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Multilevel Marketing
MULTILEVEL MARKETINGIt's been called referral marketing, network marketing or a pyramid scheme, but multilevel marketing's name is actually the first clue as to how the whole thing works.
This business strategy, growing rapidly in northern Michigan for selling clothing, jewelry, accessories and more, requires each company hire a sales force that works as independent consultants who are compensated for sales generated via in-home shows, parties or private appointments.
Many of these companies pay out even more as each representative recruits and enrolls more people as part of the "team," which can mean multiple levels of income depending on which level you attain, plus bonuses such as free products, gifts and travel.
With so many dazzling incentives, many local women are hopping on the multilevel marketing bandwagon. We profiled a few to find out more.
Jesse Guest-Felsk, Marion
Trunk-Keeper for Matilda Jane Clothing
Slogan: "Be A Jane!"
WHAT SHE DOES
"Essentially, I have a clothing rack and a boutique that I pack up in a suitcase and bring to homes."
WHAT SHE SELLS
Girls’ clothing 3 months–14 years and a separate adult line. "We have an artist in Fort Wayne, Ind., that designs our fabrics, so the clothing is very unique, whimsical and twirly, a mix of patterns and textures."
HER CLIENTELE
Mostly parents and women in their 30s–50s.
HOW IT WORKS
As a Trunk-Keeper, Guest-Felsk buys $3,500 worth of inventory twice a year. She then uses that clothing as samples to show her customers what’s available. At the end of each season (there are two seasons per year, fall and spring) she can sell the clothes for profit.
"If a Trunk-Keeper hosts a party in her house, she benefits because, if her sales reach a certain amount, she gets half-off clothing and free clothing. But, you don’t have to host or go to a show to purchase clothing from me."
HER MOTIVATION
Guest-Felsk had a full-time social work career, but when she had her third daughter she decided she needed more flexibility.
"This lets me work when I can, and when I can schedule the shows into my life. I can work 2–3 nights a week and my husband can be here with the kids."
She said she never thought she’d work retail, but that she likes the company because they contribute to their own charity, the Mighty Acorn Foundation. "They’ve even helped start an orphanage in Kenya."
PRICE RANGE
Kids’ T-shirts and leggings start at $32, girls’ dresses run $40–56. Women’s clothing is $40–70.
CONTACT
231-667-0800; jesseg@matildajaneclothing. com; on Facebook search "Jesse Guest-Felsk Trunk-Keeper."
Sue Nelson, Bellaire
Independent Representative for Silpada Designs
Slogan: "Find Yourself In It."
WHAT SHE DOES
"I sell Silpada products via direct sales. The headquarters of our company is in Missouri and all of our products are in a catalog. Most of our sales are done through home parties where people can see the jewelry and see the quality and try it on; those pieces will typically sell more than the ones they can’t see in person."
WHAT SHE SELLS
Sterling silver jewelry, such as rings, bracelets, necklaces and earrings decorated with semiprecious stones, woods and leather, plus a line of scarves, handbags and wallets.
HER CLIENTELE
"It was primarily businesswomen and parents, but now that the daughters of the co-founders of Silpada have joined the business – they’re in their 20s – they’re adding a line with a lower price point that will appeal to people in that age group."
HOW IT WORKS
Nelson purchased a start-up kit for $199 – a display with 10 pieces of jewelry – and, during her first 100 days as a consultant, she was "rewarded" by Silpada with a gift certificate for more product.
"When I sell a certain volume, I get a gift certificate for jewelry so that I can add more pieces to my display."
She gets a 30 percent commission on all of her sales, "and then I also get money for recruiting other women who want to join the business, who I mentor and coach."
HER MOTIVATION
"I love this company because they offer a lifetime guarantee on their products, it’s a family-owned company, and they have a great foundation that supports women’s causes. Every year, the company picks a couple of items and, each time that item sells, the company donates a certain dollar amount to a charity."
Nelson also cites the flexible hours, ability to be her own boss, and unlimited earning potential. "The more people I recruit, the more I make."
PRICE RANGE
Jewelry starts at $19 per piece and can range as high as $350.
CONTACT
231-715-0059; susan.nelson@charter.net; online at mysilpada.com/sue.nelson
Greta Myers, Traverse City
Associate with Stella and Dot
Slogan: "Hello, Dream Job!"
WHAT SHE DOES
"We sell through our website and through trunk shows. It’s about a two-hour show, but it's very casual. There’s no presentation; it’s more of a social atmosphere. We can’t be in a permanent retail space or open a shop, so most of the shows are in someone’s house."
WHAT SHE SELLS
Jewelry and accessories, scarves and small leather goods.
"We are considered our own fashion house so, while our corporate headquarters is in San Francisco, every sample is designed and crafted in SoHo, New York."
