LuLaRoe MLM Review

Hey there sea changers, and welcome back to my series of MLM reviews. Today we are going to stitch up a look into the clothing/fashion industry with my LuLaRoe MLM Review. The online sale of clothing is an extremely lucrative one with many making a good living selling new and used clothing via online stores and affiliate marketing. Added to this obviously is the ever growing array of clothing based multi level marketing programs that appear to be popping up more and more. So, what is the LuLaRoe MLM all about? Let's check it out and see…

What is MLM?

Multi-level marketing (MLM) programs are the traditional mainstay of the ‘party plan' world of products such as Tupperware, Mary Kay and Amway etc. and, of course within the beauty/cosmetics, supplements and essential oils markets. It is not as prevalent within the clothing industry but as MLMs have become more popular in recent times – mainly due to the fact that much of the sales and marketing is now being managed online – companies in other niches are starting to get in on the action.

The ‘multi level' aspects of MLM come from its hierarchical nature in which you make commissions based not only on those that you sell to, but also the sales of those whom you ‘sign' into membership arrangements as well.

In short, the process works as follows:

1. You join the program, either via referral from another person (known as your up line) or directly through their website.
2. You promote the products of the company via parties, workshops or online.
3. As you make sales, you offer incentives to your customers to sign up as a member of the program (there are different names for this but they all mean the same thing).
4. That new member is then placed ‘underneath' you in a hierarchical arrangement (known as your down line).
5. You, and a number of levels of your up line, then gain extra commissions for everything they sell as well.
6. If they manage to refer their customers into memberships, they also become a member of your down line allowing you to make up line commissions as well.

The number of levels of your up and down lines will vary depending on the program you have joined. Commission rates will also change as your down line grows or contracts and many will also offer other incentives such as total company sales percentages and/or access to membership prizes as your own business grows.

Who are LuLaRoe?

With a vision to help others succeed, LuLaRoe was founded in 2013 by DeAnne Stidham and is based in Corona, CA in the United States. The company promotes itself as a “community of social selling entrepreneurs, offering individuals the opportunity to achieve their dreams by connecting people to a product”.

What do they Sell?

LuLaRoe are a fashion based site that sells a complete range of apparel to suit all shapes, ages and seasons. Their product line is quite decent with ranges in the following categories:

• Bottoms
• Dresses
• Denim
• Layers
• Leggings
• Skirts
• Tops

There is also a small number of tops and shorts for men as well.

Item costs appear to fall into the low to medium price range of around $20 to $100 per piece keeping it in line with MLM based competitors such as Matilda Jane and Cabi.

MLM Program outline

The LuLaRoe MLM program calls their members ‘Independent Fashion Retailers' (IFRs) who are part of what appears to be a fairly simple program with a basic retail and downline commission structure with a couple of extra bonus options thrown in for good measure. I was unable to locate their compensation plan on their website and whilst it didn't pop up cleanly on a web search, I was able to eventually locate a copy. From that, and some of the information found on the sites of other IFRs, I have been able to cobble together some base details as per below (happy for you to comment below if any of this is inaccurate):

As with the most MLM programs, downline commissions are determined by the total personal volume (PV) generated by the IFR and their down line within a calendar month. Most MLM programs manage it this way in that commissions are paid on the points assigned to a product rather than the entire sales total. From what I can tell, LuLaRoe calculates its PV points on the retail dollar amount of the sale meaning that if a product sells for $20 to purchase then commissions are calculated on the full $20 (not including tax and shipping).

You Are Reading This Because of Wealthy Affiliate

That's right! Wealthy Affiliate provided me with all of the tools and training I needed to get this post in front of my audience - a.k.a YOU!

You too can start your very own online business here that can make you money from anywhere in the world!!  

See How I Built My Affiliate Site Here

How can I get paid?

LuLaRoe offers IFRs an interesting mixture of ‘old and new' MLM sales processes with its main promoted avenue being via the traditional in-home pop up boutiques. This process is really a throw back to the good old party plan days in that an IFR needs to convince someone to hold a showing and invite their friends. Then there is the more modern option of running shows via avenues such as FaceBook live and their online boutique.

The compensation plan is not as easy to comprehend as some but from what I can work out (again, happy to be corrected below), there are 7 payment options for the LuLaRoe MLM program as follows:

1. Retail Sales Profits

Retail Sales Profits are the base profits earned by IFRs from their day to day sales options. There is no clear commission rate as such rather the profits are earned on the difference between the wholesale price that the IFR pays for the item (as part of their packs) and the retail prices that they end up selling the item for.

