Do You Become A LuLaRoe Consultant For Money? This MLM company has been called a pyramid scheme so I thought I would do a review to see what the issues are and what the controversy could be with this business. Can you make money selling women’s clothing and what are the pros and cons of this opportunity?
Judging by its social media presence on Facebook and Instagram it would seem that earning income hosting parties is where its at. The cost and sign up fees may make it hard for some to join and reap the benefits though.
Let’s get started….
Who Is LuLaRoe – The Company
The founder DeAnne Stidham a single mom with seven kids had a vision of a better life and more balance when she took on the challenge of selling women’s clothing to friends and family as a side hustle.
Having the drive and some past experience selling with the multi level marketing business model, DeAnne saw the opportunity for her own clothing line and founded the company in 2012 with the help of her husband.
With close to 1 billion in sales and about 80,000 consultants the company on the surface looks successful.
The company moto pushes the idea of “social responsibility” which is a good thing.
Clothes that aren’t made in sweatshops and that are LEED certified while keeping the environment safe. They also donate to charitable organizations such as The National Down Syndrome Society.
As a consultant there is a good selection of one of kind clothing to sell. There is clothing for both women, girls and men. The selection includes skirts, blouses, shirts and leggings.
Mix and match the pieces to get a unique look. There is even a Disney inspired clothing line.
Here are some prices to get a feel for what the clothes sell for:
- Dresses $45 to $65
- Skirts $35 to $55
- Tops $35 to $70
- Leggings $23 to $25
- Bottoms $55 to $65
- Kid cloths $23 to $36
The clothes are not too expensive for a “socially responsible” company, but they do appeal to a certain segment of people.
The clothing is made in different countries such as US, Vietnam, Guatemala, Indonesia, and China.
How Do You Become A LuLaRoe Consultant Plus Cost
Are you ready to start your own business selling clothing and need to know how to become a consultant? What is the the LuLaRoe consultant cost and what is included?
Well first you will need to contact another consultant also known as a “retailer” who will help you get started.
Then you will be ready to purchase a onboarding kit. There are 3 different packages to choose from, each onboarding package has different pieces of clothing and the costs vary as shown below.
As you can see the onboarding packages start at $4,959 and go to $8,995.55.
This is one of the more expensive starter kits when it comes to the different MLM companies that I have reviewed.
Plus the cost is just for the clothing. The consultant kit signup fees don’t include expenses for marketing and miscellaneous supplies that will be needed to run your consultant business.
If your looking for the benefits that come with being a consultant, then you as a person will need to think about what it is that makes this opportunity appealing.
Will it be the profits from the sales of the clothes, will it be the flexible work schedule, maybe the ability to have a side income while your regular job.
The LuLaRoe consultant benefits are going to be different from one consultant to the next. Ultimately a consultant will have to weigh the pros and cons to see if this is going to be a good investment or not.
Average Income LuLaRoe Consultant
Ok lets take a look at the compensation and how much do LuLaRoe fashion consultants make selling clothes. There are 4 different ways to earn income as shown below.
1. Personal Sales
The typical profit on the personal direct sales are 35% to 50%. How much a consultant makes on each piece of clothing sold will vary.
Now this might sound like a great margin, but typically retail sales of clothing should be netting a much higher profit than 35% to 50%.
The reason for this is because not everything will sell. So eventually a consultants may have to sell some clothing at a loss just to get rid of it and get some of their money back.
In order to actually get paid, a fashion consultant will need to sell at least 33 pieces of clothing each month to stay active.
2. Sponsoring Others
Another way for consultants to earn income is by sponsoring other people that are interested in joining the company. This is how a multi level marketing works.
Show people the company and its products. If they sign up through you, then there is the opportunity to make money on the sales from the people that you have sponsored.
As a consultant you would earn 5% on any of the wholesale purchase of people in your down line.
For example, if one of the fashion consultants in your down line orders $1000 worth of clothing, you as their sponsor would get $50 on that sale.
For those consultants that are motivated in building a big down line by recruiting, they can become whats called a trainer and earn income on more levels.
This is a way to earn an additional 3% income as your down line get deeper.
In order to get paid the 3% bonus, your down line of consultants must purchase 1750 pieces of clothing in each calendar month.
Here the opportunity to earn 1% on the sales of your 2nd level trainers group.
As a coach, you will have the responsibility of training everyone in your down line to be successful and replicate the recruiting of others.
