If you love jewelry, Stella & Dot should be on your radar.
Founded in 2007 by two business school grads, this company boasts impressive growth and quality products anyone would be proud to sell.
That didn’t happen by accident…
Stella & Dot, one of today’s top home jewelry MLMs, has a brand that’s specifically designed to appeal to trendy, fashion-conscious women.
Forget old-style Tupperware parties. With Stella & Dot, you get trunk shows, independent stylists, boutique-style jewelry…
What fashion-loving woman wouldn’t want to hold “trunk shows” in her home, score free jewelry, work in “social selling” and be able to call herself a professional “Stylist” on her Facebook page? (That is, of course, until her network marketing tactics cause everyone on Facebook to unfriend her.)
Stella & Dot may seem like the typical MLM, but what’s not typical about these guys is that they’re still trending after a decade in the game.
FAQ
1. What does Stella & Dot sell? Stella & Dot sells boutique-style jewelry, bags, accessories, and clothing. Unlike other costume jewelry brands, though, Stella & Dot has their own design team, producing designs from scratch — so Stella & Dot customers can enjoy unique, eye-catching products that express their personal style.
2. What are Stella & Dot’s most popular products? Stella & Dot create stylish products that all seem to nail it. Their jewelry is probably their most popular. But their handbags also get rave reviews. Both lines get lots of reviews commenting on how beautiful the product is, how versatile it is, and how often it gets comments.
3. How much does it cost to join Stella & Dot? To become a Stella & Dot “Stylist,” you’ll need to buy the Bestsellers Kit, which gives you $1,000 of the company’s top designs for $299. There are sometimes promotions that allow you to put $199 down and pay the remaining $100 in the first 30 days.
4. Is Stella & Dot a scam? No, Stella & Dot is a real business selling fashion jewelry and accessories. It’s also an Inc. 500 Fastest Growing Company.
5. What is Stella & Dot’s BBB rating? A+
6. How long has Stella & Dot been in business? Since 2007
7. What is Stella & Dot’s revenue? $300 million, as of 2016
8. How many Stella & Dot distributors are there? More than 50,000
9. What lawsuits have been filed? There are no lawsuits listed online.
10. Comparable companies: Origami Owl, Paparazzi Accessories, Thirty-One Gifts
So is it too late to get involved?
I’m not going to say you won’t make any money with S&D, but there are definitely more sustainable income opportunities out there…
Click here for my #1 recommendation
Either way, here’s the full review on Stella & Dot.
Overview
Stella & Dot was founded in 2007 in San Francisco by stylish power-duo Stanford grads Jessica Herrin and Blythe Harris. [1]
Both were already successful entrepreneurs — Herrin’s business know-how had already led her to start WeddingChannel.com and be featured on Oprah, while Harris’s creativity put them over the top with fantastic designs created by the same people who work for places like Neiman Marcus and Fred Segal. [2]
Jessica Herrin had actually dropped out of Stanford Business School to found her first successful company, which she eventually sold 5 years later for $78 million — sounds like a lot of top entrepreneurs. [3]
Stella & Dot caught on fast. It’s an Inc. 500 Fastest-Growing Company. [4]
Their designs have been featured on Gossip Girl, In Style, and Lucky Magazine.
Jessica Herrin has grown Stella & Dot’s revenue exponentially, reaching upwards of $300 million annually. Herrin herself is worth $135 million, making her one of Forbes’ “Self-made women to watch.” [5]
She’s inspired her distributors for sure, but her reach goes even further now that she’s publishing a book called Find Your Extraordinary, which is all about helping people “dream bigger, live happier, and achieve success on your own terms.” [6]
Everyone from The Today Show, Wall Street Journal, and The New York Times has praised their “innovative social selling model.” [7]
But if there’s one thing MLMs are best at, it’s rebranding (hint: Sisel and Modere) — isn’t this just a new name for the same old direct selling game?
Products
Stella & Dot sells stylish, expertly designed jewelry and accessories and caters mostly toward women. The categories of their products are:
- Jewelry
- Bags
- Accessories
- Collections
- Clothing
Their jewelry is designed in San Francisco and New York by top designers, and it is very cute and trendy. Their products have been featured in Vogue, In Style, and The New York Times. Half their collection is under $50.
Jewelry includes everything from necklaces, earrings, and bracelets to rings, charms, watches, and jewelry display and storage. A good amount of their jewelry is under $100, with earrings in the $30-50 range and necklaces in the $50-100 range. Not cheap, but neither is their quality.
Bags include purses, clutches, totes, wallets, and weekenders. Wallets and clutches are in the $50-100 range whereas purses and weekenders range from $80-150.
