Is Lularoe A Scam

You’re probably here wondering is LuLaRoe a scam because someone has invited you to join their team claiming you can make a good income with this company.

Within my review today I will be discussing what this company sells, how much money you can potentially make, and whether I think it’s a legit opportunity to join or not.

So with that said, let’s jump into things here. 

Quick Summary Of Lularoe

Name: Lularoe

Website: lularoe.com

Price: $499

Rating: 2 out of 5

What Is Lularoe?

LuLaRoe is an MLM company that sells mainly women’s clothing in all sorts of weird designs and colors. However you’ll also find that they sell men and children’s clothing as well.

The company started back in 2013 by a lady named DeAnne Stidham who said her goal was to help women build a successful and profitable business online.

Now after doing some research into this company, I can say that this company has not had the best track record ( as you’ll find out in a minute ) — but recently it seems that they have been trying to do better. 

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What Does Lularoe Sell?

The main product LuLaRoe sells is Women’s bottoms and comfortable leggings that look good. But as I mentioned earlier, they have also added other things such as skirts, shirts, dresses, and other items into their inventory.

Is Lularoe A Scam - it sells leggings

The patterns and designs of their clothing are always changing and sometimes will never be made again — so both as a customer and seller of LuLaRoe you never know what you’ll be getting for your money.

Also as I was looking on their website, I could not find a single price to any other products. However after doing some research, I found out that they are on average $20 – $60 bucks.

Lularoe Compensation Plan 

LuLaRoe’s compensation plan is pretty similar to the average MLM company, as to where you can earn either by selling the products yourself or building a team and earning a percentage of what they make.

Now while this part can get a little confusing and boring to read through, I’ll simplify it so that you get the basic idea of how it all works. 

Affiliate Ranks

The 5 ranks you can achieve after you join this company goes as follow…

  1. Affiliate
  2. Sponsor
  3. Trainer
  4. Coach
  5. Mentor

Retail Commissions

The amount you’ll make for each item you sell will be between 35% – 60%.

The main way that LuLaRoe teaches you to go about selling these items is by hosting open parties and inviting all your friends and family members to join.

And on average most people will sell 20 items and earn around $15 bucks for each item sold.

Residual Commissions

Their compensation structure is a unilevel one, meaning that everyone you recruit into your team will be placed directly below you.

Is Lularoe A Scam - Unilevel compensation structure

And as with all MLM companies, this is where you can potentially make the big bucks — because you’ll be earning a percentage of everyone’s earnings who are underneath you.

Now as far as LuLaRoe goes, sponsors will earn only 5% on their first level.

Is Lularoe A Scam - sponsor's earnings

Then trainers and above will earn 5% on the first level and 3% on each level after that.

Is Lularoe A Scam - trainer and above earnings

And to get to a trainer level or higher, you’ll have to recruit a certain number of people into your team and also sell so many items per month in order to make money. 

Bonuses

Again as almost all MLM companies go if you do extremely well in selling items and building a team you can get all sorts of bonuses — and LuLaRoe here is no different.

For example if a new affiliate is able to sell 175 products within 3 months, they will in return get more products sent to them for free to sell plus everyone that is above them will receive a $500 cash bonus.

Now if you’d like to view the whole compensation plan for yourself, then you can click the link here. 

How Much Does It Cost?

A few years back to join LuLaRoe you would have had to pay $5 – $7k to join this company — which in the MLM world is quite common to have to spend.  

However over the past few months the price has dropped dramatically and you now only have to pay $499 to become an affiliate.

I don’t know if they did this because enough people couldn’t afford it, or if a lot of people were complaining about this steep price — but whatever the reason it’s nice to see that you don’t have to break your bank to join now if you want too.

What I Like About It

  • They have a 6-month warranty

Basically this means that if any of your products have any kind of problems with them in the first 6 months, you can return them for your money back. 

Now how fast they go about doing this I am not entirely sure, but it’s good that they have this option for their members.  

  • The cost to join their company has dropped dramatically

As I just mentioned earlier, going from $7,000 to $500 dollars basically saves someone $6,500 dollars!

Now I’m sure the people in the past who had to pay this amount aren’t too happy, but then again I doubt they were building that big of a team with such a steep price.

  • They have what is called the happiness policy

So basically if you buy a product with them and aren’t happy with it for any reason, you can get a full refund within 30 days after buying it. 

What I Don’t Like About It

  • Many people complained that their products are overpriced and tear easily

After looking at several people’s reviews about this company, they all had one thing in common that they didn’t like about it — which was the clothes from LuLaRoe easily ripped or already had holes in them.

Is Lularoe A Scam - the products have very poor quality

So naturally many people didn’t like the fact that they had to pay thousands of dollars for clothes that are impossible to sell.

  • You don’t get to pick what type of clothes you want to sell

Another problem with this company is you have zero control as to what you’ll be selling to your customers. This goes from the type of product your buying, all the way to how they are designed.

