Welcome to our review of LuLaRoe. As always feel free to leave a comment below.
The MLM leggings company marred by a pileup of lawsuits
LuLaRoe – best known as the MLM leggings company – has an incredible collection of quality, comfortable and fashionable women’s clothes.
But how likely are you to make some decent cash by joining the LuLaRoe MLM scheme?
Product Name: LuLaRoe
Price: $5,000+
Founders: Mark and DeAnne Stidham
Product type: MLM (women’s apparel)
Overall Ranking: 2 / 10
About LuLaRoe
When LuLaRoe entered the market in 2013 it was an instant success.
Founded in California by husband-and-wife team Deanne Brady and Mark Stidham and is based in Corona, California.
The couple had one mission – to provide independent fashion retailers with the means to live out their dreams of making a living through selling their clothing lines.
With the aim of strengthening communities and empowering women, LuLaRoe soon became the fastest growing apparel manufacturer in the United States with over 80,000 representatives selling clothes. In 2017, the company amassed $1 billion in sales.
Since then, however, the LuLaRoe MLM scheme was accused of being – in reality – a pyramid scheme.
The negative press and numerous complaints from MLM members who felt deceived by the company’s money-making promises culminated in a 2017 lawsuit filed by the state of Washington.
In 2021, LuLaRoe paid $4.75 million to settle the lawsuit.
https://en.wikipedia.org/wiki/LuLaRoe#Legal_issues
In response to the legal actions, the company has had to make some serious changes, i.e., being more transparent about how much money you can actually make.
Important changes were also made to their refund policy, to further protect new retailers from incurring losses.
Today, you’ll even find LuLaRoe’s Income Disclosure Statement on almost every page of their website.
Surprisingly, this is not the end of it – more lawsuits from former consultants and customers are still pending.
If you can look past the negative press and are thinking of joining LuLaRoe’s MLM scheme, below are some important facts which we like to look at in each of our MLM reviews.
Are LuLaRoe clothes worth the price?
LuLaRoe has different clothing lines:
- Women
- Men
- Children
- Limited edition
However, they focus on women’s clothes with leggings being their trademark item. These come in different styles and patterns. Their leggings are popular because they’re versatile and suitable for the gym, yoga classes, night outs, etc.
You’re free to browse their full clothes collection online, but to buy anything, you need to go through a LuLaRoe Fashion Consultant in your area.
You can find the retailer closer to you using LuLaRoe’s website here.
Their website doesn’t have a price list, but it’s estimated that each item costs around $35 – give or take. If you’re looking for comfort and style, then their clothes seem worth the price.
How to become a LuLaRoe Fashion Consultant
There are a few steps you need to follow to become a LuLaRoe Fashion Consultant
- Find a sponsor. This person will act as your mentor and show you how to set up your LuLaRoe business. You can find a sponsor in your area on the company’s website.
- Become a Fashion Consultant and order your starter kit.
How much does it cost to sign up as a LuLaRoe Fashion Consultant?
Joining LuLaRoe is not cheap – at all.
If the numbers circulating on the internet are correct, you have to pay a hefty sum of $5,000 to get your hands on their stock. The price can go up to $9,000!
But that’s not all, there are extra costs that you need to cover before you can start your MLM leggings company business, such as business cards, hangers, building a website, etc.
LuLaRoe compensation plan
With such a big investment, you’d think that there would be a high-profit margin.
Not quite. There is a catch.
When you become a LuLaRoe Fashion Consultant, you’re highly encouraged to recruit other members (rather than selling the actual clothes).
Fashion Consultants then receive bonuses from their downline. New recruits are pushed to place large orders so that the upline benefits from it.
You can see where all the pyramid scheme talks come in.
You can read LuLaRoe’s compensation plan here.
The Pros of LuLaRoe MLM scheme
I like to think that after the 2021 lawsuit payout, LuLaRoe has now got their act together and are more transparent with their MLM programme so anybody interested in selling LuLaRoe clothes knows the risks involved.
If anything, at least there are some happy buyers who love their products.
The Cons of LuLaRoe MLM scheme
LuLaRoe MLM scheme has so many cons that it’s easier If I list them:
- The company still has many lawsuits pending.
- The upfront costs to become a Fashion Consultant are atrocious.
- You can’t choose your stock, meaning that you can’t select what clothes you’ll get – not even the size.
- They have a BBB ( Better Business Bureau ), rating of B.
- The fashion market is ultra-saturated and very competitive, making it hard to find any buyers for LuLaRoe’s clothes.
Conclusion
Unfortunately, the company has a negative public image which would make anybody skeptical about joining this leggings MLM company.
Like most MLMs, making it big is far from typical. Truth be told, there’s always a risk involved when signing up with an MLM. With the LuLaRoe MLM scheme, you’re also likely to lose money.
However, when it comes to side hustles, I believe it should be something you enjoy doing. So if you’re passionate about fashion and clothes, then LuLaRoe could be for you.
Just promise me to ask yourself this question before joining LuLaRoe MLM scheme – is this the company you want to invest in to launch your business?
Rating: 2/10
Thanks for bringing us this very interesting review of LuLaRoe.
What I can’t understand is why if they have such a great product, why do they need an MLM scheme. Why are they not just selling directly from their own website. And if they want others to sell their products for them, why is it not through an affiliate program. I just think there is always something dodgy at the bottom of all MLM schemes.
I certainly wouldn’t be giving someone $5000 to sell their products for them.
hello there…
Thank you for sharing this amazing post about Lularoe MLM scheme. I have heard about lularoe programe once and how it works. My friend was trying so hard to drag me into it, but you know with online schemes, you cant just bump into the any other program without research. I am glad this article has given me all the information i needed.
Thank you.