You’ve more than likely heard of LuLaRoe before. Maybe you’ve been invited to a LuLaRoe party or maybe you’ve seen a friend sporting a cute pair of their leggings.
If the brand has stood out to you, you’re not the only one. That’s one of the many reasons why one woman grew the brand into a billion-dollar clothing empire.
LuLaRoe makes clothing that’s not only stylish but comfortable, sporting items such as soft leggings that consumers love. The LuLaRoe MLM business model is under scrutiny, causing previous customers to ditch the brand.
Read our LuLaRoe review to learn more.
The Brand’s History
Deanne Stidman, a grandmother with previous experience in MLM marketing, formed LuLaRoe with her husband Mark (he currently serves as the CEO). The company formed in 2012, but it only took them a few years to become the hottest clothing brand in the country.
What About Their MLM Status?
Did you receive a LuLaRoe opportunity to become a consultant? You're probably wondering if it's worth it.
LuLaRoe aims to inspire women to become business owners, whether they sell for the fashion brand full-time or as a side hustle. They target young women who want to be successful, stay-at-home moms who want extra money, and women who generally want to be their own boss.
As an MLM company, LuLaRoe makes billions off of their consultants, who have to pay a steep sum to even receive their first inventory. Like any business, consultants purchase inventory at wholesale prices and charge the marked-up price to buyers.
LuLaRoe also has multiple consultant levels. These include:
- Fashion Consultant/Sponsor
The higher you rise through the ranks, the more you earn. However, the requirements also raise and you’re expected to make more investments.
They also rely on consultants to do a large portion of their marketing, who host LuLaRoe parties to sell their products. Consultants often invite family members and friends to parties, but they can also sell locally to other individuals in their community.
LuLaRoe has received some criticisms in the past few years. If consultants can’t sell their inventory, they’re often left with boxes of merchandise and are unable to receive refunds. Consultants also have to make specific levels of sales to receive commissions and a bonus.
How About Their Products?
Is LuLaRoe legit? They sell extremely cute clothing, which draws people to buy LuLaRoe and even sell their pieces.
From leggings with cats to colorful sweaters, their products attract countless buyers. Their clothes are best described as boutique-style, meaning their clothes are stylish but are sold from a small brand/individual seller.
LuLaRoe is most famous for its leggings. They’re comfortable and soft, ideal for all-day wear. They come in a wide range of colors, patterns, and prints. LuLaRoe also sells other clothing essentials, such as skirts and dresses.
One of the best aspects of LuLaRoe clothing is they sell limited amounts of each product. That means the clothing you buy is very unique and you won’t see many people rocking your same outfit.
Their clothing is also relatively affordable. For example, a pair of LuLaRoe leggings is $25, which isn’t a crazy expensive price. And with constant raving reviews, it’s easy to think a pair of LuLaRoe leggings are worth it.
What’s the secret to these buttery soft leggings? They’re made of 92% Polyester and 8% Spandex. If you search on major e-tailers such as Amazon, you can likely find a pair of leggings made out of the same material at a fraction of the price.
Because of the soft material, they come with special washing instructions. You must wash the leggings in cold water and you’re discouraged from putting them in the dryer. Doing so will shrink or wear out the fabric.
Another issue that customers report is sizing. While other clothing items, such as dresses, have specific sizes, their leggings come in a one-size format with special sizing for tall and curvy women. At parties, you’re unable to try on their clothes, which makes it difficult to judge whether or not they will fit.
The LuLaRoe Scam: Is It Real?
Because of the issues we explained above, many people have accused LuLaRoe of being a scam. But are they a scam or just an honest MLM company?
There are many factors that point to LuLaRoe being a scam. For one, consultants are forced to make crazy eligibility requirements and investments in order to even receive a commission from their sales.
What about consumers? The products are stylish and comfortable, but you can likely find the same product from a competitor at a lower price. Unless you want to support a family member or friend who sells LuLaRoe, you’re better off buying from another brand.
Because of their potential scam status, they have faced a number of lawsuits.
Conduct a quick Google search on “LuLaRoe lawsuits” and you’ll find multiple accusations and lawsuits. From individual consultants to government agencies, LuLaRoe has faced a number of compliance issues that range from knowingly selling defective products to overcharging sales tax.
An example of a major lawsuit is from Washington State Attorney General Bob Ferguson. LuLaRoe was forced to pay $4.75 million in a consumer protection lawsuit, claiming the brand is a pyramid scheme that leaves their consultants in debt, even after generating thousands in sales.
Why Affiliate Marketing Is the Better Option
You’re someone who dreams of entrepreneurship, right? You want to be your own boss and work on your own time, and ideally from home. Because of this, you likely looked into selling LuLaRoe and similar MLM brands.
However, MLM marketing comes with significant overhead and you’re constantly hustling to make sales — whether or not you sell for LuLaRoe.
Don’t worry, you don’t have to return to a 9-to-5. Affiliate marketing puts you in charge of your own business without spending a significant amount of money. While on an affiliate program, you’ll be hustling but you’ll be doing what you love — creating content, posting on social media, and promoting brands you care about.
Our LuLaRoe Review: You’re Better Off With Affiliate Marketing
After reading our LuLaRoe review, you probably realize that MLM is not your thing. You’re also probably interested in affiliate marketing and other ways to be your own boss without the overhead.
If you enjoyed this review on LulaRoe, please consider checking out our free online webclass which will walk you through our #1 recommended way to earn money online from home and teaches affiliate marketing strategies including how to make multiple high-ticket affiliate commissions each month marketing valuable products people already want to buy.