Counting My Pennies

  • About
  • Contact
  • Extra Money
  • Popular Posts
  • Toolkit
  • Privacy Policy

Can I Make Money Selling LuLaRoe?

August 1, 2016 By Megan Smith 7 Comments

Can I make money selling lularoe?Over the past few months, I have seen a lot of new LuLaRoe businesses popping up.  LuLaRoe is a company that sells clothing (mostly women’s, though some children’s and men’s) through home-based parties and internet parties.

I have purchased a couple of pieces of LuLaRoe clothing, both in parties held by friends and parties held through Facebook.  I like some of their stuff.  It’s cute.  But I worry about the number of people getting into the business.  This is most definitely not a quick way to get rich.  Like many small businesses, it takes a lot of hard work and organization.

I think when people think home businesses, they think of things like Tupperware or Mary Kay, which have changed over the years.  Instead of a consultant showing up to your house with product to sell, they have samples to show and items to display, but then you place your order, which either gets shipped to you or the consultant delivers.  This is a great business model because the consultant doesn’t have to spend a fortune on stock, and it’s easier to make back your initial investment.

LuLaRoe is a different model.  Consultants purchase their stock and then resell.  So their initial outlay is a lot better. A bit of research shows me that the initial required investment is $4800 and $6800, depending on which package the consultant purchases.  And while they get to choose the style, they don’t choose the size or the pattern.  So they’re stuck with whatever they get in their order.

I’ve heard both $15 and $18 as the average profit per item sold, so let’s assume the number is in there.  If the profit is $18, that means selling 266 items to just break even on your initial investment of $4800.   That package has 336 items, so that’s when you can start making profit.

Oh wait, but that’s not your only expense.  The consultants I know have had to purchase portable clothing racks for in-home shows as well as a whole lot of hangers.  So many hangers.  Then there’s the at home storage – typically giant Rubbermaid bins.  Yes, hangers and bins aren’t that expensive, but you’re only making $18 per item, so it adds up. The most successful consultants seem to be the ones who host online shows on Facebook, and to do so, they often purchase a mannequin and a backdrop to make their photos look good.  A smart consultant will also buy some sort of additional business insurance to cover the stock in their home, because frequently, your home owners coverage isn’t enough.

But let’s say you still want to do it.  This isn’t some get-rich-quick business.  Anyone who owns a business will tell you that it’s a lot of hard work.  A consultant will need to carefully photograph all of your items. You will need to host parties, either in person or online. Prepping for these parties takes a few hours, and hosting takes a few hours.  You will have to do a lot of marketing to get the word out about your business.  (Oh, and if you’ve got someone willing to host a party for you, you will owe your hostess some sort of hostess rewards, often a percentage of the sales, so that cuts into your profit.)

Of course, like most of these businesses, if you manage to bring someone else into the company, you will receive a fee based on the cost of the items they purchase.

So this all sounds okay.  You’re ready.  You have the time.  What’s the downside?  Well, remember how you can’t pick out the patterns or sizes you get?  What happens if you get items that just don’t sell?  That certainly cuts into your profit.  If you’ve shopped LuLaRoe, you’ve seen consultants with items they’re selling at a discount, typically less popular patterns or sizes.

Now, this doesn’t mean that I think you shouldn’t do it.  But you have to be ready to really work your business.  You can’t just sit back.  While it may not be full time, this is a solid part-time job that can easily take 20+ hours of your week.  You have to constantly be marketing and reaching out to new customers.  And you have to constantly be putting money back into the business to get new patterns and new styles to keep your existing customers happy.

LuLaRoe isn’t a get rich quick scheme.  But with hard work and commitment, it’s a business you can make work.  Just be aware of the risks.

Finally, my friend James over at savingadvice.com did a rather nasty piece on LuLaRoe – pretty much saying its a scam, check out here.

For more on LuLaRoe, how to get started and other ways to make extra money check out these articles.
LuLaRoe Startup Cost
How Do I Buy LuLaRoe?
What is Multilevel Marketing?

Filed Under: hidden fees, selling Tagged With: business, lularoe, starting a business

Comments

  1. Hack Fb password? says

    December 28, 2016 at 10:17 am

    Simply wish to say your article is as surprising. The
    clearness to your put up is just cool and i could suppose you are an expert on this subject.
    Well along with your permission allow me to snatch your RSS
    feed to stay up to date with imminent post. Thank you 1,
    000,000 and please carry on the gratifying work.

  2. Hack Fb password? says

    December 28, 2016 at 10:17 am

    Simply wish to say your article is as surprising. The
    clearness to your put up is just cool and i could suppose you are an expert on this subject.
    Well along with your permission allow me to snatch your RSS
    feed to stay up to date with imminent post. Thank you 1,
    000,000 and please carry on the gratifying work.

Trackbacks

  1. Can You Make Extra Money Selling LuLa Roe Clothing? | Newlyweds on a Budget says:
    September 12, 2016 at 7:10 am

    […] your earnings by bringing someone else in the company to sell products as well. According to this review of the company, consultants can receive a fee based on the cost of items their new recruit […]

  2. What is Multilevel Marketing? « Counting My Pennies says:
    November 14, 2016 at 9:02 am

    […] product.  That’s where you can get into trouble.  (If you haven’t already, read my warnings about LuLaRoe.)  Many of them just have a start-up package and then you pay for your online […]

  3. How Do I Buy LuLaRoe? « Counting My Pennies says:
    February 6, 2017 at 8:01 pm

    […] For more on this, check out my articles on LuLaRoe start up costs and making money with LuLaRoe. […]

  4. Should I List My Home on Airbnb? « Counting My Pennies says:
    March 28, 2017 at 10:08 pm

    […] Can I Make Money Selling LuLaRoe? How to Make Money While You Sleep Surprising Facts About Money Making Revealed by an Old pPro […]

  5. LuLaRoe Dani - Another Don't Buy - Counting My Pennies says:
    July 10, 2019 at 5:17 pm

    […] have written a lot about LuLaRoe and how they take advantage of their sellers and they sell a terrible quality product for […]

Leave a Reply Cancel reply

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

Join Our Newsletter
  Thank you for Signing Up
Please correct the marked field(s) below.

1,true,6,Contact Email,21,false,1,First Name,21,false,1,Last Name,2




Follow Us

  • Facebook
  • Pinterest
  • RSS
  • Twitter

Our Most Popular Articles

  • Another MLM Gone – AdvoCare Changes Business Model by Megan Smith
  • What are the advantages and disadvantages of saving money? What are the advantages and disadvantages of saving money? by Megan Smith
  • Billie razor review Billie Razor Review by Megan Smith
  • Can You Earn Money Selling Young Living? by Megan Smith
  • lularoe dani LuLaRoe Dani – Another Don’t Buy by Megan Smith
  • Is Rakuten a Scam? by Megan Smith




Great Investing, Simplified: Get Stock Advisor for Just $99/year!

Survey Junky

Archives

Categories

Copyright © 2021 · Runway Pro On Genesis Framework · WordPress · Log in