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Entrepreneur Mom – Jessica DiLullo Herrin
The founder and president of Stella & Dot helps other mothers launch their own businesses
By: Jessica DiLullo Herrin
My story: Little did I know, sitting there on the set of The Oprah Winfrey Show, that the very thing I was supposed to be an authority on—following my passion and entrepreneurial pursuits—would make me rethink my life. After the show aired, hundreds of women reached out to me for advice on how to start a business of their own. Most were busy moms looking to do something with flexible hours. I wanted to help (couldn’t let Oprah down now, could I?), but, frankly, I wasn’t in any position to offer advice. At the time, I was in my fourth year of the 100-hour workweek, launching WeddingChannel.com straight out of Stanford Graduate School of Business. It wasn’t exactly a path I could recommend for moms—or for myself much longer, because I was approaching 30 and wanted kids.
As the question How do I help these women? played in a loop in my mind, I was on business in Dallas, staying at a hotel that was hosting an annual direct-selling convention. A gaggle of convention goers around my mom’s age stepped onto the elevator with me, all bubbly about the awards they’d gotten. And that’s when it hit me: I could launch a direct-sales company for women of my own generation, something modern and hip.
Strange, but I started thinking about the things I didn’t enjoy shopping for. Right away, jewelry came to mind. It’s hard to buy in stores; you have to wait for the clerk to take each piece out of the case and stare as you try it on. With direct sales, women could try on all the rings and bangles they wanted in the comfort of their own homes, surrounded by their tell-it-like-it-is girlfriends.
I had a concept, a business model and e-commerce experience. All I needed was everything else. So I partnered with Mike Lohner, our CEO and chairman, formerly CEO of Home Interiors & Gifts; and Blythe Harris, our chief creative officer, a former merchandising manager for Banana Republic’s jewelry line. Blythe and I named the biz after our grandmothers, Stella & Dot, and five years later it launched, in 2008.
We wanted to make it affordable for moms to jump-start their own businesses, so our sales reps, or “stylists,” can get started for just $199. That gets them a starter kit (including $350 worth of sample pieces), and they earn 30 percent commission on all party sales.
We’ve been blown away by how popular our products are. With prices ranging from $19 to $248, we appeal to the recessionistas: The average party grosses more than $1,000. Some part-timers earn up to $60,000 a year; we average 600 new sales reps a month (we’re up to 3,400) and earned more than $5 million last year. Plus, we’ve got a big celebrity following: Teri Hatcher and Debra Messing are fans, and our pieces have been on The O.C. and The Today Show.
I love knowing I’ve had a positive impact on people’s lives and that I’ve created a legacy for my daughters. I flash to the memory of our start-up days when Charlotte stuffed invitations for a Stella & Dot party into the basket of her tricycle and delivered them to our neighbors—she was so proud. And I have no doubt that one day my girls will take over the business they helped inspire. — as told to Michelle Roberts
Lessons Learned
1: Buddy up. Even though I technically started the company on my own, it was only a rough idea before I met the right partners to really grow with. I waited until I found the best of the best—those with the talent, mission and drive to do it well. Surround yourself with positive people who are big dreamers, not naysayers. You’ll fuel one another to success.
2: Obsess About Your Customer. To improve the opportunity for the independent business owner, I had to be one. So I walked 100 miles in a sales consultant’s shoes by doing parties myself for five years. I still do them to this day and always will. I’m obsessed with thrilling our sales consultants and customers.
3: Stick to It.
Most “overnight” success stories take years. Starting a business is a marathon, not a sprint. I learned this through experience. Most people fail because they stop at mile two. Don’t listen to the voices saying it won’t work. It will, as long as you keep evaluating, improving and applying true effort.
Ask a Pro
House Party — Think a direct-sales gig is just what you need? Here are starting tips from a duo of experts: Amy M. Robinson, vice president of communications and media relations for the direct Selling association, and Tory Johnson, CEO of women for hire and coauthor of Will Work from Home: Earn the Cash—Without the Commute.
Be realistic. For most, direct sales is a potential source of supplemental income, not total income. The median net per year is about $2,500. Steer clear of any promise of fast cash with minimal effort—it doesn’t exist.
Know Yourself. If you’re very shy and not willing to hustle, any form of sales probably isn’t for you. And in direct sales, you must find your customers, unlike working in a retail store where customers walk in. What’s needed is a driven people-person who won’t be embarrassed about asking friends to consider buying her line and who isn’t timid about chatting up strangers.
Read the Fine Print. Make sure you’re being asked to pay a reasonable fee, which should cover product samples and training materials (such as manuals, videos and access to seminars), plus catalogs and order forms. The median fee for a starter kit is $70. Don’t be sucked into opportunities that call themselves “direct sales” but require you to pay a fee solely for the privilege of recruiting others.
Check the Buy-Back policy. If you discover this isn’t right for you, will the company buy back the starter kit? The direct Selling association Code of Ethics requires its 200-plus member companies to buy back kits and products for at least 90 percent of what you paid within 12 months of purchase.
The Style File: 