There’s been a lot of press lately about LuLaRoe, an MLM company who offers distributors a chance to make part time or full time income and work for themselves as their own boss. But is LuLaRoe a scam or a genuine opportunity for financial freedom?
I’m sure you have many other questions like how does MLMs work? What is LuLaRoe? How much money can you make? How does it work? In this LuLaRoe review I’ll answer all these questions, but expose some things about them that they probably don’t want you to know right now!
Let’s get this review rolling….
According to statistics most people doing MLMs don’t make any money. If you’d like a better chance of actually making money online then check out my Top Work At Home Recommendation instead where I’ll show you how I currently earn $1000+ monthly online.
Table of Contents
- What Is LuLaRoe?
- Making Money – Hosting LuLaRoe Home Fashion Parties
- Is LuLaRoe a Pyramid Scheme?
- LuLaRoe Problems
- Final Verdict – Scam or Legit?
- How I Make My Money Online
Type: Multi-level marketing (MLM)
Startup Cost: Up to $5000-$10,000+
What Is LuLaRoe?
LuLaRoe is an MLM company that sells women’s fashion clothing. The company started up back in 2012 by Mark and DeAnne Stidham and their headquarters are based in Corona, California.
They started out selling women’s leggings and it’s what they’re mostly known for, but they’ve extended their products to include all kinds of things like dresses, shirts, skirts, and other women’s clothing in very colorful and fashionable styles and patterns.
These products are obviously for women, but if you’re looking to make money by being a LuLaRoe retailer then there’s no gender requirements. But perhaps women would be more comfortable purchasing clothing from another woman, but it’s up to you to decide if you’re comfortable selling women’s clothing if you’re a man.
Where To Buy LuLaRoe’s Products?
LuLaRoe is an MLM company which means they only sell their products through independent distributors, they call them “Independent Fashion Retailers.” People like you and me can become a retailer and earn commissions by selling LuLaRoe products, you can also earn by recruiting a downline and earn from their sales.
It’s actually a lot of effort to find LuLaRoe products to buy. They don’t even sell it on their website, you have to find a retailer that’s near your location and go to one of their hosted home parties to buy the clothing off them.
Hosting LuLaRoe Home Fashion Parties
One of the main ways that LuLaRoe Independent Retailers make money is by hosting home fashion parties. They invite people that they know to their house, office, rented place, etc. and have a presentation and show these people LuLaRoe’s products.
After the party is over, the LuLaRoe Independent Retailer can sell products to the guests who are interested in buying, and also recruit people who are interested in becoming Retailers themselves.
If you’ve ever heard of tupperware parties it’s basically the same sort of thing.
Become a LuLaRoe Independent Retailer
If you want to make money with LuLaRoe you’ll have to sign up to become an Independent Retailer Consultant. The process of joining is a big hassle because you can’t just sign up on the LuLaRoe website directly, you’ll have to click on the “Find Retailers” section and find other Independent Retailers in your area, attend their home parties, and sign up under them.
When you first join you’ll have to make an initial purchase of 200-300 pieces of clothing as your inventory, the cost varies and it depends on what products you choose to buy, but the average wholesale price for an item appears to be around $8 to $30. Some people say they’ve invested $5000 to $10,000 when they first started, so this is definitely not a cheap business to get into.
Once you’ve become a LuLaRoe Independent Fashion Retailer consultant you can make money either by selling products directly to customers or by recruiting others for your downline.
From direct retail sales you can earn up to 35% to 50% in commissions. As mentioned before the most common way to sell is by hosting home fashion parties, but there are other people who have big social media accounts like Facebook and promote it that way as well.
For most people the biggest challenge will be constantly finding new customers for the home parties. Sure you can invite your relatives, your neighbors, friends, and whatnot, but eventually your personal contacts will run out and you’ll need to find a fresh supply to people. If you’re not good at networking then you’ll have a difficult time making consistent sales.
At your home parties you can also recruit others to join as a MLM consultant if they want to make money. You can earn 5% override bonus from your direct recruits, as well as a 3% bonus on your recruit’s downline as well. There is also a Leadership Bonus Pool where there is potential to earn more.
