You are doing research on LuLaRoe because someone approached you about it and you want to know if this company is legit or a scam. That’s what we’re about to find out.
If you have been here before, welcome back!
Thank you for taking the time to check out my LuLaRoe review!
One of the common questions I get asked often is if LuLaRoe a scam or not.
We’re going to take the next few minutes to take a look and get some answers.
The main concern I have for people who are researching this opportunity is that I don’t want them to get burned. In the profession of network marketing, anything could happen.
A company ends up shutting down in a few months due to bad business decisions for being non-compliant, compensation plan change, or the company not paying it’s distributors.
Even worst, your direct sponsor or upline leaves the company. Leaving you hanging to dry.
I understand that many of you are new. Sometimes we are not in a position to make a solid business assessment due to inexperience.
Additionally, I am going to offer you a way for you to escape the ‘9 to 5’ if you decide that this company is not for you.
You landed on this blog because you are thinking about joining LuLaRoe because someone approached you about it or you just want to try out their products.
Unlike all the other LuLaRoe reviews on the internet, this is completely third party unbiased. I have no relationship with this company what so ever so when you read this blog post all the way through and pay attention, I can assure you that I am not going to ask you to join or buy.
By the time you have read this unbiased review, you will be able to decide if LuLaRoe is a fit or not. I do not promote, nor I am affiliated with LuLaRoe. I stand neutral in the current development of the LuLaRoe business.
With that said, let’s dive in!
What is LuLaRoe?
LuLaRoe is an MLM company that specializes in fashion sales. They sell clothing for men, women, and children. The company promotes the empowerment of women, appealing to mothers to sell their clothing line.
The company was founded in 2012 by Deanne Brady and Mark Stidham.
The company’s headquarters is located in Corona, California.
She always had long dreamed of one day creating her own clothing line. This has led to her success with LuLaRoe. She started LuLaRoe with the help of her husband, Mark.
Over the five years, the Company has grown significantly and it deals in the fashion niche with core focus is on clothing.
What the LuLaRoe sell?
Here is a breakdown of some of the clothing and products that LuLaRoe offers.
It has been reported by customers that the leggings (stretchy pants) are very versatile.
Customers say they have worn the legging comfortably to the gym, to a casual nightclub, to yoga class, and even for everyday go to do errands type activities.
The legging line consists of:
- Jordan Leggings
- Kids Leggings
- Jade Leggings
LuLaRoe also offers dresses in their clothing line.
They have a few styles of dresses that offer several patterns, they include:
- LulaRoe Amelia Dress
- LulaRoe Ana Dress
- Nicole Dress
- Carly Dress
- Julia Dress
LuLaRoe also offers a wide variety of skirts as well with the most popular style being the maxi skirt.
The styles that LuLaRoe offers are:
- Maxi Skirt
- Lucy Skirt
- Jill Skirt
- Cassie Skirt
- Lola Skirt
- Azure Skirt
- Madison Skirt
The LuLaRoe compensation plan
LuLaRoe’s compensation plan pays commissions based on your ranks.
LuLaRoe Affiliate Ranks
There are 5 ranks within the LuLaRoe compensation plan.
Affiliate – Join as a LuLaRoe Independent Fashion Retailer
To become a sponsor, you must complete at least
- 10 pop-up boutiques
- Produce at least $10,000 in retail sales volume and
- Recruit at least one “Fashion Retailer.”
To receive a commission as a sponsor, you must be qualified for each month. The monthly requirements are:
- Personal Retail Sales totaling 65 Pieces
- At least $1,950 in Retail Sales for the month
- The average price of at least $30 per piece sold
You will be qualified to make a 5% override bonus on the Wholesale Value of the Sales of your Personally Sponsored Affiliates or Independent Fashion Retailer(s).
All of your sales and bonuses will be calculated per calendar month.
To become a Trainer, you must;
- Personally, recruit at least three Fashion Consultants and
- have a total downline of at least ten people
To receive a commission as a Trainer, you must be qualified for each month. The monthly requirements are:
- Sell at least $3750 in retail sales (minimum 125 pieces of clothing)
- Generate $19,500 in group retail sales (minimum 650 pieces of clothing)
- The average sales price of at least $30 in Retail Sales
Once you become a Trainer, you will begin joining the Leadership Pool.
`You will qualify to earn a 5% bonus on the wholesale value of the Retail Sales of your Fashion Retailers personally sponsored by you.
For other members, you’ll receive a 3% bonus on the wholesale value of their Retail Sales.
To become a Coach, you must have;
- A total of 10 people in your team
- At least 3 Fashion Consultants personally recruited by you
- At least three Trainers
To receive a commission as a Coach, you must be qualified for each month. The monthly requirements are:
- Sell at least $4500 to retail customers (minimum 150 pieces of clothing)
- Generate $25,500 in group retail sales (minimum 850 pieces of clothing)
- The average sales price of at least $30 in Retail Sales
In addition to the leadership bonus you receive as a Trainer, you will also be qualified to get 1% of the Wholesale Value of any Second Tier Leader’s Group Retail Sales.
