Is Stella And Dot A Scam Or Pyramid Scheme? Women BEWARE!

So you're thinking about joining Stella and Dot and are wondering if it's a scam or not..

First off, congrats on taking the time to research this company before just jumping right in. 

You'll be rewarded in this post because you'll see everything you need to know about this company including company information, price to join, compensation plan and more.

By the time you're done reading you'll know if this company is right for you or not. 

Let's get into it!

Summary

Company: Stella and Dot

Price to join: $199 to $699

Rating: 50/100

Do I recommend? No!

Summary: Stella and Dot is a MLM that is in the jewelry and clothing/handbag market - this opportunity is very tailored towards women. 

At the end of the day I don't think you should join this company because there's very little chance that you'll make money. Most people end up losing money instead.

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What Is Stella And Dot?

1) What is Stella and Dot? Stella and Dot is a MLM company that's suited best for women. This opportunity has actually been around for awhile and was founded in 2003. The fact Stella and Dot has been around for so long is a good sign and means it's pretty stable for a MLM. 

2) Who is the founder? The founder of Stella and Dot is Jessica Herrin and the company began as Luxe Jewels. Apparently Jessica got the idea at a Mary Kay convention.

3) How do you make money with Stella and Dot? Like I mentioned before Stella and Dot is a MLM company and this means you can sign up as an affiliate to sell for them. You earn commissions on all sales you make. Also, you get rewarded for recruiting people into your downline as well. This may sound like a good system but it's actually very flawed. 

4) What kind of products do they offer? I'll go more in depth on the products later on in this post but the main product line is boutique jewelry. They also offer different handbags and clothing. 

5) Are there any other companies like this one? Some similar MLM's include Vantel Pearls, Origami Owl

Is Stella And Dot A Pyramid Scheme?

Pyramid schemes are pretty specific and are actually illegal in basically all countries on earth.

To meet the standard of an illegal pyramid you have to have some or all of the following points:

  • No real product and the only way to make money is through recruitment
  • Majority of revenue comes from affiliates purchasing products and barely any retail profits. 
  • Majority of people making money while the people below lose money.

Stella and Dot, in my opinion, isn't a pyramid scheme and just has some similarities to a pyramid scheme. 

To understand what I mean, look at the picture below:

Up top is what part of the commission structure looks like and is the part that rewards recruitment.

The difference is you don't technically have to recruit to make money with Stella and Dot. You can just sell their products directly to customers for a commission.

Also, there's real products here.

So while recruitment is a major part here, it's not the only way. Thus, not a pyramid scheme and if it were it would have been charged with being one by the FTC by now.

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Success Will Be Rare Here

MLM's on a whole produce A LOT of losers and a few winners.

In fact, many studies show as high as 99% of people that join a MLM lose money and don't make money. Also, the people that do make money tend to only make a couple bucks a day.

Some MLM's come with an income disclosure (showing how many people make money and how much) and Stella and Dot does as well which you can look at below:

PLEASE NOTE: This graph show all the people that MADE money and doesn't account for the people that lost money. It's likely more people lost money than made money.

The picture above shows how much people make at certain ranks within Stella and Dot.

As you can see 95% of the people that do make money on average make less than $10,600 a year with the overwhelming majority making less than $1200 per year ($100 per month).

Only a small amount of people make a full time wage from this company and most work long hours and very hard to make pennies. 

There's even more horrible statistics about MLM's too and you can look at the graph below to see what I mean:

As you can see the MLM business model is extremely flawed. 

Price To Join

In order to join Stella and Dot you have to purchase a starter kit.

There's three options here and they are:

  • Essentials Kit ($350)
  • More To Love Kit ($499)
  • Ultimate Kit ($699)

The more you pay, the more you get (this means more products at a cheaper price.

Additionally, there's a hidden cost. In order to remain eligible as an affiliate you have to generate 500 PV in three consecutive months.

It's going to be hard to sell that much in the beginning which will most likely lead to you having to shell out more cash to remain eligible. 

Stella And Dot Compensation Plan

MLM's typically have confusing compenstaion plan and it can be hard to understand if you're not familiar with the jargon. 

