LuLaRoe Compensation Plan Breakdown & Consultant Reviews

LuLaRoe Consultant Reviews Scam compensation Plan

Welcome to my LuLaRoe Review.

Is LuLaRoe a scam or a legitimate company?

This is one of the questions that we are going to take out time with to get real answers to in this review.

We are going to share the information we’ve found on the company and who owns it, the products or services they offer, and a breakdown of the compensation plan and how you earn commissions.

The reason why I decided to take the time and review LuLaRoe was because I saw that it has a ton of people interested in both the clothing line it offers and the extra income opportunity.

LuLaRoe Review

I wanted to see what it was all about, and why so many people are checking it out.

Well, I am done researching and here is what I’ve found.

LuLaRoe Review – What Is It?

LuLaRoe is an MLM company that is in the clothing niche.

What Is LuLaRoe Consultant Reviews

It is best known for their stretchy pants that many women rave about due to its super soft, comfortable, that is also very fashionable.

They also offer additional clothing lines which I will get more in detail in my products section below.

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One thing that is very different when compared to other MLM companies is that you actually can’t buy any of the clothes that LuLaRoe offers from their website.

They don’t offer the clothing line in retail stored but that is not out of the norm for an MLM company.

If at any time you are interested in any of the clothes they offer, you will need to find a consultant for the company or what the company labels them as, “Independent Fashion Retailers”.

When compared to other MLM companies, the initial cost is quite high, but you are actually purchasing inventory to sell.

I’ve personally seen reps sell their clothing lines on social media platforms like Facebook, Instagram, and Pinterest.

So to recap what LuLaRoe is, it is an MLM company that is in the clothing niche, which the stretchy pants lead the clothing line sales and reps that want to get involved must purchase a lot of inventory. (we’ll talk about the cost later on)

Now, let’s get started.

The LuLaRoe Company Overview

The company LuLaRoe was founded back in 2012 by Deanne Brady and her hubby Mark Stidham.

LuLaRoe CEO and Company Information

They are based out of the state of California in Corona.

The company is a Multi-Level Marketing company that recruits distributors to sell products directly from the “fashion consultants” inventory and not forms the website through means of home parties, and social media primarily.

The clothing that LuLaRoe distributes is manufactured in Central American and Asian factories through an LA-based apparel company called MyDyer which also produced clothing for other retailers.

Back in 2016 LuLaRoe reported $1 billion in sales approximately making it one of if not the largest MLM companies back in 2016.

In 2017 it was reported that LuLaRoe had approximately 80k of independent distributors selling their clothing line.

Just like any company in the market with that kind of numbers, they had some negative reviews.

The negative reviews have come from people that used to be reps for the company and they have also been through some legal troubles that I will get more in detail in the section of my review that is labeled “LuLaRoe negative reviews”.

With that said, let’s move on to the next section of my review that covers the LuLaroe products that they offer.

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The LuLaRoe Products Review

Like it was mentioned before the main product that LuLaRoe offers are leggings or “stretchy pants” that have great designs and are very popular it turns out.

LuLaRoe Products and Catalog

Many of the various reviews that I’ve run across were very positive.

Some of the reviews talked about how comfortable they are compared to a pair of their “around the house” sweatpants” and were fashionable enough to go out to casual places.

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Many compared them to the comfort of pajamas.

LuLaRoe also offers shirts, dresses, and skirts etc. which claim to have the same type of comfort and style that the legging does.

When it comes to the products that LuLaRoe offers there is actually no shortage.

It is reported that the clothing line is based on modesty and beliefs partly from the Stidham’s Mormon religious beliefs.

One of the unique things that LuLaRoe does is when they release a pattern, they only release 5,000 copies of that pattern and once it sells out the pattern is not generally re-release.

It is known and verified by many distributors that the unicorn pattern is generally the best selling pattern.

Although the distributors can’t choose any particular pattern, they can choose a product and style.

The retail prices are not offered on their website because the clothing is all sold by the “independent fashion consultants” which they set the price according to what the company specifies.