2. Sponsor Compensation

Sponsor Compensation is paid at a rate of 3% on the retail sales of all personally sponsored IFRs.

To qualify for Sponsor Compensation (and as a starting point for all further payments), IFRs must generate personal Retail Sales totalling 65 Pieces with a minimum total of $1,950 for the calendar month and an average price per piece of at least $30.

3. Downline Commissions

In addition to the Sponsor Compensation above, IFRs at rank of Trainer and above qualify for 1.8% of all sales generated by those within their down line that they have not personally sponsored (i.e. those sponsored by members of their down line).

Below is an example of this process for the Trainer rank:

4. Graduated Leader Commissions

The Graduated Leader Commission is a ‘generation' type commission common to many MLM programs designed to encourage sponsors to nurture their down line to higher ranks. In this case, sponsoring IFRs earn an extra 0.6% of the total down line sales of any Graduated Leader (Trainer of above ) within their team.

5. Sponsor Tier Ranks

As IFRs progress through the ranks within the LuLaRoe compensation plan, they can qualify for once off payments for each tier that they can reach. There are three tiers per rank based on generated sales and down line numbers with an example for the Sponsor rank as follows:

Payment amounts and generation thresholds rise at each rank level.

6. Leadership Pool

The Leadership Pool is another common MLM bonus option designed to reward those who reach the higher ranks via percentages of total company sales. The leadership pool is 1.2% of the value of company wide retail sales and paid out of a points systems – i.e each point is worth a percentage of the total Leadership pool. Points are designated as follows:

7. 90-Day Fast Start Bonus

The 90-Day Fast Start Bonus, designed to encourage newly signed IFRs to hit the ground running with sales targets within their first three months, is paid as follows:

To qualify, new members need to sell at least 175 pieces a month with a minimum of $5,250 in Retail Sales for each of their first 3 months in business and an average price per piece of at least $30.

You Are Reading This Because of Wealthy Affiliate

That's right! Wealthy Affiliate provided me with all of the tools and training I needed to get this post in front of my audience - a.k.a YOU!

You too can start your very own online business here that can make you money from anywhere in the world!!  

See How I Built My Affiliate Site Here

Ranking structure

LuLaRoe, as with most MLM programs, uses ranking structures on which to base commission payments and other bonuses upon. Rankings for the LuLaRoe MLM program are as follows:

Again, as is common with almost all MLM programs, rank progression is determined by both the number of members within down line legs, and the total sales made by those legs per month. Ranks can rise and fall based on the ability (or dis-ability) to reach the required member and sales targets.

What is good about it?

So, after a good look around the site and looking at all the options I could find, I do like the following:

• Commission rates for retails sales are good.
• Good variety of product at a decent price.
• Women's fashion is a lucrative market.

What is no so good about it?

There are also some things to be aware of including:

• There are not the full array of bonuses that are evident in other programs within this niche.
• Joining and ongoing costs are extremely high.
• Downline commission rates are quite low.
• Company is currently fighting a number of lawsuits.

How much can you make?

I was unable to locate projected income figures on the LuLaRoe website however as with most MLM programs, the percentage of members making the upper rank levels – and hence earning a living – is usually very low. I also suggest a little more research here for ex member feedback too – I have not included it here as it cannot be verified but again, do your research.

My final thoughts

Can you make money with LuLaRoe? Look, MLM is not an easy platform to make money in and there is not much here to put this program above the many others I have seen. To be honest, unless you are an absolute fashion nut with a large customer list at your disposal and willing to run a lot of old-fashioned MLM party plan style fitting sessions, I would carefully consider this one before entry.

The main red flag for me is the ongoing costs of constantly having to keep your demonstration stock up and although there is the option to make sales online, feedback from current and old members state that it will take around 15 – 20 demonstrations to make your money back from the kit purchases before any profit is made. This one does have a few more bonus payment options than others within the niche however base down line commissions rates are quite low.

Reviews

Again I have to be honest, a simple search for “LuLaRoe complaints” reveals a long list of articles outlining the company's fall from grace in recent times due to everything from ongoing complaints about flimsy leggings that tear easily to the Washington Attorney General's accusation of them being nothing more than a pyramid scheme (although that is leveled at most MLM company's these days).

There are also posts outlining lawsuit action from suppliers in regards to unpaid bills (and some alleged unsavory comments from the CEO about refusing to pay them – although they have counter sued as well) and class actions in regards to substandard products. I have not seen the formal documentation for this but again, would strongly recommend doing this research as part of your due diligence.

