If you’re a fashion-savvy millennial woman, you’ve likely heard of LuLaRoe. You may even have some of the company’s clothing in your closet. LuLaRoe was created by DeAnne Stidham, a mom of seven who always wanted to start her own clothing line. Stidham wanted to give other stay-at-home moms the power to earn money while still having the freedom to spend time with their families and loved ones, so she decided to open up the opportunity for women all over the country to become LulaRoe consultants. What started out as a small local business has grown exponentially over the last few years to a nationwide brand.
Many women are getting in on LuLaRoe’s profits by becoming consultants. These consultants are selling the clothing — which cannot be found online or in brick-and-mortar stores — and some are raking in commissions as high as 60%. If being a LuLaRoe consultant sounds like your dream job, you’ve come to the right place: below we’ve outlined what you need to know about becoming a LuLaRoe consultant, including all the costs of getting started.
How to Become a LuLaRoe Consultant: LuLaRoe Consultant Costs Included
If you’re interested in becoming a LuLaRoe consultant, you’ll first need to find and contact someone who is already a consultant so they can provide you with an application to sign up. Once you submit the application, you are added to a waitlist to be on-boarded. Be prepared – waiting for your turn could take weeks or even months (up to eight weeks is common).
While you’re waiting, you can begin assembling all the materials you’ll need to become a successful LuLaRoe consultant. You’re welcome to customize your business plan for selling LuLaRoe products however you’d like, but at a minimum, here are some recommended materials to get you started:
- Hangers and display racks for storage
- Dress forms for displaying merchandise
- Flyers, business cards and other promotional materials
- Shipping materials for sending items by mail
- Thank you cards for buyers
- Notebook or planner to keep track of engagements, shipment dates, etc.
- A website and social media strategy
The individual costs for each of these items will vary widely depending on how much of an inventory you plan to stock and what kinds of deals you can find, but you can expect to spend $500 – $600 on these incidentals — and this is before you’ve actually purchased any clothing to sell.
When you begin as a new consultant, you’ll have the opportunity to choose your starter kit. The contents of the kit will vary, but typically it will include skirts, dresses, tops, and leggings in a variety of patterns and sizes.Depending on the package you choose, you will receive 44-75 pieces of each style.
You can choose the selling price for the items in your inventory, but LuLaRoe sets a minimum advertised price (MAP) which varies by item and defines the lowest price at which you can sell a piece. The MAP for a particular item is typically between $18 – $65. You can expect to make 30 – 60% of the sale price in commission on each item (we’ll talk about compensation levels in detail later). The company pays for all shipping costs delivering the items to you. Delivery is quick; you should receive your items within three days after you pay for them.
Depending on which package you choose, you can expect to spend $5,000 – $6,000 at the very minimum to get started as a LuLaRoe consultant.
How to Earn Money Selling LuLaRoe Products
While LuLaRoe’s founder, DeAnne Stidham, holds weekly conference calls to offer sales tips and words of encouragement, consultants are basically on their own when it comes to making sales. Most consultants agree that being a LuLaRoe retailer isn’t ideal for beginners; it takes a lot of marketing knowledge and salesmanship to be really successful, especially considering the high costs to get started.
Many women host parties — either online or at physical locations — in order to drive sales. It is recommended that you host at least one party per week. One party typically nets $300 in profit, with an average of $15 in commission per piece sold. At this rate, you can expect to get back you initial investment of roughly $6,000 after holding 20 parties. If you’re a go-getter and host several parties per week, it may take you only two to three months to start making a profit.
There are several levels of compensation based on your role at LuLaRoe. The company is considered a multi-level marketing company, similar to Herbalife, Tupperware, and Mary Kay. This means that you can earn money not only from you own sales, but also from the sales of others on you team.
When you first start out with the company as a fashion consultant, you’ll receive 35-50% commission on your sales, based on the prices you charge and the amount and type of inventory you sell. You must remain active and order at least 33 pieces per month in order to receive payment.
Once you have been a consultant for some time, you can sponsor newer consultants. When consultants that you sponsor place orders, you will receive a 5% bonus based on their order amounts.
After that, you can move up to trainer, and that’s where compensation gets a bit confusing. In order to qualify as a trainer, you must have at least 10 consultants on your team, including three that you personally sponsor. You must purchase at least 250 clothing pieces yourself every month, and 1,750 pieces as a group (the pieces you purchase are excluded from this number).
