PRODUCT NAME: LuLaRoe
OWNER: DeAnne Brady & Mark Stidham
If you came across LulaRoe online, which is quite extensively promoting its clothing lines in the social media and offering extra income to earn by selling its clothing items and by recruitment, you are probably wondering if this is indeed a good income opportunity to venture with. But skeptics will always ask is LuLaRoe a scam? I became interested about this income opportunity offered by LuLaRoe so let’s dig deeper into what it has to offer.
LuLaRoe is more than just an online store to shop for clothes. Its platform is designed for people to sell its clothing lines and offers a chance to recruit others to do the same and earn commissions for your downline overall sales. By running this kind of business, LuLaRoe is considered to be an MLM clothing company. While one may find this a good prospect to earn an income from home there are important things you need to know and understand how to earn money from its platform before you decide to invest. This LuLaRoe review will help you decide whether you should avoid it or not.
What is LuLaRoe?
LuLaRoe operates an online shopping site where it sells different clothing lines that are mostly apparel for women and clothing for children, although they do have some men’s clothing lines but are quite limited. The retail prices of the clothes they sell are reasonable from $18 to $65. Their clothing designs are unique and beautiful which helped LuLaRoe grow its business. While shopping from LuLaRoe is something you can do from its site, it has more to offer such as making an investment as its Fashion Consultant. You will act as a distributor of LuLaRoe products and in return earn a retail commission. Another way to earn from its platform is by recruiting people and build your own downlines in order to grow your additional incentives to earn like bonuses and overrides.
Signing up is actually free but it is here where the problem begins. In order to be eligible for the income opportunity by selling LuLaRoe products there are requirements you need to meet:
- You need to make investment that can average to $7,000. As a Fashion Consultant one is required to place an order between 270 to 300 clothing pieces in order to build your own stock inventory to sell.
- Fashion Consultants are required to maintain a monthly order at a minimum of 33 clothing pieces per month.
- If you are a Sponsor where you recruit people to join the MLM program of LuLaRoe you need to maintain a monthly minimum order of 175 pieces.
- As a Trainer, where you are entitled to earn commission from the sale of your entire downline team, you need to maintain an order of 1,750 clothing pieces.
Not to mention that when you place your order you are not entitled to choose specific clothing items for your inventory. This does not sound as a good deal to me. Not to mention that you will be confronted with the issue of where to keep your stocks if you cannot sell them all every month, unless you have your own retail store.
Why You Should Avoid LuLaRoe
Not that I am discouraging you to try the income opportunity from LuLaRoe but after considering how it operates I find it wiser not to invest since you are likely to suffer more losses than profit from your investment. Here’s why:
- You have to exert more effort in selling the products by looking for prospect customers, hosting parties like pop up boutiques, do online live stream or have an open house for your items. Some of these marketing strategies will incur cost on your end and extra effort than you would when selling in other online sites like eBay.
- You need to spend significant investment to build your own stock inventory. Unlike other clothing sites where you conveniently resell their products without the need of purchasing your own stocks outright, not to mention having to maintain monthly purchases directly from LuLaRoe to be eligible for its income opportunity.
- There is no guarantee that you can maintain a regular income stream from this kind of business and it is hard to recover your investment which is huge from the potential profit you can make.
- While you can earn a retail commission of 35% to 50% as a Consultant and 5% override commission from your direct downline as a sponsor, and 3% from the total sales volume of the recruits of your recruit, I am skeptic whether you can sustain your investment for more profit due to the stockpiling monthly requirement for the stock inventory that will require you to spend more along the process.
My Final Opinion of LuLaRoE
If you ask is LuLaRoe a scam? I cannot say outright that it is a scam since it does offer a legitimate way of earning an income. However, with the huge investment involved, the requirements of stockpiling and the laborious process of selling the products to make a sale are good reasons to avoid this kind of a scheme.