Color Street Review: Can you compete with Walmart?
Color Street operate in the personal care niche and are based out of New Jersey in the US.
Heading up Color Street is headed up by Founder and President, Fa Park.
So the story goes, Park’s business concept
began in 1984, when Fa Park was on a bus stuck in a traffic jam and saw a woman in a nearby cab trying to polish her nails.
He thought, “There has to be a better way!”
He bought some nail polish and started experimenting with it, starting by painting it on different types of paper.
After countless attempts, he finally created a process where although the top was dry, the bottom was still moist and could be adhered to the nail.
Mr. Park’s revolutionary vision, a 100% nail polish strip, was born!.
Fast forward decades with much hard work to perfect and patent his product, Mr. Park’s innovation has become a leader in the beauty industry.
Color Street launched in mid 2017. Park also owns the non-MLM companies Incoco and Coconut Nail Art, through which similar products to Color Street are marketed and sold.
Read on for a full review of the Color Street MLM opportunity.
Color Street Products
Color Street market nail polish strips, which the company claims are “made in USA with globally patented technology”.
Features of the strips touted on the Color Street website include;
- base, color and top coats of high-quality liquid nail polish in each strip
- brilliant, salon-quality manicures in just a few minutes, with no drying time, smudges, or streaks and
- 100% real nail polish, not stickers Flexible—can be gently stretched for a perfect fit
A full catalog is provided on the Color Street website.
Prices start at $11 for solid colors, $12-$13 for the fancier designs and $14 for “French manicure” patterns.
The Color Street Compensation Plan
Color Street’s compensation plan combines retail sales with residual unilevel team commissions.
Generation and Lifestyle Bonuses are offered as additional performance-based incentives.
Color Street Affiliate Ranks
There are twelve affiliate ranks within the Color Street compensation plan.
Along with their respective qualification criteria, they are as follows:
- Stylist – generate and maintain 300 PV a month
- Senior Stylist maintain 300 PV a month, generate and maintain two unilevel legs with a Stylist in each, generate 1000 GV a month and at least 2000 GV accumulated in total
- Team Leader – maintain 300 PV a month, generate and maintain three unilevel legs with a Stylist in two and a Senior Stylist or higher in the third, generate 2500 GV a month and at least 5000 GV accumulated in total
- Director – maintain 300 PV a month, generate and maintain four unilevel legs with a Stylist in one, a Senior Stylist in two and a Team Leader or higher in the fourth, generate 7500 GV a month and at least 20,000 GV accumulated in total
- Senior Director – maintain 300 PV a month, generate and maintain five unilevel legs with a Stylist in two, a Team Leader or higher in two and a Director or higher in the fifth, generate 25,000 GV a month and at least 50,000 GV accumulated in total
- Executive Director – maintain 300 PV a month, generate and maintain six unilevel legs with a Stylist in three, a Director or higher in two and a Senior Director or higher in the sixth, generate 50,000 GV a month and at least 150,000 GV accumulated in total
- Senior Executive Director – maintain 300 PV a month, generate and maintain seven unilevel legs with a Stylist in four, a Senior Director or higher in two and an Executive Director or higher in the seventh, generate 150,000 GV a month and at least 500,000 GV accumulated in total
- National Executive Director – maintain 300 PV a month, generate and maintain eight unilevel legs with a Stylist in four, a Senior Director or higher in two, an Executive Director in one and a Senior Executive Director in the eighth, generate 300,000 GV a month and at least 1,000,000 GV accumulated in total
- Sapphire National Executive Director – maintain National Executive Director qualification with an additional National Executive Director unilevel team leg
- Ruby National Executive Director – maintain National Executive Director qualification with two additional National Executive Director unilevel team legs
- Emerald National Executive Director – maintain National Executive Director qualification with three additional National Executive Director unilevel team legs
- Diamond National Executive Director – maintain National Executive Director qualification with four additional National Executive Director unilevel team legs
PV stands for “Personal Volume” and is sales volume generated by retail sales and an affiliate’s own orders.
GV stands for “Group Volume” and is PV generated by an affiliate’s downline.
Note that for Team Leader and higher, up to 50% of required monthly GV can be sourced from any one unilevel leg (there is no restriction for required accumulated GV).
Color Street affiliates earn a 25% to 35% retail commission, based on their total retail sales volume each month.
- generate up to $599 in monthly retail sales = base 25% retail commission
- generate $600 to $1199 in monthly retail sales = 28% retail commission rate
- generate $1200 to $1799 in monthly retail sales = 30% retail commission rate
- generate $1800 to $2399 in monthly retail sales = 32% retail commission rate
- generate $2400 or more in monthly retail sales = 35% retail commission rate
The Enroller Bonus is a flat 3% bonus paid on generated sales volume down two levels of recruitment.
- Stylist and Senior Stylist ranked affiliates earn 3% on level 1 (personally recruited affiliates)
- Team Leader and higher ranked affiliates earn 3% on levels 1 and 2
Color Street pay residual commissions via a unilevel compensation structure.