Conclusion

So there you have it, my honest review and appraisal of the LuLaRoe MLM program. I hope it has been of assistance but as usual, if you have any questions or experience with this program please do not hesitate to reach out by commenting below – especially if any of my information is inaccurate.

Are there any other programs you have been looking at but want to know more about? If so, please comment below and I will do my best to get some details for you.

Do you want further assistance with any of the above or need help to build your own fashion based website?

Are you looking for a comprehensive training platform that can give you step by step training, 24/7 support, tools to develop and host your very own website, ongoing assistance with SEO and social media and access to some of the best affiliate marketing minds on the planet, then click on the following link to read more about Wealthy Affiliate.

Until next time

Have fun

Paul

Note: If you make a purchase from this page, there is a very good chance that I make a commission from it – these commissions do not increase your sale price. This may include sales made via Wealthy Affiliate.

LuLaRoe MLM Program

$499+++++

2.6

Clarity of Information

4.0/10

Commission Structure

4.0/10

Cost to Enter

1.0/10

Ongoing Cost Requirements

1.0/10

Bonus structure

3.0/10

Pros

• Commission rates for retails sales are good.
• Good variety of product at a decent price.
• Women's fashion is a lucrative market.

Cons

• There are not the full array of bonuses that are evident in other programs within this niche.
• Joining and ongoing costs are extremely high.
• Downline commission rates are quite low.
• Company is currently fighting a number of lawsuits.

Introducing Wealthy Affiliate, My #1 Recommendation for Setting Up Your Own Online Business

When I started, I knew I wanted to work online, but had absolutely no idea where to begin! You see I had watched friends of mine run a sales party to sell essential oils and someone asked if they could just sell them online?

Then, as I sat on the bus heading into my office job, I started to wonder if I could do just that, sell essential oils online.

Anything to stop having to catch this bus to and from work every day right!

The trouble was, as I mentioned above, I had no idea how to even start.

So of course I started to look around online and found all these courses! They all promised me riches then took my money but left me with no riches!

Then I stumbled across the program that didn’t promise me riches, but told me it could help me get started even with no experience!

So I did that, joined Wealthy Affiliate that was it, and the rest as they say, is history!

But it doesn’t come without work!

That is the key here! I began on their starter membership and did the training! I then joined as a member and did some more training!

Each night after work, I would do a little more, then a little more.

And to cut a long story short, after 10 months I realized I didn’t really like writing about essential oils, so I sold the site for about $2000. But I had learned so much that I started another – about fishing and camping!

Then, after 18 months (by which time it had earned me close to $10k), I was offered $17k for the site, so I sold it too.

Now, through my travel blog, I’ve been able to fund my passion for travel and explore different places around the world.

In the past few months, I’ve been fortunate enough to travel to some amazing destinations, including Bali, Los Angeles, Dallas, Vancouver and Las Vegas.

The success of my travel blog has allowed me to fully fund my travels and explore new destinations with my family.

Try the Wealthy Affiliate as a Starter Member and Build your First Hub!

As you start your journey, Wealthy Affiliate is there for you with the most comprehensive training package I have ever seen – And as I have mentioned, I have used a few in my professional career trust me.

To get you started, Wealthy Affiliate has recently introduced the Hub.

The Hub

The hub is an AI based niche and website creation tool that will get you up and running with the foundation of your OWN business in just a few minutes. This includes:

• Your website – hosted and inclusive of a WordPress editor
• Your brand
• Your ‘done-for-you’ research
• Your blueprint
• A task list that is going to help you drive the creation and growth of your business moving forward.

The hub makes the website creation process simple which allows you to get started on the training with a solid base and understanding of the processes.

All you need to do is choose your subject – which is known as your ‘niche’ – and follow the steps on the screen.

Oh, and as you run through the training below you may realize that what you created above is not exactly what you want. That’s ok, you can just create a new hub!

Access All the Tools You Need to Start Your Online Business Here

Wealthy Affiliate Training

Then as you continue your journey, the Wealthy Affiliate Hub is there for you with the most comprehensive training package I have ever seen – And I have used a few in my professional career trust me.

Above we discussed the use of the Hub to set up a website. Once you have done this, you will be able to access the “Step-by-Step Core Training”.

This is available to all members including starter members and will give you everything you need to know to continue to create your online business.

Member Training

There are also Live weekly classes taught by REAL industry experts on a range of topics like artificial intelligence (AI), SEO, YouTube, WordPress, PPC marketing and more.

Great, What Else Does Wealthy Affiliate Have To Help You?

