Hi and welcome to my review on Stella and Dot!
Maybe you were approached by someone who asked you to join this company or buy their products. So maybe now, you really want to know more about who they are, and what are they really all about? Well, you’ve come to the right place to get all the answers before you make any decisions.
Today I’m going to give you an honest review of Stella and Dot. Who are they? Are they a scam? What products do they sell? What does their Compensation Plan look like? Is it for you, or should you look at other alternatives instead? I hope you enjoy my Stella and Dot Review!
Stella and Dot – The Company
Stella and Dot was founded in 2004 by Jessica Herrin and Blythe Harris.
A little fun fact about the name of the company, the owners named it after their grandmothers. I believe that was a nice and thoughtful gesture.
According to the owners they state on their website “We created Stella & Dot so women can make their own choices, run their own business, and live life on their own terms.”
Stella and Dot is an MLM company that focuses on fashion, jewelry and beauty items.
What others think about Stella and Dot?
Stella and Dot has an A+ rating with the Better Business Bureau; however, at this time, they are not accredited.
Here are some sites that offer some customer reviews. Reviews1, Reviews2.
Most reviews appear negative, and that’s not uncommon for a company as established as Stella and Dot. Also, unhappy customers tend to write reviews more often than satisfied customers.
What is an MLM Company?
Multi-level marketing (MLM) is a business model in which individual representatives receive commissions for selling products. This can happen through a variety of methods, including direct sales, referrals, or word-of-mouth. However, representatives also receive financial compensation by having people in their downline who are also selling the company’s products.
When the downline members make a sale, the person who recruited them also makes money. This hierarchical commission model is dependent on both product sales and future sign-ups.
Stella and Dot -How to join?
There are a couple of options when it comes to joining Stella and Dot. Mostly, people join through word of mouth. The most common way is to get an invite to a Stella and Dot Trunk party by a friend or co-worker, where a Hostess or Ambassador will display their unique, stylish fashion, jewelry and accessory line. Stella and Dot accessories are not sold in stores, so the only way to see them and try them on is at a trunk party. This is similar to how other MLMs work, such as Avon and Mary Kay. At the end of the party, orders are taken, and if you are interested in becoming a Hostess or Ambassador you sign up and are sponsored by the person you bought the product from.
However, if you don’t have a sponsor or someone who refers you, that’s no problem either. You can sign up through their website and have one assigned.
If you are interested in joining, you must first buy a starter kit for $59. Of course, it doesn’t stop there. Here is a link to where it explains how to get started. Starterkit
Stella and Dot – Compensation Plan
The company’s compensation plan is similar to other MLM companies in that, you get paid commissions when you refer people to the business or sell products to others directly.
Personal Sales Commissions
Personal Sales Commissions are the income you earn when you sell the company’s products.
At first glance, it looks pretty good. If you sell anything up to $299, you make a 20% commission, and once you reach $300, it’s like a pay raise, and you receive a 25% commission.
But then look at that chart?
There is no other movement until you reach 2500 PQV, from 300? That is a considerable jump in volume to work for to get to your 30% commission.
Line Commissions
The second way you earn money with Stella and Dot is by recruiting people under you.
This does end up resembling a pyramid once you’ve recruited enough people, and some people automatically assume MLM’s are scams since the downline is in the shape of a pyramid. Here is a small illustration of how one might look. As I’ve discussed previously, this does not constitute a company as a scam.
Stella and Dot, like most MLM’s, require you to recruit new ambassadors to earn income.
Recruiting new ambassadors can be very challenging. However, if you are going to get into this type of business, it is imperative to recruit strong team members. You will only earn money with your downline members if they are active by purchasing or selling products and recruiting new ambassadors.
MLM companies are notorious for overpriced marketing products. More than likely, this is because they have to pay their representatives commissions on top of what the company makes.
Stella and Dot -Low Income Potential
You will notice the change on Stella and Dot’s documents, prior to January of 2020, their ambassadors were referred to as stylists.
It isn’t easy to reach the top layers in any MLM company and at Stella and Dot it doesn’t appear any different. Here is a copy of their 2019 Income Disclosure Statement, which indicates this pretty well.
According to Stella and Dot’s 2019 Income disclosure.
The average earnings of a US Stylist/Ambassador for 2019 was $743. Approximately 72% of Independent Stylists in the United States were not paid for any given month in 2019.
An average earning for a US Designer according to the 2019 income disclosure was $170. Approximately 70% of Independent Designers in the United States were not paid for any given month in 2019.
The average earnings of a US Specialist for 2019 was $260. Approximately 73% of Independent Specialists in the United States were not paid for any given month in 2019.
This doesn’t exactly look like something you could live off. Or even make a good second income. What do you think?
Stella and Dot – Scam? or Legit?
No, Stella and Dot is not a scam. They are a legitimate MLM company with a variety of actual products available for purchase.
Companies like this are often referred to as scams because people do not believe in the products or tried to make money with their business opportunities and failed to recruit anyone.
If someone has tried to recruit you into joining Stella and Dot, always remember recruiters can make this opportunity sound too good to miss out on.
It’s the recruiter’s job to be as convincing as possible. Often, this causes people to get their hopes up, only to realize that reality is a lot different from what they’ve been promised. However, this does not mean the business is a scam.
Final Thoughts
Essentially, I leave the decision to join Stella and Dot in your capable hands. I think it takes a certain personality type to push this type of agenda. Even though it is not impossible, it is a challenging business model to make money with. Additionally, your success with the MLM structure depends on your team members, who signed up under you. Unless they are active and making sales, your earning potential is limited.
Also, you must like their products, so make sure you give them a try first before you make any decisions. If you don’t, selling will feel forced and phony, and people can sniff that out. Also, you won’t get repeat customers if you try and sell them shoddy products. I’ve actually had people try to convince me to sign up under MLMs before, and I’ve often wondered if they truly believe in the products themselves.
Online success can come in many different forms, that’s why it’s important to do research and find YOUR way before you invest time, money, and resources into a seemingly good product or service.
Lastly, regardless of what you decide, one must always remember that there’s no substitute for hard work, consistency, and self-motivation for success with any business, especially an online business.
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First, you won’t have to sell products to your family or friends or have to make sure to sign up people to be in your downline. Second, you can still set your own hours and enjoy a community of like-minded people, but most importantly, you can learn marketable skills that will serve you for years to come.
I hope you enjoyed my Stella and Dot’s Review and if you have any questions, feel free to ask in the comments…
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