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
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.
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.
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.
The 5 ranks you can achieve after you join this company goes as follow…
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.
Their compensation structure is a unilevel one, meaning that everyone you recruit into your team will be placed directly below you.
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.
Then trainers and above will earn 5% on the first level and 3% on each level after that.
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.
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.
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.
- 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.
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.
So if this sounds like something you may be interested in, why not check out my #1 recommended product online by clicking the banner below.
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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. 🙂