As with most MLMs the real money is made not by selling products, but by recruiting massive amounts of people to work under you. This is because you earn a percentage off your recruit’s results, so if you got 1000 people or whatever working for you and they’re all making lots of sales and commissions, then your cut is going to be very big when you add it all up.
But recruiting that massive downline in the first place is going to be a huge challenge. When it costs something like $5000 to get started, how many people do you know are ready to hand that kind of cash over to you to start some sketchy MLM business scheme?
Is LuLaRoe a Pyramid Scheme?
No, LuLaRoe is a MLM company, not a pyramid scheme. A lot of people use the terms “pyramid scheme” and “MLM scheme” interchangeably as if they’re the same thing, but they’re not. They’re very similar though, and that’s why people get confused.
A MLM company is where you can earn money by selling their products as well as by recruiting a downline and earn from their sales. Whereas a pyramid scheme is one where there are no actual products to sell, the only way to earn is by recruiting others to join that pyramid scheme.
Most people lose money with pyramid schemes because it’s very hard to recruit others to join something that requires a hefty entry fee, this is the same reason why MLMs aren’t that much better either. Yes you can sell products, but the real money often lies in recruiting a massive downline.
Why I Don’t Recommend MLMs Either
Since LuLaRoe sells women’s clothing and leggings it obviously puts them in the MLM category, but in my opinion it doesn’t make them that much better than pyramid schemes.
The reality is that the vast majority of people in MLMs don’t make much money. The startup costs are often way too high, and so even if you’re able to make a few commissions from sales it may not be enough to cover your initial investments, much less turn out a profit.
Also the big money in MLMs often lies in recruiting, something that requires lots of marketing and networking skills, if you don’t have that then it’s highly unlikely you’ll succeed.
If you’re looking for a better idea to make money online I suggest you look at my Top Work At Home Recommendation where I’ll show you a way to make full time income online without having to sell or recruit.
Not only do I not recommend you join MLMs in general, I think LuLaRoe is exceptionally a bad choice right now because of some recent legal troubles and bad reviews they’re getting. There’s actually plenty of reasons you should stay away from LuLaRoe right now and I’ll list them all below.
1. Lawsuits, Bankruptcy, Uncertain Future:
LuLaRoe had dealt with many lawsuits in the past year. Recently they’ve been sued by their main clothing provider, Providence Industries. According to the lawsuit filed on November 29 2018 LuLaRoe is more than $33 million in debt, and the founders are accused of hiding assets from creditors while living a lavish lifestyle.
Also according to Business Insider thousands of sellers had left LuLaRoe in the past year, including many of their top sellers. Some sellers are claiming that they’re still owed thousands of dollars in refunds.
Even one of their top executives have left recently. According to some sources back in Feb 2017 LuLaRoe had about 77,000 Independent Fashion Retailers which had dwindled down to just around 25,000. It seems that this MLM company is going down and right now is probably the worst time to join!
2. You Probably Won’t Make Money
If you’re still thinking about joining LuLaRoe you might want to read this article on how 10 women who have lost thousands of dollars to this MLM company, including one woman who invested $15,000 into the business and got nothing out of it.
The stories of these 10 women are not rare occurrences in the MLM world. Just do a quick Google search and you’ll find hundreds and thousands of horror stories, people losing their investments, people going into debt, feeling scammed, and regretting their decisions to join.
Some people say they didn’t make any money despite being good at selling, this is because any money they made were put back into buying more inventory until they get to the point of realizing they’re never going to make any money and decide to quit.
3. Very Expensive Business Costs
On the LuLaRoe website they don’t state how much the initial cost of your first order is going to be when you first join as an Independent Fashion Retailer. But some people have said that they invested $5000 to $10,000 on inventory and other business costs when they first started.
If you think that’s bad there’s more… Every month you’re required to buy at least 175 clothing pieces as well as sell 33 clothing pieces in order to remain active and to be able to receive commissions. The average wholesale cost of each clothing piece varies from around $8 to $30.