So, let’s keep this short, Wealthy Affiliate is a one-stop-shop platform that provides:

• The Hub – this is the starting point and uses AI processes to assist you in determining your niche and creating your brand.
• Complete training programs to assist with the development of your own affiliate marketing website in your own niche.
• Website creation and publishing tools including access to WordPress editors and themes.
• AI Content article design and content creation
• Domain name purchasing (you get a free domain when you upgrade to the Premium membership).
• Website hosting, security and backup.
• Online help and chat forums.
• Weekly live training events.
• 24/7 support.
• Keyword access tools.
• SEO assistance.

The platform has been active for over 15 years with the original developers and owners, Kyle and Carson, still extremely active in its day to day operations – especially as they rollout their AI capabilities.

You Can Try it Yourself For Free

Now of course I can tell you all about how Wealthy Affiliate works (because it does) until I am blue in the face. But every other program out there – including the shams and scams – will tell you the same thing!

So how about you just try it for free yourself. The Wealthy Affiliate Starter membership is free to join and gives you access to everything you need to get started – all without the need to spend a cent!

With the starter membership, you get:

• 1 Limited Business Hub
• 1,500 AI Word Credits
• Try the AI Author Platform (BETA)
• 1 Practice Website
• Jaaxy Starter
• Limited Help & Support
• Core Niche Training (8 Classes)

And of course I will be there to help you every step of the way as well!

Look, in the interest of transparency, whilst Wealthy Affiliate does offer a free starter membership, this is designed to give you a look around, have a practice and see if it is worthwhile for you – which is a really great option.

However, as with all new businesses, you will need to make some investment so if you are serious about making money online , you will need to upgrade to a premium membership as this will give you access to all the tools you need in the one spot to succeed!

Afterall, every business needs tools to grow!

Access All the Tools You Need to Start Your Online Business Here

So How Much Does This Really Cost?

Wealthy Affiliate does not use upsells once you join – but as I mentioned in the video, to succeed here you will need to invest in a membership. There are a couple of options that provide access to all the tools, training and assistance that you could need – and a free domain as well.

Wealthy Affiliate offers a trio of membership tiers, as detailed on their pricing page.

You can opt for the Starter membership at no cost, the Premium membership for $49 per month or the Premium Plus+ membership for $99 per month. That’s the full extent of it – and you can absolutely build your website without having to spend another cent.

You won’t encounter any unexpected additional charges or covert fees and as a Premium member, you’re equipped with all the essentials to initiate, develop and expand a thriving online enterprise.

Those who opt for the Premium membership are provided with

• Hosting for their websites
• A complimentary domain name
• Access to hundreds of hours of current expert tutorials
• Various marketing and research tools
• Personal guidance from seasoned professionals in the field
• And much much more

And for those of you who want to make a serious investment into your future, there are some yearly options as well below to give you peace of mind that you have a whole year ahead of you to get stuff done!

Access All the Tools You Need to Start Your Online Business Here

And Don’t Forget the Personal Coaching

Once you join, not only do you get plenty of assistance from me, but you also have access to expert coaching, support and mentorship from real industry experts.

I mean, you can have access to all of the top-tier affiliate marketing training in the world, but inevitably, questions arise, particularly during the initial stages.

With an exceptionally dynamic and engaged community that boasts over 2.7 million members, Wealthy Affiliate offers an environment where you, as a member, can fully immerse and leverage this network.

You’re never alone; you have the collective wisdom of an entire community at your fingertips, ready to assist at any moment.

Plus, there’s always-on, rapid-response website support to handle any technical queries you may encounter.

Wealthy Affiliate Works: Real Results From Real People

As I have mentioned a number of times, Wealthy Affiliate has helped me make real money online though its training and tools.

I have made money each month as well as a sale for $17,000.

But again, those promoting other programs will tell you the same thing!

So let’s get away from me and see what others are saying:

To start with, Wealthy Affiliate has a 4.9 out of 5 Star TrustPilot rating, which is a remarkable accomplishment in any industry, let alone the online business industry.

And here are some of those reviews:

And this is what people are saying within Wealthy Affiliate as well:

So, Let’s Make a Decision!

Let’s be frank, you have read this far so why not go all in, click on the button below to get started on the way to your very online business.

Access All the Tools You Need to Start Your Online Business Here

And once you are in and have had a play around with the hub, look for the little envelope on the top right and there will be a message from me. It is of course automated so respond to let me know you are there and we can start this journey together.

(oh, and the profile is mine so you can find me that way as well)

See you there

Paul