Jamberry Nails is Growing – Party Plan Business Model Review
Jamberry Nails Business Review
Jamberry Nails, more commonly referred to simply as Jamberry, is a direct-selling company that specializes in do-it-yourself nail wraps. The Lindon, Utah-based company was founded in 2010 by three sisters—Christy Hepworth, Lyndsey Ekstrom, and Keri Evans. Following a time-consuming, costly trip to the nail salon, the three sisters decided to create a business that allowed customers to easily and quickly decorate their own nails at a fraction of the cost.
According to the company’s website, “Jamberry nail wraps are made with durable materials, so smudges and streaks are never an issue, and can last for up to two weeks on fingernails and four weeks on toes.” The nail wraps come in more than 300 different designs, allowing customers to pair, layer, and customize their nails for a one-of-a-kind look.
Jamberry is a member of the Direct Selling Organization, and distributes its products through word-of-mouth marketing and an army of independent consultants. Consultants conduct retail sales of Jamberry products, as well as recruit others to become consultants.
Jamberry products are distributed in one of two ways: While most Jamberry customers purchase their products from a consultant, some choose to buy directly from the company. Consultants can buy inventory to sell at retail, but they are not required to do so.
In a December 2014 article, Direct Selling News reported, “Jamberry Nails has grown 2,700 percent and exploded into a network of more than 20,000 independent consultants in the U.S., Canada, Puerto Rico and Guam.”
Jamberry Nails has 400 in-house employees, and more than 30,000 direct-selling consultants nationwide. Two years ago company only had 50 employees and more than 5,000 consultants. The company continues to grow as new people sign on the become Jamberry consultants.
Jamberry Nails Party Plan Business
Much like Tupperware and other companies, Jamberry operates largely through a “party plan” system. Those wishing to host a Jamberry party can do so at their home, at a coffee shop, at a boutique, or even online. Parties provide consultants the opportunity to display, demonstrate, and sell Jamberry products to a large group of people.
People earn free nail wraps, other Jamberry products, and perks like free shipping for hosting a party. However, a person does not have to be an existing Jamberry customer to host a party. In fact, they can host as many parties as they want. This makes sense for both the company and its independent consultants, since the more parties a consultant attends, the more product they are likely to sell.
That being said, Jamberry party hosts often become consultants. According to the company’s website, “Depending on the amount of sales at your party, a portion of your product credit can go toward a Consultant starter kit.”
As is the case in many direct-selling business models, Jamberry consultants earn commissions and bonuses on retail and personal sales. Sales commissions are 30%, while bonuses range from 3% to 5% based on volume. This is all outlined in the Jamberry compensation plan found on Jamberry.com.
As long as nail art/decals remain a hot fashion trend, Jamberry should continue to attract both customers who want to accessorize their look and consultants who want to earn a work-from-home income.
Jamberry Nails competes with other party plan style businesses like Origami Owl and Younique. These companies utilize social media as a big part of their marketing strategy, connecting with women who desire self empowering products.
Jamberry Nails Online Reviews
Jamberry Nails has a A- rating on the BBB. They have 25 closed complaints that have been resolved. Most of the issues dealt with minor product issues that the company easily remedied. There are only four negative reviews listed on the Jamberry Nails BBB profile. Most reviews online are from over zealous Jamberry distributors who leave raving reviews or rival nails product sellers who make wild claims to hype their own products. There are a few good sites that discuss how long Jamberry nails last and instructions on nails application. Be careful of these online reviews as they do not have an honest perspective or who are using bait and switch scam tactics to lead people to a competing offer.
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