Is Body Shop at Home a Pyramid Scheme or MLM?

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    Steven Hillman FCA

    Chartered Accountant

    TaxStore® Founder & CEO

    Updated on:

    6 September 2023

    BODY SHOP AT HOME

    Among the many home business options, direct selling is one of the most popular.


    You don’t need any prior experience, and a huge amount of start-up capital is unnecessary.


    One popular option today is The Body Shop at Home, which allows people to become independent consultants of The Body Shop and sell its branded products. 


    However, many aspiring direct sellers are discouraged by the notion that these programs are, in fact, just pyramid schemes. Not only are pyramid schemes illegal, they also result in financial loss. 


    We can confirm that Body Shop at Home is a multi-level marketing (MLM) opportunity, not a pyramid scheme. However, understanding the difference between an MLM and a pyramid scheme can ensure you're not taken advantage of when looking at direct selling opportunities.

    
    Continue reading our detailed guide below on MLMs, Pyramid Schemes and The Body Shop at Home opportunity to help you figure out whether this program is a side hustle for you.

    WHAT IS THE BODY SHOP AT HOME BUSINESS OPPORTUNITY? 

    The dark green logo for The Body Shop, featuring the brand name in a circular frame.

    The Body Shop at Home is a program for direct sellers by The Body Shop.


    This arrangement allows someone to become an independent consultant for the brand. The person can sell The Body Shop products and earn income based on their revenue, performance, and other methods.


    In theory, the independent consultant can capitalise on the branding of The Body Shop. This company has established an excellent reputation worldwide thanks to its sustainable and ethically produced products.


    In addition, they offer a large catalogue of items. If you need skin care products or fragrances, they have it.


    The independent consultant can sell more products by highlighting the branding of The Body Shop and appealing to more customers. 

    WHAT ARE MLMS (MULTI-LEVEL MARKETING) AND PYRAMID SCHEMES? 

    A hierarchy diagram showing one purple person icon at the top branching down to two dark green icons, then four at the base.

    MLMs and pyramid schemes are often conflated with each other because of some similarities. Both rely on recruiting other people to help the recruiters earn more income.


    However, the key difference is that a pyramid scheme is focused only on adding more members. This recruitment is how a member makes money.


    An MLM encourages recruitment, but people make the most of their earnings by selling products.


    An MLM business model is entirely legal and legitimate, while pyramid schemes are illegal.


    In addition, a pyramid scheme is unsustainable and will only result in massive financial loss for most members.


    IN SUMMARY:


    • An MLM relies on having a sales force; a pyramid scheme relies on recruitment.


    • MLM members earn income by selling products; pyramid scheme members earn by recruitment.

    

    • MLM is legal and legitimate; pyramid schemes are illegal in many countries, including the UK.

    IS BODY SHOP AT HOME MLM OR A PYRAMID SCHEME?

    The Body Shop at Home program is an MLM, not a pyramid scheme.


    The Body Shop has used the program for over two decades in the UK and Australia, and legal authorities have never classified it as a pyramid scheme.


    Since the model relies on an MLM distribution method called “Party Plan,” consultants get paid for selling products. Members can earn a commission based on their sales. 


    Why do some people associate this direct selling channel with pyramid schemes? It might be because independent consultants can also recruit other consultants as part of their team. Having more direct sellers under them also earns the leader a commission.

    
    While this practice can help independent consultants earn more, The Body Shop does not require it. Recruiting more sellers is simply another way to increase revenue, but the primary source will still be through selling products. 

    HOW DO YOU BECOME A BODY SHOP AT HOME CONSULTANT? 

    Now that you know The Body Shop at Home is not an illegal pyramid scheme, you may wonder how to become an independent consultant. The initial investment is relatively low, and you can start earning within the first month of work. 


    HOW DO YOU REGISTER? 

    There are two ways to become part of the direct selling channel.

    1. First, you can register on their official website here.
    2. The other option is to find another independent consultant and join their team.


    To become a member, you must be at least 18 years old.


    The Body Shop also wants to emphasise that interested consultants shouldn’t be misled by claims of high revenue for simply recruiting more members.


    Selling The Body Shop Products is still the primary source of income for all independent consultants.