Accessories include sunglasses, scarves, tunics, sarongs, and bag charms. Scarves are around $50-70, sunglasses around $100-130, and sarongs are $49.
Clothing includes tops, leggings, cardigans, jackets, and dresses. Casual tees range from $29 to $39, while dressy casual tops are $69 and up. Cardigans and pullovers are around $79-99. Dresses sell for as much as $139. Dressier pieces, including a Metallic Moto Jacket and a Lace Bomber, are around $149-198.
Again, they’re masterful when it comes to marketing these products and pushing the image of high-fashion. Aside from calling their parties “trunk shows,” they encourage people to host “pop-up shops” (way to ride the trend wave) featuring some of their luxury items.
They also have a look-book featuring looks put together from their various items. [8]
Compensation Plan
If you do decide to become an Independent Stylist and host Trunk Shows, what does your income really like?
You get free product, definitely. A trunk show could score you $250+ in free jewelry if you can rally up your #girlsquad to buy stuff from you.
- If you sell $300-499, you get $45-75 in free product and two 50% off items
- If you sell $500-999, you get $100-200 in free product and three 50% off items
- If you sell $1,000+, you get $250-500 in free product and four 50% off items
Overall, Stella & Dot has paid over $300 million in commissions to 50,000 stylists. That’s actually not bad. [9]
That’s an average of $6,000 per distributor, which, if it really distributed that way, would be better than most MLMs. The trouble is, it doesn’t. According to the fine print on Stella & Dot’s website, not all stylists qualify to receive commissions each month. The average earnings of paid stylists who did qualify was just $1,441 in 2017. Nothing to write home about.
The commission plan is very simple and transparent.
Personal sales commission is paid out weekly, and it starts at 25%.
25% isn’t bad, but it isn’t great. That being said, you can up your commission rates with their monthly power seller bonus:
- 2,500 QV+ gets you 30% commission
- 5,000 QV+ gets you 32% commission
- 10,000 QV+ gets you 35% commission
Then, of course, you’ve got your team sales commission.
Payouts are based on CV, and you can earn down to your 5th generation, but only if you hit a double diamond director rank.
Starting out, you make 4-6% on your level 1 recruits. A few jumps in rank will get you 8% on level 1 recruits and 3% on level 2 recruits.
Commissions on level 1 get up to 10% and level 2 gets up to 5%. Generation 1-5 commissions vary from 1-2.5%.
There are also some one-time promotion bonuses. If you can get up to the high-level ranks these bonuses hit the 5-figures, which would be awesome except that it’s near impossible to get that far.
The good about Stella & Dot
Stella & Dot is run by professional businesswomen who are experienced in growing successful businesses. The fact that Stella & Dot has been listed on the Inc. 500 is testament to the fact that they know what they’re doing.
The fact that there are no obvious lawsuits tied to the company also speaks well of them. They’re honest and as transparent as many successful businesses are.
Their marketing is stellar. Their designs are unique. They protect their designs by slapping imitators with Cease & Desist Letters. These traits can only help you succeed as one of their distributors. The brand is solid and is likely to get stronger n the coming years.
The bad about Stella & Dot
Finding financial information and specific numbers about distributors is hard. The company holds their cards close to the chest, which doesn’t mean they’re doing anything shady but does make you wonder.
It’s possible they don’t want to share numbers so they aren’t targetted by lawsuits (if so, it’s working). But it’s also possible they’re hiding other important information as well. Just something to watch out for.
Like most MLMs, you’re not going to make a full-time income from this company unless you’re incredibly skilled at network marketing. The company tells you, “How much you earn is up to you.” But we know that’s not true. You’re going to invest tons of time and money to make it work.
According to their website, if you have just one to two hours a week, you can invest $299 to get started and expect to earn $250 a month. To earn $5,000 a month, you’ll need to invest 15-20 hours a week and will need to buy the More to Love Kit, which is $499. To earn $10,000 a month, which is the level that would give you true financial freedom, you need to work 25-40 hours a week and invest $699 in the Ultimate Kit. So you’ll have fewer financial worries but no free time to enjoy it.
Recap
So, this is a trendy MLM that can definitely attract recruits and grow. And the founder knows what she’s doing for sure.
Having a good product, growth, and fun opportunities for distributors is great but it doesn’t mean you make a killing.
But it could be a fun side gig, especially if you’re into jewelry.
Look, I’ve been involved with network marketing for over ten years so I know what to look for when you consider a new opportunity.
After reviewing 200+ business opportunities and systems out there, here is the one I would recommend:
