LuLaRoe | Legit Fashion MLM Program or Scam?
Introduction
For most people, having an extra source of income can help ease many financial problems. The online business world has created all sorts of lucrative opportunities for women and men alike. Women in the United States considered themselves fortunate to land such an opportunity with LuLaRoe, a fashion brand, which claims to offer a profitable multi-level marketing program.
Being a fast-moving industry, the fashion business can be quite lucrative. We all want to stay fashionable, right? LuLaRoe focuses on selling clothing merchandise through an MLM program that claims to pay a hefty commission and refunds for unsold inventory.
In this LuLaRoe review, we will highlight everything you need to know about the company and the business opportunity that it claims to offer. That all being said, is LuLaRoe a pyramid scheme? Can you make money with this program or is this just another online scam? We will answer these questions in detail in a moment – just read on.
At LegitWorkOnlineForReal, we are driven by the desire to help online job seekers and entrepreneurs like you find legit work online jobs. After reviewing hundreds of online programs that claim to help people make money, we have come to realize that not everything that glitters is gold. Not every online “business opportunity” is worth your time, energy, and money.
That all being said, to find out whether LuLaRoe is as profitable as it claims, simply read on. And to make this information more easily digestible, we have broken down this review into the following sections:
- When was it started?
- What is LuLaRoe all about?
- What does it cost to join?
- How does the LuLaRoe MLM program work?
- Is LuLaRoe a Pyramid scheme?
- Can you make money with this program
- What we liked about LuLaRoe
- Good vs bad qualities
- What are internet users saying about LuLaRoe
When Was It Started?
LuLaRoe was founded in 2012 by Deanne Brady Stidman and Mark Stidman. The for-profit company is currently active and headquartered in Los Angeles, CA. Before founding LuLaRoe, Deanne Stidman had found success in the network-based marketing business. This explains why the couple decided to take up the multi-level marketing business model for their fashion business.
What Is LuLaRoe All About?
LuLaRoe is essentially a multi-level marketing (MLM) company that deals in women’s clothing. However, the company is popularly known for it’s stylish and somewhat designer tights. As of this writing, LuLaRoe sells it’s inventory via it’s independent Style Stores. You can purchase these products either in-person or online.
The major issue of concern about this company is it’s MLM program, which people believe to be a pyramid scheme. The company has been dragged into numerous lawsuits with allegations of being a pyramid scheme. But we will establish whether it is really a pyramid scheme or not later on.
How Much Does It Cost to Join LuLaRoe
Like with all MLM programs, you will have to invest your money with LuLaRoe to get started as an MLM retailer. The startup cost stands at $499, which is the cost of 65 pieces of merchandise worth $2,400 in retail sale value according to the company website.
The process of getting started with the program is simple since all you have to do is fill out their online registration form. Once you have completed the registration process, the company’s onboarding team will contact you to help you choose your inventory.
How Does the LuLaRoe MLM Program Work?
After joining LuLaRoe, you automatically become what they call a style consultant. You are then required to start your own LuLaRoe clothing store from home. After purchasing your stock from the company at wholesale price, you can then list them for a higher retail price to collect your margin profit.
The MLM part comes in when you recruit others to join your team. These new recruits will help sell your merchandise as you train them. The company will then pay you a commission for every sale you make, as well as for sales made by recruits in your downline.
But before receiving your payments and incentives, you must first meet a specific sales threshold. The problem is that most people are often unable to meet these goals, which then means that they will not receive commissions and bonuses. This is one of the reasons why many believe LuLaRoe to be a pyramid scheme.
Is LuLaRoe a Pyramid Scheme?
Well, we can’t call this company a pyramid scheme. The reason why we cannot call this company a pyramid scheme, is because it has actual products that they promote and sell. Pyramid schemes never sell valuable products or services and their only way of sourcing revenue, is by recruiting new members.
What is LuLaRoe then and why has it been labeled “the cult of suburban fashion”? This company has suffered plenty of legal problems, but only because it is a poorly organized or managed MLM fashion company with substandard products. Other than that, LuLaRoe is not a pyramid scheme in the actual sense. Or at least in our opinion..
Can You Make Money with LuLaRoe?
Independent style consultants sell LuLaRoe products via pop-up boutiques. If you are not familiar with the term, it typically means that you focus on selling your products during home parties. According to LuLaRoe’s compensation plan, consultants or retailers can earn anywhere from 35-50% of gross sales in commissions.
However, you must sell at least 33 pieces of clothing every month to receive your commission and to maintain an active status as a consultant.
The other way to earn money with this company, is by recruiting others to join the company. As a sponsor, you stand to earn a 5% override bonus from the volumes accrued by recruited consultants. But to get this bonus, you must purchase at least 175 pieces of LuLaRoe merchandise every month.
When a consultant in your downline recruits a new member, you will get a 3% bonus from that new member’s volume.
If this business opportunity is not appealing to you, you can check out other legit online business opportunities such as Wealthy Affiliate.
What We Liked About LuLaRoe
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Their happiness policy
If you are not satisfied with your purchase for any justifiable reason, you will receive a full refund, exchange, or credit. However, you must make your claim within the first 30 days following the purchase. But the policy can extend to up to 90 days in some cases.
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6-month warranty
As a consumer, you are granted a limited warranty for any workmanship defects. But you must return the goods along with the original receipt to the consultant that sold the item to you. The consultant will then exchange the item for a better one.
Good vs. Bad Qualities
Below is a list of the advantages and disadvantages of signing up with LuLaRoe:
Pros:
- There are multiple ways to make money
- The commissions and bonus rates are lucrative
- Offers a refund/exchange/credit happiness policy
- Offers a limited 6-month warranty
Cons:
- It is very expensive to join
- Only available in the US
- Too many lawsuits
- You must meet sales thresholds to collect commissions and bonuses
What are Internet Users Saying About LuLaRoe?
Initially when LuLaRoe was still a big name in the industry, everyone was happy to be associated with the brand. There were many positive reviews published during these years of grace. However, Due to the high number of lawsuits and the allegations that LuLaRoe is a pyramid scheme, the company has attracted a great number of negative reviews.
Below are some of the sentiments published by consumers and consultants alike:
Ubaldo De Rosa,
Stacey,
Our Conclusion For LuLaRoe
LuLaRoe is a legit clothing company that markets and sells it’s products through a multi-level marketing (MLM) program. Although it’s been accused of being a pyramid scheme and taken to court on numerous occasions, the company is still in business. It costs about $499 to join as a style consultant and you’ll earn a 35-50% commission on all of your personal gross sales.
Is the company worth joining? Well, given it’s history and many complaints, we think it would be in your best interest to look for a more reputable company.
Well, that marks the end of our LuLaRoe review. We hope that we have answered all the questions that you had about this company. Feel free to share your experience and comments with us, by leaving them down in the comments section below. Thank you for reading and we’ll see you in our next review.
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