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

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What Do You Do When Your Direct Sales Company Closes its Doors?Another one bites the dust.

At the end of July, the direct sales company, Chloe + Isabel, closed up shop after being in business for eight years.

Not long ago, the uber-popular direct sales company, Lia Sophia shut its doors after 28 years of being in business. According to the Chicago Tribune, 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 in 2014.

This scenario happens all the time in the direct sales arena; companies come and go like two ships passing in the night.

But sadly, when a direct sales company abruptly closes its doors, it's the direct sales consultants that are left picking up the pieces and scrambling to figure out what to do next.

If this scenario should happen to you, 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 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. There is a good chance these customers will remain customers in your next direct sales business.

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

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 companies that sell jewelry to check out:

Create Cash Flow

One of the biggest stressors will be the loss of your 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.

Conclusion. 

Change, whether it's your direct sales company closing its doors, or being reabsorbed by another company, is challenging. Give yourself some time to process the news, tie-up any loose ends, and be open to new opportunities. The valuable skills you learned as a direct sales consultant can be transferred over to a wide variety of new career paths, such as a new direct selling opportunity, becoming a direct sales coach, or even a home-based marketing position.

Have you been affected by a direct sales company closing its doors? What other direct sales companies sell jewelry? Drop us a note; we'd love to hear from you!

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Originally published December 5, 2014. Content updated August 14, 2019.

Holly Reisem Hanna is the publisher and founder of  The Work at Home Woman, which has been helping individuals find remote careers and businesses that feed their souls since 2009. Through her unconventional career path of holding over 30 jobs and obtaining two college degrees, she's been able to figure out how to find a career path that you're truly passionate about. Holly's had the pleasure of sharing her expertise on sites like CNN, MSN Money, Huffington Post, Woman’s Day Magazine, as well as being recognized by Forbes as one of the “Top 100 Websites for Your Career.” Holly resides in Austin, Texas, with her husband and daughter and enjoys reading, traveling, and yoga.

This page includes affiliate links. Please be aware we only promote advertising from companies that we feel we can legitimately recommend to our readers. Please see our disclosure policy for further information.

Comments

  1. Nikki says

    It isn’t a jewelry one but I was just informed by my lead yesterday that clever container is closing its doors. Last day to order will be the 16th.

    Reply

  2. Sherri Lupton says

    Having a company close on you is very frustrating and deflating. Although it is impossible to know everything about a direct sales company, try to do as much research on the owners of the company BEFORE you join…it might give you a feel for the character of the company and the long term focus they have (or don’t have).

    Thanks for the information.

    Reply

  3. Christine Riffel says

    I’m with Just Jewelry & the JJ Boutique. We added our Boutique line in August of 2015 in which you will earn 30% commission, if you can please update your list. The jewelry still stays at 50%, and the sign up is still $99.

    Reply

  6. Liz Valenzuela says

    Northern Clover is a fairly new jewelry company but, we are growing fast. Wonderful CEO, company is debt free!Fantastic Hostess and Consultant benfits! Start is only $99.00! Look over our wensite, contact me with any questions.

    Reply

  7. vivian says

    i am SO deeply sorry for the loss of your company’s. And although i am not in jewelry ..I do know how this feels and its a lot to take in
    Just want you to know we are thinking about you all… and we are again deeply sorry

    Reply

  8. Carmen Conley says

    I too work with Premier Designs Jewelry. They have been in business for over 30 years and are debt free. You have mentors available 24/7, an opportunity to develop awesome relationships. Yes their commission is 50% but their hostess benefits are over the top and they reward their distributors well! Last year, in my part time work with Premier, I was rewarded with over $10.000 in free jewelry for myself, commission bonuses over the 50% and a 7 day cruise with my husband. You can’t get better than that. I am always available for questions!

    Reply

  9. jen says

    If anyone is interested in learning more i am with premier designs and i love it. We get 50 percent of all sales. We also offer hostess rewards. I mean who doesnt love jewelry?

    Reply

  10. Angie says

    Hi! I just wanted to mention some minor corrections about eSBe Designs. Commission is 25 – 35% and startup fees are $299 – $2499. Thanks!!

    Reply

  14. Krissy says

    Please speak to a Stella & Dot Stylist in your area. S&D feels for all small business owners and are ready to help. We have been asked to not publicize any information, but you can easily contact a stylist for information let you know how we can ease your transition if you wish. Best of luck to everyone!

    Reply

  16. Michelle Brier says

    Touchstone Crystal is the direct sales division of Swarovski, wholly owned and supported by this world leader in design, innovation and quality. Since 1895, Swarovski has been a global fashion powerhouse and fixture on the red carpet. Touchstone Crystal brings the beautiful and on-trend gorgeous jewelry to women everywhere. Our consultants earn generous commissions and other exciting rewards while supported by Swarovski’s unparalleled commitment to its family of consultants. The jewelry is spectacular; the company is life-changing. I’d love to share my experiences and help anyone seeking a great opportunity. [email protected] or http://www.mytouchstonecrystal.com/michellebrier

    Reply

  17. Kim Malay says

    Park Lane Jewelry was not mentioned. We have been in business for 60 years. I just joined them in January after being with Lia Sophia for 10 years. I have been thrilled with them. If you have been a manager with Lia or another company we will bring you in as a manager. Special incentives for former Lia Sophia advisers. Great quality jewelry, hostess rewards and customers specials. Commission between 30-50%. A few options for starter kits. Contact me at [email protected] for more information.

    Reply

  18. Candice Roush says

    You forgot to mention KEEP Collective! We are the brand new sister company of Stella and Dot. We are taking applications for founding designers and we are even offering a special incentive for Lia Sophia reps who are looking for a new opportunity. Contact me for more details. [email protected]il.com

    Reply

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