The story of Stella & Dot can seem a lot more inspiring than other MLM origin stories. Co-founder Jessica Herrin loved jewelry, loved the idea of running her own business, and wanted to find a new way for women to start earning. With over 30,000 ambassadors, it would appear that Herrin's model was, in fact, appealing.
There's just one thing–the business model Herrin came up with is far from new. Stella & Dot is, without a doubt, a multi-level marketing company. To a lot of people who have been down the MLM rabbit hole before, Stella & Dot can feel like a scam.
So, which is it? Is Stella & Dot an opportunity for jewelry lovers looking to make an income? Or is it a scam?
At Legendary Marketer, we're always bringing you the latest and best tips for building your own online business. Now, we're going to take a look at Stella & Dot and tell you everything there is to know about making money with this MLM–and if it's possible.
What Is Stella & Dot?
Stella & Dot is a fashion company that was founded in 2007 by Jessica Herrin and Blythe Harris, the latter a former jewelry designer for Banana Republic. The company does not sell products in brick and mortar locations but instead, relies on a large, national team of affiliates who sell their products individually. If this sounds familiar, it's because it is the basic model of any MLM.
What's in it for the affiliates? Anyone who buys into Stella & Dot stands to make a 40% commission on sales. Plus, incentives and team-building also contribute to the income a Stella & Dot affiliate stands to make.
What Products Do Stella & Dot Ambassadors Sell?
Stella & Dot is known first and foremost for their name brand jewelry, although they also sell clothing and other accessories. In fact, a lot of their affiliates get in on the action because they already admire Stella & Dot products and want access to free and discounted jewelry. (Hosts of Stella & Dot sales parties can find themselves with up to $300 worth of free jewelry as well as a 50% discount on any other product they choose to purchase.)
Unlike a lot of MLMs' product lines, Stella & Dot doesn't charge outrageous prices for their products. In fact, more than half of the jewelry line is less than $50 a pop, which isn't bad for a jewelry line that has gained prestige along with its popularity.
Is Stella & Dot a Scam Or an Opportunity?
Now, let's get to the real question: is all of this a scam, or is it truly an opportunity for people to start making money from home? It depends on what you consider a scam.
Here's the thing. Stella & Dot is a legitimate MLM and not a pyramid scheme. The fact that they have real products that you can sell to real people spares it from falling into that full-blown scam territory.
That being said, it's easy to get pulled into any MLM expecting to get rich quick only to discover that it isn't that simple, after all. If someone tells you that you're going to start pulling in thousands in a matter of weeks and you barely break even, you might feel like you got scammed. In the end, you have to know how to play the game to make money with any MLM, and that includes Stella & Dot.
To get a better idea of how this all works, let's take a look at some of the pros and cons of becoming a Stella & Dot affiliate. Then, we'll get into what it is that you need to know if you want your Stella & Dot hustle to turn into a profit.
Stella & Dot Pros
The biggest pro of selling for Stella & Dot is the same pro that brings anyone to the world of online selling. You get to work on your own time and set your own hours without answering to a boss.
Another positive thing this MLM has going for them is that they don't make their affiliates invest a ton of money to sell. To join the ranks of other affiliates (referred to as Stylists by Stella & Dot), you can expect to pay about $200 upfront. However, Stella & Dot will handle all warehousing and order fulfillment, which means that you don't have to buy what you sell and vice versa.
Stella & Dot Cons
The biggest con of selling for Stella & Dot is that making a real income isn't likely. By looking at their 2019 income disclosure, you'll see that about 70% of their affiliates are making an average of $1,100 a year. Less than 1% are making the six figures you may have been hoping for.
Why is it so hard to make money selling for Stella & Dot? For starters, the company doesn't provide a lot of help in that department. They may tell you to reach out to your family and friends, ask them if they want to buy jewelry, and find out if they want to jump in as part of your downstream.
When you're not sure where to find interested buyers (and potential sellers), you're going to saturate your own market almost immediately. In other words, you're going to run out of people to ask. In order to really get things moving, you're going to need to know how to market yourself (and your Stella & Dot products) online, where the market is vast and limitless.
The Secret to Boosting Any Online Business Endeavor Is Marketing
Stella & Dot isn't a pyramid scheme and by most accounts, it isn't a scam. It's pretty much your run-of-the-mill MLM. The problem is that most people aren't going to strike gold with any MLM unless they know the secrets to online marketing.
If you enjoyed this review on Stella & Dot, please consider checking out our free online webclass which will walk you through our #1 recommended way to earn money online from home and teaches affiliate marketing strategies including how to make multiple high-ticket affiliate commissions each month marketing valuable products people already want to buy.