If you fall in love with a certain product, you may think it’s a no-brainer to sell them. So if you are looking for a way to make extra money, selling products for commissions is one way to get there. In this Stella and Dot MLM review, we’ll look at what makes this business opportunity different from the rest. All that glitters is not gold–literally.
What is Stella & Dot MLM?
Stella & Dot, Inc. (S&D) is a multi-level marketing company that sells jewelry and accessories for women through independent sales representatives called Ambassadors. The company was founded in 2004 by two sisters, Jessica Herrin and Blythe Harris. S&D has grown into one of the fastest-growing companies in the United States with over $1 billion in annual revenue.
Stella & Dot have over 30,000 Ambassadors. The company has been featured in a number of different magazines such as Style, Gossip Girl, and In Style.
The product line includes skincare products, jewelry, makeup, beauty products, bags, purses, and totes. In 2020, the company made changes to allow Ambassadors to sell all three of their brands instead of just one. So let’s check out the products.
Are Stella & Dot Products Worth Their Price?
Stella & Dot has a large range of products for customers to choose from. For the purpose of this review, I chose a necklace.
This necklace is called The Collector’s Box Medallion Pendant and retails for $79 on the website. It comes in silver and gold with a real freshwater pearl, glass stones, a 32″ chain with a 3″ extender, and semi-shiny gold plating.
But is it worth $79? Maybe. After all, it has a freshwater pearl but there’s no way to know the quality of the pearl. Also, the gold plating means that it will probably flake off over time. It’s an attractive piece that may make a great gift. I’m just not sold on the price.
There are five reviews of this pendant on the website. Customers who reviewed the necklace have given it a 5/5 and love it.
But, other customers have complained about the quality of the jewelry. Some have said that the jewelry they purchased was not 14k gold and that the gold changes color over time. When one customer tried to return the necklace, she could not get a refund. They only offered a credit.
Another customer complained that the charm bracelet she received began to tarnish and she could not return it.
The website only lists good or great reviews. There are no bad reviews on any products that I could find.
So are the products worth the price? I’d proceed with caution with this one.
The Stella & Dot Opportunity
When you sign up, you need to pay a one-time fee that includes your starter kit. The starter kit includes personalized web space for your store and the mobile app–MIMI. Product bundles can be purchased separately at a discount. Ambassadors receive training through the Home Office as well as 1-1 training through their sponsor.
Products are sold by booking parties, 1-1 meetings, virtual events, the mobile app–MIMI, social media, text, email, and your personalized webspace. MIMI is used to create shopping boards where you can share recommendations, track, and place orders.
Ambassadors are paid commissions on product sales and the number of people they recruit as well as the amount of money those recruits make.
How Much Does It Cost To Join Stella & Dot?
It’s not too expensive to join but the optional kits are expensive. The enrollment fee is $59 and that includes your starter kit to help you make sales. Then there are the Optional Kits:
- Basic Kit – $199
- Essentials Kit – $499
- Business Builder Kit – $699
All the kits above are 50% off the retail price. You also have to pay an annual renewal fee of $59.
The website space isn’t free either. You will be billed $99 per year for this space.
In order to stay active, you need to sell 500 PV (Personal Volume) each month. This may mean you have to buy the products yourself.
Can You Make Money With Stella & Dot?
Ambassadors make 20-40% commissions on product sales that are paid weekly via direct deposit or to your S&D debit card. By recruiting people to join your team, you can earn an additional 26% in coaching commissions. Ambassadors earn monthly free product credits to be used toward product purchases.
As you build your team, you move up to higher positions. These higher positions give you an opportunity to earn cash bonuses for promoting and coaching, travel opportunities, invitations to exclusive events.
The chart below indicates the commission structure.
At a minimum, you will earn 20% for 1-299 PQV (Personal Qualifying Volume) in any given month.
For each new Ambassador that opens up their own Stella & Dot shop, you will earn 10% of their WV (used to calculate New Ambassador Referral Rewards) for the first 12 months up to 3,250 WV. You’ll earn 1% on any WV over 3,250 in any given month.
Income Disclosure Statement
The information below outlines what Stella Ambassadors made in 2020.
As you can see, 53% of the independent representatives are at entry-level, Ambassador. The average 2020 income for Ambassadors was only $300 which won’t make a huge dent in your lifestyle.
The website indicates that Ambassadors make an average of $50/hour. Based on the information above, that’s doubtful.
Product Credit: Ambassadors can earn free product credit to be used toward the purchase of products.
Decent Commission Rates: The minimum commission you’ll get is 20-40% which is pretty good.
Large Range of Products: Stella & Dot products include jewelry, makeup, skincare products, beauty products, bags, purses, and totes
Expensive Fees: The annual fees will set you back at least $160.
High Monthly Quota: Ambassadors must have 500 PV each month in order to qualify for commissions and remain active.
Expensive Bundles: The starter kit is basically a business kit but the optional bundles include sample products that are quite expensive.
Low Earnings: Even though the commission rates are pretty good, 53% of Ambassadors didn’t make more than $300 in 2020.
Is Stella & Dot a Scam?
This company isn’t a scam but it will be tough to make money with this business model. There are a lot of products available to sell which might make it easier. But remember that you have to do the selling. Contrary to popular belief, these products do not sell themselves.
These “golden” opportunities always seem to be presented as an easy way to make extra money but that is rarely the case. There’s a lot of leg work and time spent on selling products for a commission.
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