Stream Cosmetics, a subsidiary of Luminess Air (an established airbrush company) claims all sorts of things for itself. From being the first to use primers to being the forefront of the airbrush world – these claims are largely embellished, but they are the first airbrush makeup company to go the Avon lead and use a home-based multi-level marketing business. . model.
Interested individuals can easily sign up with Stream Cosmetics as an Independent Beauty Consultant (IBC) for a fee of fifty dollars. There is no required inventory to become an IBC, but realistically, the minimum purchase of a starter demo kit would be required to show products to potential customers. With Stream Cosmetics’ pyramid business model / Multi-Level Marketing, consultants get twenty to fifty percent of all sales made. They also get a percentage of the customers they sign up for automatic monthly shipping. Autoship programs are a double-edged sword for any business, as they have a way of signing up people who would rather not sign up for a monthly credit card debit and generating many unhappy customers.
To progress through the levels of the Stream Cosmetics business ladder, Consultants must maintain an average monthly sales and develop a group of active IBCs who “recruit” other members below them. There are seven levels of progression between the lower IBC and the upper level of Global Beauty Ambassador (requiring $250,000 monthly group sales!), so the potential earnings are high, if you can really manage to get there. Of course, as you move up the pyramid, there are more lucrative bonuses and incentives, but the climb seems pretty steep, so it seems a bit like a carrot and stick system where consultants rarely get the golden carrot.
The other component of the Stream Cosmetics company is, of course, the products that are sold, and this will be the real litmus test for the company, because no matter how good the business plan is, if the products are not good, then there is no way to build a cosmetic empire.
Their range of products is the same as that of the industry leaders, so their claims to be a revelation in the world of airbrush makeup seem a bit over the top. There are reports that the foundation formula is too runny, and for the price they charge (twice as much as other companies for foundation), that could be a problem for the company. Since foundation is the mainstay of the airbrush makeup industry, getting the formula right is essential, so Stream Cosmetics may need to adjust their formula to keep up with the market.
Stream Cosmetics can prove to the rest of the industry that the home vendor is the best way to market a product, but this really remains to be seen since the company is so new.