Two stay-at-home moms make their small business sparkle.
By Francesca Di Meglio
Forget Tupperware parties.
Silpada Designs.
Launched in 1997 by best girlfriends Bonnie Kelly and Teresa Walsh, Silpada is proof that entrepreneurial moms with a vision can achieve startup success.
Kelly and Walsh met more than 20 years ago, when their eldest daughters were in the same first grade class. Both stay-at-home moms had signed up to be the class mother, and they became fast friends. They each had a second daughter and sons who were born three weeks apart. On a play date with their sons, Kelly and Walsh started talking about how something was missing from their lives.
Wanting an outlet for their creativity and a little extra cash, they started testing business ideas. The first was Suit for Success, where they helped people organize their wardrobe by showing them how to mix and match what was already in their closets. A bit of local press on that company led them to a costume jewelry warehouse, where they spent $25 each from their family’s grocery budget to purchase items to sell to clients. Under the new name Cool Jewels, the duo began throwing parties to sell costume jewelry they designed. But they continued reinvesting in their business until they could afford to sell only sterling silver products. That’s when Cool Jewels was reincarnated as Silpada Designs, a sterling silver party-plan business.
After numerous partygoers requested information on how to get Kelly and Walsh’s job, the women decided to set up a training program for those who wanted to host Silpada parties. Friends and customers were among the first group of representatives. Today, there are more than 18,000 representatives from across the U.S., and 300 employees in the corporate headquarters to support and train them.
The party-plan system is relatively simple. Representatives pick and choose items to buy and then sell from the annual catalog of jewelry and accessories. They earn 30 percent on the retail of jewelry and 15 percent on belts and watches. Based on the Silpada national home show average of $750, representatives can earn $1,800 per month by holding two parties per week, according to the company’s Web site. With the Compensation and Career plan, Silpada reps can also share a piece of the commission made by those who they have recruited for the team.
High earners can win free jewelry, gifts and prizes, and even luxurious getaways to Aruba and Maui. There are no minimum sales requirements, and everyone can determine their own definition of success, says Walsh. In other words, representatives are independent contractors who set their own hours and goals. At the home shows, there are no formal presentations, and representatives are supposed to refrain from putting pressure on guests to buy. People can also purchase the jewelry from reps via phone, fax and e-mail.
Jewelry aficionados, Kelly and Walsh are committed to offering high-quality, handcrafted jewelry. Most of the pieces are made of fine beads or stones and .925 sterling silver. Working with about 48 artisans from around the world, the pair has a hand in designing all of the 425 items in the catalog, which is released every July during the company’s annual conference. In March, they produce a special catalog with 35 to 45 additional pieces. There are quality inspections to assure the look, weight and style are up to Silpada standards.
ith pieces ranging in price from $12 to $250, Walsh and Kelly say there’s something for everyone, even those who rarely wear jewelry. They call the Silpada style “hip classic;” saying it has a modern appeal but isn’t trendy. Flipping through the online merchandise, consumers are greeted with hammered silver hoop earrings; a sterling bracelet with chunky black beads; a four-strand necklace with layers of turquoise, obsidian, crystal and sterling silver beads; and carved freshwater pearl and silver teardrop earrings.
But the product is only one draw for the reps. Jenny O’Brien, a representative in Paola, Kan., started with Silpada because she attended a home show and fell in love with a bracelet—but she didn’t buy it. To get the item for free, O’Brien hosted her own party. Although she continued to work as an occupational therapist for the next few years, she regained interest in Silpada when an acquaintance wanted to have a show. Since then, O’Brien has left her day job and is able to stay home with her four-year-old daughter.
In addition, she has cleared her debt and gained confidence—even overcoming her fear of public speaking. “It’s like getting paid to have fun,” O’Brien says.
Moms particularly relate to Walsh and Kelly, and many of them are grateful for the opportunity to work on their own schedule. “We’re walking out our front doors less and earning more money,” says Angie Evans Sly, a representative in Des Moines, Iowa.
With nurturing, motherly natures, Kelly and Walsh say their employees and representatives are treated with respect. They hope that the company provides all the training and support necessary to make any person who wants to participate successful at selling. They’ve been known to walk the grounds of corporate headquarters handing out chocolate kisses to employees. The pair claim that they are extra appreciative because they have done all of the jobs, from hosting parties to inventory to employee training.
Having begun the business in Kelly’s basement with three employees (the two of them plus Kelly’s husband, who helped them devise a business plan), the women certainly have come a long way. Silpada has averaged a 100-percent growth rate year to year since its inception, and expects 25 to 30 percent growth in 2007. Last year, the company exceeded $190 million in retail sales, and Walsh and Kelly anticipate exceeding $235 million this year.
Still considered small based on industry standards, Silpada has big potential for growth. However, a quick Google search of “sterling silver” and “home shows” reveals that there are other competing companies out there. But, Kelly says, there’s enough room for everyone in the industry.
The company’s good press— including appearances on “Today” and a jewelry giveaway on “The View”—have brought Silpada to a national audience. Presumably, name recognition will help the company move forward.
Silpada’s future, say Kelly and Walsh, is going to be sterling, of course. Each of them has one daughter who has chosen to join the company’s corporate ranks. In fact, after the interview for this article, they were off to San Francisco with their daughters for a shopping spree—and perhaps some inspiration for the next line. Maybe mom really does know best after all.
Jewelry can make a person shine.
“It gives women confidence,” says Silpada co-founder Bonnie Kelly. “It makes them feel good about themselves. Jewelry brings a sparkle to women’s outfits. To make the most of the jewelry you already own, consider these style tips from Kelly and her partner Teresa Walsh:
Get out of your rut.
Refrain from wearing the same stud earrings everyday. Kelly and Walsh say jewelry has the power to make your clothes pop. If you’re always wearing the same understated items, no one will notice. Mix it up whenever you can. This will have you lighting up every room you walk into.
Build distinct styles.
Purchase a short turquoise necklace on one shopping excursion, says Walsh, then pick up a matching ring the next time. Top off those buys with a long turquoise necklace. The idea is to create different kinds of jewelry sets for different outfits.
There are no rules.
“People should have fun with jewelry,” Walsh says. “It’s an extension of your personality, so play dress up.” In other words, don’t take yourself so seriously. If you like a piece and it makes you feel good, then put it on with no regrets.
Layer your look.
The Silpada founders are unafraid of being over accessorized. They encourage people to wear three necklaces at a time, a jangle of bangle bracelets or a few rings stacked on one another. “Three’s a charm,” Kelly says.
