What Do You Do When Your Direct Sales Company Closes its Doors?

By Holly Reisem Hanna

Not too long ago, the popular direct sales company, Lia Sophia shut its doors after 28 years of being in business. It’s estimated that Lia Sophia employed more than 27,000 independent direct sales consultants who collectively sold more than $100 million worth of jewelry this past year.

This isn’t the first time that a direct sales company has abruptly closed its doors; but sadly, Lia Sophia’s consultants are now left with picking up the pieces during the busiest time of year.

If this scenario should happen to you or if you’re one of the 27,000+ Lia Sophia consultants, here are some steps to take to alleviate some of the stress and financial burden you’ve been thrown into.

Give Yourself Time to Grieve:

You've just lost your business and your income — it’s okay to give yourself some time to absorb the shock and reality of the situation. While it’s good to take a break, acknowledge your feelings, and prioritize self-care during this time, don’t let the circumstances define you. When you fixate on the negative, you perpetuate a cycle of destructive emotions that will only dig you deeper into a hole. If you feel like your sadness is becoming overwhelming, try surrounding yourself with positive people or talk to a healthcare professional to get you back on track. Also remember the basics, getting 8 hours of sleep, eating right, and exercising — these go along way in reducing stress.

Tie Up Loose Ends:

Maybe you have customers with pending orders, or perhaps you have upcoming parties scheduled — now is the time to quickly and efficiently tie up those loose ends. Verify with your company what the policies and procedures will be for pending orders, returns, unused gift certificates, and the like. Make sure that you’re clearly communicating with your current customers about what’s going on. While you may be uncertain about what path to take next, you will want to make sure that you’re not burning any bridges along the way — because there is a good chance these customers will remain customers in your next direct sales business.

Look at Your Competitors:

While you may not be ready to start looking at other home party business opportunities, it’s worth noting that you already have a current base of customers who love jewelry. For this reason, it’s highly recommended to check out your current competitors. Another reason to check out your current competitors, is some direct selling companies offer out-of-work consultants startup kits for free or discounted rates.

Here is a current list of jewelry companies to check out:

Azuli Skye

• Commission: 25%
• Startup Fees: $159

Bella Branch

• Commission: 25%
• Startup Fees: $19.95 one time setup fee and $12.95 a month for your website

Bella Vintaj

• Startup Fees: $99

Carin Bracelets – closed

• Commission: 35% – 42%
• Startup Fees: $19.99 – $319.99

Chole + Isabel

• Commission: 20% – 40%
• Startup Fees: $175  + free website

ClaudiaG (Jewelry + Handbags)

• Commission: 25% – 35%
• Startup Fees: $199 – $599

Color by Amber

• Commission: 25% – 30%
• Startup Fees: $99

CTBling

• Commission: 20% – 29%
• Startup Fees: $199 + $9.95 monthly fee for website

Esbe Designs

• Commission: 24% – 35%
• Startup Fees: $1,500 – $2,500

Fifth Avenue Collection

• Commission: 50%
• Startup Fees: $250 – $1,500

India Hicks

• Commission: 30% – 40%
• Startup Fees: $549

Initial Outfitters

• Commission: 20% – 35%
• Startup Fees: $99 – $199

Jade & Jasper – It appears they have gone out of business. Their website is down and their Facebook Page hasn't been updated since August 5, 2016. 

• Commission: 37%
• Startup Fees: $199

Just Jewelry

• Commission: 50%
• Startup Fees: $99

Kalypso TwistZ 

• Commission: 30% – 35%
• Startup Fees: $149 – $499

KEEP Collective

• Commission: 25% – 35%
• Startup Fees: $149 – $349

Lulu Avenue – Bought by Yanbal on March 4, 2016

• Commission: 25% – 30%
• Startup Fees: $199 – $599

Magnabilities

• Commission: 25% – 60%
• Startup Fees: $20 – $249

Magnolia and Vine

• Commission: Up to 40%
• Startup Fees: $99 – $199

Mialisia – Merged with Youngevity May 2016

• Commission: 34% – 38%
• Startup Fees: $199 – $899

My Clique Jewelry

• Commission: 25% – 33%
• Startup Fees: $199

Noonday Collection

• Commission: 20% – 30%
• Startup Fees: $199 – $699

Northern Clover

• Commission: 30% – 40%
• Startup Fees: $99 – $200

Origami Owl

• Commission: 30% – 50%
• Startup Fees: $149 – $1,199

Paparazzi

• Commission: 45%
• Startup Fees: $99 – $499

Park Lane Jewelry

• Commission: 30%
• Startup Fees: $99 – $500

Premier Designs

• Commission: 50%

Silpada Designs – Closed their doors July 31, 2016

• Commission: 30%
• Startup Fees: $149 – $399

South Hill Designs – Merged with Youngevity May 2016

• Commission: 40%
• Startup Fees: $59 – $199

Sseko Designs

• Commissions: 20% – 30%
• Startup Fees: $99.99 – $999.99

Stella & Dot

• Commission: 25% – 30%
• Startup Fees: $199 – $699

StyleDots

• Startup Fees: $199

Touchstone Crystals by Swarovski 

• Commission: 25% – 40%
• Startup Fees: $139 – $299

Traci Lynn Jewelry

• Startup Fees: $199 – $650

Trades of Hope

• Commission: 20% – 35%
• Startup Fees: $69 – $399

ViVi Jewelry (formerly Cookie Lee) – Closed their doors July 2016

• Commission: Up to 50%
• Startup Fees: $179

Yanbal

• Commission: 35%
• Startup Fees: $199

Creating Cash Flow:

One of the biggest stressors will be your loss of income. Unless you have a traditional day job, you’ll likely be without income, at least temporarily. To help alleviate some of this financial stress, you may consider selling your samples and inventory. During this time you’ll also want to modify your budget to cut out non-essential spending while you’re figuring out what to do next. You may even consider doing some side tasks to bring in a little extra money.

Were you affected by Lia Sophia closing their doors? What other direct sales companies sell jewelry?

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