Here is a breakdown of some of the clothing and products that LuLaRoe offers.

LulaRoe Leggings

It has been reported by customers that the leggings (stretchy pants) are very versatile.

Customers say they have worn the legging comfortably to the gym, to a casual nightclub, to yoga class, and even for everyday go to do errands type activities.

The legging line consists of:

  • Jordan Leggings
  • Kids Leggings
  • Jade Leggings

LulaRoe Dresses

LuLaRoe also offers dresses in their clothing line.

They have a few styles of dresses that offer several patterns, they include:

  • LulaRoe Amelia Dress
  • LulaRoe Ana Dress
  • Nicole Dress
  • Carly Dress
  • Julia Dress

LulaRoe Skirts

LuLaRoe also offers a wide variety of skirts as well with the most popular style being the maxi skirt.

The styles that LuLaRoe offers are:

  • Maxi Skirt
  • Lucy Skirt
  • Jill Skirt
  • Cassie Skirt
  • Lola Skirt
  • Azure Skirt
  • Madison Skirt

Like I’ve mentioned before they also offer children’s clothes as well, but what was not mentioned was that they also offer clothing for men.

Not sure if the legging is offered for men, but I think they have shirts for us guys.

The majority of reviews were very positive, I rarely ran into a negative review other than the ones I listed below, but mostly positive.

If you are looking for some of the clothes to try out that LuLaRoe offer, you don’t want to try to buy them from the website because you can’t.

The way to purchase some LuLaRoe clothing is to find one of their fashion consultants, they can be found on the social sites like Facebook, Pinterest, Instagram to name the more popular ones.

That really wraps up the products that LuLaRoe offers, let’s move to the next section of my review and talk about how you can earn money with LuLaRoe and discuss the compensation plan.

The LuLaRoe Compensation Plan Breakdown

LuLaroe compensation plan is structured in a unilevel pay plan.

LuLaRoe Consultant Compensation Plan Reviews

You can basically earn in 2 ways.

  • Direct Sales
  • Referrals and Team Members

The way that a unilevel pay plan is structured is all your personal referrals will be placed on your level one.

The way to get more levels or generations deep in your compensation plan structure is when your referrals and their referrals sponsor new people into the MLM business side of the company.

The way that a unilevel works are this:

  • 1st Level – These members are your personally referred fashion consultant only.
  • 2nd Level – These fashion consultant members on this level are referred from Level 1 members.
  • 3rd Level – These fashion consultant members on this level are referred from Level 2 members.
  • 4th Level – These fashion consultant members on this level are referred from Level 3 members.
  • And so on…

In 2015, the average earning per fashion consultant was reported to be around $85 annually from their downline members.

In 2016 the earnings were a bit more as you can see in the image below:

LuLaRoe Compensation Plan Average Earnings

The way that the majority of LuLaRoe distributors or (fashion consultants) promote the products to earn retail sales is through creative advertising strategies on Facebook and live streaming that present the inventory they have on hand, Pinterest, and Instagram with the new video feature it has.

Here is a breakdown of how the compensation plan structure and pay levels earn from the LuLaRoe opportunity.

LuLaRoe Consultant Compensation Plan Video

I hope you enjoyed the video overview on how the compensation plan works, let’s move on to how the ranks and qualifications are broken down.