If you want to see the entire plan for yourself, click below:

I don't think it's too important to know every single detail of the plan, however, and instead I'm just going to summarize the main points.

Affiliate Ranks:

In all there's 13 different affiliate ranks you can reach at Stella and Dot. In order to go from one rank to another you have to reach certain goals and you get bonuses for going from one rank to another.

For instance, to reach the first rank you have to just sign up and buy a starter kit. To reach the second rank you have to generate and maintain 500 PV (Personal Volume) and 2500 GV (Group Volume) a month and recruit one person into the system. 

This goes on and on and on until your reach the 13th rank and to hit this rank you have to generate 2000 PV and 6,000,000 GV a month, recruit and maintain 12 different recruits at various affiliate ranks as well as recruit 8 more affiliates in the last 12 months.

Most people, however, don't get the first rank. 

Retail Commissions

You can earn commissions by selling Stella and Dot's products directly to customers and you can earn up to 25% commissions. 

If you sell more, though, you get a higher commission rate. Here's what commission rate you can get depending on your personal sales volume:

  • 2500 PV (30%)
  • 5000 PV (32%) 
  • 10,000 PV (35%)

Residual Commissions

Residual commissions is the best way to make money and it's the part that rewards your downline's over sales.

The commission structure here is unilevel and looks like the following:

How much you earn and how many levels you earn from, depends on your own rank and the amount your downline sells.

Affiliates at the second rank can earn up to 4% of group sales from level 1. Third level affiliate ranks can earn 8% on level 1. Fourth rank affiliates can earn 9% on level 1 and 3% on level 2. Fifth and higher rank affiliates earn 10% on level 1 and % on level 2. 

Smaller Bonuses

There's also smaller bonuses in this plan including Generation Bonus, Rank Achievement Bonus and Star Maker Bonus.

These are more important to know about when you're already making money. 

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Stella And Dot Products

Stella and Dot is definitely a company that focuses on women's products and offer clothing, bags, and jewelry for women. 

I'm not really in a position to comment on style or price or anything like that. I understand the business side of this company and the MLM side but I'm in no way a fashion expert. 

My opinion is basically worth nothing on that.

The prices seem fair to me and the clothing seems nice to me. But if you have a real fashion sense it's probably best for you to go over to Stella and Dot's website to look at everything yourself. 

What I Like About Stella And Dot

I don't really recommend that you join this company but there's still things that I like including:

  • A lot of products to select from: Many MLM's only have a main product and a few other filler products to sell. Stella and Dot is a legit fashion company, though, and are constantly updating their stock.
  • Pretty inexpensive to join: It costs as little as a couple hundred to join Stella and Dot and that's not that bad when compared to other business opportunities. 
  • Been around a while: Another thing to like is how long Stella and Dot have been in business. Most MLM's come and go in two years and it's definitely a plus that this one has been around since 2003.

What I Don't Like About Stella And Dot

At the end of the day there's just more not to like here than to like and the main things I dislike are:

  • Low success rate: The majority of people that join Stella and Dot just don't make money or make so little it just wasn't worth the effort to join. I'd say 1 in a 1000 make a livable wage from this opportunity:
  • Recruitment to make money: Stella and Dot actually has a pretty good focus on retail commissions but you still need to recruit to make money. This is difficult and most people won't figure out how to do it. 
  • Bothering friends and family: One of the worst parts of a MLM is the fact you have to bother friends and family to make sales/recruit. This is one of the biggest reasons people drop out of MLM's.

Is Stella And Dot A Scam?

Stella and Dot is a bad business opportunity - not a scam.

In fact, as far as MLM's goes Stella and Dot is probably one of the better ones you can join. They have a good focus on retail sales and they have a wide variety of quality products to sell.

However, any business that has more people lose money than make money is a bad one and that's just the reality of Stella and Dot.

A very small minority of people will make life changing money with this company but most people won't

There's definitely better ways to make money from home. 

Is Stella And Dot A Scam?

Hopefully by now you've decided this isn't the right company for you.

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