Is Kendra Scott Starting a MLM?
March 5, 2022 | Corey Augenstein
Is Kendra Scott Starting a MLM?
March 5, 2022
Kendra Scott Jewelry is a well known company that sells fashionable jewelry that can be found in such department stores as Nordstorm and Bloomingdales. On March 3, 2022 they launched a direct sales program. is Kendra Scott a multi-level marketing (MLM) company?
Kendra Scott Jewelry does not have a MLM component as of yet. They launched a direct sales program in early March 2022. The company has stated on Facebook that this is not a multi-level marketing company. The compensation plan has not been released publicly.
In March 2022 Kendra Scott Launched a Direct Retail sales model to offer products in locations that currently do not have the option to buy jewelry in a physical retail store. This allows individuals to purchase starter kits between $199 and $1499 that allows you to promote and sell to customers either in person or through social media. At this time, there is nothing on the site specifically about building a team, which is why as of right now, I believe this is a single-level marketing model.
However, below you can see that the company responded to a tweet by stating there is “no emphasis” on recruitment or building teams. This implies this element may exist in this new business model, but is not emphasized. If as time goes on, and it becomes known that there is a recruiting/team building aspect of this program – it will then have transitioned to a multi-level marketing company.
On Facebook the Kendra Scott official page did state in several comments that there are no plans to have teams or having a seller profit over other sellers. This supports also a single-level marketing plan.
They eventually followed up stating it is not a multi-level marketing model.
Pros of the Kendra Scott Direct Selling Model
After reviewing what is available on the Kendra Scott Direct Selling Model, I have found a few good things about it:
- The program launched with strategically approved sellers. They are only 12, and they are in states or locations that do not have access to Kendra Scott Jewelry in physical stores. This means they are being thoughtful about supply/demand and not oversaturating any markets. This is not something that is taken into consideration with typical MLMs.
- It appears to have an application process that looks like everyone may not be automatically approved. They ask for your name, location, social handles and even give you the opportunity to include a video explaining why you want to join. In traditional MLMs, this is not the case. Generally, anyone at any skill level or location will likely be accepted into the business.
- They allegedly are taking this as a slow roll out and are evaluating how the market reacts. This is promising that the company is not jumping to the MLM model.
What is the Difference Between Single-Level and Multi-Level Marketing?
When working for a single-level or multi-level marketing company you are hired by the company as an independent consultant (who will receive a 1099 vs. a W-2). But you can see be hired or fired at the company’s discretion.
In multi-level marketing, the standard compensation plan only allows you to rank up by recruiting. This means, to be successful you need to recruit more and more sales people. This doesn’t take into account what the market actually needs. In single-level marketing there is not recruitment to build a team. You don’t receive continuous bonuses for having had recruited an individual based off their sales amounts. You may receive a referral bonus, but it is much different that the multi-level company compensation plan.
As you can see above, in rolling out this program there are some basic business principles being observed. They are taking into account supply/demand. They are hiring what I assume to be qualified individuals in strategic locations. This is much different than a typical MLM, which will allow almost anyone to join their teams, because there is more commissions to be made off the products/services sold to them and by them.
Reasons MLMs are Generally not a Great Business Model
Generally speaking, MLMs are not a great business model for the majority of people who join them. There are definitely people who are successful in a MLM business model. But it is the top few percent.
- Most people lose money
- MLMs do not take into account supply/demand
- MLMs do not make sure they are only hiring qualified individuals
To read more about why people dislike MLMs click here or see the video above.
If you liked this article, you could check out all my MLM related articles here: MLM Reviews & Info
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