Buying LuLaRoe clothes is always a surprise, you never know what you get in your box. It’s almost like opening your Christmas gifts. Do you get intrigued and want to know more about What is LuLaRoe Clothing?
Especially, can you make money selling LuLaRoe leggings, skirts, dresses, etc.?
Today, I am going walk you through the story behind the company, their compensation plan, and some other spicy details so that hopefully, it can help you make a decision if it’s the right fit for you.
What You Will Learn Here
- 1 Lularoe Overview
- 2 What is LuLaRoe?
- 3 Who are the Founders?
- 4 What is LuLaRoe’s Financial Situation?
- 5 Are LuLaRoe’s Products Any Good?
- 6 How Much Does it Cost to Join LuLaRoe?
- 7 How to Make Money With LuLaRoe?
- 8 Do They Allow You to Use the Internet to Build Your Business?
- 9 Is LuLaRoe Legitimate?
- 10 Can You Make Money With LuLaRoe?
- 11 The Good and The Bad
- 12 My Final Opinion About LuLaRoe + A Better Alternative
- 13 LuLaRoe MLM
- 14 Pros
- 15 Cons
Full Name: Lularoe
Type: MLM Business Opportunity
Founder: Deanne Brady & Mark Stidham
Price to Join: $499
I find it necessary to make a disclosure that I am by no means a LuLaRoe consultant and you will not see me here promoting their products or convince you to join their business opportunity.
What I do here is I share all my findings with you about LuLaRoe company to help you make an informed buying decision.
I hope you will find this useful and it will help you determine if LuLaRoe is the right company to go with.
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What is LuLaRoe?
Based in California, USA, LuLaRoe is a direct selling company, also referred to as a multi-level marketing, or network marketing company selling clothes for women.
Being founded in June 2012, Lularoe is a relatively new company that managed to skyrocket the industry.
Who are the Founders?
Deanne Brady and Mark Stidham is the couple who founded LuLaRoe.
It all started with Deanne’s passion for designing clothes from a young age.
She’s educational background is in fashion merchandise and she had been working for some time at a bridal dress shop.
Being a mother with a lot of children (four biological and three adopted), Deanne always wanted to find a way to financial freedom and work from independently as a stay-at-home mom.
In the 1990s, she first got into the business, selling clothes at in-home dress parties.
Being part of the Mormon church, Deanne ran this business successfully for over 20 years, adopting, as a result, a nickname “The Dress Lady”.
Then, LuLaRoe brand was born when Deanne designed her first maxi skirt.
Making use of social media, they quickly got a word spread about it, taking orders from their friends and relatives.
What is LuLaRoe’s Financial Situation?
Surprisingly enough, LuLaRoe managed to grow exponentially in just a few years.
In 2017, its revenue constituted 2,3 billion USD.
Are LuLaRoe’s Products Any Good?
I believe if a company (even if it’s MLM) offers a good quality product, it would be much easier to sell it, right?
That is why before joining any MLM out there, it’s wise to check out the product behind it.
So, LuLaRoe is making all sorts of products for kids and adults (females) like dresses, skirts, blouses, and leggings.
When I first saw them, to be honest, I wasn’t impressed at all.
I mean, yeah, they look nice due to the unique prints but I can’t find these to be so much special. If you want a printed dress, you could find the same colored clothes easily in your local mall from any other brand.
I am by no means a fashion adviser but I think a separate word should be said about the prints. If we take, for example, LuLaroe leggings, I find it difficult to come up with appealing outfits.
But these are just my two cents. The most important thing is that because of LuLaRoe leggings were made of a softer fabric, these ended up tearing easily, causing a ton of issues to LuLaRoe distributors.
How Much Does it Cost to Join LuLaRoe?
In order to become a LuLaRoe Independent Fashion Consultant (Retailer), you’ll need to purchase your initial inventory.
This is how you start your business with LuLaRoe and according to their official website, the start-up cost is $499. Each initial order of inventory consists of 65 pieces of clothes.
I also have found some information over the internet that there used to be start-up costs of $5 000-$ 6 000 during 2016-2018, some of the people even paying up to $9 000 to become a LuLaRoe consultant.
Now, they have reduced it to $499, most probably, due to many consultants leaving the company as a result of the change in the Refund Policy.
