- in Not Approved by Caroline So
Is Jamberry Nails A Scam? The TRUTH About Its Rebrand
Welcome to My Jamberry Nails Review!
Fond of nail arts and want to make an earning opportunity from it? Perhaps, a friend introduced Jamberry Nails and you’re curious about it or maybe, you saw an ad online talking about nail arts and you’re interested in it.
Whatever your reason is, our honest Jamberry Nails review will help you understand what this company is really about.
Jamberry Nails Review Summary
Name: Jamberry Nails (BeneYou, LLC.)
Website: www.beneyou.com
Founders: Christy Hepworth, Lyndsey Hepworth, And Keri Evans
Product Type: Multi-Level Marketing
Price: $29.95 Or $399.95 For The Starter Kit
Quick Summary: Jamberry is a multi-level marketing (MLM) company that started as a direct selling company selling nail-wraps to customers through an eCommerce website.
Later on, they got on the MLM ship but got in trouble. Luckily, it was saved as it had merged with other companies to form BeneYou. However, it appears that most Jamberry Associates don’t earn a decent income.
Overall Rating: 2/10
Recommended: No
With all the complaints online, does this mean that you should stay away from this program? Is there a chance that this MLM company can help you gain a good income online? Is Jamberry Nails legit in the first place?
Let’s find out more about this nail art business below.
What Is Jamberry Nails About?
Jamberry is a Utah-based multi-level marketing (MLM) company that has originally begun as a direct selling company. It was founded in 2010 by Christy Hepworth, Lyndsey Hepworth, and Keri Evans.
These three sisters began selling nail-wraps through an eCommerce store, directly to consumers. The idea of the company was to allow ladies to bond nail wraps to their nails on their own.
Back in the days, nail wraps were only made available if you go through a manicure or pedicure in expensive nail salons. So selling these nail arts to the consumer in those days was revolutionary.
Customers could even get it customized with their own pictures printed.
Apparently, the Jamberry Nails business boomed because they entered the nail wrap market right when nail art became popular. That’s when they transitioned to an MLM platform and started hiring consultants to promote the business and their products through home parties.
For two years, the business ran smoothly and obtained a lot of consultants. However, it was not always smooth sailing as things started to go wrong by the beginning of 2014.
Product sales had increased yet Jamberry Nails’ manufacturing equipment wasn’t able to keep up. It was running three shifts a day. The equipment was old and with so much workload, it had affected the quality of the nail wraps.
Other than that, there were problems with the shipment. Jamberry Nails was making too much product and it had difficulty sorting things out, leading to wrong deliveries. They were able to recover from that though and in 2014, Jamberry Nails invested in their product.
They made nail-care products, nail polishes, and even nail heaters to accompany their wraps.
The work paid off as more consultants joined the brand. By 2016, Jamberry had over 120,000 consultants across Australia, New Zealand, and the US.
Being an MLM, Jamberry was paying their consultants commission for each amount of product they sold.
To stay active as a consultant and receive compensation, you had to sell at least $200 of product a month, if you can’t make sales, you’d have to purchase the product yourself. As a result, consultants sank themselves into debt and so complaints against Jamberry Nails rose.
People then started calling it a scam and even former consultants warned others about it being a pyramid scheme.
In just two years, over 70,000 consultants quit and Jamberry Nails’ sales started to go down real quick. Amidst all these, Jamberry Nails continued expanding its operations and with consultants leaving their company and their sales decreasing, the brand sunk all of its money into investing – with a plan to expand into 100 countries in ten years.
In 2018, the brand was in foreclosure.
In the late summer, it merged with M.Global and Avisae, turning into a brand called BeneYou.
Jamberry Nails Product Line
Jamberry Nails may have been the first in nail wraps but there are other brands in the MLM scheme with similar products, such as Color Street Nails.
The Jamberry Line in BeneYou offers a wide variety of nail products, such as nail wraps, nail polishes, nail art tools, nail care, and more.
Is Jamberry Nails A Scam?