There are 5 LuLaRoe Ranks and Qualifications

  • Consultant – When you first join you will be at the rank of Consultant. To stay at the Consultant rank you will need to purchase at least 33 pieces per month directly from LuLaRoe.
  • Sponsor – To qualify for Sponsor Rank you will need to have or purchase at least 175 pieces per month directly from LuLaRoe. You will also need to have 1 personally referred member.
  • Trainer – To qualify for Trainer Rank you will need to have or purchase at least 250 pieces per month directly from LuLaRoe. You will also need to have 3 personally referred direct members and at least 10 in your downline. You will also need a team volume of at least 1750 pieces. (personal volume doesn’t count)
  • Coach – To qualify for Coach Rank you will need to have or purchase at least 250 pieces per month directly from LuLaRoe. You will also need to have 3 Trainer Ranked team members in 3 different legs or lines. You will also need a team volume of at least 1750 pieces. (personal volume doesn’t count)
  • Mentor – To qualify for Coach Rank you will need to have or purchase at least 250 pieces per month directly from LuLaRoe. You will also need to have 3 Trainer Ranked team members and 3 Coach Ranked Team members in 6 different legs or lines. You will also need a team volume of at least 1750 pieces. (personal volume doesn’t count)

**Note on your monthly volume requirement for Trainer Rank and above:

  • If one of your directs purchase 175 pieces your monthly piece requirement drops by 50, you can do this a max of 3 times.

LuLaRoe Compensation Plan Structure Chart

LuLaRoe Consultant Earnings:

Sponsor Rank Earnings

  • Earn 5% from your direct referrals purchases from LuLaRoe.

Trainer Rank Earnings

  • Earn 5% from your direct referrals purchases from LuLaRoe.
  • Earn 3% from 2nd generation or 2nd line and below. (Trainer Rank and higher team members are not included)
  • Earn 1% from all of the 1st Trainer Ranked members team volume down per line.

Coach Rank Earnings

  • Earn 5% from your direct referrals purchases from LuLaRoe.
  • Earn 3% from the 2nd generation or 2nd line and below. (Trainer Rank and higher team members are not included)
  • Earn 1% from all of the 1st and 2nd Trainer Ranked members team volume down in a line.

Mentor Rank Earnings

  • Earn 5% from your direct referrals purchases from LuLaRoe.
  • Earn 3% from the 2nd generation or 2nd line and below. (Trainer Rank and higher team members are not included)
  • Earn 1% from all of the 1st and 2nd and 3rd Trainer Ranked members team volume down in a line.

LuLaRoe Leadership Pools

Trainer Rank Bonus Pool Points Per Rank

  • Earns 1 point.
  • Earn 1 point from the first qualified trainer in any of your personally referred member’s team.

Coach Rank Bonus Pool Points Per Rank

  • Earns 2 points.
  • Earn 1 point from the first qualified trainer in any of your personally referred member’s line and 2 points for a second trainer that is in the 1st found Trainer Ranked members line.

Member Rank Bonus Pool Points Per Rank

  • Earns 2 points.
  • Earn 1 point from the first qualified trainer in any of your personally referred member’s line and 2 points for a second trainer that is in the 1st found Trainer Ranked members line.

LuLaRoe Leadership Bonus Pool Explained

The way that the LuLaRoe leadership poll works are the company is going to take 2% of the entire company sales and divide and distribute the earning to all qualifying leadership bonus pool team members that have points.

The more points you have, the more commissions you will receive from the company bonus pool.

I hope that my breakdown of how the LuLaroe compensation plan works and how you get paid answered all of your questions.

The next section of my review will cover the LuLaRoe negative reviews.

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LuLaRoe Negative Reviews

These are some of the negative LuLaRoe reviews that I’ve found from various sources.

These include some of the legal issues that LuLaRoe has encountered.

Let’s get started…

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Back in late 2016, there were many customers that reporting the leggings were poorly manufactured and started ripping even shortly after wearing them for the first time.

When 2017 rolled around they started getting hit by various negative reviews including the BBB.

The BBB actually downgraded LuLaRoe’s rating to an “F” due to failed responses from the company from the BBB for customers complaining about sales tax in states where there was no sales tax on clothes.

A Facebook group was started in March 2017 that accumulated 16,000 members sharing a ton of negative reviews that included pictures of torn leggings.

In the same month of March, a group of customers got together and files a lawsuit to sue the company.

The company responded saying that it was due to a manufacturing process that was damaged at the time that was resulting in weaker fibers while in the softening process.

By April, in the same year, the Facebook group grew to 26,000 members with more negative reviews and pics being circulated.

