual income of distributors was $178.06!

Since we estimated that your annual expense is at least $729, this means that these distributors lost over $550.94 every year.

Color Street Pros

#1 Replica Websites

Is Color Street A Scam Replica website

Distributors are provided with a replica website wherein they can sell their products online! This is very beneficial because distributors will have an easier way of selling online.

The only downside is that it is generic which means that there are a lot of similar looking websites out there.

#2 Still has momentum

Is Color Street A Scam Google Trend

Based on Google, Color Street still has momentum. People still search it up in Google, despite being launched online in 2017.

In the picture above, we compare Color Street to MONAT Global and Farmasi. Color Street still shows that it has its momentum which means that it is doing well as an MLM company.

#3 Unique and memorable products

Color Street's products are very unique. There are several MLM companies in the beauty niche. However, only Color Street offers stylish nail care products.

Moreover, a lot of customers love them.

Color Street Cons

#1 A pyramid scheme in disguise

Color street is not technically a pyramid scheme. However, the chances of it being a pyramid scheme in disguise is high.

This is because most of its ways of earning money, based on the compensation plan, involves recruiting people. Moreover, distributors will likely resort to recruiting people because of the low income potential.

#2 Low income potential

Even if you make a lot of sales and recruited people, you won't still make enough income. It is because of the low profit margins. You can get 25% commission from a $11 product!

Do the math and that is less than $3 per sale!

Is Color Street A Scam 2018 Income Disclosure Statement

Based on the Income Disclosure Statement, 0.34% of the distributors in 2018 made over $2,314.73 every month. If we translate that into English, it means that only 1 out of 294 distributors earned more than $28,000 in 2018!

#3 Expensive products

Is Color Street A Scam Expensive Products
Is Color Street A Scam Expensive Products 2

When reviewing MLM companies, I always try to compare their products with similar ones in the market. If ever their products are more expensive, it is a red flag of being a pyramid scheme.

It is because, distributors will be forced to recruit people in order to make a decent amount of income because customers are more likely to choose the cheaper alternatives.

Looking at the pictures above, you can see that Color Street's products are actually more expensive.

#4 Negative online reviews

Color Street has its own share of negative online reviews. Here are some of them from its BBB page.

Is Color Street A Scam Negative review
Is Color Street A Scam Negative review 3
Is Color Street A Scam Negative review 2

#5 Hidden monthly costs

It won't be revealed to you that there are additional costs monthly when you are being encouraged to join.

In truth, apart from the $129 Starter Kit, you need to spend at least $50 per month to be active and be eligible to earn commissions!

If this is the case, then that makes the distributors as the major customers of the company because they are the ones who purchase more products, right?

Final Verdict

To conclude this "Is Color Street A Scam?" review, it is time for my final verdict. Color Street is a legit MLM compay with unique products. Morever, it still has its momentum, meaning a lot of people are still interested in it.

However, if we talk business, it is better for you to just find another opportunity. I highly do not recommend it. It has a very low income potential, and it is too expensive. In the end, you will just end up losing money.

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Thank you so much for reading my "Is Color Street A Scam?" review! If you have any questions or comments, please feel free to leave them below in the comments section.

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Anis Founder of Fulltimehomebusiness.com

About Anis

Anis Chity used to be a struggling university student under debt from Italy, but thanks to this opportunity he managed to earn a 4 figure monthly income at the age of 24. Anis enjoys helping people avoid scams and find legit ways to work from home. He has many other businesses online as well.

In his free time he loves playing football & hanging out with friends.

Quick update: Anis now is 28 earning over $40k a month on average in affiliate commissions! Learn How He exactly did it here.

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