LuLaRoe is a sought-after brand among young women. The company’s popularity is due to its trademark fun and colorful leggings and the success of some LuLaRoe shoppers turned LuLaRoe consultants.
Wondering if becoming a LuLaRoe consultant is right for you? Interested in learning about LuLaRoe consultant perks, rewards, and benefits? You’ve come to the right place — this article will cover all the basics about the company, the LuLaRoe consultant perks you can look forward to, and how you can get started selling your own inventory of LuLaRoe clothing.
In This Article
- What Is LuLaRoe?
- What Are the LuLaRoe Consultant Perks You Can Look Forward To?
- How Do I Become a Consultant?
- Other Direct Sales Companies Similar to LuLaRoe
What Is LuLaRoe?
LuLaRoe, according to its website, is where “Style Meets Comfort.” Known for its “butter soft” leggings in various patterns, LuLaRoe may have recently taken over your Facebook feed through friends and family members who sell it. Other offerings in the clothing collection include tops, skirts, dresses, and children’s sizes, plus men’s t-shirts. Sizes range from XXS to 3XL. Depending on the item, the clothing is made of blends of cotton, polyester, spandex, and rayon.
The most unique aspect of LuLaRoe’s line its claim that for each pattern used, it only cuts only about 1,000 pieces of clothing. Patterns range from muted and modern to fun and wacky, including a unicorn pattern that was in high demand. This led to other hard-to-find patterns being called “unicorns” for their elusive nature.
Founded in 2013 and based in California, LuLaRoe is a multi-level marketing company, which means it does not sell to traditional retailers but solely to its sales consultants, who in turn sell directly to customers.
How much do LuLaRoe consultants pay for leggings? Sales consultants purchase the clothing at wholesale prices from LuLaRoe and sell the items at “pop-up” boutiques at retail prices set by the seller (within limits set by the company). These pop-ups can be online, at an event, or in a person’s home.
LuLaRoe sales consultants earn money by selling the clothing and recruiting other sales consultants to join their “team.” Consultants who sponsor new sellers earn a percentage of the sales of their team members.
Be aware that multi-level marketing companies, including LuLaRoe, are controversial. LuLaRoe faces accusations of operating a pyramid scheme in a lawsuit put forth by the State of Washington. Additionally, the company is not accredited by the Better Business Bureau, which issued a consumer alert about the company in 2017.
Even if you have no issue with the direct sales business or this company’s particular business practices, you’ll want to keep in mind that the success of the company’s highest-level sellers isn’t typical or reflective of the experience of all consultants.
The Perks of Being a LuLaRoe Consultant
Each consultant has his or her own reasons for selling LuLaRoe. A large percentage of LuLaRoe consultants are looking to supplement their main source of income. And many stay-at-home moms become LuLaRoe consultants to be able to contribute to their family’s income and still have the flexibility to care for their children. Although LuLaRoe’s consultants are not offered benefits like health insurance, dental insurance, or a 401(k), there are still some enticing perks to becoming an independent sales consultant.
Keep in mind that the term “perk” is subjective; what may be a perk to one person could very well be a hindrance to someone else. After examining the LuLaRoe reviews on Glassdoor, here are the primary “perks” sellers have noted, with both pros and cons listed for each. (Note: No mention of perks or benefits are listed on LuLaRoe’s company website. Therefore, the information below was gathered based on reviews and interviews with LuLaRoe consultants.)
- Pros: Profit on the markup of an item can be approximately 30% to 60%, depending on the wholesale cost from LuLaRoe to the sales consultant and the retail price of the item. If a pair of leggings costs the consultant $10 and are sold to a customer for $20, that’s a $10 profit, or a 100% margin (which is not uncommon for a LuLaRoe sale). If a consultant sells 100 pairs of leggings in a week, they have earned $1,000 in profit in one week. (Want to know how much a consultant makes, on average? Find out in our article: Average LulaRoe Consultant Income Revealed). Those who also recruit sales consultants to their team can earn bonuses off the orders made by those consultants (this is known as the consultant’s downline). These bonuses are approximately 3% to 5% of the price of the orders made by the consultants on a seller’s team.
- Cons: You have to use your own money or credit card for startup costs. Initial purchase requirements can be around $6,000, and sometimes even more once you factor in the need for hangers, business cards, and bags to transport the clothing. Some consultants go so far as to buy cameras and mannequins in order to take professional photos of the merchandise for Facebook pop-up shops. LuLaRoe does not reimburse for these types of expenses. Recouping the initial startup costs can take anywhere from six weeks to four months, and maybe longer, depending on how aggressive you are in making sales. A consultant also needs to put money back into the business by buying more inventory to keep her status as an active consultant. Therefore, you may or make not make a profit, and it will likely take some time to recoup your investment.
- Pros: Of all the LuLaRoe consultant perks, this is one you may find the most valuable. Because a sales consultant for LuLaRoe works from home, there is tremendous flexibility with how many hours a consultant works and when she works those hours. This is appealing for stay-at-home moms or those with a part-time job. It’s not mandatory for the job hours to be 8 a.m. to 5 p.m. like a typical corporate office job. It’s not even mandatory that eight hours a day are worked — consultants can work as much or as little as they want in any given week. You are your own boss.