In response, the CEO made it much easier for customers and reps (fashion consultants) to get refunds for defective products.

Even with the new process making it easier to receive refunds, customers were still posting negative reviews saying that they were not getting their refund for the defective product that they had purchased in August 2017.

With more negative reviews piling up on social media and other platforms, they changed their refund policy again that caused a ton of negative backlash yet again.

The change was that customers and consultants would only receive 90% of the product purchase, and also have to pay for shipping and handling to send the defective back to the company.

This also causes a petition to start that was to grandfather in the old policies for the consultants that were in the process of canceling their distributorships.

California filed a class action lawsuit in October 2017, accusing the company of being a Pyramid Scheme.

The $1 billion lawsuits included misconduct that included unfair business practices, breach of contract, and misleading advertising.

More negative LuLaRoe reviews happened this year with the National Down Syndrome Society (NDSS) which is a charity foundation that worked with the company ended their relationship with LuLaRoe stating it was due to some of the top distributors were caught making fun of people with mental illness during a live stream on Facebook.

The NDSS requested that LuLaRoe fire or terminate the consultants that were involved but decided to decline and accept the consultant’s apology.

This led to even more negative reviews and criticism.

And the last negative LuLaRoe reviews that I’ve found was this year (2018) in March.

Some of the Consultants were still complaining that they had still not got a refund check for returns to make under the 2017 policy that was created.

This pretty much covers the negative reviews that were found on LuLaRoe dating back to 2016 to now.

Let’s move to the next section of my review which covers the steps to become a LuLaRoe Consultant.

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How Do You Become A LuLaRoe Consultant?

These are the steps you will need to complete in order to become a LuLaRoe consultant.

Step 1 – You will need to complete an application either online or through a paper application. (Paper applications require you to scan and fax/email the app with a voided check)

Step 2 – Next is to complete an onboarding checklist. (You will need to choose the items you want in your collection for your personal inventory. Each “style” will have 40-80 pieces)

Below is a description of an example order:

  • 80 pairs of the leggings = 15 of the one-size-fits-all, 10 of the tall and curvy, 5 of the tween, 5 of the kids small/medium, and 5 of the kids large/extra large

Step 3 – Next you will need to choose one of the package options which include:

  • Package 1 will cost $4,812 for 336 pieces of clothing.
  • Package 2 will cost $5,365 for 365 pieces of clothing.
  • Package 3 will cost $6,784 for 463 pieces of clothing.

Step 4 – You will need to maintain a monthly purchase requirement to earn commissions through the compensation plan. (refer to a more detailed explanation in the compensation plan section of my review)

Here is a quick recap of what you will need to qualify to earn from the pay plan.

  • You will need a 33 piece order per month to qualify for the rank of Consultant to get paid.
  • You will need a 175 piece order per month to qualify for the rank of Sponsor to get paid.
  • You will need a 1,750 piece order from your downline team for the rank of Trainer to qualify to earn from the pay plan.

That’s it!

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You are now an official LuLaRoe fashion consultant.

The next section of my review covers frequently asked questions that people have asked about LuLaRoe.

LuLaRoe FAQ

The frequently asked questions cover various questions from the total cost to get started, better business questions, and if this opportunity is a scam even with all the negative reviews LuLaRoe has had in the past.

What Is The Total Cost Going To Be To Become A LuLaRoe Consultant?

What is the TOTAL cost to become a LuLaRoe Consultant?

I did cover the cost to join as a consultant but I wanted to cover all of the money that it would cost plus any additional items that you would need to purchase as well.

The total price that you are looking at when you join is going to be around $5,000 to $6,000 to get started with the consultant starter kit.

Basically, the inventory cost from LuLaRoe will be about $4,900 plus you will need additional items like hangers, a website, business cards, extra closet space… etc.

What is in the LuLaRoe Start-Up Kit?