You will also be qualified for additional points in the Leadership Pool.
Being a Coach, you get 2 points in the Leadership Pool for yourself, with an extra one point for each First Level Leader and two points for each Second Level Leader on your Team.
To become a Mentor, you must have;
- A minimum Leadership Lines with Coaches or above, and
- Three additional Leadership Lines.
To receive a commission as a Mentor, you must be qualified for each month. The monthly requirements are:
- Maintain Coach volume requirements and recruit and
- Maintain at least 3 Trainers and at least 3, Coaches
Other than Coach Bonus, you will be qualified to earn 1% of the wholesale value of any third Level Leader’s Group Retail Sales.
Fast Start Bonus
If new LuLaRoe Fashion Consultants sell 175 pieces of clothing having a minimum retail value of $5250 within their first three months
- they get a free 50 piece order of clothing and
- their up-line gets a $500 cash bonus
Cruise Fast Start Bonus
LuLaRoe appears to run cruises a few times a year for their Fashion Consultants.
To be eligible for the cruise, an affiliate must “cruise qualify.” For some reason, cruise qualification standards are not given in the LuLaRoe compensation plan.
Nevertheless, the Cruise Fast Start Bonus is attained if an affiliate “cruise qualifies” each of their 1st consecutive six months with the company.
- the qualifying affiliate gets a $2000 cash bonus when they attend the cruise and
- their up-line gets a $1000 cash bonus
For further explanation of LuLaRoe’s compensation plan, please see the video below explained by LuLaRoe’s Consultants:
How to join LuLaRoe
Unlike other MLMs, there’s no signup fees or any Starter Kit you need to purchase in order to become their “Fashion Consultant”, the term they use to describe their distributors.
What you need to do to get started is to submit an application form which can be found in their Business Overview document here.
One downside is that after you’ve submitted your application, you’ll have to wait between 6 to 10 weeks before you are approved as a Fashion Consultant, which is extremely long!
Although there’s no signup fee, in order for you to start selling and making money, you need to purchase your own stock or inventory.
That’s where expensive costs come in…
A survey of 215 current and former LuLaRoe Consultants has shown that the typical initial investment for this business ranges between $2,000 – $9,000!
Yea, you heard that right!
You have to place an initial order of around 275 to 300 clothing pieces (including leggings, skirts, dresses, tops, etc.) so that you have the inventory to sell.
And the price for this initial order ranges from $5,000 all the way up to $10,000 depending on the items you choose. (That’s why average around $7,000 to start)
By the way, you can’t choose the designs!
That’s just the initial inventory package…
Don’t forget there are still different monthly order requirements to meet depending on your rank.
- As a Consultant (the lowest starting rank), you need to order a minimum of 33 pieces per month to stay active and qualify for commission.
- If you’re at the rank of “Sponsor”, a minimum order of 175 pieces per month is required.
- As a “Trainer”, a minimum order of 1,750 pieces from your entire downline team is required (This means you have to recruit people and make them purchase as much inventory as possible)
Your sponsor will probably tell you “buy more, sell more” because they want to make money as well.
But that’s the exact reason why a lot of Consultants are simply getting themselves further into debt, instead of actually making profits.
What are the pros and cons of LuLaRoe?
Here are the pros:
- “Happiness Policy” – 6 months warranty period for its products
Here are the cons:
- Only available in the USA
- Very expensive start-up costs
- Carry inventory that could take up space in your home
- Too many lawsuits
- Limited earning potential
My Final Thoughts
Before you decide to join LuLaRoe. I would recommend that you try out the products first. See if it’s a fit for what you’re looking for.
If you don’t believe in the products that you are selling, chances are others wouldn’t. Makes sense, right?
If you’ve decided that you want to join LuLaRoe, you must have the following if you want to succeed:
- A support team and system that will help build your business.
- A mentor that will take you by the hand and help you reach your dreams and goals.
- A constant flow of new leads and prospects that want to join your business.
It is not easy to be successful in the LuLaRoe business and which is why more than 95% fail.
If you feel the person you are going to sign up with is not going to be able to give you the necessary tools to help you succeed…
You might want to check this out by clicking here! 😊
LuLaRoe Is Not A Fit For You?
Now, if you feel that LuLaRoe isn’t for you. But determined to find a home-based business so that you can create a legacy for you and your family.
I would suggest that you check out my number #1 recommended program.
This program is the reason why so many people are having success with a ‘work from home business’.
Last but not least (drum roll please)…
I would love to hear from you if you are looking to join LuLaRoe or if you were an affiliate.
Please share your experiences by leaving your feedback below.
The feedback will help out those who are doing research on the company.