What Is Stella And Dot About?ツ

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Stella & Dot Review

Name: Stella & Dot

Website: https://stelladot.com

Price: $199, $499 or $699

Owners: Jessica Herrin

Overall Rank: 2.5 out of 5 ツ

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is wealthy affiliate for beginnersNOTE: It is critical for you to know I am not an affiliate of Stella & Dot.  Rich Artist Starving Artist gives truthful, genuine reviews. My top priority is providing you with quality, entertaining, and informative reviews and I am not influenced by anyone or anything.


Prior to choosing any multi-level marketing opportunity, read this article:

What Is An MLM?

Other Multi-level Marketing Business Opportunity Reviews To Read:

What Is H2O At Home About?

Becoming A Pampered Chef Consultant?

Is Amway A Pyramid Scheme?

If you are interested in jewelry, purses and accessories like sunglasses, you might have stumbled upon a company named Stella & Dot.  The company has assorted chic jewelry lines, designed mainly by designers from New York, along with belts, purses, scarves, tunics etc.  Established in 2003 by Jessica Herrin, the company was featured in both Cosmopolitan and Vogue.

what is stella and dot about

You can’t purchase Stella & Dot items from retail stores, as the company functions using a direct sales model in which it works with “Independent Stylists,” people like you and me, to sell its products.  The company also offers products on its website.

Stella & Dot is what is called a multi-level marketing (MLM) company.  So, Independent Stylists, who recruit other people into the company to become Independent Stylists too, get commissions from their recruits’ sales.

How To Become A Stella & Dot Stylist


To join, you first have to buy a company starter kit.  There are three kits to choose from:

what is stella and dot about

After you get your kit, you are prompted to exhibit your merchandise by hosting what is called a “Trunk Show,” which basically is an at-home demonstration/party.  Also, you can highlight and sell your merchandise online through a Stella & Dot dedicated website of your own; however, the company highly stresses Trunk shows as the best way to go:

what is stella and dot about

You begin by receiving a 25% commission on goods you have sold, which increases to 30% should you sell $2,500+, 32% should you sell $5,000+ and 35% should you sell $10,000+ within a single month.

If you begin to recruit other people to become Independent Stylists, you receive a percentage from recruits’ sales.  Stella & Dot state that up to 18% in extra commissions can be received from sales created by your downline; sadly, this information is not elaborated on their website.

As with all MLMs or direct sales companies, Stella & Dot have their pros and cons:

Pros


Transparency – The company appears to outline its compensation plan quite openly and, save from the absent comissions breakdown of your downline, nearly all information is displayed online.  For instance, this is the company’s income disclosure table for the average Independent Stylist:

what is stella and dot about

Chic jewelry & accessories – Stella & Dot jewelry is stylish, hot and visionary.  The clothes are extraordinary and numerous pieces have embroidery.  Purses are durable and some are made of genuine leather.

No set sales quota – An Independent Stylist who has no downline does not have a set quota to meet when selling Stella & Dot products.  S/he can sell merely a single piece a year — and still receive 25% commission.

Quick to respond – With any business or company, there will ultimately be customer complaints.  When customers have made a complaint about Stella & Dot products, the company has responded quickly and rectified the problems involved.  This leads back to the company’s “Delight Guarantee” offered to customers, along with free product returns and 24/7 customer service.

Cons


Pricey products – Independent Stylists who host Trunk Shows in their homes and expect they will earn an easy revenue of $500 a show are in for a big surprise: guests will be pressured into paying up to $228 for a chic purse or $39 for a set of bead earrings.  It will take some persuading to get people to shell out hundreds of dollars for, at least in their head, jewelry that does not have brand recognition and/or isn’t made of precious gems/metals.

For example, look at the cost of two tunics for a typical customer:

what is stella and dot about

Sales quota with your downline – If you wind up recruiting new Independent Stylists, you will have to “lead by example” and sell a minimum of $500 in merchandise for each quarter or your commissions from recruits’ sales will be transferred to another Independent Stylist.  So, if you are great at persuading others to sign up, but only mediocre at selling Stella & Dot merchandise, too bad for you.

Average earnings are low – If you take a look at the above earnings disclosure, you will see that 72.7% of Independent Stylists do not even average $2,000 and nearly 90% do not earn an average of $5,000 per year.  Those odds are rather grievous when you take into consideration the fact that these Independent Stylists are likely out there working really hard trying to recruit other people as they go.

Emphasis on a “warm market” – Stella & Dot’s website presume its sales force are going to be women, mainly housewives and stay-at-home moms, who in some way have lots of friends and relatives to sell their merchandise to.  Yes, everybody has a certain amount of people that they know they can bring together for a few parties …but that market is used up rapidly in a couple of months.  To be really successful, a person has to inevitably reach out and appeal to a wider audience outside of their warm market for potential customers.

