What is a LuLaRoe Consultant?

Who doesn’t love a good story loaded with conflict, greed, drama and young mothers working desperately to give their families a needed financial boost? If a screenwriter developed the story of LuLaRoe, Hollywood would have a huge hit on their hands.  I know I’d go see it! Who knew you could uncover so much intrigue by asking What is a LuLaRoe Consultant?

What is LuLaRoe?

LuLaRoe is a U.S. multi-level marketing company.  The LuLaRoe website shows the company was founded in 2013 by Deanne Stidham and her husband, Mark Stidham.  Mrs. Stidham is company president, and Mr. Stidham is the CEO of LuLaRoe.

They began the company with a small selection of skirts, and quickly added tops, dresses, and their signature item, leggings.  Their product line currently consists of casual clothing for men, women and children. LuLaRoe’s mission is to improve lives and strengthen families.

Sales are made by consultants, also called Retailers,  through social media sites, pop-ups, and parties.

This short video highlights LuLaRoe’s latest denim offerings.

Are LuLaRoe Products Worth the Money?

If you back-track through the comments, complaints and reviews about this company, you notice a puzzling pattern developing.  It could be because the company just grew too fast and couldn’t keep up with the production side of the business. Whatever the problem, it seems evident that there are issues with the quality of their products and the prices being charged.

Since 2017, comments started popping up regarding the poor-quality fabrics that pill and snag.  Getting a refund for the items also seemed to be difficult.

Today, you can purchase LuLaRoe products directly from consultants, or through Amazon and Ebay.  Prices are all over the place. I found leggings for as little as $4.49 plus shipping at Ebay. Prices were higher at Amazon.  A LuLaRoe consultant will sell for quite a bit more, unless she’s willing to lose money to meet the pricing at Amazon and Ebay.

Lots of these items are being sold as a “mystery” product.  This simply means that if you wanted to purchase a pair of leggings, you’ll get leggings, you just won’t get to choose the color or pattern.  This, by the way, is how LuLaRoe sells to their consultants. They get whatever the company sends.

I never did like buying “mystery” anything.  Call me picky, but If I don’t have total say in what I’m spending my money on, I’ll pass on the deal.  I’ll pass on LuLaRoe’s offerings, too.

The LuLaRoe MLM OpportunityWhat is a LuLaRoe Consultant? - Logo

I spent hours combing the internet for information about LuLaRoe’s current opportunity.  While their website does have quite a bit of information about sponsors for incoming Independent Fashion Retailers, there is very little information discussing much more.  Things seem to have changed dramatically in the last couple of years.

How to Get Started

To begin as an Independent Fashion Retailer, you’ll be asked for the expected information; name, address, phone number and email.  They also have a little form that asks you to answer the following questions:

  • Describe yourself in a few sentences
  • How did you hear about LuLaRoe?
  • What makes you want to be a part of LuLaRoe?
  • What three things are you looking for in a Sponsor?
  • What’s the best way and time to be contacted?

They go on to say you’ll need three things to become a Retailer:

  • A dream to be your own boss
  • An interest in fashion
  • A sponsor ID and sponsor link.  (If you don’t have a sponsor, don’t worry.  During the application process, a sponsor will be assigned to you.)

The site also offers this information about sponsors.

“A Sponsor is an active Independent Fashion Retailer that will guide, inspire, and train you. Take some time to think about which Retailer you would like to work with, as they will be your BFF throughout your LuLaRoe journey. You may want to consider distance, team size, and fashion aesthetic; as finding the right match will help lead you to the community you’ve been looking for!”

Here’s more information you’re going to need to decide if you want to join LuLaRoe.

1.  LuLaRoe requires you to complete their training before you canbegin selling.  The website says it can be done in as little as two weeks.

2.  Your first order is limited to 65 items.

It appears that LuLaRoe still doesn’t allow their consultants to choose exactly what stock they want to order.  Sizing, colors and patterns are up to the company directive and the person packing your box. They seem to be very big on mystery at LuLaRoe!

There is no other information that discusses building a team or what kind of compensation you can expect.  However, it’s safe to assume that if you’re going to be assigned a sponsor, she’s not mentoring you for free.  Building a team will be one of the things you’ll be expected to do. Compensation of some sort will be involved.

