Color Street has announced adjustments to their pay model that limit commissions to a single recruitment level.

By doing this, Color Street hardly qualifies as an MLM business anymore.

Another noteworthy announcement is that Color Street would eventually face direct competition from its multilevel marketing consultants.

on January 31, 2025, as reported by Direct Selling News;

Stylists will start earning on March 1st under a new and lucrative compensation plan that pays up to 40% on retail sales and 15% more for creating a community of stylists on their first level, however “wide” they want.

In addition, Color Street will work with the stylist community to develop brand awareness, optimize the customer experience, and draw in new clients through strategic omnichannel initiatives, such as dynamic social media campaigns.

I looked for an official Color Street message, but I was unable to locate one.

Color Street Consultants is asserting on social media that the business would sell straight on Amazon, albeit at a 40% markup.

The fact that Color Street will soon be entering the Amazon market and making a few retail sales in the next year is one of the most significant shifts.

The caveat is that Amazon will not have the well-liked Buy 3, Get 1 Free offer, their variety will be reduced, and their pricing will be 40% higher.

I was unable to confirm since Color Street has not been open and honest with customers about the impending changes.

Color Street also had a rather comprehensive multilevel marketing compensation scheme at the time. Higher-ranked Color Street Consultants were able to profit from the sales volume produced by their whole downline via the Team Bonus.

The top-end consultant hierarchy will undoubtedly be destroyed if downline commissions are reduced to just one recruiting level (including personal retail). Put otherwise, Color Street’s modifications will probably enable it to save a significant amount of money by not compensating consultants with high downline volumes.

According to Color Street founder Fa Park, who was mentioned by DSN, the firm has to adapt in order to remain relevant and “meet consumers where they are.”