Sadly, Stella & Dot don’t say much about this broader market and how you are to sell to it.  As a matter of fact, the company seems to almost de-emphasize advertising and selling online in favor of having Trunk Shows, despite the fact that advertising and selling online has enormous potential for extending to a wider audience.

The Final Verdict


While Stella & Dot indeed offer stylish merchandise and impressive support for customers, it may turn out to be too challenging for Independent Stylists to earn a steady income from, or even a secondary income.  Also, the merchandise is pricey and requires a particular demographic of customers with ample disposable income to be able to afford a lot of the pieces offered.  There are better, less arduous business opportunities out there.

Do you presently sell or have you sold Stella & Dot products?  I’d love to hear from you by leaving your comments below.

 

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Here’s to your success!

~Barb

 

Wealthy Affiliate

Stella & Dotツ
  • Tools & Training
  • Support
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  • Earning Potential
2.5

Summary

Yes, Stella & Dot’s products are stylish and their customer support is great, but the products are way too price and may prove a challenge for Independent Stylists who have to look for people with ample disposable income to be able to afford it. There are better business opportunities out there where you don’t have to work so hard. I’d give this one pass.

8 Comments

  1. christian javois

    Thank you for your review of Stella & Dot as it relates to MLM. I admit I did not know the difference between Wealthy Affiliate and a MLM type of business. I admit, I was “taken” years ago, by a similar business model, requiring me to keep inventory of products and was pushed to “recruit” others.
    I wasn’t comfortable with this approach but it was not successful.
    I appreciate the information you provided on the earnings potential and the very likely possibility that the salespersons market will eventually disappear then the real challenge begins. At the end of the day, there really isn’t a long term potential for high priced jewelry with little name recognition – this was the item that really caught my attention.
    Thank you for this review. It really alerted me to some of the risks with marketing jewelry

    • Barb

      Hi, Christian! Thanks for dropping by and sharing.

      I’m glad that you discovered the difference between an MLM and my top recommendation for creating an online business, Wealthy Affiliate.  I’ve mentioned quite often that I am not a fan of MLMs because you really have to enjoy selling, recruiting and managing a team.  Most people who join MLMs fail because they just don’t have the right personality for it or the compensation plan is terrible.  Those who do manage to make any life-changing money are few and far between.  Add to that, as you mentioned, not very many people are going to purchase unbranded jewelry at such a high price.  I wouldn’t.

      With Wealthy Affiliate there are no physical products that you have to buy and no recruiting.  And, it’s free to join!  You can learn more about it here.

      Cheers!

  2. lasnow01

    Hi, that sounds like so much like Tupperware, Amway, Avon, and Rubbermaid. If you had a ton of friends like house wives of some city you could make some money, but is there really any profit? you would have to sell a lot of ear rings to start making anything.

    The MLM part, lead by example, sometimes you may be good at something, like offering the products and you get your friend to join then they out preforms you, are they then expecting you to maintain that $500 minimum or do they expect more?

    • Barb

      Hi, lasnow01!  Thanks for dropping by and sharing.  I love hearing from my readers.

      Yes, Stella & Dot is set up like a typical MLM like those you mentioned, but not all are great business opportunities.  Sadly, their emphasis is on a warm market, but selling to your friends and family quickly dries up and they offer no additional training for selling to a wider market.

      Yes, whether your recruits outsell you or not, you are still expected to maintain a minimum of $500 in sales each quarter or you lose the commissions from your downline which are then given to another Independent Stylist.

      I personally do not like MLMs.  You have to really love selling, recruiting and managing a team which is why I highly recommend my top pick for making money online and it’s free!  You can learn more about it here.

      Cheers!

  3. Margaret

    Hi Barb,
    Thanks for this honest review of Stella & Dot. Like so many MLM companies it looks like it would be quite challenging to make a decent income from it. Although their products are nice, they are expensive and that alone would present a big barrier for success. I appreciate that you have laid out the realities of this business. I think you’d have to be an experienced sales person to really make this into a profitable venture.
    Margaret

    • Barb

      Hi, Margaret!  Thanks for dropping by and sharing.

      I’m so glad that you found my review helpful.  My goal is to provide my readers with as much information in order to make informed decisions and know exactly what they are getting themselves into.  Good for you for doing your research.

      Yes, I am not a big fan of MLMs simply because you really have to have the right personality for it, and there has to be a decent compensation plan.  Without these, you are doomed to fail.  This is why I highly recommend my top pick for creating a successful online business …and it’s free!  You can learn more about this incredible opportunity here.

      Cheers!

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