Since the dust up that’s been going on for the past three plus years, I would expect that some policies and procedures have changed.

What Dust Up?

Around 2017 it became evident that there were problems at LuLaRoe.

  • A class-action lawsuit was filed over calculated sales tax rates on sales that were exempt from sales taxes.
  • The Better Business Bureau downgraded LuLaRoe’s rating to an F due to the lawsuit and complaints regarding poor quality.  The BBB rating is currently a B-.
  • A second class-action lawsuit in 2017 accused LuLaRoe of being a pyramid scheme. They were also accused of “misconduct, including unfair business practices, misleading advertising, and breach of contract.”

In 2018

  • The National Down Sybdrome Society had been working with LuLaRoe.  In 2018, the charity ended its relationship with LuLaRoe “ after a top distributor mocked people with mental disabilities during a livestream sale.” The company refused to terminate their relationship with the distributor.
  • Debts went unpaid
  • Top consultants left in large numbers
  • LuLaRoe was sued by their main clothing supplier claiming the Stidham’s were hiding money in shell companies to fund an extravagant life-style, and delay paying creditors.

In 2019

  • The state of Washington sued the Stidhams.  The allegations were
    • Running an illegal pyramid scheme
    • “Making misleading income claims, and encouraging its consultants to focus more on recruitment than selling clothes to customers.”
  • The company received another F rating from the BBB due to hundreds of new complaints
  • The company closed it’s Corona, CA distribution center five days before Christmas, permanently laying off all 167 employees.

In 2020

  • According to the BBB, there are currently 434 complaints filed against the company.

This Glassdoor Review from LuLaRoe consultants gives you an additional perspective.What is a LuLaRoe Consultant?

LuLaRoe Products

What is a LuLaRoe Consultant - LuLaRoe ClothingItems in the Women’s collection fall into the following categories:

  • Bottoms
  • Dresses
  • Denim
  • Layers
  • Leggings
  • Skirts
  • Tops

The Men’s collection:

  • Tops

Children’s Collection

  • Leggings

How Much Does it Cost to Join LuLaRoe?

It currently costs $499 to join LuLaRoe.  This will cover the cost of 65 items from the LuLaRoe collection.  It also gives you access to the training all new Retailers are currently required to complete before they begin selling.

Can You Make Money with LuLaRoe?

This company is an MLM with products available to the buying public through what LuLaRoe is currently calling Independent Fashion Retailers.  They had been required to purchase a minimum of $5000 worth of stock at a time. The currently required minimum has been reduced to $499.

The model for this company was amazing in that Retailers were unable to specify which items they were buying.  They couldn’t choose styles, sizes, colors, or type of prints.

The company gave no apparent credence to the huge differences  in fashion tastes throughout the country. Retailers were simply expected to move all of the stock they received.   According to numerous Retailers, many items were just plain awful, and impossible to sell. Retailers’ knowledge of their customers never figured into LuLaRoe’s business plan.

If a Retailer made poor buying choices, and their business suffered, that would be understandable.  That they remained with a company that denied them the ability to make buying decisions is unbelievable.

The site currently makes no mention of team building opportunities, uplines or downlines.  As I mentioned earlier, the site does discuss Sponsors, but gives very little additional information on the money-making potential or requirements to become a Sponsor.

Pros and Cons of LuLaRoe

Pros

  • It currently costs much less to get started than in previous years.
  • LuLaRoe has a training program in place that they believe will give Retailers a good start in the business.

Cons

  • Claims of running a pyramid scheme
  • Claims of  misleading consultants about income potential
  • Claims of pressuring consultants to go into damaging debt to purchase more stock

Is LuLaRoe a Pyramid Scheme?

The two-step test I’ve used is:

  1. Pyramid schemes rely on fees paid by new recruits to prop up the company.

The courts are currently looking at this allegation.

  1. Pyramid schemes require consultants to purchase inventory, and lots of it.  LuLaRoe certainly has been doing this.

Whether this is a current practice remains to be seen, but it was company policy for many years.

According to this test, LuLaRoe is most definitely a pyramid scheme!

Final Thoughts

Many of LuLaRoe’s former consultants were wives and mothers trying to add extra income to their family’s bank account.  They bought into a dream and many worked hard to make it a reality. Like most MLM models, they were betting on a losing proposition.

