I love jewelry so much that I have one of those large tall upright jewelry boxes to store all of my amazing pieces. As a matter of fact, I joined a jewelry MLM company once a few years back. I didn’t make any money but maybe you can with this company. So let’s do a Stella & Dot MLM review to see how it all works.
I know that I still have a ton of jewelry from my MLM days that I couldn’t sell after I quit. I wonder if all MLM jewelry consultants can say the same thing. They have way too many pieces left over to remind them of their success or failure.
I became familiar with Stella & Dot when I attended a friend’s party. They have lovely jewelry, but with that in mind, they also have a hefty price tag attached.
Who Is Stella & Dot
Stella & Dot is a direct selling company based in Los Angeles, California, which originated in 2004—founded by two friends, Jessica Herrin and Blythe Harris. They wanted to create a business where they could earn extra income and build a community simultaneously.
The cofounders named their company after their grandmothers, because they believe their grandmothers Stella & Dot honor a generation of women whose lives were full of struggle but never gave up. Women who worked hard, fought for equality, won the right to vote, and made sure their children had opportunities that they didn’t have. Jessica and Blythe also believe their grandmothers would want to do things the way they are doing it now as business owners.
Members get the chance to be part of an exclusive network of people who share similar interests and goals, in addition they are encouraged to work together to achieve their personal and financial goals.
Stella & Dot Products
Stella & Dot sells a wide range of products, including clothing accessories, not to mention their signature product is fashionable jewelry and more.
- Jewelry – necklaces, earrings, bracelets
- Charms – for bracelets and necklaces along with unique charms
- Clothing – knit tops
- Keep – almost the same items as Stella & Dot
- Ever – complete line of skincare products
- Top Sellers under $100. Their most popular products
Stella & Dot MLM Review
Stella & Dot was featured in publications such as Forbes, The Wall Street Journal, Entrepreneur Magazine, and others.
To join Stella & Dot, you must first become a member. Once you’re a member, you’ll receive a kit containing your own personalized number, which will allow you to promote the products and services offered by the company. You’ll also get access to a private Facebook group where you can connect with other members.
You can choose to either recruit new members or sell existing inventory. The more members you bring into the company, the higher up on the ladder you’ll climb.
Stella & Dot have made some changes to their business model as of January 3, 2022. They now allow stylists or brand ambassadors to sell products from three direct sales companies, Stella & Dot, Ever, and Keep, compared to the previous model where they sold only one brand.
They say it is to help their 30,000 existing ambassadors increase selling activity and attract new ones. To help ambassadors, Stella & Dot have developed a new shopping app called Mimi, in the hopes that, a representative can create and share product pages that promote beauty, clothing, and accessories equally. When an ambassador shares a link to a product page through social sharing or social selling, they’re able to share a direct link to that page so customers can easily purchase the product.
My concern with the new development to help ambassadors are:
- Are Stella and Dot having problems, or are Keep and Ever the ones in trouble. It would make sense to take a company that is struggling and incorporate it into one that is prospering. And since Stella & Dot is an MLM and the ambassadors are keeping it afloat with their required personal volume purchases, why not allow the ambassadors to do the same for Keep and Ever.
- They talk about how they are doing this for the ambassadors, but the products for Keep are a lot like Stella & Dot.
Stella & Dot’s founder, Blythe Harris, has faced accusations of being a scam artist. She has been sued multiple times over her alleged involvement in multi-level marketing schemes, which resulted in a settlement out of court for million for allegedly running a pyramid scheme in 2014.
Harris’ attorney said they settled because the lawsuit was “baseless” and that the allegations against his client were false. However, the judge ordered Harris to pay $1.2 million in attorneys fees.
Harris also faces charges of fraud in California. Her husband, Robert Harris, was charged with conspiracy to commit mail fraud and wire fraud in connection with a multi-level marketing scheme, which landed him12 years in prison.
Price To Join Stella & Dot
To begin, you can purchase one of three options.
- Essentials kit, which is the starter kit, logs in at $199.
- More Love kit is only $499
- The Ultimate kit is a measly $699
Then you will pay $167 a month to continue as a stylist
Each kit includes Stella & Dot jewelry and accessories, but the amount you get depends on which kit you choose.
Stella & Dot Compensation Plan
There are 2 basic ways to earn with Stella & Dot, retail commissions and recruiting downline to make a percentage. They do talk about bonuses and free products, but everything falls into these two categories when we break it all down.
Stella & Dot does say:
- As a member of Stella & Dot, you will receive free samples of new products every month, not to mention you’ll also receive commissions when you refer customers to the company.
- If you want to increase your earnings, you can also take advantage of special events and promotions hosted by the company. These include product launches, holiday parties, and more.
It appears that the compensation plan pays based on the number of products you sell, otherwise known as personal qualifying volume in a given quarter. The more you sell, the more percentage of commission you are eligible to make, not what your downline sells but rather it is a personal volume that you sell.
I am including a screenshot of the compensation plan. It isn’t very easy to understand, to say the least.
Video Of The Stella & Dot Compensation Plan
Well, now, this is interesting for sure. I like to include a video of the compensation plan to help you better understand, but there are not any on YouTube to share. There are, however, several videos promoting the company. So in light of this new information, there will not be a video to share.
Pros And Cons Of The Stella & Dot MLM
So now that you have the most relevant information, let’s examine the Pros and Cons to help determine the final verdict.
- A stunning, well-designed website
- Easy to join
- The motto is to empower women
- A recent increase in products available to sell
- High price to join
- A high price tag on the products
- Most stylists never make money or break-even
- You are encouraged to buy more products to sell to make a higher commission
- Have to recruit friends and family to make more money
- It is an MLM business
Stella & Dot Income Disclosure Statement
Here is the income disclosure for Stella & Dot. In a nutshell, what it says is 98.4% of stylists make less than $27,00 a year. That is before monthly expenses and additional expenses.
The bare minimum you would spend a year is$2203, in reality that doesn’t even include the additional products you will need to buy to meet your quarterly quota to make a commission.
So now you might be thinking, I can make this work on a bare minimum output, but as a former MLM business representative, the need to make money becomes so intense it overtakes common sense.
Is Stella & Dot A Scam?
A scam is a fraudulent business where the company is dishonest in what they offer; with this in mind, I don’t think the products produced by Stella & Dot are a scam. While their jewelry is quite expensive, on the whole, I do not believe the MLM portion is a scam, but they do border a scam.
Is Stella & Dot A Pyramid Scheme?
The definition of a pyramid scheme, according to Wikipedia, is: In a pyramid scheme, an organization compels individuals who wish to join to make a payment. In exchange, the organization promises its new members a share of the money taken from every additional member that they recruit.
Stella & Dot MLM Review Video Presentation
My Recommendations Regarding The Stella & Dot MLM
I do not recommend Stella & Dot MLM as a way to make money, whether it is full-time or supplemental.
Yes, their jewelry is pretty, and yes, they do have a stunning website that boasts empowering women.
But the bottom line is that as an ambassador, you are keeping the company in money. The requirement to keep a personal volume quota every 3 months is, in my opinion, a way to keep the sales coming in for Stella & Dot.
Then there are the statistics that 95-97% of all representatives lose money and never break even. Yet the company makes $56.2 million in sales. So in light of the information we found in this review, I would have to say no.
Are you willing to take the financial risks required and put out all that money with such a poor success rate? I wonder, is it worth it to make extra money when the statistics are stacked against you? I mean, even to make a full-time income source is nearly impossible with an MLM company. Not to mention do you have the sales skills needed to harass friends, family, and strangers?