Color Street has announced compensation plan changes, restricting commissions to just one level of recruitment.
In doing so, Color Street just barely continues to meet the definition of an MLM company.
Another significant change announced is, at some point in the future, Color Street will also be directly competing against its MLM Consultants.
As reported by Direct Selling News on January 31st, 2025;
Beginning March 1, Stylists will commence earning under a lucrative new Compensation Plan, which pays up to 40% on retail sales and an additional 15% on building a community of Stylists on their first level as “wide” as they choose.
Color Street will also implement strategic omnichannel initiatives, including dynamic social media campaigns, to attract new customers, optimize the customer experience, and build brand awareness alongside the Stylist community.
I did try to source an official communication from Color Street but couldn’t find one.
On social media, Color Street Consultants are claiming the company will sell directly on Amazon but with a 40% markup.
One of the biggest changes is that Color Street will be expanding to the Amazon market soon and select retail sales next year.
But here’s the catch—Amazon prices will be 40% higher, they will have a smaller selection, and the popular Buy 3, Get 1 Free deal won’t be available.
With Color Street not being transparent with consumers about the upcoming changes, I wasn’t able to confirm.
With respect to Color Street’s compensation plan, when BehindMLM reviewed Color Steet in 2018 we found a typical fleshed-out MLM compensation plan.
Slashing downline commissions to just one level of recruitment (plus personal retail), will surely gut top-end Consultant hierarchy. In other words, Color Street’s changes will likely allow it to save a bunch of money not paying out Consultants with large downline volume.
DSN quoted Color Street founder Fa Park stating changes were necessary to keep the company relevant and “meet consumers where they are”.
