LuLaRoe Review | Trust Score & Ratings

Founded2012

HeadquartersCorona, California

Trust Score83/100

About LuLaRoe

LuLaRoe is an MLM company based in Corona, California, that specializes in colorful women's and children's clothing. Founded in 2012, it gained popularity for its comfortable leggings and unique prints, generating an estimated $2.3 billion in revenue at its peak.

LuLaRoe operates on a Unilevel compensation plan, where independent distributors buy inventory upfront and earn commissions through sales and team-building. However, they face moderate risk; there are monthly activity requirements and a standard MLM structure that might not be suitable for everyone.

With a Trust Score of 80/100 and a Trustpilot rating of 3.3/5, LuLaRoe has had its ups and downs. It's crucial to review their income disclosure before diving in, as many distributors don’t earn substantial income.

Pros and Cons

✓ Pros

Flexible schedule
You can set your own hours and work as much or as little as you want.
Community support
There's a strong sense of community among distributors, which can be motivating and helpful.
Diverse product range
LuLaRoe offers a variety of clothing styles, which can appeal to a broad customer base.
Potential for high earnings
Top earners can make significant money, especially with team-building bonuses.

✗ Cons

High startup costs
Distributors must invest a substantial amount upfront to buy inventory.
Income variance
Many distributors struggle to make a profit, with some reports showing earnings below minimum wage.
Sales pressure
There’s pressure to constantly sell and recruit to maintain income, which can be stressful.
Customer return issues
There have been complaints about product quality, leading to returns and lost sales.
Monthly sales quotas
You need to meet specific sales requirements to earn full commissions, which can be tough.

Verdict: LuLaRoe has its perks, like flexibility and community, but the high startup costs and pressure to sell can be off-putting. If you're considering it, weigh the risks carefully before diving in.

Best for: This may suit someone who loves fashion and enjoys sales, but it's probably not ideal for someone looking for a low-risk investment or guaranteed income.

Risk Analysis

LuLaRoe has a moderate risk profile, primarily due to its standard MLM structure and monthly activity requirements that can pressure distributors. While there are some positive aspects, potential distributors should be cautious and do their homework.

Key Concerns

Standard MLM compensation structure may limit earnings moderate
Compensation is heavily reliant on recruitment and sales volume, common in MLMs.
Monthly activity requirements for commissions high
Distributors must maintain sales to qualify for full commissions, which can create financial pressure.

Positive Indicators

Established brand since 2012
LuLaRoe has been in business for over a decade, indicating some level of stability.
Diverse product offerings
They offer a variety of clothing, which can appeal to a broad customer base.

Consumer Advice: If you're considering joining LuLaRoe, be sure to read their income disclosure statements carefully. Understand the risks and prepare for the possibility that you might not earn back your initial investment.

Frequently Asked Questions About LuLaRoe

Is LuLaRoe a legitimate MLM company?

Yes, LuLaRoe is a legitimate MLM company that was founded in 2012. They have a solid presence in the market, but like any MLM, it's crucial to do your research and understand the risks involved.

What products does LuLaRoe sell?

LuLaRoe primarily sells women's clothing, including leggings, dresses, and tops. They’re known for their colorful patterns and unique styles, which many customers love.

How much can you make with LuLaRoe?

Earnings with LuLaRoe can vary widely. Distributors earn money through sales and commissions based on their team’s performance, but exact figures can be hard to pin down. Always check the company’s income disclosure statement for more clarity.

Are there complaints about LuLaRoe?

Yes, there are several complaints about LuLaRoe, especially regarding inventory and product quality. Some former distributors have voiced frustrations about unsold inventory and the pressure to recruit.

What is LuLaRoe's compensation plan like?

LuLaRoe uses a Unilevel compensation structure. Distributors earn from retail sales and can also get commissions based on their team's sales. The more you sell and recruit, the higher your potential earnings.

How much does it cost to join LuLaRoe?

Joining LuLaRoe usually requires an initial investment to purchase inventory. This can range from $500 to $5,000, depending on the package you choose.

What is LuLaRoe's BBB rating?

LuLaRoe currently doesn't have a rating from the Better Business Bureau (BBB), which means they may not be accredited or have enough complaints to warrant a rating. This can be a red flag for some potential distributors.

Is LuLaRoe worth joining?

Whether LuLaRoe is worth joining depends on your goals. If you love their products and are passionate about selling, it might work for you. Just be aware of the financial risks and do your homework.

What are some alternatives to LuLaRoe?

If you’re looking for alternatives to LuLaRoe, consider other clothing MLMs like Stella & Dot or Zaya Active. Each has its own vibe and products, so check them out to see what fits you best.

What is LuLaRoe's trust score?

LuLaRoe has a trust score of 80 out of 100. This indicates a generally positive perception, but always look for firsthand experiences before deciding to join.

Compensation Plan

Plan Type

LuLaRoe uses a Unilevel plan. This means you can earn money from your sales and from the sales of people you recruit into your team.

How Earnings Work

Retail Profit: You buy clothes at a wholesale price and sell them at a higher retail price. You keep the difference, which can be around 20-30%.
Team Commissions: When you recruit others to sell LuLaRoe, you earn commissions based on their sales, too.
Bonuses: As you sell more and help your team sell more, you can unlock bonuses and higher commission rates.

Qualification Requirements

You need to maintain a minimum amount of personal sales each month to earn commissions.
If you're aiming for leadership ranks, you’ll need to hit specific sales targets and have a certain number of active recruits.