LuLaRoe Company vs. Affiliate Marketing Wealthy Affiliate)
I came across an article on MSM by Bloomberg about this company that offers women the opportunity to become business owners and provide for themselves a livable income that will allow them to live better lives. After reading the article, I thought that Wealthy Affiliate Would be a better deal
According to Bloomberg, the company was founded by Mark and DeAnne Stidham in 2012 when DeAnn made a skirt for her daughter and received 300 orders for the skirt in two days.
The company is being called a scam by thousands of women, And there are over a dozen lawsuits now facing this company.
Is this company really a scam, and can the money be made by joining this company? That is the question I will be trying to find out in this post.
This is the promise that LULaRoe makes to its clients or consultants
Be Your Own Boss
Have More Time for What Matters
Live the Best Life
Achieve Your Dream
Great promise, this is what we all want out of life but can this be achieved by selling for LuLaroe. To start, it will cost $5000- $6000, and you will need more money to purchase hangers and racks; and the person in the video I saw suggested if you do not have the money that you find the money by borrowing from friends and family, or using a low rate credit card.
What is being suggested is you get into debt to start your Lularoe retailer business. It’s important to understand that if you borrow money, you are increasing your debt at risk. After all, if your Lularoe business doesn’t succeed, you’ll still be in debt.
What is the difference between an MLM and a pyramid scheme? According to Wikipedia, The difference between a pyramid scheme and multi-level marketing is that multi-level marketing provides an actual product or service.
A pyramid scheme is a business model that recruits members via a promise of payments or services to enroll others into the scheme rather than supply investments or sell products. As recruiting multiplies, recruiting becomes quickly impossible, and most members are unable to profit; as such, pyramid schemes are unsustainable and often illegal.
Wikipedia further describe Multi-Level Marketing (MLM) thus;
Multi-level marketing (MLM), also called pyramid selling network marketing. Referral marketing is a marketing strategy for the sale of products or services where the revenue of the MLM company is derived from a non-salaried workforce selling the company’s products/services. In contrast, the earnings of the participants are derived from a pyramid-shaped or binary compensation commission system.
Although each MLM company dictates its own specific financial compensation plan for the payout of any earnings to their respective participants, the common feature across all MLMs is that the compensation plans payout theoretically to participants only from two potential revenue streams.
The first is paid out from commissions of sales made by the participants directly to their own retail customers.
The second is paid out from commissions based upon the sales made by other distributors below the participant who have recruited those other participants into the MLM; in the organizational hierarchy of MLMs, these participants are referred to as one’s downline distributors.
MLM Sales Rep
MLM salespeople are, therefore, expected to sell products directly to end-user retail consumers through relationship referrals and word of mouth marketing, but most importantly, they are incentivized to recruit others to join the company’s distribution chain as fellow salespeople so that these can become downline distributors
According to a report that studied the business models of 350 MLMs, published on the Federal Trade Commission’s website, at least 99% of people who join MLM companies lose money.
Nonetheless, MLMs function because downline participants are encouraged to hold onto the belief that they can achieve large returns, while the statistical improbability of this is de-emphasized. MLMs have been made illegal or otherwise strictly regulated in some jurisdictions as a mere variation of the traditional pyramid scheme,
Lularoe has 4 tiers, regular consultants, trainers, coaches, and at the very top mentors, and a way to move to the top is by signing up new consultants.
In LuLaRoe, the rule is you MUST buy an inventory package. You can’t take orders from customers and then go to the company and get what you need.
You have to get a package, and you must sell from that. And the inventory is chosen for you don’t get to choose your inventory. You can make some selections regarding the types of products, but you don’t choose the colors or patterns.
With this rule, you most likely will end up with products you can’t sell because they’re the wrong style, size, or pattern for your clientele.
These are what the LuLaRoe inventory packages consist of
Package #1 – $4,812 for 336 pieces
Package #2 – $5,365 for 365 piece.
Package #3 – $6,784 for 463 pieces
LULaRoe management recommends that consultants should have about 700 to 800 pieces of inventory on hand at all times.
That’s about $15,000 to $20,000 wholesale cost in inventory. And when re-ordering, you must order 33 pieces at a time. So that’s about $500-$800 that you must spend each time you order.
You can order the size and style of the pieces you order, but you can’t specify the print. You get what you get.
The bottom line is that it’s costly to get started with LuLaRoe. And then there’s the LuLaRoe inventory problem.
So at all times, you must plan to have items left that you can’t sell whenever you order. As a result, your unsellable builds up, and that’s money that is lost to you.
Many women did not think about the amount of inventory that would go unsold and how much of your money from your profits would be lost.
