I bet a close friend of your or perhaps a relative might have approached you with this wonderful opportunity that is the Lularoe business opportunity. Its usually the case in most cases.
May I first start by stating that I am not a consultant with Lularoe and so I am not going to be asking you to whip out your credit card for your dream to success.
This review is based on my own research and the aim is to help you make an independent decision on whether to join, stay put or bail out. The decision is entirely up to you.
So just what is the Lularoe business opportunity? Is it a scam or legit? Can you make money?
No doubt you want some things cleared. Well, let’s find out, shall we.
Company Name: LuLaRoe
Costs: Starting @ $4,812
Owner: Deanne Brady and her husband Mark Stidham
It seem there is no shortage of companies selling products that we are all too familiar with through network marketing. Lularoe is a company that sells mainly women’s apparel through a multi level marketing system. They recently added men and children clothing to their range
When it comes to top MLM companies, Lularoe is definitely one of the top dogs, having returned a 1 billion dollar profit in 2016. Based out of Corona, California, the company was founded in 2012, by Deanne Brady and her husband Mark Stidham. Lularoe derives its name from Lucy, Lola, and Monroe, the couples first 3 grand daughters names. There are over 80 000 product distributors worldwide.
What makes their products unique is the bright patterns on all their garments. I must admit they are unique in design. Some people think they are too extravagant. I suppose it all comes down to personal taste. Quality wise, the company has had some major issues.
For instance there were cases of people getting holes in their leggings just a few weeks after they purchased. Considering people pay top dollar for these products, that didn’t do much for the company’s reputation. It also resulted in lawsuits being filed against them.
In October 2017, they were also sued for operating like a pyramid scheme. I think every major MLM has been through that. Sometimes it’s not always easy to tell the difference.
Well, they weathered the storm and they are still in business. I don’t think they are going anywhere soon.
Lularoe don’t really manufacture their own products. They are manufactured in Asia and Central America by MyDyer, a Los Angeles-based apparel company who also manufacture for other companies.
Getting started with Lularoe is not cheap. Remember what you are doing is building yourself a store. In your store you must have an inventory. That means buying in bulk and then selling your garments for a profit.
This are the 3 levels of inventory packages that you must start with
Package #1 – $4,812 for 336 pieces
Package #2 – $5,365 for 365 piece.
Package #3 – $6,784 for 463 pieces
As you can see, the more you spend the better your returns will be. Consultant are recommended to keep an inventory of close to $20 000 at any given time. This a common trait among most MLMs. That is how these sort of companies are able to make huge profits.
Selling the products is not easy. Selling the idea of financial freedom to others is what you should be focusing on. You need to steadily recruit if you want to see success in the biz.
Like all good MLMs, there must be a compensation plan otherwise what would be the point? This is the bait that attracts consultants to join the business. It’s all about the commissions you make for sales and recruiting others to join you.
I am not a big fan of explaining compensation plans, so I will just let these fine lady do it for you.
Please note that I am not endorsing this video. Its only for presentation purposes.
Pros and cons
Normally, every business opportunity has the bright and dull side that everyone involved in has to come to terms with. That is what determines whether to remain in the game or call it a day.
If you have deep pockets and plenty of time on your hands and possess the gift of the gab, these business could work out for you. I was an Amway distributor years ago, and I must say there are some highly successful consultants in the MLM industry.
On the flip side, you need to understand that you are in the recruiting business. Before you can find success, be sure to hit on every person you know or perhaps don’t with the opportunity. You never know who will catch bait, right?
Clothing is something most people buy occasionally. You can only fit too many clothes in your wardrobe.
The commissions are also pretty low. Why break your back selling products that pay a 5% commission.
Lularoe seems like an okay company. Not out of these world but okay.
It is not a pyramid scheme like some people would claim. Lularoe is just one among the hundreds of multi-level marketing businesses that exist out there. Opinion is always divided as to whether its scam or not. I suppose it all comes down to who is making money and who is not
Let’s talk about the biz for moment.
As I mentioned, I have been involved in network marketing before and I know how the game plays out. Network marketing by its very nature is a legit way of doing business and people succeed big time in it. In fact there are millionaires in this industry.
So why did I leave if there is such huge potential.
Because it is all about recruiting. Seldom do people even talk about the products. That’s because no one makes money just by selling products. People have spent thousands of dollars in stock hoping to sell it for a profit only to realise that everyone else is selling the same product more or less. That’s why you can buy some of these products on Amazon or ebay.
Holding parties in your house in order to lure people to join your business is just weird. There far better ways to sell your products
There is an narrative that network marketing companies use and that is to pitch their products as magical or the next big thing. I am quite sure you can find a similar range of high quality products in the market that are just as good. Why should I choose one over the other
We now have MLMs embracing social media as a way to market their products.
Even though it can be more effective than reaching out to your traditional warm market, most people go about it by spamming social media accounts to promote their business.
It’s not really a long term way of building a business. Its also very intrusive. I love my Facebook profile just as it is.
Unsolicited marketing info coming on my timeline especially from people you may know is just irritating.
Many people fail in this form of business because it is by no means easy as they are led to believe. In fact, less than 1% of all the people who join multi-level marketing businesses succeed.
Mary Kay once described the business as filling your bathtub with the sinkhole open. Most people will be gone once they realize just how difficult the business is.
The very nature of multi-level marketing is also shrouded in a lot of misconceptions and controversy. I can understand why. You are not really giving people an opportunity to make money. It’s more like reaping the benefits out of their hard work.
Can you build a business without recruiting
In the years I have been in the marketing industry I have come to appreciate the fact that the only way you can make money selling products is by having your own website.
This website generates me a consistent income. You don’t even need to spend money to own one.
Why run around chasing after people to join your opportunity and yet you can reach the billions of people who are connected on the internet today.
If you belong to the 99…% plus number of the people trying desperately to make money recruiting people to their business, how about you check out how I make money online without having to recruit.
MLMs are a waste of time. You are more likely bound to fail than to succeed. That is just the reality of it. People will tell you not to listen to naysayers like me, but you really need to ask yourself whether you stand a chance.
Many thanks for reading my review. If you have a question or a comment on the Lularoe business opportunity, please leave it below. I would love to hear from you.
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