Please note that most probably, you won’t be able to start selling immediately after you have submitted your application. According to LuLaRoe official website:
“Once you have entered the Queue there are several steps in place to make sure you are well prepared to get started as a LuLaRoe Retailer. After you’ve completed these trainings, you can Onboard as a new Independent Fashion Retailer in as little as two weeks”.
However, usually, things, in reality, come out to be a little different than on paper.
According to www.FirstQuarterFinance.com, the waiting time could be 6-8 weeks. That’s a lot of time and if you are looking for something to get started immediately, most probably, LuLaRoe is not the best option.
How to Make Money With LuLaRoe?
Obviously, you could start selling once you receive your inventory. How you do that, is your choice and LuLaRoe lets you find the most comfortable way for yourself.
Basically, LuLaRoe accomplishes what is called social retail.
To give you an idea, you can sell through LuLaRoe’s Point of Sale System (BLESS), at In-Person Pop-Up Boutiques, through Facebook Live Events, or on your own online boutique.
LuLaRoe is a multi-level marketing company, so there are two ways in which you can make money selling LuLaRoe clothes:
#1. Retail Sales
It seems to be quite simple: buy your inventory, and then resell it, keep the difference in your pocket. LuLaRoe estimates that you could earn between 35%-50% profit.
#2. Build a Team and Earn a Portion of Their Sales
According to LuLaRoe Leadership Compensation Plan, there are 6 ranks that you can eventually achieve:
In order to get up to the Sponsor level, you’ll need to have at least 1 Independent Fashion Retailer, and maintain your monthly personal purchase (minimum of $1950 in retail sales) and thus, you may earn 3% override commissions.
The more you advance through the ranks, the more sales volumes you’ll need to make personally, as well as your team.
Also, in order to be eligible to earn commissions, the rank must be qualified each month.
So, as a Trainer, you’ll need to have at least 3 Independent Fashion Retailers, and meet the following requirements:
- Personal Retail Sales – minimum $3 750
- Team Retail Sales – minimum $19 500
If you get up to the Coach level, that means that you have managed to recruit at least 3 Independent Fashion Retailers, and at least 3 First Level Leaders.
The monthly sales volumes are as follows:
- Personal – minimum $4 500
- Team – minimum $25 500
As a Mentor, you’ll need to meet the requirements of a Coach, and have at least 3 Leaderships legs with Coaches or above, and 3 additional Leadership Legs.
The requirements for the Ambassador level are as follows:
- Meet the requirements for Mentor
- Have at least 10 Leadership Legs with Mentor or above
- 5 Leadership Legs with Coaches or above
Do They Allow You to Use the Internet to Build Your Business?
LuLaRoe is pretty much a young MLM company that thankfully has adopted modern ways for the promotion.
Although it still recommends in-person selling, there are also ways in which you can use social media and your own branded website to sell LuLaRoe clothes.
The bad news is that it lacks proper training on how to run all those social media events, not to mention, how to create your own website.
Is LuLaRoe Legitimate?
There are thousands of women who say that LuLaRoe is a scam. LuLaRoe itself is in trouble with the law for many reasons.
One of the lawsuits is scheduled for trial in October 2020 and it is filed by a group of LuLaRoe consultants who claim that LuLaRoe is selling defective products to its distributors.
What the court will decide is a matter of time but until then, LuLaRoe remains a legitimate business.
Can You Make Money With LuLaRoe?
You see, in theory, you can make money with any MLM company out there (and any other type of business) but in reality, again, things usually turn out differently than expected.
While I am not a fan of MLM companies at all, I can’t see LuLaRoe business opportunity worth your time and money.
Remember, you are earning between 35%-50% on all retail sales you are making?
So, if we quickly do the math here: $499*50%=$249,5 (you are not even earning back your investment!)
And it’s assuming that you sell every item out of your inventory package.
Keep in mind though that it could be risky (remember you first buy the products, and sell afterward).
Also, selling clothing is a little bit more challenging than any other type of product simply because there are so many aspects involved like the size and all those different styles.
On top of that, selling LuLaRoe clothes means to have a lot of them on hand.
In this case, you should have a place where to store the products, and display them, buy hangers, and other equipment.