At this level, you will receive a 3% bonus from each member of your team, except for those consultants that you personally sponsor; from these consultants, you receive a 5% bonus. As a trainer, you become part of the LuLaRoe Leadership Pool and you’ll work off of a points system for additional earning opportunities.
The next level after trainer is coach, which requires you to have three trainers on your team. As a mentor — the final level — you will need to meet all the requirements of a trainer. You will also need three coaches on your team, as well as three other people in leadership roles. In both of these roles, you’ll receive a 1% bonus on certain orders as well as points.
Your customers pay for clothing directly through LuLaRoe’s payment system. The company takes out the credit card processing fee and sales tax. The commission is then automatically deposited into your checking account. It usually takes about 2-3 days for the funds to process and become available in your checking account. You’ll be paid daily, for all transactions that day (instead of being paid after each individual transaction). Bonuses from other sellers on your team are paid by check once per month.
Tips for Success as a LuLaRoe Retailer
A website is a must. Creating an e-commerce website is an investment in time and money, but it will pay dividends down the line as your business expands. Social media is also a key component to LuLaRoe success. It’s not uncommon for high-achieving consultants to create daily posts with text, images, and video on Facebook, YouTube, Periscope, and other social media platforms to advertise the pieces in their inventory.
You may also choose to invest in business cards and flyers to pass out at your children’s schools, in stores, at events, and anywhere else you can potentially gain new customers.
Many women are making tens of thousands of dollars a month selling the wildly popular LuLaRoe clothing lines from their homes.
The same article details the experiences of another consultant who claims to sell as many as 1,000 pieces of clothing each month. The mother of two continues to work at her full-time job at the Department of Defense. Her husband, on the other hand, quit his job at the same agency in order to focus on LuLaRoe full time. While these stories may be outliers rather than a representative average, there’s no doubt that many sellers have had incredible success as LuLaRoe consultants.
Reported Negative Experiences
LuLaRoe is known to strictly moderate negative posts from their consultants on LuLaRoe-affiliated pages, so unfavorable reviews are relatively few and far between. However, one woman looking to become a consultant was not afraid to share her negative experience with LuLaRoe. She became interested in the clothing line after a friend introduced her to the company’s wildly popular leggings. After buying an extensive LuLaRoe wardrobe, the woman applied to become a consultant. She was promised that she would receive at least 25 free clothing pieces as well as the ability to pick out the styles of clothing she wanted to carry. She was told she’d be on-boarded within eight weeks, but instead ended up waiting more than 10 weeks.
The would-be seller was then told she’d no longer get the kit she wanted. Instead, she was informed all sellers would receive the same kit, which consisted of 300 pieces and would cost $5,650 ($700 more than she had anticipated). The kit included only six styles of clothing, and no leggings, which are the company’s top seller. LuLaRoe also stated that she would receive no free items at all unless she bought a kid’s package for an additional $1,300.
During this time, the woman had spent $500 preparing to start her business. Finally, after LuLaRoe attempted to call her multiple times at a wrong number and then informed her that she would be put on a waiting list for several more months, the woman finally called it quits before she even started. While this isn’t everyone’s experience, it’s important to know that stories like this exist and carefully do all of your research before entering into a new business opportunity.
Companies Like LuLaRoe
LuLaRoe requires a huge initial investment (up to $6,000), which can be an intimidating prospect for anyone, especially for stay-at-home moms who have no other income. If you’re wary of plunking down thousands of dollars for a start-up kit with no guarantee that you’ll get your money back, there are some companies similar to LuLaRoe that could be a better place to start.
Ava Rose Designs
- Products sold: Casual clothing for girls and women
- Upfront costs: $299
- Commission: 20 – 30%
- Get started with Ava Rose Designs
Stella & Dot
- Products sold: Jewelry, bags, and accessories
- Upfront costs: $199 – $699, depending on which kit you choose
- Commission: 25 – 35%
- Get started with Stella & Dot
Many consultants have been extremely successful selling LuLaRoe clothing, but while the clothing is cute and comfortable, it’s also pricey. The price can deter customers and reduce sales. Working as a LuLaRoe consultant isn’t for everyone; you need to have the right personality in order to succeed. If you possess excellent marketing and sales skills and have plenty of friends and acquaintances who love LuLaRoe clothing and you , then you’re poised for success. You have to be driven and ambitious, because, like any entrepreneurial venture, you’ll ultimately be responsible for your own success.