Is LuLaRoe a Scam? Women’s Clothing MLM Company Exposed!

women's clothing mlm business opportunity

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

 

LuLaRoe Review


Name: LuLaRoe
Website: lularoe.com
Type: Multi-level marketing (MLM)
Startup Cost: Up to $5000-$10,000+


earn money selling women's clothing mlm company

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.

Selling Products

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.

Recruiting Others

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.

LuLaRoe Problems

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.

23 thoughts on “Is LuLaRoe a Scam? Women’s Clothing MLM Company Exposed!

  1. My Daily Pointers says:

    LulaRoe may not be a scam in the traditional sense of the word but they sure make it incredibly difficult to make any legit money based on what you have written.  Generally if people are trying alternative ways to make money, they do not have a lot to begin with and expecting someone to come up with 5000-10000 is absurd in my opinion.

    Thank you for writing such a thorough article.

  2. Jewelia says:

    Hello Kent,

    I appreciate your thorough review of LuLaRoe, and I can see that becoming their associate is not the best choice as the initial investment is high and the company didn’t make sales easy for the associates if all sales must be done only in person.

    What I do not appreciate in your review, is blaming the MLM business model in general. I saw that you pointed out a difference between MLM and a pyramid scheme. However, a pyramid scheme is illegal, while MLM is a legitimate business structure. Yes, it always involves recruiting, but that’s how the company makes its advertisement – through the associates. Instead of paying tons of money to the advertisers and pitiful wages to the employees (as they do in a traditional model, which by the way is also a pyramid), they pay commissions to their associates. I am an independent associate with an MLM that is free to join with no obligations to buy any kits, that offers high-quality products in the most in-demand industry, gives you free replicated websites, all sales are made online, etc. You see, it’s opposite to LuLaRoe, and yet you are generalizing and blaming all MLM businesses…

    Your alternative proposal for working from home and earning money online is fantastic – I have no objections on that point! I do affiliate marketing too and my online MLM business and affiliate marketing only complement each other.

    Thank you again for your well-reasoned warning to stay away from LuLaRoe. 

    All the best,

    ~ Julia

    • Author - Kent Leung says:

      Yeah I don’t like MLMs but I agree that some of them have much lower startup costs and aren’t too terrible. 

  3. Daniella says:

    Hi Kent,

    Great article, I really enjoyed the reading!

    Thank God I read your article; I was going to sign up to MLMs My dream has always been to sell women clothes. I know many women in my Gym club, and at work, so I thought it would be a great idea to try this program. Also, I love making cocktails and parties at home and invite people over and I am great at networking. I did well with Herbalife a few years ago. The same concept, networking. Anyway, you said that even though this company gets a lot of negative publicity, they are still doing well. I do have this money spare, and I am a firm believer that if we work hard, God rewards us. I’ll think about it, anyway. 

    Thank you for this excellent post!

    • Author - Kent Leung says:

      How was your experience with Herbalife? Did you make any good money? most people I heard couldn’t even make enough to cover their initial set up costs.

  4. Bob says:

    Hi Kent, all I can say is WOW! I have been involved with an MLM about 20 years ago and would still be an active Independent Business Owner if it wasn’t for me not updating my billing information with the one I was with. I am not a big fan of MLM’s and for the same reason, you mentioned in your article.

    I have also heard of LuLaRoe. I worked with a young lady while in the Air Force Reserve that was an Independent Fashion Retailer. She did spend a lot of money, but she also enjoyed wearing the clothing that she was buying as her inventory. She didn’t stay with it long though. 

    So, you say there isn’t any you recommend. I haven’t had much chance to look around your site and will come back to it later, but I do have one question. I know you have heard of Amway, yes, that was the one I was involved with. What do you think of their business model and products?. I will say, I enjoyed their products…but the MLM part of it just wasn’t for me.

    I’m curious to hear your thoughts on them…

    I wish you the best!!

    Bob M

    • Author - Kent Leung says:

      Yeah I’ve heard of Amway and actually did a review of them before. They’re a lot cheaper to get started, the starter kit of $99 is all you need to begin. But if you look at their earnings report most of their IBOs (Independent Business Operators) are only earning about $200 a month, many are making even less than that. 

  5. Vanessa says:

    I have never heard of LuLaRoe but after reading this it seems like a good idea to keep a good distance away from it. Then again with the various lawsuits, there may not be anything left of LuLaRoe to distance myself from (LOL). I am thinking that this may have started out really good at the beginning but then maybe the owners most likely lost focus on what was important when the money started rolling in. 

    But the part that leaves me dumbfounded, is having to spend money on inventory every month, whether I need it or not, simply to keep an active status. No wonder there are complaints and an F rating by the Better Business Bureau. There are way better and less stressful ways to make money from home and affiliate marketing is a great opportunity to do that. 

  6. Myles says:

    Sounds to me like LuLaRoe management is the problem more so then the MLM business model. Unfortunately poor business management shows up in all manner and style of business and companies go broke. I would agree MLM can be difficult but it is a legitimate method of doing business when the people running the business are honest and legitimate. Several years ago I got myself in a bad situation with a network marketing/mlm company whose leaders and owners turned out to be very greedy. Myself and many others lost a lot of money when the company suddenly announced problems, shut down and the owners disappeared, never to answer calls from those they took the money from. So there are some bad ones and there are some good ones, just be as careful as possible. I like your suggestion to work at building an affiliate marketing business… that takes the whole threat of companies like LuLaRoe and MLM bad guys right out of the equation 🙂        

  7. Stella says:

    I tried this about five year ago and I can say I passed through a lot of stress before getting half of my investment back. Firstly, It wasn’t easy to get downlines as an introvert because it requires thorough networking.