And many people said they had to either go bankrupt or lose all the money they invested into these clothes they just bought, simply because no one wanted the weird patterns they had at the time.

Is Lularoe A Scam - had to file bankruptcy

  • You won’t make a full-time income with this company 

According to their 2016 income disclosure, the average affiliate on LuLaRoe was making about $2,000 a year!

And on top of that, 99% of people who joined the company could never get past the sponsor rank.

Is Lularoe A Scam - income disclosure

So basically they are saying people who have joined this opportunity are making about $200 dollars a month — which in most countries is far below what is minimum wage. 

Is Lularoe A Scam?

LuLaRoe is definitely not a scam because you are able to sell real physical products to people in exchange for money — which unlike a pyramid scheme the only way you make money is by building a large team. 

However with that said, the tremendous amount of complaints I read where people said their clothes easily ripped and not to mention that about 1% who are apart of the company are making any kind of real money — makes me say that I would not recommend you join this opportunity.

My Final Thoughts

While LuLaRoe is not a scam and it is possible that you can make money with this company, I would advise you not to join it.

For one the main way they teach you how to market your products is to throw parties, and that means you have to invite people close to you. But what happens after you go through everyone you know?

Secondly with thousands of people complaining about how poorly made their products are and the fact that you can’t even pick out what you want to sell in the first place — makes it nothing but an uphill battle from the very start.

However if you are still interested in learning how to make money online, why not try affiliate marketing instead?

Unlike MLM’s, this is where you can build websites and sell whatever products you want.  

And best of all is you’ll have thousands of people coming to your site WANTING to buy things rather than you having to chase people down or throw dumb parties to force people to buy something that they probably don’t want. 

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Well that’s it for my review.

I hope you found this helpful, and now have a better grasp as to what LuLaRoe sells and whether or not you still want to become a member of their company.

However if you have any other questions or concerns you’d like to ask me, click the link below and I’ll be happy to help you out. 🙂

Lularoe

$499
2

Overall Rating

2.0/5

Pros

  • The cost to join their company has dropped dramatically
  • They have what is called the happiness policy

Cons

  • Many people complained that their products are overpriced and tear easily
  • You don’t get to pick what type of clothes you want to sell
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6 thoughts on “Is Lularoe A Scam”

  1. Boy did LuLaRoe get a lot of bad publicity when they really started getting big. I have seen a few documentary pieces on the sellers who had to agree to policies (and purchases) that they knew didn’t benefit them in order to get in / stay in with the company. In the end it appears that a lot of the sellers lost a lot of money when they were stuck with inventory that the parent company would not buyback.

    Thanks for sharing. This seems like a bad investment choice and it’s best for people to fully understand what they might be getting into.

    Reply
    • I do find it kind of odd people would want to join a company where they have no control as to what they will be selling to their future customers.

      I mean how are you supposed to market this kind of company to people? 

      You would have to say something like, ” Feel free to come to my parties whenever you want because you never what you’ll find — but I’m sure you’re going to love whatever it is.”

      Personally, if I’m trying to build a business I want to be sure I’m providing a product or service that I KNOW my customers will want / love — and not just hope that I may get something they might find fascinating.

      I think this is the biggest downfall about Lularoe here and is something I feel they should change if they want to stay in business. 

      Reply
  2. Trying to succeed in marketing a product that does not have good quality can be devastating, not to mention it’s not fair that people would have to return most of their items due to all the complaints.

    They really need to upgrade the material they use for their clothes if they want to continue to stay in business.  

    Reply
    • Exactly my thoughts. 

      I think it’s unfair both to the seller and customers that Lularoe here is producing such low-quality clothing that they almost seem to tear apart after being worn one time.

      So hopefully they will change this quickly ( as they did with their cost of joining ) — that way people who sell their clothes can make more money and the people receiving the clothes can actually wear them without them falling apart. 

      Reply
  3. Hi Michael,

    You are a scam artist 🙂 You did not contact anyone who works at this company to know how the business works, you are in an MLM business which you promote as the best cause you make money from it!

    Reply
    • Thanks for sharing your thoughts with me Simon.

      First off I would like to state that I do not need to contact anyone who works at this company to know how it works because they clearly explain how you’ll be making money / promoting their business within their website.

      But with that said, I have had several friends call me and make me sit through over an hour plus call in an attempt to get me to join an MLM business they were apart of.

      Funny thing though is whenever I ask these same people how they are doing with their business later on — they will say they quit either to not making any money, that it cost too much, or a combination of them both.

      Now to answer the second part of your question I am not promoting another MLM business. Never have, never will.

      Rather I’m telling people about a platform that shows you how to create a website about any topic you want, promote any product you want, and simply make money by helping people solve a particular problem they are dealing with.

      This is nothing like an MLM business where you are forced to sell a particular product and where you make most if not all your income recruiting people into a pyramid shape team.

      I hope this helped clarify any misinformation you may have had about me — if not please feel free to contact me again and I’ll be happy to talk with you and share my thoughts and opinions with you. 🙂

      Reply

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