HER CLIENTELE
Myers said most of her customers are in the 25–55 age range, but she has a customer who’s 88, and most of the clothes can appeal to anyone "from two years old to 99!"
HOW IT WORKS
"You start by investing $199 to get $450 worth of samples. The average trunk show is two hours long and generates $1,000. Out of that, I get 25–30 percent, so I’ll make $250 and the hostess of the show (the person whose house we’re in) gets a credit so she can buy jewelry."
More money can be made, based on percentages, depending on how many people Myers recruits to be fellow associates.
HER MOTIVATION
"Prior to this job, I worked in corporate America. I had management and marketing jobs, and I was a buyer at Jacobson’s for years, so I always loved fashion and the business aspect, both."
"Once I had triplets, I needed to do something different, so I jumped at this opportunity because the investment isn’t that big and you don’t need any experience. I made $500 at my first show. I really didn’t intend to stay with it long term, but each associate is like the owner of her own miniature business, so how many shows you have and how much you work is up to you."
PRICE RANGE
Items start at $19 and range to $199 per piece.
CONTACT
734-260-3328; gretamyers@gmail.com; online at stelladot.com/gretamyers
Bailey Noonan, Leelanau County
Independent Consultant for LuLaRoe
Slogan: "Simply Comfortable."
WHAT SHE DOES
Noonan joined this unique two-yearold California company that specializes in ever-shifting clothing styles with her longtime friend and now LuLaRoe business partner, Rachel Spinniken.
"The company doesn’t have catalogs and you can’t purchase their clothes online. It’s more like an open house party; you don't even really demo the clothing, we just hang it on racks, arrange it by size and people show up and shop."
WHAT SHE SELLS
Casual clothing from leggings and maxi-skirts to tunics, from kids to adults; all of the styles are available in different colors and prints, which change regularly. "I tell people, if you like it, buy it because it probably won’t repeat with the next shipment. LuLaRoe is always updating things and we actually never know what we're getting until it arrives."
HER CLIENTELE
Noonan was reluctant to put an age range on her customers. "The model for Lu- LaRoe is parents, people who want to dress nice for work, everyone."
HOW IT WORKS
"We started by investing in to six styles of clothing, so we got about 450 pieces for $4,000, and then it was our responsibility to sell them. We make 30–50 percent on each article of clothing and then, if we bring other people in to sell LuLaRoe, we benefit from that, too. And we can earn bonuses like trips."
HER MOTIVATION
"Rachel and I went to a mom-to-mom sale, where moms buy a table to sell stuff at.
We found some LuLaRoe clothing there and we both really loved it; we liked how comfortable it was and thought people in our area would love it, too. Knowing that it was made in the USA was also a big selling point for us."
"We’ve been friends since we were kids and, now that we both have kids of our own, we were looking for a way to earn some extra income while also getting clothes at a discount."
PRICE RANGE
Clothing starts at $21–39 per piece. Kids’ clothes are slightly less expensive, starting at $16.
CONTACT
231-499-8150/231-633-9909; leelanaulularoe@gmail.com; on Facebook search "LuLaRoe by Bailey and Rachel."
Andrea Tharp, Traverse City
Consultant for Cabi
Slogan: "Cabi is Freedom."
WHAT SHE DOES
"Our company is designed by women and made for women. It’s over 14 years old and has over 3,000 consultants. We sell clothes by personal appointment or party, but the whole thing is really based on connections with women. We get women together and provide them with a real styling experience."
WHAT SHE SELLS
Jeans, stretch pants, skirts, blouses, business wear, casual clothing and a small selection of jewelry.
"The design team at Cabi prides themselves on making clothes that aren’t genera tional.
So, it’s not trendy, but it’s definitely on-trend."
HER CLIENTELE
Tharp explained that the clothing she sells is both parent friendly and work friendly, so she’s found that it mostly appeals to businesswomen and parents in their 30s and older.
HOW IT WORKS
"You start at a 20 percent commission and then go up to 25 percent, based on sales."
Recruiting other consultants is also an option for earning even more money, but Tharp is busy with her day job as a stylist at Allure Salon, so she said she hasn't pursued recruiting yet and figures, if it's meant to be, she'll run across women who are interested.
HER MOTIVATION
Tharp has only lived in Traverse City for five years, so she feels like she’s still new to the area, and her Cabi job helps her meet people.
"I love hanging out with women. To me, it’s the same as doing hair; I love putting an outfit on somebody and seeing them be so excited about it. It’s such a great feeling. Plus, I love the whole fun atmosphere of the clothing parties."
PRICE RANGE
Clothing pieces start at $34 and go up to $250.
CONTACT
586-489-1746; andreajean333@gmail.com; online at andreakarp.cabionline.com
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