According to the company founders, Stella & Dot was created to give women make their own choices, run their own business, and have what matters most.
But when asked why so many Stylists are not making money?
The answer was: Stylists are “… mainly day hobbyist ladies…, or stay-at-home mums who want another interest and some retired ladies who want to get out of the house. . . ”
Really? Stella & Dot business opportunity is a hobby, not to make money?
I like to welcome you to our mlm review Coffee Talk.
It smarts for you to stop by and check out our Stella & Dot Review before joining the program.
In this review, you are going to find out the truth about the Stella & Dot home-based mlm business opportunity.
When you hear the words “Stella & Dot is for the hobbyist ladies”, you must be wondering is Stella & Dot a scam?
You are looking for ways to earn some extra income or an opportunity to achieve the life dream of financial freedom, not a hobby or something fun to do.
Before signing up as a Stella & Dot Stylist, you want to know everything about this opportunity.
- How to become a Stella & Dot Stylist?
- The investment requirement to join Stella & Dot.
- Stella & Dot commission and compensation plan.
- The Stylist average income. And
- Is Stella & Dot a scam or legit business?
Reading this Stella & Dot review, you should be able to determine if the Stella & Dot a scam, a hobby or a real business opportunity to achieve your financial goals and dreams.
Please keep in mind that this business review is written based on my own experiences and opinions. I try to keep things fair and balanced in order to help you make the best investment decision.
I enjoy writing reviews of small business opportunities. I do not receive compensation or endorsement from the company that I review.
If you are looking for the best way to make money from home, check out the #1 home-based business opportunity which does not require recruiting or Face-to-Face selling.
Stella & Dot Review Executive Summary
Annual Revenue: $300 Million
Business Earnings Estimate:
Stella & Dot Review and Analysis Summary:
There are other lucrative and inexpensive home-based business opportunities for you to compare and consider:
1 – My #1 Home Business Opportunity, or
2 – Affiliate Marketing.
Both do not require face-to-face recruiting and/or a monthly sales quota.
What Is Stella & Dot?
Stella & Dot is an mlm company that distributes and sells custom jewelry and accessories.
The company was launched in 2003 by Jessica Herrin under the name, Luxe Jewels, with headquarters in San Francisco, California.
The company renamed to Stella & Dot in 2007 after Blythe Harris joined as co-founder and became the company chief creative officer.
Stella & Dot distributes and sells its unique products through an mlm network of over 40,000 independent stylists operating throughout the United States and Canada.
The company 2018 estimated sales revenue was $300 million.
According to Stella & Dot income disclosure statement (IDS), 68% of Stylists did not earn a commission in 2018, and the annual average earnings for all US stylists was $829.
The financial information above suggests your chance of making a profit with Stella & Dot is low. This business is very competitive.
It is recommended to compare Stella & Dot with other home-based opportunities before investing.
You can use The Best MLM Opportunity to make a comparison.
How To Join Stella & Dot?
You need a sponsor to become a Stella & Dot Stylist. Your sponsor is your upline.
You can visit the Stella & Dot website to submit your information, then the company will assign you a sponsor.
If you know a local Stella & Dot Stylist, you can ask that person to be your sponsor and start the application process for you.
But to build a business and earn the commission from your downline, you must be active and qualified.
Active and qualified required purchasing a Starter Kit and meeting the monthly sales quota, which I’ll discuss in the next section of this Stella & Dot review.
How Much Does It Cost To Join Stella & Dot?
The cost to join Stella & Dot is $149 to build your own Starter Kit. You can choose products up to $350 in value.
Your starter kit comes with business tools, such as a replicated Stella & Dot website, training, digital business tools, and marketing materials.
You have the option to purchase more products for a 50% discount.
Besides purchasing a Starter Kit, there are monthly expenses to operate your Stella & Dot mlm business.
Stella & Dot requires all stylist to purchase or sell a minimum of $500 Personal Qualification Volume (PQV) month to remain qualified.
I call this, the monthly Qualified Expense. Stella & Dot is a Pay and Play business opportunity. If you want to earn, you have to pay.
