So how much do LuLaRoe consultants make? Whether you’re already a LuLaRoe consultant or are thinking of becoming one, you’re probably curious about how much the average consultant makes. Knowing what to expect will help you gauge whether or not consulting for LuLaRoe might be a good fit for you.
The LuLaRoe Compensation Plan
Exactly what does it take to become a LuLaRoe consultant? In short – a desire to start your own business, patience to wait in the LuLaRoe onboarding queue, and a significant up-front cost for purchasing a startup kit inventory package. The Onboarding Package includes a predetermined, unalterable variety of certain sizes and types of clothing, depending on the package you choose. You can only return items if they are damaged or if you later resign as a LuLaRoe consultant. If you do choose to resign, however, you’ll be charged a 15% restocking fee for returning your inventory — if you are able to return it at all.
- Cost: about $5,000-$9,000
- Product Type: Various styles, including best sellers
- Product Amount: about 280-500 pieces
- Wait Time: 6-8 weeks before purchase (or more, depending on how long you have to wait for the onboarding process to be completed; some consultants report waiting 10 weeks or more).
The LuLaRoe Home Office reports that profit margins range between 45%-60%. That’s a profit of $2,250-$3,000 for the $5,000 Onboarding Package, assuming that you can sell every item in the profit margin range provided. Consultants must sell a minimum of 33 clothing items per month to retain their active status. Certain exceptions apply, but nine months of inactivity usually results in a cancellation of the consultant’s agreement.
To give you an example of what you could expect to make, we’ll use a monthly profit of $2,625 as an example. In order to make a $2,625 profit per month, you would need to sell approximately 300 items of clothing each month. That’s $31,500 annually, and 3,600 items of clothing to sell annually. While this sounds like a significant amount of profit, you will unlikely be able to sell every item you are given, since the patterns, sizes, and styles you are sent are not within your control, and you will exhaust your network of friends and acquaintances very quickly. While some LuLaRoe consultants expand their market online, additional shipping costs may apply if you are sending your product through the mail to those who purchase it through Facebook parties or other means.
Some reviews of LuLaRoe report difficulty in selling items at first, and the need to expand to online marketing in order to achieve large profit margins.
In addition to whatever profits you make from selling clothing for LuLaRoe, you might receive a bonus if you are an “Eligible Consultant” – LuLaRoe defines an Eligible Consultant as a consultant who “has sponsored at least one other Consultant in the Consultant’s sales team and has met the personal production requirements set forth in the Leadership Bonus Plan” in LuLaRoe’s Income Disclosure Statement. This disclosure also states that the average annual bonus to Eligible U.S. Consultants is $424.81.
If you’re looking to make much larger bonuses, you’ll need to move up in rank and be in the top percentiles. Below is a table excerpt from LuLaRoe’s Annual bonus data from 2015. Notice that these are bonuses for people who have advanced from the Consultant position. If you’re wondering what your chances are of ever making a bonus of this type, you may be interested in using the Pyramid Scheme Scam Calculator.
Average Income Made by LuLaRoe Consultants
How much do you make selling LuLaRoe? A recent article from CBS Money News revealed the average dollar amount of retail goods sold by LuLaRoe consultants. According to internal LuLaRoe data, more than 70% of LuLaRoe representatives sold less than $5,000 worth of retail goods in a certain month. Less than 5% reported more than $10,000 in sales, and 8% of representatives sold nothing and ordered nothing.
What does that mean in terms of LuLaRoe consultant profits? Since LuLaRoe declined to answer CBS Money News’ questions about consultant profits, we don’t have hard data from the company itself (and they share no information about profits on their website). However, current and former LuLaRoe representatives have told CBS MoneyWatch that “it would be difficult to earn a return on $5,000 in sales and that $10,000 in revenue isn’t necessarily a sure-fire profit either, given operating expenses, inventory, and taxes.”
In other words, this data means that the average LuLaRoe consultant is not making a profit. While you’ll certainly find many success stories circulating around the internet, telling of consultants who’ve made a fortune from selling LuLaRoe, these stories do not represent the typical LuLaRoe consultant’s experience. Of course, there are other perks to becoming a consultant with LuLaRoe – but that might not be enough to offset the likelihood of low profitability.
How to Make More Than the Average LuLaRoe Consultant
If you’re determined to become more successful than the average LuLaRoe consultant, you’ll need to be prepared to dedicate significant time to planning, marketing, pop-up shop preparation, and goal setting so you’re far ahead of the curve. If you’ve decided to become a consultant or you’ve already gotten started and want some inspiration, get going with these tips.
- Plan: LuLaRoe and LuLaRoe consultants recommend a 72-Hour Game Plan as a way to jump-start a new LuLaRoe business or boost sales for an existing business. This LuLaRoe consultant’s YouTube video walks you through creating a 72-Hour Game Plan. You’ll essentially be making a list of 50 friends and acquaintances at whose homes you could host a pop-up shop, contacting them, and then promoting your pop-up shops by distributing fliers.
- Market: Starting with your friends is a great idea, but if you’re trying to sell at high volumes, you’ll need to market online.
- Prepare: Think about what you and your customers will need. Do you have enough hangers, display racks, and other items to set up shop? Do you know where you’ll host your pop-up locations? Do you have a reliable vehicle in which you can transport your inventory and display racks? You won’t be able to plan pop-up shops (and make money) until you actually have the items you need for your business.
- Set Goals: Know what you want and commit the time to making it happen. If you’re working full-time or working as a homemaker around the clock and trying to sell on the weekends for extra money, you may not be dedicating enough time to turn a profit on your LuLaRoe business. If selling for LuLaRoe is your main source of income, know how much you need to sell to meet your living expenses. That means creating a spreadsheet and working out the details, not just going on a hunch or hoping that the math will work out.
How to Get Started with LuLaRoe
If you’re not a current LuLaRoe consultant, you’ll first want to visit a pop-up shop (an in-home LuLaRoe party) to see, feel, and even try on LuLaRoe clothing. This will help you familiarize yourself with the products and what a pop-up shop requires; you’ll be able to get an idea of what other items you’ll need to set up your pop-up shop, such as hangers and racks.
If you decide to become a consultant, you’ll need to connect with an existing retailer. Existing retailers are mapped out across the United States in LuLaRoe’s Retail Finder. Zoom in to find retailers near you, and then select dots to view contact information. Contact information will include the retailer’s name, email, phone number, and social media links. Reach out to your preferred retailer to start the process of becoming a consultant.
Now you know about the LuLaRoe compensation plan and the typical income that its consultants make.
If you have the capital to invest in upfront costs, the marketing skills, and the desire to sell clothes online and at pop-up stores, LuLaRoe may be an option to consider.
To create a viable business that could be your main source of income, you will need to dedicate significant amounts of time toward planning, socializing, marketing, selling, and general operations management. You’ll also need to endeavor to beat the statistical odds, since most LuLaRoe consultants are not actually making a profit. Like all business decisions, it’s important to weigh the risks and benefits before you begin to sell or continue to sell LuLaRoe.
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