A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):
If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.
If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.
Color Street cap payable unilevel team levels at four.
Residual commissions are paid out as a percentage of sales volume generated across these four levels.
How many unilevel team levels a Color Street affiliate earns residual commissions on is determined by rank:
- Stylists earn 3% on level 1 (personally recruited affiliates)
- Senior Stylists earn 3% on levels 1 and 2
- Team Leaders earn 3% on levels 1 to 3
- Directors and higher earn 3% on levels 1 to 4
Note that it’s possible to receive overrides on downline affiliates who are not qualified to earn residual commissions on all four available unilevel team levels.
Executive Director and higher ranked affiliates earn a 1.5% Team Bonus on their entire unilevel team volume.
If an Senior Director is in a unilevel leg, the Team Bonus for that leg is capped at four levels after them.
Color Street define a generation when an Executive Director or higher is found in a unilevel leg.
This affiliate caps off the first generation of that unilevel leg, with the second beginning immediately thereafter.
If a second Executive Director or higher exists deeper in the leg. The second generation is capped off and the third begins.
If no such ranked affiliate exists, the last generation of that leg extends down its full depth.
Using this generation structure, the Generational Bonus pays a 3% bonus on sales volume generated by up to three generations per unilevel leg.
- Executive Directors earn 3% on one generation in a unilevel leg
- Senior Executives earn 3% on up to two generations and
- National Executives earn 3% on up to three generations
Executive Director and higher affiliates qualify for a monthly Lifestyle Bonus.
- Executive Directors receive $500
- Senior Executive Directors receive $750
- National Executive Directors receive $1000
Sapphire National Executive Director and higher rewards
For Sapphire National Executive and higher ranked affiliates, the current Color Street compensation plan states;
The rewards for achieving Sapphire National Executive Director are not paid in commissions, change periodically, and are detailed in a separate document that highlights rewards for promotions to higher ranks.
A previous Color Street compensation plan dated January 2018 details National Leadership Bonus Pools.
Each pay period, Color Street places at least 1% of its total
monthly PV into National Leadership Bonus Pools to be shared by Sapphire, Ruby, Emerald, and Diamond Executives.
The Sapphire, Ruby and Emerald pools are 20% of the 1% pool. The Diamond pool contains the remaining 40%.
Other than maintain Sapphire National Executive Director and higher ranks, there doesn’t appear to be any additional qualification criteria.
I’m also not clear on why this was removed from the current Color Street compensation plan documentation.
Joining Color Street
Basic Color Street affiliate membership is $129 and comes with an assortment of Color Street products and nail care accessories.
Prior to launching Color Street, Fa Park has been successfully selling nail products through his Incoco and Coconut Nail Art brands.
As far as I can tell, there’s no difference between Color Art’s nail products and that of Incoco and Coconut Nail Art, other than the designs offered and pricing.
A check on the Walmart website reveals Incoco and Coconut Nail Art products going for $4.97 to $6.88.
Of particular note is Incoco’s French Manicure line, which goes for $6.88 versus Color Street’s $14.
I’ve singled out the French Manicure line as the designs across Color Street and Incoco appear to be identical.
This I feel is going to be your biggest challenge in marketing Color Street. Granted Color Street appears to offer a much wider range of designs than Incoco and Coconut Nail Art, but those price-points are still a significant hurdle.
I also observed Color Street products readily available on both Amazon and eBay – which made this particular sentence from Color Street’s compensation plan all the more significant;
A Stylist may sell the product or service for whatever price he or she chooses.
Furthermore, if Park is able to sell nail products for practically half-price with Walmart’s mark-up, why is Color Street so comparatively expensive?
One would hope it isn’t the compensation plan artificially driving pricing up.
Unless I was particularly attached to unique Color Street designs, I know I’d be a little bit cheesed if I found I could the same thing half-price elsewhere.
The only positive I can attribute to Walmart undercutting Color Art’s affiliates, is the nail art product being available cheap to try for potential affiliates.
Moving onto Color Street’s compensation plan, it’s a pretty solid offering with no particular concerns that stood out
There are no retail volume qualifiers but at the same time spending $300 a month as an affiliate obviously isn’t sustainable.
And Color Street do offer two retail sales bonuses; a sliding retail commission rate and product credit incentive (not covered in the compensation plan breakdown), so really there’s no excuse.
Outside of what you keep for yourself (bit hard to market nail art if you’re not wearing it), you’re either making significant retail sales or you’re dropping out within a few months.
One final thought I’ll touch on is the recent spike in Color Street website activity.
The above chart, provided by Alexa, shows a sharp increase in activity from late August.
This is a few months after Jamberry Nails collapsed and was acquired by M.Global (formerly M.Network).
To what extent former Jamberry Nails affiliates have found a new home with Color Street I can’t say, but it’s not unreasonable to attribute the increase to Jamberry’s collapse.