Where Can You Sell LuLaRoe And Make Money
It can seem exciting to get started in a new home based business and receiving the starter kit with hundreds of pieces of clothing.
Then reality sets in and the need to recoup the 1000’s of dollars just spent hits home. Now it is time to start selling LuLaRoe clothing to make some money.
There are a couple methods that the company recommends, Pop Up Boutiques and fundraising.
Pop Up Boutiques
This is when you would have a friend, family member or acquaintance host a party at their place. You as the consultant would bring your clothing samples for everyone to see and try on.
This is an opportunity to promote your business and get the word out.
Sell LuLaRoe direct and get your 35% to 50% profit, plus have the opportunity to recruit others and show them how to make money as a consultant.
A charity or school function offers another opportunity of making money with LuLaRoe.
Promote your business for a good cause as well as get to interact with community members. This is a great free way of marketing.
Sell LuLaRoe Online
Although it will be hard to sell the clothing over distance or areas of the country, a consultant could use a website as a way to sell clothing to past Pop Up Boutique guests as well as other locals in their area.
Another indirect way of selling online would be through the use of a blog dedicated to fashion and the industry in general.
A blog is a great way to get personal with your audience and create the relationship which will result in increased sales.
There are a number of LuLaRoe consultant complaints that have been noted which include being misled into buying 1000’s worth of clothing, a refund policy that some say is unfair, too many consultants resulting in the market being flooded and clothing styles that don’t sell.
Are these complaints legitimate or are they just the price of doing business in the fashion niche? Let’s analyze.
1. Misled into buying 1000’s in clothing
I can see how some consultants could feel this way.
The problem is that what one person likes another may not, so having a large inventory is needed. With the cost of the clothing being a little on the expensive side, buyers are going to be more choosy as well.
On top of that, the different sizes needed only adds to the total number of clothing pieces and cost that a consultant needs to account for.
2. Refund Policy
Originally the company had offered its fashion consultants the opportunity to return the clothing and receive 100% of the value if they planned to close down their business. Plus the company would pay for the shipping of merchandise back to its warehouse.
Later the policy was changed to being able to return merchandise and receive 90% of the value and the consultant would need to pay for shipping back to the warehouse.
LuLaRoe consultants complained that this was costing them thousands of dollars.
Realistically when your at the mercy of your supplier, anything can happen. The company is doing what it needs to to stay profitable.
3. Market Is Flooded With Consultants
This has to do with a couple different reasons.
- The multi level marketing business model encourages the recruiting of others as a way to make passive income. Make money off the sales of others in your down line.
After doing many different mlm company reviews, this can be a problem but it can be overcome by a good marketing plan.
2. The way the opportunity is promoted as being simple and easy. Just have house parties and sell clothing to friends and family.
As with any business venture, before investing you need to read between the lines and know a little about the industry and the ability to be successful.
4. Styles Don’t Sell
This is just the nature of the clothing business. Even large retailers like Target, TJ Maxx, and Kohl’s have a hard time knowing what their sales are going to be for different styles.
If the styles don’t match the area that you live in, is it the fault of LuLaRoe or that of the consultant that didn’t their market research first?
LuLaRoe Consultant Pros and Cons
This is a business opportunity that offers a way to make money selling clothing. With that comes the good and bad that every business owner or consultant needs to take into consideration.
Pros ( the good stuff)
- Ability to earn income based on your efforts
- Flexibility in schedule
- Work from home part time or full time
- Weekly training
Cons (not so good stuff)
- Large investment needed to start
- Will need to purchase more inventory to add to starter kit
- Have to maintain a monthly sales quota to stay active
- Selling clothing is very competitive
Is LuLaRoe A Legitimate Business Or A Scam
If your still trying to figure out if the company is legitimate, then you having nothing to worry about. They are not a scam.
Is the MLM business model the right one for selling clothing?
The company is fairly new just getting started in 2012, so time will tell how things work out. They will definitely have some growing pains and the consultants need to realize this.
There are no guarantees when starting a business whether it is going to be successful or not. Selling clothing and leggings as a LuLaRoe consultant is no different.
Unfortunately many people that started their business didn’t take into account the success rates of entrepreneurs as well as how competitive the industry is.
Selling clothing is cut throat and even the big retailers feel the pressure of choosing the wrong styles and having too much inventory.
Should you become a LuLaRoe consultant or is there a better way to make money?
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