Color Street Replaces 18-Rank Plan With Two-Tier Compensation and Omnichannel Strategy

Color Street is replacing its Stylist compensation plan and adopting an omnichannel strategy.

Beginning March 1, Stylists will earn up to 40 percent on retail sales plus 15 percent on sales by Stylists they personally enroll on their first level. The previous plan rewarded generational volume, team building and organizational structures across 18 ranks, which the company said is no longer sustainable. Color Street said its analysis found 95 percent of Stylists can expect their commissions to stay the same or rise, based on fourth-quarter 2024 sales.

The company will also use social media campaigns and other channels to attract new customers. "While change is difficult, pivots are required to stay relevant," said founder and Chief Executive Fa Park.