Is LuLaRoe a Pyramid Scheme?

Last Updated on May 4, 2022

I want to welcome you to my Is LuLaRoe a pyramid scheme review. Making money online in our generation today is a hit. That is why I know that is your main concern why you are checking on this page. You want to answer the questions in your mind about Lularoe. And today, with this jaw-dropping review, I will give you a brief background of the company including their product which is the LuLaRoe leggings.

Is LuLaRoe wroth it? That is another question I will answer, or you might consider looking for an alternative way to earn money online. I will make sure that you will have the right decision after this. So let’s go ahead and tackle every detail about LuLaRoe.

Product Name: LuLaRoe
Founder: DeAnne Stidham
Logo: is lularoe a pyramid scheme
Product Description: A multi-level marketing company that sells clothing for women.
Best For: People are good at selling and promoting a product. Especially for a woman who has good knowledge when it comes to clothing.

LuLaRoe is considered to be a women's clothing direct selling agency. DeAnne Stidham established the company in 2012. As Stidham is a mother of seven children with a strong network marketing background, she was talking about using this ability to start her own clothing line. Who wouldn't have this fantasy for the girls right? You can really make your dream come true if you have determination and inspiration.

Product Currency: USD

Product In-Stock:

Editor's Rating:
Recommended: NO


What is LuLaRoe?

LuLaRoe is known to be a direct selling company which is specialized in women’s clothing. The company was founded by DeAnne Stidham in 2012. Since Stidham is a mother of 7 children and she has a strong background in network marketing, she had the idea of using that skills in order for her to start her own clothing line. Who would not have this dream especially for girls out there right? If you really have the determination and inspiration, you can have your dream come true.

Maybe you are curious where did she get the name LuLaRoe, Stidham got it from her 3 grand daughter’s name which is Lucy, Lola, and Monroe. That was a good idea for her to come up with a beautiful clothing line brand. But regardless of the beautiful brand name, there are a lot of people who are questioning its products when it comes to its quality. It is pretty obvious that they also got the idea of a famous clothing line Lululemon which is known for producing high-quality clothes.

is lularoe a pyramid scheme

LulaRoe is an MLM company, however, their difference with other MLM companies out there is you cannot purchase a product on their website. They don’t offer the product on a retail store as well but if you need to buy a product from LuLaRoe you need to find a consultant from LuLaRoe who they called Independent Fashion Retailers. They are the only one who is licensed to sell different products or clothes from LuLaRoe.

How Does LuLaRoe Work?

As I mentioned to you in our first part, LuLaRoe is an MLM company. And I think that is one of the reasons why you are checking this review of mine. You are also looking for chances that LuLaRoe can be your way to building your career with clothing business. But I am telling you, it is not that easy and you must be well-prepared financially and emotionally in entering LuLaRoe.

Unlike the other MLM companies that you just need to pay a membership fee and you will have the chance to enjoy the big discounts on their products, LuLaRoe will require you to purchase their Onboarding Package, which includes 335 pieces of clothing in 6 different styles from LuLaRoe. And if you will ask about the price, please hold on to your seats. The onboarding package is at $5100. And the tricky part on that is you cannot choose the style, prints, and even the sizes. After or before purchasing your biggest question is how you can able to sell it?

is lularoe a pyramid scheme

I know that even the biggest clothing brand gets to have a problem when it comes to their stocks on different sizes and styles. This might be a big problem for you as well as you are just starting in the business. And from you who do not have enough marketing experience and do not know who your target audience is, $5000 is a very big investment which you need to think of it not just twice but as many times as you can.

For me, there are a lot of alternative ways for you to earn money online without investing $5000. I always prefer affiliate marketing over MLM. This is legit and effective, learn more about how you can earn money online with affiliate marketing writing about your favorite hobbies.

How Much Can You Make With LuLaRoe?

Here comes the exciting part. The estimated earning of an Independent Fashion Retailer of LuLaRoe. Since they are an MLM company, you have the two common ways to earn money with them. It is by direct selling or by recruiting people to join the company and be your own team members. Sounds like it is very easy right? But remember how can you enter the company and how much you need to invest to be a successful retailer of LuLaRoe.

LuLaRoe has different types of levels when it comes to membership. And your bonus or commission will always depend on the level of membership you have. Those levels will require you to have a target of purchase per month to reach each level and earn more. Entering the company is already a big challenge for someone who is just starting, then earning is also a big challenge to them? You must really think of this, it might be effective to others but not to everyone.

I cannot give you the exact amount that an Independent Retailer is earning but the lowest percentage of commission is at 5% and the highest can be at $10 depending on the level of membership you have reached that month. They also have an incentive that they offer to the top consultants or leaders. What LuLaRoe do is they take 2% of the total sales of the company and will divide it to the numbers of top consultant that month. I believe at this point you are really thinking about the decision you will have at the end.

What I Don’t Like About LuLaRoe

There always things that we need to consider in a company. This will have a great impact on your decision prior to joining them and you might want to have other options aside from joining them right? Here are the things that I don’t like about LuLaRoe.

The startup fee is expensive.

Who would have an instant $5000 on their pocket in joining an MLM company right? For me, it will be more acceptable if I can have the chance to pick the item that I want as well as the sizes. I don’t want to take the risk of getting a product that I don’t even have the guarantee that it will be sold right away. It’s like hitting the moon from far away land and a great chance of losing your money in just a snap. If it’s going to be in an installment plan maybe I will have the second thought of trying it but in a one-time payment? It’s a no for me.

is lularoe a pyramid scheme

They received a lot of complaints.

While doing this review of course I was able to find out that there are a lot of complaints about LuLaRoe. Not just about the consultants but with the company itself they have faced some legal issues in the past and even a year after they launch the company.

I also found out that there was a Facebook group before that has 16000 members that started way back in 2017 and does include a lot of negative feedback about the products of LuLaRoe. And in the same year, a group of LuLaRoe customers files a lawsuit against the company. This is really unbelievable!

is lularoe a pyramid scheme

What I Like About LuLaRoe.

But besides that dislikes about LuLaRoe, I have one thing to like about them. It is their designs and being passionate about producing quality products. I know that they are receiving a lot of negative feedback about their clothes, but it is not their intention there are also some people who admire their designs especially the plus size clothes for women which are very in-demand right now.

Maybe they just need to have an improvement in their quality check since being their Fashion Retailer is not easy especially the cost of investment you will have in joining. It would be best to make it worth it and a reasonable price.

is lularoe a pyramid scheme

Is LuLaRoe a Pyramid Scheme? My final Thoughts.

I don’t want to be biased with this review. With all the pieces of information, I gather. I can say that they are not a scam. They really produce products or clothes and have proven sales. There are some people who have the courage to take the risk of joining them and investing a big amount of money.

But for me, I cannot really recommend this. I have to be honest that joining an MLM company is not a guaranteed way of earning money especially if you want this to be your full-time work. With that $5000 you have a lot of things to start of which you can be sure to gain something out of it instead of investing in something that you don’t know if where it will lead you.

If making money online is one thing that you really want to try, go ahead and check my Wealthy Affiliate Review. It will not ask you to invest $5000, it will just require you and your motivation. Legit and effective ways of earning money online will be given.

I hope that this “Is LuLaRoe a Pyramid Scheme” review serves its purpose to you. If you have anything to add or even suggestions, feel free to leave that in the comment box below. Til the next review. Cheers!


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