Any Stylist that fails to maintain a Qualified Status is not allowed to receive bonuses and commission from team sales.
Remember, the expenses above do not include your time, party expenses, marketing costs, traveling, and gas.
The monthly active expense can destroy your business profit if you cannot resell the products. This becomes the business losses.
Other home-based businesses, such as Affiliate Marketing, you earn the commission on every sale, no need to be active and qualified.
Do you know why Stella & Dot has this monthly Qualified requirement?
Well, to sell products and to avoid being classified as a pyramid scheme under the FTC guideline. (Check our MLM vs Affiliate Marketing for the discussion on the FTC MLM Guideline.)
Stella & Dot Compensation Plan
The Stella & Dot compensation plan is the document that outlines all the options to make money with Stella & Dot.
I’ll provide a quick analysis of the Stella & Dot compensation plan. To see it in detail, just download a copy.
As an mlm opportunity, Stella & Dot offers you two options to earn: Sell Stella & Dot Products and/or recruiting others to become a stylist.
Make Money Selling Stella & Dot Products
Stella & Dot stylist sell products through the home party, which the company calls “Trunk Show.”
You earn a 25% commission on each sale up to $2,5000 PVQ.
You receive an additional bonus commission between 5% to 10% based on the monthly sales volume.
This sounds easy to make money, right?
Well, not really.
I did a search online and found silver necklaces selling online between $2 to $5.
The lowest Stella & Dot silver necklace selling for $40.00.
Can you make a retail profit selling Stella & Dot products on the market?
It will be a challenge.
Overprice is the reason why you can never make money selling Stella & Dot products.
Make Money Recruiting Others
When you cannot sell Stella & Dot products on the market, the only option is recruiting others to join.
Remember, you must be active and qualified to receive the commission.
The qualification is from $500 PQV to $2,000 PQV order each month, based on your rank.
All stylists must purchase Stella & Dot overpriced products to receive the downline commission
Once you are a qualified stylist, you can earn between 1% to 12% of team sales volume determined by sale volume and rank. Please refer to the compensation plan for detail information.
As you can see, there are multiple ways to earn with Stella & Dot. However, no money is paid unless you are qualified.
This is how mlm work. Ways to earn is not the same as qualifying to receive the money.
Qualification requires more product purchases or recruiting more people.
You can potentially earn nothing under the Stella & Dot compensation plan because the costs staying active and qualified might exceed the commissions received.
When evaluating mlm opportunity like Stella & Dot, you cannot rely on the compensation plan to determine the business income.
You must look at the actual bonuses and commissions received by Stella & Dot Styles to understand the business profit and loss.
How Much Do Stella And Dot Stylists Make?
The Stella & Dot compensation plan is not the document that tells you, how much a Stella & Dot stylist make?
Here’s what I mean,
The Stella & Dot compensation plan offers POTENTIAL EARNINGS, not real income.
To know the actual income, you need a copy of the Stella & Dot Income Disclosure Statement (IDS). This financial document provides ACTUAL INCOMES received by Presenters from Stella & Dot.
But, where can you get a copy of the IDS?
You can request one at the time of joining. The law requires Stella & Dot to provide you a copy together with the compensation plan.
As a business review writer, I look to the actual incomes to advise clients on an investment.
If Stella & Dot refuses to provide you a copy of the IDS, don’t join. This is a sign of a scam.
But not to worry, I have a copy of for us to use with this Stella & Dot review.
Incomes Earned By Stella & Dot Stylists
Always start with the footnotes first when analyzing an income disclosure statement.
According to Stella & Dot, 68% of stylists did not earn a commission in 2018.
This number means 68% of stylists failed within their first year joining Stella & Dot.
Before you get excited and concluded that over 32% of stylists made money, I like to point out that these are gross commissions, before taking out taxes and expenses.
Those stylists that received a commission, the annual average commission was $1,209, approximately $100.75 per month.
What happens if we deduct the $500 monthly qualified expenses?