    Another thing was that, exactly six month I joined was when they started getting bad reviews about them. I have to quit in order not to incure more loss. Recently a friend came to me about LuLaRoe, and the guy that wanted me to be one of his downline doesn’t have any idea about their scamming style until I told him.

    So sad, he got the awareness very late. But nobody told him before he later quit. If am to rate them, they will get zero star. This review would be helpful for those who has no idea about them.

    • Author - Kent Leung says:

      Hey Stella, sorry to hear about your failure with MLMs. I’ve noticed a trend here and it’s that with MLMs people either love it or hate it. Those who love it are usually those who just started and haven’t experienced the failure yet. 

  8. Chris says:

    To be honest, at first it really did sound like a solid enough marketing opportunity – especially if you have a strong interest in women’s clothing.

    But, as with most MLM setups – this system and business will catch you out on the price to get started. I can’t believe that this can cost up to $10,000 to get started! Who has that sort of money spare?

    Any chance you know of any free online business opportunities  instead?

    • Author - Kent Leung says:

      Hey Chris, you mean free MLM business opportunities? Most MLMs require some sort of start up costs whether it’s a starter kit or to invest in a product package, I don’t know any MLMs that are free to start. I do recommend you start a blogging business which IS free to start and is what I currently do myself to make money online. 

  9. JJ says:

    Very interesting. I know those schemes. I have been a member of 3 such schemes. First of all, that initial outlay is far too high for me. Even though there are some attractive looking commissions, the biggest challenge in this is the requirement of finding new customers. You might get good sales to your limited contacts but in order to maintain the business you will have to find new customers.

    • Author - Kent Leung says:

      Yeah LuLaRoe is a pretty expensive MLM to get into. Some MLMs like HempWorx only cost $39 to start, but the same challenges of needing to find new customers still remains.

      That’s the main problem with MLMs for most people, they can’t find enough customers. You’ll need to know how to market the products to a large audience, how are you going to find that large audience? If you don’t know then MLMs are probably not going to work for you.

  10. Louise says:

    Good to have some info on this company, from the sound of it even though it seems a good opportunity to sell ladies clothing I would definitely take your advice and not join LuLaRoe, given the legal problems and bad press, it is one to avoid. It is so difficult to find online systems of making money that are completely trustworthy. Have an article like yours helps to clear some of the unknown pitfalls. Thank you.

    • Author - Kent Leung says:

      hey Louise, I’m glad my review helped you. It is indeed difficult to find a good opportunity that’s trustworthy. Most of the money making programs you’ll find out there promises all sorts of things but never deliver.

      I highly recommend you see my Top Work At Home Recommendation because I can 100% vouch for it’s legitimacy. It’s basically a training platform that teaches people on how to build websites and make money from it. It’s the same platform I used to learn how to build the site you’re on now. 

  11. Abbas says:

    It seems like a typical pyramid scheme that will lose you a lot of money. The fact that you make most of your money from recruiting more people and not actually selling product is the first red flag. Also the fact that you need to purchase a minimum amount of stock every month is dangerous.  And finally $5000 for an investment, thats way too much, you are much better buying your own stock and selling on line.

    • Author - Kent Leung says:

      Yeah LuLaRoe is definitely one of the more expensive MLMs to get into, also not one with many success stories. If you go on YouTube and just type in LuLaRoe, you’ll mostly see people saying the same thing I’m saying…not to join them. 

  12. Dapoach says:

    It seems to be an expensive business to go into. Also the idea of having to first find an independent retailer then also have to wait till the retailer host his/her fashion party makes the whole stuff tedious.Though in my own opinion having a 35% – 50% commissions from direct retail sales is cool.

    I always thought pyramid scheme and MLM are the same, but after reading your post i have been educated. Guess what? i am also reading your post on “My Top Work At Home Recommendation” at the moment. I want to learn how you earn $1000 monthly (smiles)

    • Author - Kent Leung says:

      In my opinion MLMs might as well be treated as pyramid schemes because they’re so similar. Its just that MLMs have products for you to sell, kind of a legal loophole thing that allows them to be classified as a MLM and therefore technically a legit business. But in reality most people who are able to make the big bucks in MLMs do so by recruiting and not from direct sales. 

  13. Nuttanee says:

    Thank you for your extensive review on the LuLaRoe. I always have this love and hate relationship with MLM. I have seen many people who are very successful in it but I am just never one of those people. I find that if you enter in this MLM marketing you need to start when it was very new in order for you to be profitable in it. To be honest, I still see all my MLM friends still work very hard every day even though they are at a top tier. Anyways, I will share your post with my friends. 

    Cheers!

    • Author - Kent Leung says:

      Yeah I wouldn’t join MLMs regardless of whether they’re new or old, to be successful at it you’ll have to be constantly networking and finding people to pitch your sales to and try to recruit.

      Even if you have a massive number of recruits it still doesn’t guarantee you’ll do well because if your recruits suck at selling/recruiting then you won’t really benefit from that. Care to share how your friends are able to achieve top tier with their MLM companies?

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