LuLaRoe MLM Review: Can You Make Money Selling Clothing?
LuLaRoe is a multi-level marketing company that sells women’s clothing. It has been in business since 2012 and has become popular, especially among stay-at-home moms. LuLaRoe is different from other MLMs in that it doesn’t have any products of its own. Instead, it contracts with manufacturers to produce clothing, which it then sells through a network of distributors. So, is LuLaRoe a pyramid scheme or a scam? Our LuLaRose MLM review takes a look at what LuLaRoe is, how it works, the pros and cons, and whether or not you should join.
History of LuLaRoe
LuLaRoe was founded in 2012 by Deanne Brady and her husband, Mark Stidham. The couple started LuLaRoe after they had success with another MLM, Amway. LuLaRoe is named after their three daughters: Lola, Lucy, and Monroe.
Brady and Stidham launched LuLaRoe with the goal of helping people stay home with their families. The company’s initial products were leggings, which quickly became popular. LuLaRoe has since expanded its product line to include dresses, skirts, shirts, and more.
The company is based in Corona, California, and its products are made in the United States. LuLaRoe has become one of the fastest-growing MLMs, with over 75,000 distributors as of 2016.
LuLaRoe products
LuLaRoe sells a variety of women’s clothing, including leggings, skirts, dresses, shirts, and more. The company contracts with manufacturers to produce its clothing. LuLaRoe does not own any factories itself.
- Leggings: LuLaRoe’s leggings are made from a blend of polyester, spandex, and nylon. They come in a variety of colors and patterns, and they’re known for being comfortable and affordable. LuLaRoe leggings cost between $25 and $35.
- Skirts: LuLaRoe skirts are also made from a blend of polyester, spandex, and nylon. They come in a variety of styles, including maxi skirts, pencil skirts, and A-line skirts. LuLaRoe skirts cost between $35 and $45.
- Dresses: LuLaRoe dresses are made from a variety of materials, including cotton, polyester, and spandex. They come in a variety of styles, including maxi dresses, wrap dresses, and sheath dresses. LuLaRoe dresses typically cost between $50 and $60.
- Shirts: LuLaRoe shirts are made from a variety of materials, including cotton, polyester, and spandex. They come in a variety of styles, including T-shirts, button-down shirts, and tunics. LuLaRoe shirts typically cost between $30 and $40.
In addition to clothing, LuLaRoe also sells a few other items, including jewelry and bags.
LuLaRoe’s clothing is known for its comfort and style. The company’s leggings, in particular, have become popular. LuLaRoe leggings are often worn as everyday clothing, not just as workout gear.
How LuLaRoe works
LuLaRoe is a multi-level marketing company that sells clothing through a network of distributors. LuLaRoe does not have any brick-and-mortar stores. Instead, its products are sold through home parties and online.
To become a LuLaRoe distributor, you must purchase a starter kit for $99. This kit includes clothing samples, marketing materials, and other business supplies. LuLaRoe distributors earn money by selling LuLaRoe products and recruiting other people to become distributors. LuLaRoe does not require its distributors to maintain a minimum inventory, but it does encourage them to do so.
LuLaRoe’s compensation plan has four levels:
- Consultant: You earn a 20% commission on sales.
- Trainer: You earn a 25% commission on sales and an additional $0.02 per point on team volume.
- Director: You earn a 30% commission on sales and an additional $0.03 per point on team volume.
- Executive: You earn a 35% commission on sales and an additional $0.04 per point on team volume.
To qualify for the higher levels, you must meet certain sales and recruitment requirements. For example, to become a trainer, you must have at least three people in your downline who are also trainers. LuLaRoe also offers bonuses and incentives, such as car bonuses and trips.
To join LuLaRoe, you must purchase a starter kit for $99. This kit includes clothing samples, marketing materials, and other business supplies. LuLaRoe does not require its distributors to maintain a minimum inventory, but it does encourage them to do so.
Is LuLaRoe a pyramid scheme?
No, LuLaRoe is not a pyramid scheme. LuLaRoe is a legitimate multi-level marketing company that sells clothing through a network of distributors. LuLaRoe distributors earn money by selling LuLaRoe products and recruiting other people to become distributors. LuLaRoe does not require its distributors to maintain a minimum inventory, but it does encourage them to do so.
LuLaRoe does have some elements of a pyramid scheme (such as its hierarchical structure and its emphasis on recruitment), but it is not a pyramid scheme. A pyramid scheme is a fraudulent investment scheme in which people are recruited to make investments and then recruit other people to do the same. The only way to make money in a pyramid scheme is by recruiting new investors. Pyramid schemes are illegal in the United States.
LuLaRoe complaints and lawsuits
LuLaRoe has been the subject of several complaints and lawsuits. The most common complaints against LuLaRoe are that it is a pyramid scheme, that its leggings rip easily, and that it uses unethical marketing practices. LuLaRoe has denied all of these claims.
LuLaRoe has also been accused of being a cult. LuLaRoe distributors have been known to pressure people into joining the company and buying its products. LuLaRoe has denied these claims, saying that it is not a cult and that its distributors are not required to purchase its products.
What we like about LuLaRoe
There are a few things we like about LuLaRoe:
- LuLaRoe’s clothing is known for its comfort and style. The company’s leggings, in particular, have become popular. LuLaRoe leggings are often worn as everyday clothing, not just as workout gear.
- LuLaRoe does not require its distributors to maintain a minimum inventory, which makes it easier to start selling its products.
- LuLaRoe offers bonuses and incentives, such as car bonuses and trips, to its distributors.
What we don’t like about LuLaRoe
There are a few things we don’t like about LuLaRoe:
- LuLaRoe’s hierarchical structure makes it difficult to advance in the company. For example, to become a trainer, you must have at least three people in your downline who are also trainers.
- LuLaRoe’s emphasis on recruitment can make it feel like a pyramid scheme. LuLaRoe distributors earn money by selling LuLaRoe products and recruiting other people to become distributors.
- LuLaRoe has been the subject of several complaints and lawsuits. The most common complaints against LuLaRoe are that it is a pyramid scheme, that its leggings rip easily, and that it uses unethical marketing practices. LuLaRoe has denied all of these claims.
Are there alternatives to LuLaRoe?
There are alternatives to LuLaRoe. A few other companies that sell clothing through a network of distributors include Stella & Dot, Origami Owl, and Thirty-One Gifts.
- Stella & Dot is a company that sells jewelry, clothing, and accessories through a network of independent stylists.
- Origami Owl is a company that sells customizable jewelry through a network of independent designers.
- Thirty-One Gifts is a company that sells purses, totes, and other accessories through a network of independent consultants.
Each of these companies has a different compensation plan, so you will need to compare them to see which one is right for you.
Do we recommend LuLaRoe?
LuLaRoe is a legitimate company that sells comfortable and stylish clothing. However, we do not recommend LuLaRoe because of its hierarchical structure, its emphasis on recruitment, and the complaints and lawsuits against the company. If you are interested in selling clothing through a network of distributors, we recommend that you consider one of the alternatives to LuLaRoe.
Do your research
There are plenty of MLM money-making opportunities. Be sure to do your research on any company before you decide to join it.
Here’s what to look for in an MLM:
- A product that you believe in
- A compensation plan that is fair and achievable
- A company with a good reputation
- A company that is transparent about its business practices
Take your time in choosing an MLM. Be sure to read reviews, ask questions, and get as much information as you can before you make a decision. Your No. 1 source of information is I Buy I Review. We review MLMs, online courses and programs, and other money-making opportunities so you can make an informed decision.
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