LuLaRoe is a multi-level marketing (MLM) company that primarily sells women's clothing through independent retailers. Founded in 2012, the company quickly grew in popularity with its vibrant, comfortable clothing like leggings, dresses, and tops. However, it has since faced a variety of challenges and mixed feedback from both customers and sellers.
What is LuLaRoe?
LuLaRoe operates as an MLM, meaning retailers purchase inventory and sell directly to consumers, often through social media, pop-up shops, and in-person events. Retailers are independent contractors who make money through direct sales and can also recruit others to join, earning commissions based on the sales made by their recruits.
Pros of Joining LuLaRoe
- Flexibility: Many retailers appreciate the ability to work on their own schedule. This is particularly appealing to stay-at-home parents and those looking for a side income. As one retailer shared, "LuLaRoe gave me the opportunity to be my own boss and work around my kids' schedules."
- Community and Support: A common theme among positive reviews is the strong community LuLaRoe fosters. Retailers often mention feeling supported by fellow sellers and the company itself. "The community aspect of LuLaRoe is amazing. I’ve built friendships that will last a lifetime," said one retailer.
- Potential for Income: For those who manage to grow their customer base, LuLaRoe offers the potential for significant income. Some retailers have reported earning thousands of dollars, especially during the company's early years.
Cons of Joining LuLaRoe
- High Startup and Inventory Costs: One of the most frequently cited drawbacks is the high cost of joining. To become a retailer, an initial investment of several thousand dollars is typically required for purchasing inventory. Some former retailers have expressed frustration with how much stock they were encouraged to buy, only to find it difficult to sell. "I ended up with so much unsold inventory that it really ate into my profits," one former retailer shared.
- Product Quality and Market Saturation: In recent years, some retailers have noted a decline in product quality, which affected their ability to retain customers. Additionally, the market became saturated with retailers, making it harder for new sellers to build a successful business. As one review mentioned, "There are so many sellers now that it’s hard to stand out, and customers have plenty of other options."
- Legal and Financial Controversies: LuLaRoe has faced several legal challenges, including lawsuits from former sellers claiming the business model was unsustainable and that they were left with large amounts of unsold inventory. This has led to a more negative reputation in some circles, with some accusing the company of being a pyramid scheme.
Real Feedback from Retailers
- A YouTube reviewer who had been a retailer for over three years explained both the highs and lows of working with LuLaRoe: "In the beginning, it was easy to make money, but as more people joined, it became harder to make consistent sales." This highlights how the experience can vary based on timing and strategy.
- Another retailer shared a positive experience, saying, "LuLaRoe gave me confidence I didn’t know I had. I love sharing fashion with my customers, and I feel empowered by this opportunity."
- On Glassdoor, LuLaRoe holds an overall rating of 2.7 out of 5, with mixed reviews about the work environment. Some praised the flexibility, while others criticized the lack of support in dealing with inventory challenges.
Conclusion
LuLaRoe offers both opportunities and risks. It appeals to those looking for flexible work in the fashion industry with the potential to earn a side income. However, the high startup costs, market saturation, and legal controversies have made it a more challenging venture for some. If you’re considering joining LuLaRoe, it’s crucial to research thoroughly, manage inventory wisely, and set realistic expectations.
Make sure to check out more reviews and testimonials to get a balanced view before deciding if it’s the right fit for you.