You have probably heard about Lularoe and you are searching for more information on what Lularoe is about and whether it’s a scam, a pyramid scheme or legit. This article will reveal some information that you might want to know.
What Is Lularoe?
Lularoe is an MLM company based in California, USA and was founded by Deanne Brandy and Mark Stidham in 2012. Their products are mainly about Lularoe Clothing geared to women (with a few for men).
The products are distributed by their independent distributors called Lularoe Fashion Consultants who can retail the products as well as recruit others and get commission from their purchases.
For you to qualify as a Lularoe consultant, you have to go through the application process. After that, if you want to distribute their products, you need pay upfront for your starter kit.
According to their website, the initial investment is $499 paid directly to the company.
On top of that, you will be having other expenses like stationary, packaging materials, business cards and if you decide to sell in pop up boutiques, you will also have to pay to the person letting you the space.
For you to qualify for commission from the people you have recruited, it is a requirement that you should have purchased a certain amount of products/clothing.
There are also other requirements needed in order for you to go up the ladder. These requirements indirectly force the distributors to
- Focus more on recruiting than retailing.
- Buy more products than they need leading to having accumulation of unsold products that can lead to you having a debt.
Lularoe Lawsuits And Complaints.
Lularoe has had some lawsuits and many complaints. This article will give only a few:
- Lularoe Class Action Lawsuit of 2017: Filed by dissatisfied customers. This led to their BBB (Better Business Bureau) to be downgraded to F.
- In the same year, they were also accused of misleading advertisements as well as that they might be operating like a pyramid scheme.
- In 2018, they were sued by their clothing supplier for not paying bills and in 2019, the clothing supplier filed a lawsuit for Lularoe’s assets to be seized.
By the end of 2019, there were hundreds of complaints.
Problems with The Lularoe products
- Complaints from customers that some of the Lularoe’s clothing mostly the Lularoe’s leggings were not up to standard; they ripped easily.
- Distributors also complained that getting refund was not easy.
- The problems were too many such that some distributors wanted to cancel their distributorship and some actually canceled when the company accepted to buy back a percentage of their inventory.
Is Lularoe A Scam
It is not a scam; neither is Lularoe a pyramid scheme (at the time I am writing this article).
Generally, it is normally difficult to prove that a company is operating like a pyramid scheme particularly where real products are still being bought.
The problem here is that some distributors are buying just to fulfill the requirement for them to earn commission from their downlines.
They buy without having buyers ending up with an inventory that they might never be able to sell.
Can you make money selling their products?
The problem with some MLM companies is that you join thinking that you will get financial freedom. The thing you don’t know until you join is the requirements you need to fulfill in order to earn money.
As you have seen, it is very difficult to earn without recruiting and still for you to earn commission from your downline(s), you need to have purchased a certain amount of products.
If you are able to achieve their requirements, then you might be able to make money but not to give you a full time income unless you are among the top distributors.
If you are a customer and you are happy with their products and the return policy, I think you should continue buying.
This article is meant to give you information and it is up to you to decide whether to join as a Lularoe’s consultant or not.
I was an MLM distributor (not Lularoe) that had almost similar requirements but different types of products.
I found it difficult to fulfill those requirements every month and it was costing me more than I thought not forgetting the amount of time.
Just like most people, I was looking for financial freedom so that l can quit my full-time job and the time freedom it would eventually give me.
I did not get any of that but fortunately, I found another business that had no tough requirements;
- No upfront fee
- No recruiting
- No dealing directly with customers and yet, you can access very many customers without advertising
- No spending on the products. This is one of the things I liked more; selling other companies’ products without spending any money on them and also not dealing with any delivery or customers queries.
All what you need is a computer or a smart phone and access to the internet. That’s it; you don’t even need any internet experience or any skills as I have a training that I would recommend that will give you step by step on:
- Where to get the products for free
- How to find customers (more emphasis is on showing you how to get customers without doing any advertising).
Everything is online and the learning link will be sent to you through your email address. It being online means that you can learn and implement what you learn at a time suitable to you.
You learn at your own pace. The training also includes video tutorials that you can pause, implement what you are being taught and then resume again to continue.
This facility of pausing and resuming was very good for me as I was taking the training after work when I was already tired thus having a short concentration span.
You can revisit any of the trainings as many times as you wish. At the end of every lesson, there is a discussion section where you can ask questions and get answers almost immediately.
CLICK HERE to access the training.
Please note that you will be asked for your email address so that the training link can be emailed to you.
You will also be asked to complete your profile and the amount of money you would like to make. The training platform has coaches who will give you as much support as possible so that you can achieve your goals and most likely exceed them.