Is LuLaRoe A Scam? $5K+ Capital Only To Lose Money?

Welcome to My LuLaRoe Review!

If you’re into fashion and making money, there’s a possibility that you’ve heard of this clothing brand that offers a business opportunity -- LuLaRoe.

It’s one of the oldest networking companies in the United States and women, especially moms, have been invited to become a distributor. Unfortunately, it has a negative stigma if you search for it online.

However, it’s too early to assume so before we jump into conclusion, let’s find out what LuLaRoe is about and if there's a chance that this legit company can help you make money online.

So sit back, relax, and this my honest LuLaRoe review.

P.S. If you’re in between interested and hesitant but you want to make money online, I suggest that you also check out our top-recommended program!

LuLaRose is a popular multi-level marketing company in the United States and it’s because of several reasons.

For one, it’s under one of the most in-demand niches -- fashion and two, it offers an opportunity to make money following a multi-level marketing (MLM) structure.

Based in California, USA, LuLaRoe was founded by a couple -- Deanne Brady and Mark Stidham in 2012. After four years, the brand has earned over $1 billion in revenue. For an MLM company, that’s a huge milestone and it definitely helped them acquire over 80,000 distributors (a.k.a. Independent Fashion Retailers) the following year.

But as they say, “what comes easy won’t last.”

In 2017, the brand has received several lawsuits and it made a massive impact on their business in a negative way. But before we discuss the complaints, let’s talk about the basics first -- their products and compensation plan.

LuLaRoe Product Line

LuLaRoe is an MLM company under the fashion niche, focusing on selling trendy clothes. They are known for their colorful, comfortable styles. The brand has a wide range of clothing selection, such as tops, leggings, bottoms, skirts, overlays, and dresses.

They mostly cater to women but they also have clothes for kids.

While the brand lets you shop on their website, you can only purchase these items by finding an Independent Retailer in your area. It might sound like a hassle because you have to “find” a retailer but when you check out an item, it has the usual process that most online shops have. You fill in a form with your details or simply pick up the items at the given address.

For retailers, this is an advantage because as long as they have the products that the customer is looking for in the area, their shops will be marketed.

LuLaRoe Product Review

As for the prices, LuLaRoe follows the typical pricing of networking companies. It’s more expensive compared to similar products online. 

What I noticed is that the pricing changes per retailer. For instance, a kid’s legging costs $12 for one consultant and $25 for the other. So if you want to find a cheaper option from the brand, you can try to look for specific retailers.

As with quality, LuLaRoe is known for providing soft and comfortable clothes; however, this is not always the case. There are more negative reviews than positive ones online and I’ll leave a screenshot below for you to judge:

How To Make Money With LuLaRoe?

As a multi-level marketing company, LuLaRoe has two main ways to make money online.

The first one is to sell their items as an Independent Fashion Retailer. After becoming a member and paying for certain charges, you have access to the company’s wholesale price and you can sell their products at a higher price so you can earn commissions.

Basically, the commission you get from your retail sales depends on the price you charge.

You can also make money by growing your team. This means inviting people to join the platform and if you have a problem with sending invitations and calling your friends and families, earning money might take time.

It’s a challenging opportunity and often, it poses more failures than wins.

As for the commissions from your team, you’ll earn 3% to 5% of your downline’s sales but this depends on several factors, such as the number of consultants you have, their inventory, and if you sponsor them or not. 

The compensation plan is complex and I don’t want to bore you with details but if you’re interested, you can watch the video below to learn more:

Despite all the allegations and lawsuits, LuLaRoe is a legit business model. MLMs are legit, to begin with. However, because of unethical practices, most networking companies, such as ACN Inc. and AmeriPlan has received negative feedback.

The same thing with LuLaRoe. It has a record with the Better Business Bureau, showing that the business is registered and real; however, it’s not accredited and it has a B- minus rating with over 100 complaints.

That alone is a red flag.

Here are more drawbacks to consider:

Alleged Pyramid Scheme

Recruiting people to earn commissions is a norm for MLM companies but if it’s become exaggerated; meaning, they put heavy attention on inviting people, that becomes a problem. 

In 2017, a class-action lawsuit was filed against the brand because of unethical practices and for being a pyramid scheme.

The same thing happened in 2019, LuLaRoe has received a lawsuit from Washington Attorney General Bob Ferguson for being an alleged pyramid scheme and for deceptive claims and as a result, their distributors have lost their money.

Unlikely Advises To Grow Inventory

In 2017, the brand was accused of its misleading advertisements and way of encouraging their distributors to grow their inventory. Apparently, the company advised them to take out their credit cards, borrow money, and even market their breast milk just so they can have the money to purchase more clothes to sell.

I’m not surprised though because I’ve experienced the same things in almost all the MLM companies I’ve attended. 

Mind you, I didn’t know that the opportunity was networking because they “disguise” themselves as other things. Anyway, I was asked to “borrow” my father’s laptop and sell it but pretend that I “lost it.” That MLM distributor from a certain company, which is a popular brand in the Philippines, by the way, said that I could gain more cash by joining the platform which I can use to buy another laptop for my father.

But anyway, this is one of the reasons why I don’t recommend MLM companies. They slap you with everything you want -- luxury cars, thousands of cash, travel incentives -- only to realize that these are nothing but false promises.

I’m not saying that you can never get this from MLM companies; what I’m saying is that it’s not that easy. Often, you have to pay a massive membership fee first, purchase items every month just to keep your account active and qualify for commissions, recruit (and annoy) people, and sell overpriced products.

No Refunds

In 2017, their retailers complained about not receiving the refund, as stated in their policy. Worst, the brand changed its return policy telling that their distributors will only receive 90% of the paid amount and shoulder the handling and shipping fees.

Other than the complaints above, there’s another drawback with LuLaRoe -- the membership fee.

To become an Independent Fashion Retailer, you have to purchase at least 335 clothes worth $5,134.75. It comes with 6 styles of assorted clothing and unlike other companies, you cannot choose the design or style you want.

That’s a lot of clothes and huge capital, to begin with, and even if you’re not a newbie, this is a serious concern.

also, as stated above, there’s a problem with the refund policy so if you’re planning to return their clothes, good luck with that.

Also, a minimum 33-piece of clothing is required so if you’re planning to add 10 or 15 more, you simply can’t.

I’m not a fan of MLM companies but I’ve reviewed more than a dozen networking opportunities in the past. I’ve seen terrible brands but honestly, there are network marketing companies I could recommend.

So if you’re planning to make money with MLM companies, I suggest that you check out other legit options from our site or you can just look for better alternatives.

Brands like LuLaRoe is one of the reasons why MLM companies have a negative stigma. While this kind of business model is complex and often requires huge capital to get started, it is legit. It’s also profitable as long as you have the skills and expertise in marketing and recruiting.

However, because of the unethical practices and misleading claims, it left a bad impression on many people, like me. 

Recruiting people is not the only option to earn cash; you can also sign up with our #1 recommended program and make money without annoying anyone (and destroying your reputation).

Join now and have access to the following:

• Training resources
• Webinars to help you start your business online
• One-on-one coaching
• Comprehensive guide
• And many more!

The best part about this is that you don’t have to worry about your inventory. You don't need to purchase a minimum number of clothes and reach out to your friends and families just to earn commissions.

Anyway, thank you for reading our LuLaRoe review and if you have questions or comments, please feel free to share it below.

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