Sometimes, people want to wear something unique, edgy, and geared towards comfort. And that’s exactly what companies like LuLaRoe claim to sell. Maybe you’ve tried out their leggings and thought you’d be able to sell them yourself for a little extra cash!
But is selling LuLaRoe really worth it?
Well, on one hand, LuLaRoe has a long list of legal problems and controversies they’re struggling to sort out, plus not many consultants have made much money selling for them. On the other hand, some people love the products and make a living selling these. So ultimately, it’s a personal choice.
Let’s take a closer look into where the company came from, what they sell, how they got to this point, and what other companies you might want to consider joining first!
LuLaRoe is a multi-level marketing company that was founded in 2012 by couple DeAnne Brady and Mark Stidham.
LuLaRoe got its name by combining portions of the names of the owners’ first three granddaughters: Lucy, Lola, and Monroe.
Their mission is based on helping people improve their families and their lives through fashion. The way they claim fashion helps people in any way is that it “instills confidence” by using quality products “with you, the customer, in mind.”
Like all other multi-level marketing companies, LuLaRoe is made up of “social selling entrepreneurs” that have the freedom to run their own business and be their own boss.
LuLaRoe also claims to be committed to philanthropy, having donated over $7 million to “various organizations.” However, one of those organizations is not the National Down Syndrome Society.
The NDSS actually ended their acceptance of funds from LuLaRoe when a LuLaRoe consultant was caught on video mocking a disabled person.
While the person did apologize and LuLaRoe did say that the person’s actions did not represent the company’s overall beliefs, LuLaRoe refused to terminate the person’s contract. And, as such, the NDSS decided not to continue any type of partnership with them.
But, LuLaRoe has had lots of newsworthy controversy over the years, and we’ll talk more about that later. But first, let’s learn more about what they sell and how you can join them.
What Do They Sell
LuLaRoe sells mainly women’s apparel, such as:
Out of those, though, they’re most famous for their ultra-soft, funky leggings. And while they do focus primarily on women, they also offer a few items for men, too.
As for the quality of their products, some people say that the leggings in particular are quite soft, but that the process used for softening the material actually makes them weaker, and thus poorer quality.
There’s actually a popular problem that many customers have reported, and that is their leggings tend to get holes in them incredibly quickly. Like, sometimes after one wash, quickly.
Some people like the fact that their clothes are “modest.” To be fair, their clothes are more conservative than the current modern trends, but I still wouldn’t go as far as calling skin-tight leggings “modest.”
How To Become a Consultant
If you want to get started with LuLaRoe, there’s an easy three-step process to help you out. This entails:
- Signing up
- Purchasing inventory
- Going through on boarding
The first step in becoming a LuLaRoe consultant is to sign up. With LuLaRoe, as with most other MLM companies, you have to get signed up under a Sponsor. A sponsor is someone who is already selling and will help walk you through the process.
You can either have LuLaRoe pick your sponsor for you or, if you already know one and want to work with them specifically, you can enter in their Sponsor ID to get started working with them.
The next step in the process is to purchase your inventory. There’s a lot of conflicting information on different websites as to how much it costs, but according to the “Join LuLaRoe” page on their own website, the initial inventory cost is $499.
That will get you some starter products – 65 pieces to get you started and enable you to show off and sell.
When you’re ready to move on to the on boarding, you can wait a total of eight weeks before even beginning that step (you can read more about that here). While you’re waiting, you could focus on getting your business ready to go and getting some plans together.
When you start onboarding, your Sponsor will walk you through all the ins and outs of how they are being successful and what to do to earn a lot selling LuLaRoe products.
To sell LuLaRoe, you do the same thing you would with any other MLM company. You can host home parties or virtual parties. During these parties you would show off the products and try to convince people to buy them.
Home parties generally have better results than their virtual counterparts because the potential customers can actually be there to look at the products in person, thus having a higher chance of turning into purchasing customers.
Why Is LuLaRoe So Controversial?
Maybe you like their leggings – they are soft (at first) – but most people want to work for a company that has good morals. And unfortunately, given LuLaRoe’s track record, I wonder if that’s the company you’d be getting involved in if you joined them.
Let’s look at some of the red flags about the company before you jump into any decisions you might regret later.
To put it in an understated fashion, LuLaRoe and, more particularly, it’s founders, are/have been involved in a lot of lawsuits. They far out do companies like Herbalife in terms of legal issues.
One lawsuit was filed in Great Falls, Montana, by an ex-LuLaRoe consultant for illegal sales tax collection.
During the time period of (at least) April 2016 to May 2017, LuLaRoe was charging customers in Montana a sales tax. This is a problem because Montana doesn’t have a sales tax.
LuLaRoe has also been at the heart of some disturbing controversy. In 2017, two lawsuits filed against the company claimed LuLaRoe “encouraged its sellers to borrow cash and even sell breast milk to purchase clothing,” the very products that the consultants involved were unable to sell.
One of the biggest lawsuits, however, is the lawsuit that was brought up in January of 2019 by the LuLaRoe clothing supplier, Providence Industries. This lawsuit involved the request (made by Providence Industries) for courts to seize $34 million in assets from the company.
This lawsuit follows on the tail end of yet another lawsuit just a few weeks prior, when Providence Industries sued LuLaRoe for $68 million for failing to pay their bills for months.
But even more shocking than these high amounts, however, is the response of one of the founders, Mark Stidham when he was confronted by Providence Industries.
According to James Lee, the co-president of Providence Industries, Stidham had said, “If you don’t give me what I need now and take my orders, you guys can take your inventory and shove it up your a**.”
Is LuLaRoe a Pyramid Scheme?
Everyone’s biggest worry with any multi-level marketing company is whether or not it’s a pyramid scheme – just another scam.
Well, in the case of LuLaRoe, the answer isn’t as cut and dry as some other, less controversial companies.
In January 2019, the State of Washington filed a lawsuit against LuLaRoe for tricking consumers into “buying into its pyramid scheme with deceptive claims of high profits and refunds for unsold merchandise.”
A California Superior Court lawsuit filed in December 2018 claims that LuLaRoe has “defrauded suppliers and creditors.”
This is not to say that LuLaRoe is a scam or pyramid scheme, but based on what I’ve seen, there are some red flags that personally make me feel a bit skeptical.
As with any MLM company, I think it would pay to do your due diligence before getting involved, so you can feel confident you’re joining a legit company.
What I Like
- The process of signing up is straightforward
- If you love the products, this could be a good way to build a business based on something you’re passionate about
What I Don’t Like
- They’re involved in so many lawsuits
- Many consultants struggle to sell the clothing
- They have a high start up cost in comparison to other MLM companies
Summing It Up
So, is selling LuLaRoe really worth it?
Well, at the end of the day, that still is a personal choice.
However, given some of the negatives I’ve mentioned in this article, and the overwhelming majority of consultants saying they can’t make much – if any – money, one should take caution before getting involved to say the very least.
In my opinion, LuLaRoe isn’t the best option for starting a home based business. There are lots of other good ways to make money on the side that you could try that could prove to be a lot less controversial. Either way, I hope you found this article helpful.