- Cons: If you’re the type of worker who needs to be told what to do or likes structure in her day, this may not be the job for you. Working from home and running your own business takes enormous self-discipline and many hours of work to make it successful. You may end up working more than 40 hours a week and working on weekends. In-home pop-up boutiques are typically held at a hostess’s home on a weekend or evening, and while you have flexibility in scheduling them, they still require a lot of work: loading the clothing into your vehicle, unloading it at the hostess’s home, and setting up the clothing racks — and that’s before you’ve done any selling. Once the pop-up boutique is done, everything that hasn’t sold has to be packed up again, and racks disassembled and hauled back to the car. You don’t have to put in the standard 40-hour work week, but that doesn’t mean that you can expect instant success without putting in just as many, if not more, hours than a typical office job would require of you.
Discount on Clothing
- Pros: Because you are purchasing the clothing from LuLaRoe when you order for your inventory, you can keep whatever items you want, and you’ll always be paying wholesale price. You have first dibs on the inventory when it arrives. If you buy a lot of LuLaRoe clothing already, you could net a significant savings if you’re simply keeping your favorite items out of your own inventory.
- Cons: If you don’t like bold patterns and stretchy materials, you may not like LuLaRoe clothing — so access to the clothes at wholesale prices may not have any value to you. As noted in the Better Business Bureau consumer alert mentioned above, some customers have also complained about the quality of LuLaRoe clothing. If you do decide to hold on to certain pieces for your own closet, you should also keep in mind that any items that you keep for yourself are items you aren’t able to sell for a profit.
Engaging with Your Community
- Pros: In many areas, LuLaRoe consultants have built up support networks so that consultants can exchange inventory and help each other find success. If you love to meet new people and make new friends, this is a perk. If you participate in these types of meetups, you’ll find yourself networking with many other driven people with similar interests and goals as yourself. Not only will you meet other consultants, you’ll also meet the people who attend pop-up shops every time you organize one of these events. LuLaRoe also has a department dedicated to fundraising for worthy causes, and the company offers to match donations that consultants make through their sales. Consultants can work with schools, charities, or any reputable organization that supports an important mission to improve their communities.
- Cons: If you’re not much of a people person, the thought of meeting that many new people could make you cringe. Most consultants who are successful with LuLaRoe are outgoing, engaging, and have a great sense of salesmanship; your main goal will be to interact with as many people as possible and convince them to spend their money, so if that doesn’t appeal to you, LuLaRoe may not be the ideal company for you.
How to Become an Independent LuLaRoe Consultant
Before you begin, we recommend that you do plenty of research before purchasing $6,000 worth of LuLaRoe inventory. Try speaking with current and former LuLaRoe consultants locally and/or online. Ask what they love(d) about the job and the company — and also what they don’t/didn’t love.
Besides the initial startup cost, consider the other costs you’ll incur as you start a business. Factor in the cost of hangers, bags, business cards, packaging, postage etc. Check out our article How to Become a LuLaRoe Consultant (All LuLaRoe Consultant Costs Listed) for more details.
You’ll also want to make a spreadsheet to figure out how long it will be before you see a profit. Think through how many pieces a week you think you can realistically sell and how you plan to achieve this goal.
If you decide that being a LuLaRoe consultant is right for you, you’ll need to sign up through a current LuLaRoe consultant. If you don’t know a LuLaRoe consultant who can be your sponsor, you can find one in your area on the “Join LuLaRoe” page.
Keep in mind that there will likely be a waiting period before you’ll be onboarded as a LuLaRoe consultant. For more information on how long you can expect to wait, check out our article The LuLaRoe Onboarding Queue + How Long You’ll Wait.
Other Direct Sales Companies Similar to LuLaRoe
LuLaRoe is far from the only company which offers these sorts of perks and benefits to consultants. If the idea of direct sales interests you, but clothing doesn’t, there is likely a company out there that would suit your interests. The same cautions apply when considering any direct sales company: you should research the company’s business practices and customer complaints, reaching out to current and former salespeople in order to determine whether joining will be a wise decision for you.
There are other options out there, too. Our article Essential Oils Direct Sales: How to Sell Essential Oils from Home will help you decide if selling essential oils is right for you. Not interested in aromatherapy? Check out this even more extensive article Best Home Party Businesses: The 20 Most Popular Home Party Companies, which includes Pampered Chef, Avon, Arbonne International, Stampin’ Up, and many more.
As with any job or career (or major investment), consider deeply if being a LuLaRoe consultant a good fit for you. There are plenty of perks to becoming a LuLaRoe consultant, not all of them financial — but there are also risks and drawback associated with multi-level marketing companies. If, after reading this article, you’re more excited than ever about becoming a LuLaRoe consultant and getting out there to sell some clothes, working as a sales consultant for LuLaRoe may very well be your dream job.
Not totally sold on LuLaRoe, or do you like working on multiple projects? Consider taking a look at our article: The List of Real Jobs You Can Do from Home