Stylists made $1,209 in 2018 operated their business with a loss, no profit.
Stylists who received $9,556 for the year might make a small profit.
But only 6% of Stella & Dot stylists achieved this income level. This is terrible.
You can say up to 94% of stylists did not make money with Stella & Dot.
After reviewing the IDS, I can tell you that your chance of making money with Stella & Dot is near zero.
Why I am so confident?
Because 94% did not make money. The small group, 4%, that made money must be with the company for years or from the beginning.
How can you possibly achieve the top earner group in the first year?
Is Stella & Dot A Scam?
Yes, only 6% earned a profit, but this does not make Stella & Dot a scam.
Stella & Dot is a business opportunity. Every business has risks.
You are responsible to carefully research, study, and investigate Stella & Dot before joining.
If you become a Stella & Dot stylist, you are willing to accept the 94% risk of losing your investment. When your business fails, you cannot call Stella & Dot a scam.
Reading this Stella & Dot Review is a good way to learn the risks and rewards associated with Stella & Dot.
Many entrepreneurs hire professional financial analysts to evaluate business profitability and loss before investing.
As an owner of an Online Business Review, I have evaluated hundreds of mlm businesses to help investors identified and managed the risks.
As a business opportunity, Stella & Dot is not a scam.
It’s an unprofitable business with about 96% failure rate.
Is Stella & Dot a pyramid scheme?
Most mlm companies in the US are legit if they follow the FTC guideline. Stella & Dot might be legit under the law.
But I don’t use the laws to evaluate a business opportunity.
I am using the financial information and earnings to determine a pyramid scheme or scam.
I believe Stella & Dot, like most mlms, is a pyramid scheme.
If you look at the compensation plan. Stylists are forced to purchase overpriced products to earn the commission.
The only way to sell Stella & Dot products is by recruiting others to become a stylist.
The more people that you bring in, the more money you earn.
Stylists are the primary customers of this mlm company.
Doesn’t this qualify Stella & Dot as a pyramid scheme?
Well, you don’t have to agree with me.
But, based on our Stella & Dot Review, you must agree that this is not a good home-based business. Only a small group at the top received most of the commissions.
The Stella & Dot compensation plan was designed to make money for Stella & Dot, not for you.
Is Stella & Dot Worth It?
Some stylists joined Stella & Dot because they love the custom jewelry. If this is you, then I guess Stella & Dot worth it.
But as a business opportunity, I am not impressed.
However, the decision to invest is yours to make.
I am writing this Stella & Dot review providing you the important financial information to make the right investment decision.
Think about this,
Do you know why you want to start a business?
To make money, right?
And to make money, we invest in a PROFITABLE business!
There are much better and less risky home-based business opportunities compared to mlm opportunities.
I recommend you look at Affiliate Marketing.
As an affiliate marketer, there’s
- No need to purchase a starter kit,
- No Personal Volume (PV) requirement,
- No face-to-face sales,
- No recruiting, and
- The best part, you are working on the computer in your own home or anywhere you like.
Affiliate marketing is one of the most powerful methods to promote and build your mlm team. I recommend you read, The New MLM Affiliate Marketing to learn more.
Before ending this review, another issue that I like to address is business ownership.
All Stella & Dot stylists have no control over their business. This is a serious problem for me.
You must follow and obey Stella & Dot rules and policies to stay in business.
What happens if Stella & Dot goes out of business?
Yes, you are out of business! All your hard work disappears and nothing you can do about it. You have zero control over this.
Starting a business is a long-term investment. You want to create a system that generates money far into the future. Isn’t this the #1 reason you want to build a successful business?
If you want to be an owner of a lucrative and profitable business that generates six-figure passive income, then…
You should read my #1 recommended online business opportunity.
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OK, let assume Stella & Dot is not a scam or a pyramid scheme, would you join if I tell you that the chance of making money is 6%?
I would not!
It is almost impossible to achieve your financial dream with this home-based business opportunity. This is a fact!
Thank you for participating in our Stella & Dot review discussion.
Until next time.
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