What is a LuLaRoe Consultant?

In the words of one former consultant, “you get no choice in prints or sizes and have no means to select colors, patterns or themes to make your business a success.  Using only Facebook as an online sales vehicle… come on the red flags should be popping up in spades about now; it’s like a pyramid scheme where you prey on friends to become consultants to boost your sponsors cash flow and so on.

It’s a lot of work.  These clothes do not sell themselves so be prepared to open much awaited shipments to find you have crappy prints that not too many people want to wear, taking pictures and posting, buy props to display the goods and posting to groups on Facebook repeatedly….   Even if you are selling, you’re making less than minimum wage. Then there are all the goodies to make selling easier. Things like postage machines, mailers, lights, and racks…

An Alternative to an MLM

If you plan to put in the work to build a successful business, why not build something that’s yours alone?

Take a look at my  #1 recommendation .  They’ll provide all the training that you need, and you won’t have to worry about receiving “mystery” inventory, or selling merchandise that nobody wants!

It’s a great resource for learning how to promote yourself, your aspirations, and your special concerns.  You’ll find everything there you need to start your own business!

Best of all, you can check it out for yourself at no cost or obligation.  Why wait any longer to take control of your future?

 

LuLaRoe

$499
5

Quality

5.0/10

Support

5.0/10

Earnings

5.0/10

Pros

  • It currently costs much less to get started than in previous years.
  • LuLaRoe has a training program in place that they believe will give Retailers a good start in the business

Cons

  • Claims of running a pyramid scheme
  • Claims of  misleading consultants about income potential
  • Claims of pressuring consultants to go into damaging debt to purchase more stock

Learn How I Successfully Escaped my Classroom

7 thoughts on “What is a LuLaRoe Consultant?”

  1. Hi. I would like to thank you for your interesting and informative post. I have to say LuLaRoe seems to have it’s problems and not something I would want to put my time or money in. I checked out your alternative and Wealthy Affiliate is a much better option and I should know, because I’m a member of the Wealthy Affiliate community.

    Reply
    • I’m glad you found my article interesting.  It was fun taking a look at LuLaRoe.  They do seem to have many problems. I hope anyone thinking about joining this MLM does lots of research and listens to former consultants before committing to them.

      Thanks for joining the conversation; I appreciate it!

      Reply
  2. First of all, many thanks to you for giving us such a wonderful article. I have been working in the online world for a long time, so I’ve heard about LuLaRoe. LuLaRoe is a multi-tiered marketing company in the United States. Because I do not find LuLaRoe Consultants to be convenient for me, I am affiliate marketing through the Wealthy They have also offer a number of tutorial videos to learn affiliate marketing. And, it has provided a lot of tools to take my website to a good level. All in all, I think I would recommend Wealthy Affiliate as the right mentor in the online world .

    Thank you for your wonderful advice. And, I think that everyone like me has learned a lot by reading your articles.  Can I share your article on my social media?

    Reply
    • Thanks for the kind words.  I have to agree with you that Wealthy Affiliate is the perfect mentor if you want to learn affiliate marketing.  They offer amazing training, all kinds of tools, and wonderful support.  

      Thanks for joining the conversation; I appreciate it!

      Reply
  3. Great insight into what was probably a well intentioned company. The content is well presented and from a totally outside looking in approach. It gives a very good in-depth view and sites many cases where the company has failed in its attempts to hide away from its liabilities.
    I think there is a been there, done that feeling which makes the reader become more interested as you progress through.
    From the review you I get the feeling that this company is not the type of employer that embodies trust and that feeling is very much conveyed within the content. Very good.

    Reply
  4. I think that the review conveyed a very good understanding of how a poorly run company operates and gives insight to what to watch out for within MLM.  The author relays the message of “approach with caution” or “join at your peril” but does this this in a very matter of fact way.  I didn’t feel that the review was biased at all which is good to see and read.  The pace of the review was consistent and drew the reader in, and I actually enjoyed the whole post.

    There was good use of statistical analysis, range of products, costs of membership, cases of poor management, true issues with liabilities, poor leadership, and company expectations.   Pro’s and cons were added as a conclusion and the final thoughts left the ending as a choice rather than ‘do not go near this company’. Enjoyable read.

    Reply

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