So you’ll probably pay about $1400 to $5000 a month on buying inventory which you’ll have to do regardless of whether you’ve sold the previous batch yet or not, how the heck does anyone make any money doing this is beyond me!
4. Product Quality Going Downhill?
There are numerous reports from buyers saying that there are major quality issues with LuLaRoe’s merchandise. Some are saying that they come with holes, others are saying that the leggings rip and tear just hours after wearing it.
5. Complaints Everywhere
I honestly wasn’t able to find any positive reviews on LuLaRoe. Anywhere I searched I just found more complaints from both former sellers and buyers. They currently have an “F” rating on the Better Business Bureau website and the vast majority of reviews are people warning others, advising people not to join their MLM nor to buy their products.
If you don’t want to waste anymore time on MLM programs then check out my Top Work At Home Recommendation right now where I’ll show you what I personally do to make $1000+ monthly online without having to sell or recruit.
Is LuLaRoe a Scam Or Legit?
Currently LuLaRoe is getting a lot of negative publicity with all these lawsuits and claims that they’re owing millions of dollars. Also their products have lots of bad reviews, thousands of sellers are quitting, many people owed refunds, so who knows how much longer this company will be around for?
It appears that LuLaRoe is still a legit MLM company, but they’re the last thing that I’d recommend to people who are chasing the dream of financial freedom. MLMs are a terrible way to make money and that’s why most people don’t, I highly advise you stay away from all MLMs, not just LuLaRoe.
The problem with MLMs is that the startup costs are way too much, this means you’ll either have to sell an insane amount of products or recruit a massive downline in order to gain any profits. Both are very difficult tasks that most people struggle with and ultimately end up failing at.
I just want you to know that there is a much better option that exists here. I know a totally legit way to make part time or full time money online, one where the startup costs are VERY low, there’s NO selling, NO recruiting, and there’s virtually no limit to how much you can earn. It’s also what I currently do to make money online, so I want to share it with you.
How I Make My Money Online
If you’re seeking a way to make a part time or full time income online, I suggest you learn to a build a website/blog and promote other people’s products and services. This is called affiliate marketing and it requires no selling or recruiting.
You earn commissions when people take you up on your recommendations and buy products/services through your affiliate link. You’re not selling anything, you’re just recommending them. This difference comes at several big advantages to you – no need to invest in inventory, no need to deal with customers, no need to for big startup costs.
It’s also the best way to make money online for the average person (in my opinion) because it requires no technical knowledge or skills. You can see my Top Work At Home Recommendation for a step-by-step training course on how to build your first website and monetizing it.
I started doing this myself back in December of 2016 and haven’t looked back since. When I first started I didn’t know anything about affiliate marketing, but I just followed the training course and it guided me every step of the way through easy to understand language. The website you’re on right now is a result of the training.
Affiliate marketing absolutely works guys, and it’s infinitely a much better option over MLMs.
If you’d like to see the step-by-step training courses that I used to start my affiliate marketing website journey then take a look at the link below:
In my top recommendation I’ll go over a bit more about affiliate marketing and what it is, how it works, why it works so well, and why I think it’s the perfect way for the average person to make a job-replacing type of income online. I’ll also show you where you can get the best training, tools, support, and community as well.
This is not a get-rich-quick scheme so don’t expect to roll in cash your first month. You have to be patient because it’s very possible to make $5000 to $10,000+ per month with affiliate marketing and many people are doing it, but it takes lots of time and effort to build up and you shouldn’t expect overnight success.
If all this sounds like too much work for you then fortunately there are even easier ways to make money online. I recommend you check out my Favorite “Get-Paid-To” Sites which are sites that pay you to do easy online tasks like answering surveys, playing games, watching videos, using the search engines, and more.
These get-paid-to sites are low paying and aren’t the solution to financial freedom though, but it’s a good way to make some quick and easy cash if you’re looking for beer money.
I hope you’ve enjoyed this LuLaRoe review and that it has helped you to make the right decision. If you have any questions, comments, or opinions, then leave it all down below.
I’m a regular person who started this website in Sept 2017 to help people in making money online. I envision my own success from helping you become successful. My goal is to help you create a consistent online income, let’s make that money!