    WHAT ARE THE RISKS OF WORKING AS A BODY SHOP AT HOME CONSULTANT?

    Like all types of business, being an independent consultant has its risks. Knowing these challenges can help you adapt better should you face them in the future.


    YOU’RE IN CHARGE OF ALL EXPENSES:


    From the initial investment to marketing, you will handle all the costs of selling the products. You may not start seeing profits months into the job. 


    YOU’RE SELF-EMPLOYED:


    While you are in charge of your schedule and overall strategies, you will also handle things like insurance, taxes, and marketing. These are the challenges common to self-employed individuals.


    YOUR INCOME MAY NOT BE CONSISTENT:


    What you earn in a month will vary largely on how much you sell. While you can put effort into making more profit, factors like market trends and product popularity may have a bigger effect on your revenue.


    YOUR MARKET MAY BE SATURATED:


    Given how well-known The Body Shop products are, people might already be in your local area taking advantage of their popularity. It will be harder to establish roots if your area already has trusted independent consultants or other direct sellers. 

    WHAT CAN A BODY SHOP CONSULTANT EARN IN THE UK?

    There are four ways you can earn money as an independent consultant:


    1. Products Sales:


    You may earn up to 35% from your personal product sales while the rest goes to The Body Shop. The company may also offer perks and benefits as you grow.


    2. Commissions:


    You earn additional commission from the sales of your team. 


    3. Rewards:


    The Body Shop offers rewards for members at every level, based on how well they’ve performed within a given time period.


    4. Bonuses:


    Once you hit certain milestones — like your first 90 days as an independent consultant — you can get free products to sell or earn extra bonuses.

    HOW DOES THE BODY SHOP AT HOME COMMISSION STRUCTURE WORK ?

    There are two ways to earn commission from The Body Shop at Home program.


    1. COMMISSION FROM PRODUCT SALES


    First is the commission from the product sales, which is now 35% from the previous 25%. Let’s say that you were able to sell £100 worth of products in a week. You would have earned £35. It’s suffice to say that you will need to sell a lot more to earn a substantial amount


    2. COMMISSION FROM CONSULTANTS YOU RECRUIT


    Another way to earn commission is through independent consultants you recruit. You earn 2% from their profits. We understand that this doesn’t seem like much. However, the amount could quickly pile up.

    
    Let’s say that you have 10 people under you, and they all earn £100 in a week. You get £2 from each of them, which totals an additional £20 a week. You continuously earn this commission as long as they are still a member of your team.

    PROS AND CONS OF BODY SHOP AT HOME 

    Before you consider becoming an independent consultant, review the following advantages and disadvantages of The Body Shop at Home opportunity to help you decide whether it's a side hustle for you.


    PROS

    • Flexible times and schedules
    • Passive income from recruitment commissions
    • High commissions from product sales
    • No quota for product sales
    • Great training, support, and resources
    • Social networking opportunities
    • Brand and products are already reputable


    CONS

    • Preconceived notions about MLMs
    • Market instability and high competition
    • Income inconsistency
    • Need for people and marketing skills
    • Personal coverage for all expenses, such as insurance, marketing, and trave

    IS IT WORTH BECOMING A BODY SHOP AT HOME CONSULTANT?

    According to The Body Shop, 92% of independent consultants are happy being direct sellers for the company. Their success can be the result of several factors. These include their strategies, goals, and approach to selling more products or finding more members for their teams. 


    For all these reports of good returns and successful stories, you must understand that it took considerable effort to achieve it all. They worked to sell products to find more members, resulting in higher commissions. If you approach the program as a get-rich-quick side hustle, you may not see ideal results. 

    
    At the end of the day, you will have to invest time and resources to build a customer base and a team. If you are the type of person who has the patience and grit for direct selling, then this program might be just what you are looking for.

    Final thoughts

    THE BODY SHOP AT HOME PROGRAM IS NOT A PYRAMID SCHEME.


    Still, the Body Shop at Home MLM business model is not for everyone, and it will take you a lot of effort to enjoy the rewards of being a direct seller. Before you sign up, make sure to consider the information we shared above.

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    Disclaimer: This blog is for general purpose guidance, and no liability is accepted by TaxStore for action taken or not taken in reliance upon the contents of this blog. Where appropriate, professional advice should be obtained.