• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Home
About Us Contact Us Advertising
Articles
Budgeting Debt Frugal Insurance Investing Making Money Retirement Saving Money
Tips
Money Saving Tips Trash Audit
Make Money Forums Blogs
Create a Blog Control Panel All Entries All Blogs
Tools
Calculators Prescription Drug Coupons Online Savings Accounts Test Your Knowledge Financial Directory Credit Cards

SavingAdvice.com Blog

Bridging the gap between saving money and investing

Subscribe

 

Join Now or Login

  • Home
    • Advertising
  • Tips
    • Money Saving Tips
    • Recycle, Reuse and Repurpose
  • Make Money
  • Credit Score Guide
  • Forums
  • Blogs
    • Create a Blog
  • Tools
  • Financial Basics
    • Back to Basics: Saving Money
    • Back to Basics: Beginners Guide to Retirement
    • Back to Basics: What Every Child Under 10 Should Know About Personal Finance
    • Back to Financial Basics: Investing In Stocks

What is the LuLaRoe Business Model?

February 23, 2017 by Jennifer Clark

lularoe business model
Millions of MLM companies emerge but not all are as successful in their efforts like LuLaRoe (LLR) so early on. Not only are women in communities across the nation going crazy over the LLR merchandise, but they are signing up left and right to be sellers as well. So, what is their secret? What is the LuLaRoe business model?

What is LuLaRoe?

For those of you who are still unsure what LuLaRoe is, it is a direct sales company geared toward women that sells fashionable yet comfortable clothes. Actually, the business tagline is: “Where fashion meets comfort.” It initially became popular through their leggings, which come in various colors and unique patterns. Recently, they expanded what they offer and now carry tops of different styles as well.

How does it work?

During a previous interview on what makes consultants successful, Leslie* told SavingAdvice that individuals will invest an initial $4,000 to $6,000 of their own money. These costs go to an initial start-up kit, from which, upon receiving, you can immediately start selling. Sellers can expect to make a 35-60% profit from each item sold. It is important to note, though, that this $6,000 does not include any additional business costs that may be necessary, such as hangers, storage for the inventory, marketing costs, and so on. Despite this, this does not seem to be too much of a deterrence for women looking to become a part of this multi-level marketing company. Also included with the initial costs are tools and tips to get started along with a coach. This person serves as a motivator and mentor in helping you become successful as a LuLaRoe consultant.

You continue to purchase your inventory wholesale and host “pop-ups” online, and as you increase your sales, both through coaching and direct selling, you are also paid bonuses through LLR headquarters. According to their income disclosure statement, the average overall bonus amount paid in 2015 was $91.65 per person.

Related Articles:

Is LuLaRoe a scam?
What is the LuLaRoe Business Model?
What Does it Take to be a Successful LuLaRoe Consultant?
Commonly Asked Questions About Being a LuLaRoe Consultant
Is LuLaRoe Worth The Price?
Is LuLaRoe a Mormon Company?
LuLaRoe Startup Costs
Is LuLaRoe a Pyramid Scheme

What is the LuLaRoe business model?

When you are a part of LLR, you are marketed as a fashion consultant but you do not receive a salary or freelance fee from the company. Sellers are responsible for their own taxes, as any independent contractor would be. Profits are based on sales, and as you recruit people to sell under you over time, you would be considered their “upline” or coach, allowing you the opportunity to make more money. However, coaches also take on the responsibility of essentially managing their “downlines” by consistently following up on their sales, giving them the tools to increase their own income and more.

Each seller receives different inventory and may contain some pieces that are considered “unicorns;” that is, very rare patterns in high-demand. This allows multiple consultants in one area without selling the same exact product, which is different than those with Avon or a similar MLM. This is one of the aspects that makes it particularly attractive for women to become involved as more than just a consumer. Not just that, but their merchandise is only available to buy through people; there is no online store nor is there a brick-and-mortar for people to visit. LuLaRoe is all about the face-to-face interactions with sales.

For any business, it typically takes money to make money, and this holds true with LLR too. Although you hear stories of many consultants who make enough of a profit that they were able to quit their job in six months, this is not always the case. Although the company attempts to give you the tools needed for success, it is ultimately up to you to ensure it works out.

The LuLaRoe business model was developed as a way to provide stay-at-home moms with a viable source of income, while also tapping into their creative side. Basically, LLR consultants are treating this as their own business, but with some limitations due to branding guidelines and policies. This creates a sense of entrepreneurship to the women involved while also reducing employee costs to the company.

Is it sustainable?

According to this Business Insider article by Hayley Peterson in September 2016, moms across the nation are making a substantial profit. In fact, many of these women actually claim to be consistently making six figures annually. The proof appears to be in the numbers, but only time will tell if LuLaRoe can continue to adapt to maintain its success as a business.

What are your thoughts on the LuLaRoe business model?

 

Photo credit: Flickr user wild_cherry_1228

Reader Interactions

What did you think about this article?
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Comments

    Leave a Reply Cancel reply

    Your email address will not be published. Required fields are marked *

    Primary Sidebar

    • Articles
    • Tips
    • Make Money
    • Credit Score Guide
    • Forums
    • Blogs
    • Tools
    • About
    • Contact

    Subscribe to Our Newsletter
    Your subscription could not be saved. Please try again.
    Your subscription has been successful.
    Copyright © 2025 SavingAdvice.com. All Rights Reserved.
    • Privacy Policy