When you join, LuLaRoe Consultants receive marketing materials in their starter kit which include:

LuLaRoe Starter Kit Image

  • A cool little training booklet
  • A cute spiral notebook planner
  • The LuLaRoe catalog
  • Fabric swatches
  • Clothing hangers
  • Some thank-you cards
  • Some additional flyers for advertising
  • Additional promotional materials
  • A stack of sign-in sheets

Is LuLaRoe Accredited With The BBB?

When I was looking up information on the Better Business Bureau I found a lot of concerning negative reviews.

Some of the complaints consisted of defective and/or poor quality products.

Customers also claimed that some of them had been double charged for orders, and also some customers were being charges wrongly for taxes in some states.

Some additional bad reviews explained how difficult it was to reach customer service for support in resolving some issues they were having.

It was stated on the BBB website that they tried to contact the company with information about resolving these issues that customers were having with no reply back from the LuLaRoe company.

This resulted in a BBB rating of an “F”.

  • A BBB Rating of “F”
  • 398 complaints filed against business
  • Failure to respond to 60 complaints filed against business
  • 14 complaints filed against business that were not resolved
  • Length of time business has taken to respond to complaint(s)
  • Business has failed to resolve underlying causes of a pattern of complaints

Although the BBB is rating them an F, I have my concerns about their rating system because it has been documented that their system can be manipulated by a national news station report.

Someone can actually pay for a service to get their ratings higher with fake reviews.

One can only assume that these services can supply a negative effect as well.

With that said, there is documentation of many of these complaints that match many of the negative reviews found on the BBB website.

Is LuLaRoe A Scam?

Is the LuLaRoe opportunity a scam?

Is LuLaRoe A Scam

No, it is not in my opinion.

They have troubled times and actually pissed many customers off, but the company has tried to resolve many of these issues personally and not through websites like the BBB.

Could they do some things differently?

Of course, I think whoever runs their PR should be fired and replaced with someone that knows what they are doing because it doesn’t look like they tried to resolve many of these issues correctly through social media at all.

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My Final LuLaRoe Review and Thoughts

Let’s recap everything that was discussed.

Some of the Pros

  • So we have some legitimate owners that are very transparent in who they are and what they offer.
  • The products are amazing and have some incredible reviews that I’ve found.
  • The compensation plan seems to be a fair one, that offers commissions that you can earn a full-time income with.
  • The opportunity to create your own business and retire.
  • The opportunity to show off the clothing line and meet new people through house parties , social media, and get-togethers.
  • It’s not a scam.

Some of the Cons

  • There are negative reviews but mainly stem from a bad manufacturing process that lasted for probably longer than what LuLaRoe really wanted before it was caught that results in a domino effect of bad customer service issues, customer complaints about the clothing ripping, and refund issues.
  • The BBB still has a rating of an “F”.
  • The start-up cost is quite substantial.
  • For me personally, I hate to stock inventory
  • For me personally – You are required to purchase a bulk supply to get started as a consultant.

Personally, I feel that they need to clean up their image right now and get out there and make things right again.

They have to go above and beyond to basically “kiss ass”.

I personally feel that this would be a great opportunity to look into only if you can afford it without taking any money away from your dinner plate.

If you see that something that you are attracted to as far as the clothing line go ahead and try it out for yourself first.

Get a couple items from their catalog to try a diversity of styles first.

If you do jump into taking some action like many of the Youtubers, Facebook page, and group owners, and Pinterest and Instagram marketers and get your product out there in a creative way.

If you were to ask me if I would join LuLaRoe?

I would have to say, most likely not.

The clothing line niche and the fact that they want you to buy a ton of items for your personal inventory to distribute via direct sales is definitely not my style at all.

With that said, becoming a LuLaRoe Consultant might be perfect for you.

I hope you enjoyed my LuLaRoe review of the compensation plan, the products and the company with an overview of the negative reviews that were found and my personal thoughts on why the negativity and ways on fixing it all.

Please make sure to share this review with others so that they can learn more about what the LuLaRoe opportunity is all about.

Thank you.

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