![]() This included all the products they had bought to sell, as well as marketing materials and gift cards. Jamberry would not refund any purchases consultants had made. ( source)Įvidence of this would appear just two days later when consultants were given more bad news. Consultants were left with product, as Jamberry did not give refunds. Although Jamberry never confirmed what went wrong – it seemed clear to the public that the company could no longer afford to stay in business. As their consultants left, and their customers dwindled, the brand sunk all of its money into investing – with a plan to expand into 100 countries in ten years. Ex – consultants started to target these parties, drawing customers away from the brand.Īmidst all of this, Jamberry was investing in expanding their operations. Jamberry’s sales started to go down – fast! Consultants who were still selling did so through Facebook parties. Consultants joined and left Jamberry very quickly. In just two years, over 70,000 consultants would quit. Quickly, consultants were mad – and they started to quit. Old consultants warned people that the company was a pyramid scheme. Quickly, public opinion started to turn against Jamberry. That meant consultants who didn’t sell $200 of the product would simply buy from themselves, sinking themselves into debt. ![]() The only problem was, you could sell to yourself. To stay active as a consultant and receive compensation, you had to sell at least $200 of product a month. Jamberry was paying their consultants commission for each amount of product they sold. But with new consultants come new problems. In an MLM, only 1% of consultants will ever make a profit – so consultants are constantly joining and leaving MLM companies. By 2016, Jamberry would have over 120,000 consultants across Australia, New Zealand and the US. The work paid off, as more consultants joined the brand. They made nail-care products, nail polishes and even nail heaters to accompany their wraps. The Fall Of Jamberryįrom 2014 to 2018, Jamberry invested in their product. So let’s talk about the fall of Jamberry. Packages were delivered wrong, peoples orders were going missing and consultants started to complain.Īlthough Jamberry would quickly recover, the damage had been done. With nowhere to store products, they were being shipped around the country as fast as possible. Jamberry was making too much product – and it couldn’t ship it all fast enough. Jamberry nail polish was sold by consultants. The equipment was old, so the quality of the nail wraps was going downhill fast. Their manufacturing equipment – one of the companies biggest assets – was running three shifts a day. Selling through consultants had increased the amount of product that was being sold, and Jamberry’s equipment wasn’t able to keep up. The Snap Of JamberryĪlthough Jamberry wouldn’t close until 2018, things started to go wrong by the start of 2014. However, things couldn’t last forever – and that brings us to the point Jamberry snapped. Over 7,000 consultants would join, and the brand would start to partner with designers like Ann Yee. Jamberry would hire over 7,000 full-time employees. Instead, they sold to consultants, who sold the product to their family and friends in return for a commission.įor two years, the business ran smoothly. This meant Jamberry no longer sold nail art online. ![]() However, the company would expand extremely quickly in 2011, so the founders made the decision to transition into a multi-level marketing company. Jamberry made nail wraps and nail polish. People got their sonograms, their pets and even their faces printed. Customers could even get their own pictures printed. At the time, nail wraps were only obtainable when you got a manicure or pedicure, so selling to the consumer was revolutionary. They originally sold products through an eCommerce store – directly to consumers. Unlike LuLaRoe, Jamberry didn’t start as a multi-level marketing company. Based in Utah, the company sold nail wraps – which are thin, patterned strips of fabric you use to decorate your nails. Jamberry was founded in 2011 by sisters Christy Hepworth, Lyndsey Ekstrom and Keri Evans.
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