That’s additional costs to you which you want to take into consideration before deciding to join LuLaRoe.
So, the only feasible way to make money with LuLaRoe is by recruiting other people into the business. I know a lot of people simply don’t like recruiting (I don’t like to do it either!).
Most probably, that is the reason why most people fail to make any decent amount of money by selling LuLaRoe clothes. Unfortunately, LuLaRoe doesn’t disclose publicly how much its distributors are making.
However, an internet search led me to various copies of income disclosure statements for 2016.
Thus, the majority of LuLaRoe distributors earned only $6 781 for the year. But keep in mind that this is not profit.
In order to know what the profit is, we need to subtract $5 000 start-up cost (that was the cost in 2016). The conclusion is disappointing, unfortunately.
The Good and The Bad
#1. Relatively New MLM Business
The good news is that due to the fact that LuLaRoe is a relatively new company, the market might not be that saturated yet as in the case of the oldest MLMs.
At the same time, this could also have a drawback because we all know that most businesses don’t stand in their first 5-10 years of operation.
#2. Affordable Price for LuLaRoe Clothes
For example, LuLaRoe-branded leggings are around $12-$25. That is how these are shown on Amazon.
Unfortunately, I couldn’t find the prices on LuLaRoe’s official website but I guess the rest of LuLaRoe clothes are priced around these price points.
#3. A Variety of Products to Sell
LuLaRoe could be considered to have a hot commodity product. We all need to dress up every day, especially women.
LuLaRoe offers a range of products for women, as well as kids (both boys and girls), and a variety of different styles, sizes, and colors.
#1. Relatively High Start-up Costs
$499 is not the highest price to pay in the MLM industry, there are other MLM companies with even higher start-up costs.
But normally, LuLaRoe consultants are being encouraged to invest more than that, assuming that bigger investment means bigger earnings, which is far away not always the case.
#2. The Requirement to Constantly Buy New Inventory
Besides the start-up costs, there are additional costs needed to bear every single month in order to make your LuLaRoe business work.
Even if you haven’t sold out all of the items from the previous order, you’ll constantly need to purchase new inventory every single month to maintain your rank within the LuLaRoe company. This is what has taken a lot of people in debt instead of making a profit with LuLaRoe business.
#3. Most People Failed
Even though LuLaRoe had tremendous growth since its inception, it doesn’t mean that all of the LuLaRoe distributors are thriving. In the video below, you’ll find out what’s the real reason why women are giving up on LuLaRoe:
In fact, less than 1% managed to make it to the Mentor level, and only 2,2% to the Coach level, while the majority of LuLaRoe consultants are not making enough money, no matter how hard they work.
#4. They Don’t Respect Their Refund Policy
Like many legitimate businesses out there, LuLaRoe has a Refund Policy in place.
According to this Policy, you get 90% of your ordered inventory back, if you decide to terminate your contract as a consultant.
But it seems like LuLaRoe doesn’t respect its agreements with its distributors.
I have found a lot of complaints about this matter at BBB (Better Business Bureau) from former LuLaRoe distributors.
Take a look at one of them in the screenshot I have taken:
Have you noticed the dates? This person is waiting for a refund for almost two years! And I couldn’t see any trace of regret in the LuLaRoe response to this person.
I don’t know how you feel about this but to me, this is a total lack of professionalism.
By the way, speaking of complaints on BBB, there are a total of 408 complaints of this kind in the last three years.
Attention: only 14 of them were closed in the last 12 months. Simply, no comment.
My Final Opinion About LuLaRoe + A Better Alternative
Based on the cons I have found at LuLaRoe, I don’t recommend this business opportunity.
A lot of LuLaRoe consultants were leaving the company due to some changes in their operation policy not in favor of the distributors.
It’s just too risky and too much of a headache running this type of business.
I mean, seriously, do you want to host home parties, annoying people to join you when there are so many places to shop nowadays people could go when they really need it?
Or work hard to schedule and host Facebook lives over and over again?
There is a better option for doing business! And I mean an online business, which is very important because:
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I hope you have enjoyed reading this article, and now, you know a little bit more What is LuLaRoe Clothing.
If you have any questions about LuLaRoe, I haven’t covered here, please leave them in the comments below and I will get back to you as quickly as I can.