Jamberry Nails appears to be legit and is decent enough to be called a scam. It also comes with physical products and with a compensation plan you can earn from as an affiliate. However, Jamberry has a Rated D rating in Better Bureau Business (BBB).
Let’s not forget about the complaints of the consultants, especially the one that requires the $200 sales quota and the brand being called a pyramid scheme. While they are legit, these reviews are definitely a drawback.
Is Jamberry Nails A Pyramid Scheme/Ponzi Scheme?
Jamberry appears to be legit and not a scam. It is also not a Pyramid Scheme and Ponzi Scheme as it comes with products you can sell even without recruiting.
However, it has the dangers of becoming a pyramid Scheme as affiliates are required to buy $200-worth of products every month. According to the Federal Trade Commission (FTC), “inventory loading” is one of the common red flags of a pyramid scheme.
This happens when “a company's incentive program forces recruits to buy more products than they could ever sell, often at inflated prices.”
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Jamberry Nails Compensation Plan
These are 3 ways to make money in Jamberry Nails’ Compensation Plan:
- Retail Profit - You buy the Jamberry products at a wholesale price, and you sell the products to your customers at retail price. You earn the difference between the wholesale price and the retail price.
- Store Commissions - This is compensated in addition to the Retail profits earned and is calculated based on the accrued store points earned and is paid out every Friday of the week. Store points include personal purchases as well as personal sales. You can take it that 1 Store point is equivalent to $1.At the end of the month, the store points will be calculated once again, and the difference will be paid out.
- Team Commissions - This is compensated in addition to Retail Profit and Store Commissions. It is considered a bonus pay and is paid on every 10th of the month. Team Points are Store Points that are generated by you and your team. "Team" here would mean everyone within your organization. It includes people whom you have personally recruited as well as people that are recruited by your recruits.
See more about their compensation plan in the video below:
How Much To Join Jamberry Nails?
Starting out as a Jamberry associate, you have to purchase either of the two enrollment kits below:
- Jamberry Starter Kit ($29.95)
- "I WANT IT ALL" Enrollment Kit ($399.95
As always, the difference is the number of products. The more expensive the kit is, the more products and discounts you get.
Pros/Cons
PROS
Quality Products
It's good that they took advantage of the popularity of nail arts before and they started a business. Their products are also of quality and they even got praises from buyers. Unfortunately, they weren’t able to keep up with the demand.
CONS
Records Of Foreclosure
Jamberry Nails had been patronized by people that led to a lot of orders but due to machine equipment problems and probably management issues that included sorting out deliveries and investment in expanding operations, they went into bankruptcy, leading to foreclosure.
Although they have merged into a new brand today, such records are not desirable.
Traditional Marketing Methods
Jamberry Nails still utilize traditional marketing methods and that’s the only method taught to new associates. Sadly that does not work anymore, especially with the pandemic going on today.
Many Competition In The Market
There are many competitors in the MLM market so it’s gonna be a challenge considering consumers would go for stuff that they would need rather than just what they want. Also, apart from nail arts losing their momentum, there are cheaper alternatives online.
Most Associates Don’t Earn
As to what the company disclosed, more than 95% of Jamberry Associates don’t earn a decent income. With that fact alone, it could be a warning for you not to opt for this opportunity or otherwise you would want to be those in the 95% who aren't earning a decent income in Jamberry.
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Training Tools/Support
Joining as an associate and purchasing the “I Want It All Enrollment Kit” will enable associates to have access not only to products but as well as samples, a personal website, and other business and marketing materials.
With regards to training, the majority of the associates are only taught how to promote the Jamberry business to the warm market.
Final Opinion/Verdict
In conclusion, Jamberry Nails is not a scam. It’s a legitimate company that comes with real products and a real business. However, if you’re looking for a booming and stable income, this may not be the best opportunity for you.
Well, you could probably enjoy this if you’re fond and passionate about nail art and nail stuff but I could say that having business with this is only good as a side income. Even the company is pretty transparent that most of their associates don’t earn a decent income.
Considering this, what are the chances that you will make a good profit out of this business?