Getting Paid On Your Down Line
The core of All MLM companies is an endless chain of recruiting people; the business is continuously recruiting new people.
Many recruits tend to leave the MLM because almost no one makes money (and therefore, they drop out when they realize that).
To keep the company afloat, the remaining participants must keep recruiting new members. And it is a well-known fact that over 78% of consultants ( the lowest level) receive no commissions/ bonuses from their downline.
As with all MLM, you can get paid commissions on your downline, but only if you purchase products too.
Now, if any of you ladies are thinking of joining LulaRoe, I would advise you to think carefully before doing so; there are many videos on youtube of former consultants who quit LulaRoe link to a video below of a LuLaRoe consultant who has quit.
Wealthy Affiliate Is a better source for making money online; at wealthy affiliate, you can join for free; this is not an MLM company you, will not get rich overnight you do not have to have a downline have to work, be patient and dedicated.
Wealthy Affiliate is an online platform and community of Internet and affiliate marketers.
The platform was started in 2005 by Kyle and Carson and now has over 1.4000.000 members from 193 countries.
Wealthy Affiliate is a platform for all affiliate marketers. Whether you are just getting started, have some experience, or are an already successful affiliate marketer, Wealthy Affiliate is made for you!
You can become a member of Wealthy Affiliate at no cost, and your free membership will never expire
- 1 Website
- Website Backup
- Beginner Training Course
- Personal Affiliate Blog
- Affiliate Bootcamp Training – Phase 1 Only
- Video Walk-Throughs
- Keyword Research Tool – 30 Searches
- Training Classrooms – 2
- Affiliate Program
- 1-on-1 Coaching – First 7 Day
You can join for free to build your website; no design skills are needed; follow the instructions, and your website will be up and ready for business in 30 seconds. And you get 12 themes to choose from for your website.
And the business you will be promoting can be anything you have a passion for, and that could become your niche; if you are still having difficulty choosing your niche, you will be assisted.
There are also proven strategies to draw an audience to your website, and you will be taught these strategies.
Can you successfully run a business using the free membership option? I have heard of different persons doing it, but I would recommend upgrading to the premium membership, especially if you are new to online marketing.
With the premium membership, you get so much more information and tools that reaching your goals is more assured.
Live Help – Unlimited
- Private Messaging – Unlimited
- 10 Websites
- Website Security Package
- Website Backup
- Beginner Training Course – Full Access
- Personal Affiliate Blog
- Affiliate Bootcamp Training – All Phases (7)
- Live Video Classes
- Video Walk-Throughs
- Keyword Research Tool – Unlimited Searches
- Training Classrooms – 2
- Affiliate Program – 2x Higher Payout
- Earn While You Learn
- 1-on-1 Coaching – Unlimited
- Private Access to Webinars
- 24/7/365 Website Support
- Website Feedback Platform
- Website Comment Platform
- Website Analysis
Suppose you are really serious about building a successful online business, then premium up-grade to go. And the cost is $49.00 per month, or $234.00 per 6 months or yearly for $395.00.
I joined for a free look around the platform, build my website, choose my niche, write my first blog post, then went monthly. After a month, I went to a retiree with no previous experience in online business and a writer I am not.
But after 8 months, I now have 2 websites. I have not reached my goals as far as earnings are concerned, but things are picking up,
I know success does not happen overnight, and I know it takes time, and I am satisfied with the results so far.
As the great Brazilian soccer player Pele said: “Success is no accident; it is hard work, perseverance, learning, studying, sacrifice, and most of all a love for what you are doing.”
With the online business, not only will you earn money to help to pay your bills, but this income can become a passive income because some of your income will become residual,
Give Wealthy Affiliate A Try
So Please give Wealthy Affiliate a thought, especially if you are retired or soon to be retired and even if you are young and have years before you retire, take a look at the Wealthy Affiliate platform it cost $0.00 look around build your first website write your first post see it on google( that made me feel so good) and if you do not think it is for you-you would have lost nothing.
Should you desire to give Wealthy Affiliate a try, click on any of the links in this post, and I will be notified; I will get in touch with you to show you around our wonderful platform, and I will be there to answer your questions along with the whole WA community. Still, I will be available to you be a mentor, so to speak.
“The community support at Wealthy Affiliate is also arguably one of the most active and helpful communities in the affiliate marketing niche – pretty rare if you ask me.”
I saw this comment left by a blogger from another site, and this statement is true.
Thank you for taking the time to read my post; it is really appreciated, and should you have a comment or question; please leave it below in the spaces provided, and I will reply.
This post includes affiliate links, which, if clicked on and a product purchased, I get a small commission (with no increase in cost to you).